1. Describe the specific type of consumer that the Coca-Cola Company is targeting with each of the following products: diet coke, coke zero, coke life. Answer:
Diet Coke was introduced to target the market of women. In the process of its development, it really targets more female consumers than male. Specifically, women who want a healthier life and a low-calorie drinks really love Diet Coke. In the later period, Coca-Cola Company introduced a sweeter version of Diet Coke which is targeting the male consumers who want lower-calorie, healthier, and better tasting drinks. Coke Zero’s specific consumers are men who want a healthier drinks, but at the same time, they also pursue the classic taste and a cool package of Coke. The specific type of consumers of Coke Life is people who want a healthy life and also want to enjoy their life such as drinking what they really like. What types of benefits sought, usage rates, demographics, and lifestyle segmentation is each product’s marketing most likely to include? Answer:
Benefit sought segmentation (segmenting markets according to the benefits they seek from the products) Consumers prefer a healthier drinks. In order to having a healthy life, they are willing to sacrifice their tasting. Consumers pursue a healthy life, but at the same time, they want to pursue the great taste like classic taste of Coke. Consumers can balance their life very well. On the one hand, they experienced a healthier life. On the other hand, they also want to enjoy their life including drinking what they want to drink. Usage rates segmentation (dividing a market by the amount of product bought or consumed) The usage rates of Diet Coke is dropping after the introduction of Coke Zero. Diet Coke’s value sales dropped 0.5 percent. (Joseph, 2015) The usage rates of Coke Zero is higher in many regions. Sales volume is up 34% in North America year to date versus the same period in 2006. (Howard, n.d.) The firms’ sales are expected at $1.93 billion. (Business Daily, 2014) The usage rate of Coke Life is optimistic because it sales are tracking above target. The present usage rate is moderate. Demographics segmentation (segmenting markets by age, gender, income, ethnic, and family life cycle) The targeting market is female consumers with aging above 20, who want to live a healthy life. They are distributed in every ethnic, every level of education and income. (Our Products, n.d.) The targeting market is mainstream male and some female consumers between 18 and 39 years old, who are pursuing a healthier life. The income level is higher because they are willing to pay more for their health. (Products & Ording, n.d.) The primary target market is young between 19 and 35 years old, with fairly affluent, well-educated, and family-oriented. These consumers has abandoned the full-sugar soda. (Bouckley, 2013) Lifestyle segmentation (divide people according to the way they spend time, the importance of the things around them, their beliefs, and income and education) These consumers have a firm belief of health. They sacrifice their preferred taste to obtain health. They are promoting their benefits of daily exercise and good nutrition through a healthy lifestyle. People are changing from eating drunk foods to low- or non-calories products even become a vegetarian. They are pursuing a life with high quality. They have a busy lifestyle and big pressures in this high mobility society. At the same time when they try to live a healthy life, they also drink what they want to balance and enjoy their life and release their pressures.
2. Some industry analysts think soft-drink companies should develop products that will bring new customers into the market rather than just creating variants on the old. They warn that products like Coke Zero and Coke Life will cannibalize market share from other soft drinks in the brand portfolio instead of increasing the number of...
References: Bouckley, B. (2013, Jun 28). Markets. Retrieved from Beverage Daily.com: http://www.beveragedaily.com/Markets/Coca-Cola-Life-Well-Death-doesn-t-have-quite-the-same-ring
Business Daily. (2014, April 11). Retrieved from Nasdaq: http://www.nasdaq.com/article/demand-strong-for-coke-zero-energy-drinks-cm343827
Howard, T. (n.d.). Retrieved from ABC News: http://abcnews.go.com/Business/story?id=3788224
Joseph, S. (2015, May 5). News. Retrieved from The Drum: http://www.thedrum.com/news/2015/05/05/diet-coke-s-sales-dip-product-problem-not-marketing-mishap
Lamb, H. M. (2014). Principles of Marketing.
Our Products. (n.d.). Retrieved from Coke Solutions: http://www.cokesolutions.com/OurProducts/Pages/Site%20Pages/ProductDetails.aspx?ItemID=309&L2=Soft%20Drinks&ItemTitle=Diet+Coke%C2%AE
Products & Ording. (n.d.). Retrieved from MYCCA: https://www.mycca.com.au/products-and-ordering/browse-products/coke-zero
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