Coca Cola Case Study

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Marketing Strategy in Action

Discussion Questions:

1- Discuss the attitude and related beliefs towards Coca-Cola of intensely brand-loyal consumers (perhaps like those who were upset by the new Coke in 1985). How might their attitude and beliefs differ from those of less involved, less loyal consumers? What marketing implications would these differences have? Answer:

For those types of consumers they have a strong positive attitude toward the Coca-Cola brand. And this can surpass what the company can imagine to even reach the level of having a highly emotional and self relevant to the brand; it became associated with consumer’s lifestyles and self-image. Because consumers want to be satisfied, they get satisfied based on past buying experience, brand connotation, the firm’s promotions, the price …etc. all these were available for Coca-Cola’s consumers which made them more than satisfied with it, more over they reached the level that they couldn’t live without it, as it has been a part of their lives. Those attitudes and others made people cross the known limits for being loyal and even go out protesting against the company for its decision to stop producing the old Coca-Cola and replace it with a new one with a different taste. How might their attitude and beliefs differ from those of less involved, less loyal consumers? No doubt there will be big differences between loyal customers and those less loyal ones in terms of their attitudes and beliefs towards Coca-Cola, people who are less involved will not react in the same way as those loyal consumers when the company announced that it will stop the main brand of Coca-Cola, they might be ready to try new types of Coca-Cola and they could easily switch to other brands, because they don’t feel that there is a bond between them and the product, while we can see how loyal consumers feels that Coca-Cola is part of their life, those who are less loyal would not mind trying anything else even if it means not drinking soft drinks and going to other products. For example, when boycott campaigns happen against Coca-Cola, u will find that its loyal consumers find it difficult to boycott it, and will even try to defend it and justify their continuous buying for it while those who are less loyal will boycott in real, and may not purchase it again.

What marketing implications would these differences have?
It’s obvious that marketing implications would be so different, with loyal consumers than those less loyal ones. With loyal consumers the company will have to focus more on maintaining the relationship with them by giving them the feeling of communication with them through giving them hard and soft benefits and having loyalty programs. With loyal consumers the company has to be careful in considering consumers feeling towards the product and making the product associated with a positive memories such as associating it with holidays, parties, graduation, playing a sport with a friend, a first date, or seeing a movie, and having it implemented on their promotion plans. While with less loyal consumers the company will implicate different ways of marketing strategies such as giving them different offers for the product and changing the remaining strategy from time to time in order to gain their loyalty by time “as Coca-Cola did with its loyal consumers”

2- Do you think it possible for consumers to be loyal to more than one brand of soft drink? What about more than one brand of Cola? Discuss the pros and cons of having several brands in a product category (as do Coca-Cola and Pepsi in the cola category). Compare the strategy of line extension to that of creating completely distinct brands for these products. What factors should marketers consider in making this important decision? Answer:

I don’t think it is possible because the word loyal refers to being involved with one only thing and giving all attention to that thing, let’s say in the case of when Coca-Cola decided...
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