Coca Cola Marketing Plan

This is a marketing plan that i completed in college

1. ______________Coca-Cola Company_____________
Coca-Cola Company
Marketing Plan












Vanessa Lyle
April 4
th
, 2010

3. ______________Coca-Cola Company_____________
Executive Summary
The following marketing plan forms the basis for the introduction of an innovative
new product by the Coca-Cola Company. The analysis allows us to outline the best
strategies to follow for the achievement of the company’s strategic goals. “Bubble
Buzz” will be marketed as a unique functional drink while striving to reinforce the
company’s status as the leader in innovation and successful product launches. The
marketing strategies will enable to reach a market size of an estimated 8,688,300
people (targeted) with a forecasted sales growth prospect of 7.3% over the next 4
years ($243,029.47 profits), while satisfying the needs of the still-unserved market for
ready-to-drink bubble tea. Success will be reflected by a sizeable capture of market
shares within this market, while strategically carrying the company up to the top spot
as the market leader in the functional drinks segment of soft drinks. Export potential
will be considered in China.
Mission Statement/Objective
The Coca-Cola Company’s core undertaking is to benefit and refresh everyone it
reaches. The objectives of the marketing plan are strategically centered around 3
criteria: to create a strong consumer awareness towards a completely new bubble tea
product from Coca-Cola, to establish a wide brand recognition through the capture of
market shares in the functional drinks segment, and to become the top market leader
in that particular segment within the forecasted sales figures.
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4. ______________Coca-Cola Company_____________
Introduction
“Bubble Buzz” will be a bottled beverage and will be positioned as the only
ready-to-drink Bubble Tea product available on the market. The beverage will have a
green tea base with enhanced fruit flavors (passion fruit, strawberry and lime) as well
as tapioca pearls. It will bring an entirely unique drinking experience to its
consumers. It will present itself as a funky and unusual alternative to traditional tea
while providing the great taste of authentic fruit juice in an attractive and convenient
packaging.
Objectives
The objectives for the first three years of operation include:
1.To create a service-based company whose primary goal is to exceed
customer's expectations
2.To increase the number of clients served by at least 20% per year through
superior performance and word-of-mouth referrals.
3.To develop a sustainable financial management company that generates
value for their customers.
4.To stay at the forefront as the market leader in innovative product
introductions and successful product launches
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5. ______________Coca-Cola Company_____________
5.To strengthen and satisfy the needs of the more adventurous Generation Y
consumers with a new eye-catching and FUNctional product.
6.To become the market leader in the functional drinks segment with
increased market
Situation Analysis
Industry Analysis
Consumption: The sales volume for the functional drinks segment (ref. D2) in
Canada has reached $342.2 million in 2004 for a volume of 125.9 million liters
(ref.2). This product segment has shown a steady growth since 1999: an increase
of 13.5% over a period of 6 years. The consumption rate per capita in 2004 has
reached 3.94 liters, which represents a 4.0% increase compared to 1999 (ref.3).
The growth of this particular market is largely due to a slow shift in consumer
trends.
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6. ______________Coca-Cola Company_____________
Trends: Through the early 1960s, soft drinks were synonymous with “colas” in
the mind of consumers. In the 1980s and 1990s, however, other beverages (from
bottled water to tea) became more popular. Coca-Cola and Pepsi responded by
expanding their offerings through alliances (e.g. Coke & Nestea) and acquisitions
(e.g. Coke & Minute Maid), but also by focusing efforts on portfolio
diversification. Today, while the soft drink industry’s value has increased in 2004,
the volume sales of carbonated soft drinks has declined due to a large proportion
of consumers who are opting for the trend towards healthier alternatives in the
functional drink segment (energy drinks, smoothies, milk & juice drinks, sports
drinks) as well as bottled juices and water (ref.5). Companies have been actively
engaged in new product developments in order to counter the growing concerns
about negative health impacts of high-fructose drinks, but also to increase the
demand in a market where product offerings are quickly maturing (ref.4). New
flavor introductions and health-conscious formulations have been launched in an
attempt to offset the decline in carbonated soft drink sales (ref.6). The functional
market is expected to show sustained growth and consumer interest in the future
years as consumption shifts to trendier, healthier and more sophisticated products
(ref.7).
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7. ______________Coca-Cola Company_____________
Profitability & future growth potential: In 1993, Concentrate Producers earned 29%
pretax profits on their sales, while bottlers earned 9% profits on their sales, for a
total industry profitability of 14%. While the functional drinks sector only
accounts for 3.7% of the total soft drinks sales in 2004 (Appendix B), estimates
are forecasting a growth of 7.3% in sales and 11.0% in volume consumption by
2009 (ref.4).
Social and cultural factors
Since the Coca-Cola Company extends to over 200 countries (with headquarters
located in Atlanta, Georgia), they have an immense need to diversify their
products and create a marketing plan that meets the socio-cultural interests of all
their customers (vendors) and consumers (drinkers) around the world. The Coca-
Cola trademark is recognized worldwide, no matter what language is printed on
the bottle. However, the Coca-Cola Company must continue to tailor their
marketing plan and product development to respect each consumer's unique
values, beliefs and cultures. An example of the Coca-Cola Company adapting to
the external socio-cultural environment is in 2007, the Coca-Cola Company
received a silver award at the Iberoamerican Advertising Festival for
their \"Levate la Mano\" (Raise Your Hand) commercial that was aired in Latin
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8. ______________Coca-Cola Company_____________
America (2007 Annual Report: Marketing Highlights). Coca-Cola has also
created a unique formulation for Sprite sold in Japan to meet the cultural
preferences (p. 114). Social factors have been carefully considered in the
company's marketing plan. The Coca-Cola Company has successfully developed
products to please the 21st century's health-conscious consumer with brands like
Coca-Cola Zero (their best selling brand in over 25 years), sports drinks, and
bottled water. Coca-Cola must continue to adapt to the external environmental
threat of the healthy lifestyle movement through product development and
marketing of healthy options available.
Demographics
The primary target market of the Coca-Cola Company is all consumers of all
nations that have a thirst for a high-quality beverage from a reputable brand that
cares about small communities and saving the environment. The Coca-Cola
Company is well known for advertising to persons of all ages, genders, incomes,
ethnicity and lifestyles. Nevertheless, more specifically, over the last decade the
Coca-Cola Company has focused on a secondary target market, based on specific
psycho-graphic characteristics, of consumers that are health conscious and
interested in buying products to support their overall wellness. The Coca-Cola
Company has reached this market through many product lines, and has
customized their website to provide healthy resources and marketing of products
that are considered smart choices.
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9. ______________Coca-Cola Company_____________
Economic and business conditions
The United States is currently experiencing an economic recession. This period of
negative growth includes higher unemployment, inflation, and cost of living
expenses while consumers are experiencing lower disposable income and
purchasing power (p. 641). The Coca-Cola Company contracts with numerous
bottling companies around the world to create and distribute their beverages. The
weakened economy could have a negative impact on any of the bottling
companies, which would threaten the stability of the Coca-Cola Company due to
the dependent relationship. The Coca-Cola Company must be profitable in order
to sustain their investment in communities around the world. Furthermore, small
communities depend on large businesses like the Coca-Cola Company to
strengthen their own economy and help create social and environmental
programs. The Coca-Cola Company has been very successful in helping other
nations grow and become economically stable by investing millions of dollars
back into the countries in which they are operating.
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10. ______________Coca-Cola Company_____________
State of Technology
In today's marketplace, technology is a key player in helping a business stay
profitable. Large businesses, like the Coca-Cola Company, must invest in
technological research to find ways to become more efficient, and ultimately
better competitors. The Coca-Cola Company should address external
technological threats by investing directly in applied research to improve
recording and monitoring of the sales, production and delivery process between
the Coca-Cola Company and the bottling companies (p. 90).
Politics
There are not any legal factors affecting the marketing of this product.
Laws and Regulations
Legal factors that could pose an environmental threat to the Coca-Cola Company
include new legislation or regulation of food and beverage products. Activists are
trying to push for more government involvement in product advertising and
labeling. While many laws have already been passed in this regard, expanded or
new laws could threaten the company by creating more overhead expenses and
decreasing the profit margin.
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11. ______________Coca-Cola Company_____________
Neutral Environment
Financial Environment
The United States is currently experiencing an economic recession. This period of
negative growth includes higher unemployment, inflation, and cost of living
expenses while consumers are experiencing lower disposable income and
purchasing power (p. 641). The Coca-Cola Company contracts with numerous
bottling companies around the world to create and distribute their beverages. The
weakened economy could have a negative impact on any of the bottling
companies, which would threaten the stability of the Coca-Cola Company due to
the dependent relationship. The Coca-Cola Company must be profitable in order
to sustain their investment in communities around the world. Furthermore, small
communities depend on large businesses like the Coca-Cola Company to
strengthen their own economy and help create social and environmental
programs.
Government Environment
The state and federal legislature are affecting marketing of this product. The fight
of obesity has been an ongoing battle for years. Since President Barack Obama
took office, that fight has come to a head more than ever before. Schools are
starting to not serve soft drinks to their students and consumers are starting to
become more health conscious. The sales in soft drinks have not been affected
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12. ______________Coca-Cola Company_____________
significantly, but with time, Coca-Cola and other soft drink corporations could
feel the pinch from the “get healthy” movement.
Media Environment
Current media publicity for Coca-Cola is indeed mixed. Most commercials for
Coca-Cola are cute, fun, and market the product to be a social party starter or a
family conversation piece. There are a number of business articles that discuss
how much of a positive affect the Coca-Cola Corporation helps the environment,
whether that is giving money to environmentally friendly charities, encouraging
recycling, or having a company fundraiser. Some of the negative attention comes
from the government being concerned with the amount of carbonated soft drinks
that are being consumed by not only children but adults as well. The obesity rate
is unsettling and Coca-Cola, along with many other soft drink companies, is
taking some of the blame.
Special Interest Environment
Consumer tastes and needs are ever changing. With the new focus on health and
nutrition and concerns with obesity, many consumers are changing their behaviors
and product choices. Tea products, bottled water and energy drinks have become
favored as opposed to the typical soft drink. This is an external threat to the Coca-
Cola Company, as these changes in preferences have increased the number of
competitors in the industry. The Coca-Cola Company is not only in competition
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13. ______________Coca-Cola Company_____________
with soft drink companies, like PepsiCo, Inc., but with other unassuming
companies like Unilever, Kraft Foods, and Nestle. The Coca-Cola Company must
continue aggressive efforts in responsible marketing, community investment and
product development to hold the No. 1 place in sales of juice, ready-to-drink
coffees, and teas.
Competitor Environment
Coca-Cola’s main competitors are PepsiCo, Inc and Dr. Pepper Snapple Group,
Inc.”PepsiCo, Inc. manufactures, markets, and sells various snacks, carbonated
and non-carbonated beverages, and foods worldwide. Its PepsiCo Americas Foods
unit offers salty and sweet snacks comprising Lays potato chips, Doritos tortilla
chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, branded dips, Fritos
corn chips, Ruffles potato chips, Quaker Chewy granola bars, SunChips
multigrain snacks, Rold Gold pretzels, Santitas tortilla chips, Frito-Lay nuts,
Grandma’s cookies, Gamesa cookies, Munchies snack mix, Funyuns onion
flavored rings, Quaker Quakes corn and rice snacks, Sabritas snacks, Miss
Vickie’s potato chips, Stacy’s pita chips, Smartfood popcorn, Chester’s fries, and
branded crackers. This unit also provides cereals, rice, pasta, and other branded
products, including Quaker oatmeal, Aunt Jemima mixes and syrups, Quaker
grits, Cap’n Crunch cereal, Life cereal, Rice-A-Roni, Pasta Roni, and Near East
side dishes. The company’s PepsiCo Americas Beverages unit sells beverage
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14. ______________Coca-Cola Company_____________
concentrates, fountain syrups, and finished goods under the Pepsi, Mountain Dew,
Gatorade, 7UP, Tropicana Pure Premium, Sierra Mist, Mirinda, Tropicana juice
drinks, Propel, Dole, Amp Energy, SoBe Lifewater, Naked juice, and Izze
beverage names. This unit also offers ready-to-drink tea, coffee, and water
products through joint ventures with Unilever and Starbucks, as well as licenses
the Aquafina water brand to its bottlers. The company’s PepsiCo International unit
offers salty and sweet snack brands, including Lay’s, Walkers, Doritos, Cheetos,
Ruffles, and Smith’s; Quaker brand cereals and snacks; and beverage
concentrates, fountain syrups, and finished goods under the Pepsi, Mirinda,
Mountain Dew, 7UP, and Tropicana names. PepsiCo, Inc. distributes its products
through direct-store-delivery, customer warehouse, and food service and vending
distribution networks.” (PepsiCo, Inc 2009)
“PepsiCo’s mission is to be the world's premier consumer Products Company
focused on convenient foods and beverages. They seek to produce financial
rewards to investors as they provide opportunities for growth and enrichment to
employees, business partners and the communities in which they operate.
"PepsiCo's responsibility is to continually improve all aspects of the world in
which they operate - environment, social, economic - creating a better tomorrow
than today. Their vision is put into action through programs and a focus on
environmental stewardship, activities to benefit society, and a commitment to
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15. ______________Coca-Cola Company_____________
build shareholder value by making PepsiCo a truly sustainable company. They are
also committed to achieving business and financial success while leaving a
positive imprint on society. “(PepsiCo, Inc 2010)
“Dr Pepper Snapple Group is the third-largest refreshment beverage business in
North America, headquartered in Plano, Texas. The company manufactures
markets and distributes more than 50 brands of carbonated soft drinks, juices;
ready to drink teas, mixers and other premium beverages across the United States,
Canada, Mexico and the Caribbean.
With a brand heritage spanning more than 200 years, the DPS portfolio includes
some of the most recognized beverages in the Americas. In addition to its flagship
Dr Pepper and Snapple brands, the DPS portfolio includes 7UP, Mott’s, A&W,
Sunkist soda, Hawaiian Punch, Canada Dry, Schweppes, RC Cola, Diet Rite,
Squirt, Peñafiel, Yoo-hoo, Rose’s, Clamato, Mr. & Mrs. T and other well-known
consumer favorites.
Dr Pepper Snapple Group was established in 2008 following the spin-off of
Cadbury Schweppes Americas Beverages (CSAB) from Cadbury Schweppes plc.
CSAB had formed in 2003 by bringing together Cadbury Schweppes’ four North
American beverages businesses, Dr Pepper/Seven Up Inc., Snapple Beverage
Group, Mott’s LLP, and Bebidas Mexico, unifying these businesses under a
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16. ______________Coca-Cola Company_____________
common vision, strategy and management structure and cementing the company’s
position as the third-largest refreshment beverage business in North America.
In 2006, the company reached another milestone with the acquisition of Dr
Pepper/Seven-Up Bottling Group, the largest independent bottler in the United
States.
These moves, and several subsequent bottling business acquisitions, have made
Dr Pepper Snapple Group what it is today: an integrated beverage business with
nearly $6 billion in annual revenues, approximately 20,000 employees, 24
manufacturing facilities and more than 200 distribution centers across North
America.” (Dr. Pepper Snapple Group, 2010).
Our competitors market through the same channels as Coca-Cola. Through
commercials, print ads, billboards, sporting events, facebook, MySpace, and
various other networking groups. Some of our strengths as a company are we
have brand strength, effective stride in new markets, results of operations, and
strong existing distribution channels. Some of our weaknesses are we are reliant
upon line extensions, reliant upon particular carbonated drinks, brand dilution,
and saturation of carbonated soft drink segments.
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17. ______________Coca-Cola Company_____________
The Company Environment
The products of Coca-Cola are carbonated soft drinks that are sold in stores,
vending machines, and restaurants. The Coca-Cola Company has, on occasion,
introduced other cola drinks under the Coke brand name. The most common of
these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke
Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and
special editions with lemon, lime or coffee. One of Coca-Cola’s strength’s is that
it is the number one soft drink company in the world. It is sold in over 200
countries around the globe. Its logo is one the most recognized company logos,
and their advertising campaigns, especially their Christmas campaigns, are very
successful for the company. They have been operating for over a century;
However, Coca-Cola has had its fair share of controversy. One of the bigger
controversies, and definitely a weakness, would be that Coca-Cola has been
criticized for alleged adverse health effects and its aggressive marketing to
children. In response to consumer insistence on a more natural product, the
company is in the process of phasing out E211, or sodium benzoate, the
controversial additive used in Diet Coke and linked to DNA damage in yeast cells
and hyperactivity in children. The company has stated that it plans to remove
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18. ______________Coca-Cola Company_____________
E211 from its other products, including Sprite and Oasis, as soon as a satisfactory
alternative is found.
The Target Market
When it comes to the consumer market, Coca-Cola has a very broad market base.
The company focuses its efforts on many different people. Coke’s core business,
which has been carbonated beverages, has been targeting a large audience of soft
drink consumers. Throughout history, the company has targeted many
generations of people. The ages of these people has ranged from young to old.
Coke has always been known as a classic, which has appealed to the older
audience. Lately the company has tried a fresher new image to reach to the
younger generation Y group.
For the Coke Company, there is a need for them to focus on certain
demographical characteristics of the population. The characteristics they must
consider include: age, income, and family. The other demographic considerations
such as, education and ethnicity are not as large of a concern. When we look at
age, the company tries to keep their image hip and cool to appeal to younger
generation Y people, but also target the older generations by keeping the classic
coca-cola image. Since age has a large impact on income, it would be expected
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19. ______________Coca-Cola Company_____________
that this would be an issue for the company. This is not necessarily true. The
products they offer are affordable for most people, even young teens with out a
job relying on parents. This brings us to the idea of targeting different family
types. Since age is not necessarily prohibiting, family differences should not hurt
the sales of their products, but only help it because of the appeal to most people.
It does not matter if you are single, married with no children, or even married
with children. Their products are suited for all people.
In Coca-Cola news they tell us that they are working on efforts to, “develop new
drinks and to market juices, coffees, and teas…” (Coke, 2001) By implementing
these changes, they are targeting parents of children for their juices, older people
with coffees, and people who want a healthier alternative to carbonated
beverages, with their teas. “While Coke’s core business will remain carbonated
beverages…”according to Mr. Heyer, “we don’t want to be limited.” (McKay)
They are introducing the new drink products in this year and their main focus in
on a, “unique new vitamin-fortified juice drink targeted to kids.” (Coca-Cola,
2001) By doing this, the company is reaching parents on the benefits sought level
by including healthy vitamins for their children.
Also included in deciding a market for a product are geographical considerations,
psychographic details, situation, and behavior/usage. Coke targets people
throughout the world and of many different cultures. Because of this, their scope
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20. ______________Coca-Cola Company_____________
for geographical area is very broad. Although they do advertise Coke as a
refreshing beverage, which would be needed more in warmer climates. It would
be unwise of me to assume that advertising is different in other, warmer, climates,
but it would only make sense. They would need to target someone wanting to
quench their thirst rather than just enjoy a beverage. The next consideration is
psychographic detail such as attitude. This is brought about in many of their
advertisements. The slogan, “Always Coca-Cola,” is used to take people back to
the good old days when things were great. With that memory in mind, people
will purchase the beverage for the connection. This is not the only attitude the
company wants to portray. Their recent commercials show young people having
a good time and making new memories. The product is displayed as hip and fun.
This brings me to the situation a person may go through to purchase a Coke.
There are many different situations that purchasing a Coke would be appropriate.
It may be one for yourself on a lunch break, or purchasing a large amount to
accommodate the needs of guests you may have.
Finally, there are behavior/usage characteristics to consider. This is deciding if a
person will purchase a Coke one time or many times. To keep the people
purchasing many times, Coke must produce a quality product that someone will
want the next time s/he is thirsty.
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21. ______________Coca-Cola Company_____________
Segment identification: RTD (Ready-to-drink) bottled Bubble Tea, to be
established within the Functional Drinks sector
Segment needs: The product will cater to both physiological needs (hydrating and
nutritional value) and social needs (perception of a social, fun drink with a
sense of belonging within peer consumer groups) – (ref.11, p.127).
Segment trends: The current trends include a shift away from junk foods and
carbonated drinks, a growing interest for healthier / beneficial products for the “mind
and body” (ref. 10), the trend towards the availability of on-the-go products for those
with an active lifestyle, as well as the trend for personalization through customization
(or for beverages, through variety-seeking in a wide introduction of flavors – ref.6).
Segment growth potential: Statistical reports anticipate a segment growth of 1.72%
over the next 9 years (2015) for the 10-29 years old subsets (ref.12).
Positioning strategy: The only RTD bottled bubble tea available. Funky & eye-
catching bottle, functional packaging, premium-priced, cool, new and unusual, unique
drinking experience, aspects of play (tapioca pearls, oversized colored straw), variety
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of flavors, sweet, refreshing, for hip & young people, healthier alternative to heavy-
sugar drinks.
Problems and Opportunities
Summary of Strengths and Weaknesses
Coca-Cola has a strong brand name and brand portfolio. Business-Week and
interbred, a branding consultancy, recognize Coca-Cola as one of the leading
brands in their top 100 global brands ranking in 2006. The Business-Week
Interbred valued Coca-Cola at $67,000 million in 2006. Coca-Cola ranks well ahead
of its close competitor Pepsi, which has a ranking of 22, has a brand value of $12,690
million. The company’s strong brand value facilitates customer recall and allows
Coca-Cola to penetrate markets. However, the company is threatened by intense
competition which could have an adverse impact on the company’s market share.
Strengths
World’s Leading Brand
A major strength of Coca-Cola is that it is the largest manufacturer, distributor, and
marketer of nonalcoholic beverage concentrates and syrups in the world. Coca-Cola
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23. ______________Coca-Cola Company_____________
is selling trademarked beverage products since the year of 1886 in the United States.
The company currently sells its products in more than 200 countries. It owns or has
interest in 37 operations with 95 principle beverage bottling and canning plants
located outside the US. The company also owns bottled water production and still
beverage facilities as well as a facility that manufactures juice concentrates.
Large Revenue Growth in three segments
Coca-Cola’s revenues recorded a double digit growth, in three operating
segments. These three segments are Latin America, East, South Asia, and Pacific
Rim and Bottling investments. Revenues from Latin America grew by 20.4%
during fiscal 2009. During the same period, revenues from the bottling
investments segment grew by 19.9%. Together, the three segments of Latin
America, East, South Asia, and Pacific Rim bottling investments, accounted for
34.8% of total revenues during fiscal 2009.
Weaknesses
Negative Publicity
The company received negative publicity in India during September 2006. The
company was accused by the Center of Science and Environment of selling
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products containing pesticide residues. Coca-Cola products sold in and around the
Indian national capital region contained a hazardous pesticide residue. These
pesticides included chemicals which could cause cancers, damage the nervous
system and reproductive systems and reduce bone mineral density. Such negative
publicity could adversely impact the company’s brand image and the demand for
Coke products. This could also have an adverse impact on the company’s growth
prospects in the international markets.
Sluggish Performance in North America
Coca-Cola’s performance in North America was far from robust. North America
is Coca-Cola’s main market generating about 30% of total revenues during fiscal
2009. Therefore, a strong performance in North America is important for the
company.
In North America, the sale of unit cases did not record any growth. Unit case
retail volume in North America decreased 1% primarily due to weak sparkling
beverage trends in the second half of 2009 and decline in the warehouse-delivered
water and juice businesses. Moreover, the company also expects performance in
North America to be weak during 2010.
Sluggish performance in North America could impact the company’s growth
prospects and prevent Coca-Cola from recording more robust top-line growth.
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Decline in Cash from Operating Activities
The company’s cash flow from operating activities declined during fiscal 2008.
Cash flows from operating activities decreased 7% in 2008 compared to 2007.
Net cash provided by operating activities reached $5,957 million in 2008, from
$6,423 million in 2007. Coca-Cola’s cash flows from operating activities also
decreased compared with 2007 as a result of a contribution of approximately $216
million to a tax-qualified trust to fund retiree medical benefits. The decrease was
also the result of certain marketing accruals recorded in 2006.
Opportunities
Acquisitions
For the past year, Coca-Cola has been aggressively adopting the inorganic growth
path. During 2006, acquisitions included Kerry Beverages, which was
subsequently, reappointed Coca-Cola China Industries. Coca-Cola acquired a
controlling shareholding in KGL. The acquisition extended Coca-Cola’s control
over manufacturing and distribution joint ventures in the nine Chinese provinces.
In Germany, the company acquired Apollinaris which sells sparkling and still
mineral water. Coca-Cola also made acquisitions of TJC Holdings, a bottling
company in South Africa along with several deals in Australia and New Zealand.
This will give Coca-Cola an opportunity for growth through new product
launches and greater penetration of existing markets.
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Growing Water Bottle Market
Also, bottled water is one of the fastest-growing segments in the world’s food and
beverage market owing to increasing health concerns. The market for bottled
water in the US generated revenues of about $15.6 billion in 2008. Market
consumption volumes were estimated to be 30 billion liters in 2008. The market's
consumption volume is expected to rise to 38.6 billion units by the end of 2010.
This represents a CAGR of 6.9% during 2005-2010. In terms of value, the bottled
water market is forecast to reach $19.3 billion by the end of 2010.
In the bottled water market, the revenue of flavored water segment is growing by
about $10 billion annually. The company’s Dasani brand water is the third best-
selling bottled water in the US. Coca-Cola could leverage its strong position in
the bottled water segment to take advantage of growing demand for flavored
water.
Threats
Intense Competition
Coca-Cola competes in the non-alcoholic beverages segment of the commercial
beverages industry. The company faces intense competition in various markets
from regional as well as global players. Also, the company faces competition
from various nonalcoholic sparkling beverages including juices and nectars and
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fruit drinks. In many of the countries in which Coca-Cola operates, including the
US, PepsiCo is one of the company’s primary competitors. Other significant
competitors include Nestle, Cadbury Schweppes, and Kraft Foods.
Competitive factors impacting the company’s business include pricing,
advertising, sales promotion programs, product innovation, and brand and
trademark development and protection. Intense competition could impact Coca-
Cola’s market share and revenue growth rates.
Dependence on bottling partners
Coca-Cola generates most of its revenues by selling concentrates and syrups to
bottlers in whom it doesn’t have any ownership interest or in which it has no
controlling ownership interest. In 2008, approximately 83% of its worldwide unit
case volumes were produced and distributed by bottling partners in which the
company did not have any controlling interests. As independent companies, its
bottling partners, some of whom are publicly traded companies, make their own
business decisions that may not always be in line with the company’s interests. In
addition, many of its bottling partners have the right to manufacture or distribute
their own products or certain products of other beverage companies. If Coca-Cola
is unable to provide an appropriate mix of incentives to its bottling partners, then
the partners may take actions that, while maximizing their own short-term profits,
may be detrimental to Coca-Cola. These bottlers may devote more resources to
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28. ______________Coca-Cola Company_____________
business opportunities or products other than those beneficial for Coca-Cola. Such
actions could, in the long run, have an adverse effect on Coca-Cola’s profitability.
In addition, loss of one or more of its major customers by any one of its major
bottling partners could indirectly affect Coca-Cola’s business results. Such
dependence on third parties is a weak link in Coca-Cola’s operations and
increases the company’s business risks.
Sluggish growth of carbonated beverages
US consumers have started to look for greater variety in their drinks and are
becoming increasingly health conscious. This has led to a decrease in the
consumption of carbonated and other sweetened beverages in the US. The US
carbonated soft drinks market generated total revenues of $63.9 billion in 2008,
this representing a compound annual growth rate (CAGR) of only 0.2% for the
five-year period spanning 2004-2009. The performance of the market is forecast
to decelerate, with an anticipated compound annual rate of change (CAGR) of -
0.3% for the five-year period 2004-2009 expected to drive the market to a value
of $62.9 billion by the end of 2010. Moreover in the recent years, beverage
companies such as Coca-Cola have been criticized for selling carbonated
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29. ______________Coca-Cola Company_____________
beverages with high amounts of sugar and unacceptable levels of dangerous
chemical content, and have been implicated for facilitating poor diet and
increasing childhood obesity. Moreover, the US is the company’s core
market. Coca-Cola already expects its performance in the region to be sluggish
during 2007. Coca-Cola’s revenues could be adversely affected by a slowdown in
the US carbonated beverage market.
Solutions
Intense Competition
There is not much that can be done about the competition that plagues Coca-Cola.
One way that I suggest for Coca-Cola to stand out is to continue to lend their
brand image to such shows as American Idol and such companies as AMC
Theatre. Also, continue to have the already successful Christmas Polar Bear
Commercial Campaign.
Dependence on Bottling Companies
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30. ______________Coca-Cola Company_____________
I was quite surprised to read that Coca-Cola still relies on other bottling
companies to help create their product. By being such a world-wide, well known
company, you would think that Coca-Cola would have their own manufacturing
plants. This may be something that Coca-Cola may want to look it. It would cut
down the cost of production because then instead of paying another company to
bottle your product and ship it out, Coca-Cola themselves could have the control
and this could save millions of dollars a year.
Sluggish Growth of Carbonated Beverages
Instead of just being a well known soft drink company, Coca-Cola could expand
their products. They do already have teas, water, and flavored water as products
but they are not as widely advertised as the Coke itself. Spending more money to
advertise Snapple to be a great tasting and healthy tea or Dasani to be great
calorie free water that comes in such flavors as Lemon and Raspberry could be a
great way to also increase profit.
Marketing Objectives and Goals
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31. ______________Coca-Cola Company_____________
Coca-Cola will produce a new product called “Bubble Buzz”. It will be a bottled
beverage and will be positioned as the only ready-to-drink Bubble Tea product
available on the market. The beverage will have a green tea base with enhanced
fruit flavors (passion fruit, strawberry and lime) as well as tapioca pearls. It will
bring an entirely unique drinking experience to its consumers. It will present itself
as a funky and unusual alternative to traditional tea while providing the great taste
of authentic fruit juice in an attractive and convenient packaging. The strategic
role of Bubble Buzz for The Coca-Cola Company is centered on three objectives:
·To stay at the forefront as the market leader in innovative product
introductions and successful product launches;
·To become the market leader in the functional drinks segment with
increased market shares.
·To strengthen and satisfy the needs of the more adventurous Generation Y
consumers with a new eye-catching and FUNctional product.
Product Strategy
The Core: Bubble Tea beverage in a pre-bottled, ready-to-drink format.
Branding: Colorful, aspect of play, round shaped, prominent Bubble Buzz logo
written in modern font, catchphrases such as “Think outside the Bubble” and “Get
Your Buzz”.
Trade name: Bubble Buzz™, a Coca-Cola product
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32. ______________Coca-Cola Company_____________
Brand personality: energy, funky, cool, functional, original, funny, healthy, etc.
Brand equity: Coca-Cola provides a quality, consistent, innovative and
accessible soft drink reputation.
Augmented product: Nutritional information, Status (social drink), Features
promoting the website, Health benefit of a green tea base (ref.17)
Marketing considerations
Product life cycle: Bubble Buzz is a low-learning product. With a strong
marketing campaign, “sales [will] begin immediately and the benefits of the
purchase are readily understood” (ref.11, p.301). Since Bubble Buzz is prone to
product imitation, Coca- Cola’s strategy is to broaden distribution quickly, which
is currently feasible thanks to the company’s high manufacturing capacity.
Product class: Food & beverage, Soft Drinks, Functional Drinks
Price Strategy
The price strategy that will be undertaken should consider the following
aspects:
1.Consumer demand
2.The product lifecycle
Customer demand
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33. ______________Coca-Cola Company_____________
Customer demand is a crucial factor which is driven by tastes, income and
availability of others similar products at a different price (mentioned later in the
potential substitutes section). For a lot of consumers, value and price are highly
related: ‘’the higher the price, the higher the value’’. Consequently, Coca-Cola’s
intention to position Bubble Buzz as a unique, innovative and attractive product
gives it a certain control over Bubble Buzz price. To be able to implement higher
pricing though, the minimization of the non-monetary costs to customers should
also be include along with awareness of the product (notably by advertising) and
value (benefits).
The product life-cycle
The company should take advantage also to the fact that the newer the product
and the earlier in its lifecycle the higher the price can usually be. It ensures a high
profit margin as the early adopters buy the product and the firm seeks to recoup
development costs quickly and it also brings a certain prestige to the product.
Promotion Strategy:
Objectives:
·To initiate strong awareness about the launch of Bubble Buzz throughout
Generation Y (10-29 years old) consumers as well as their parents.
·To win market shares over our top functional drinks competitor, PepsiCo.
Message:
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34. ______________Coca-Cola Company_____________
The promotional outputs will convey the clear message that “Bubble Buzz is a
healthy drink for sporty and young people who simply enjoy taking care of their
body and life.”
Concepts:
·Think outside the bubble”: Be old, Be Original, Be Different, Be Yourself.
·“A good spirit in a good body.”
·“For the out-of-the-ordinary individuals who like to challenge
themselves.”
Media selection:
Before choosing the appropriate medias, it is important to note that Generation Y
consumers only give partial attention to media. However, they can be reached
through integrated programs. They are typically using more than one
communication media at a time; a behavior that is often called “multitasking”.
This group of consumers doesn’t give its full attention to one single message, but
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35. ______________Coca-Cola Company_____________
rather uses continuous partial attention to scan the media. Marketers can still
communicate with Generation Y by using a variety of targeted promotional tools.
Another important tactic to reach our target market is through “Viral” or “Buzz”
marketing, which Coca-Cola will heavily use in this campaign (campus, contests).
Television:MTV, Much Music, VrakTV, YTV
Radio: MIX96, CKOI 96.9, 94.7 FM, Universities
Magazines for girls: Cosmo, Elle
Magazines for boys: Sports Illustrated (or Kids edition)
Internet: Banners on select websites (gaming, sports, etc.)
Official promotional website: www.BubbleBuzz.ca
Outdoors:Billboards and prints in select areas including:
·Campuses, transportation (bus, metro, stations)
·Tourist areas in high seasonal periods
·Outskirts of key cities in geographical reach
Promotional Mix:
Consumer oriented:
Contests: “Win another Bubble Buzz flavor”, “Uncover a secret code
underneath the bottle cap and win sporting goods and electronics by logging
on the website”, “Win a trip for the 2008 Olympics in Beijing”. (Arguments:
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36. ______________Coca-Cola Company_____________
It will increase consumer purchases and encourage consumer involvement with
the product).
Samples: distributed in supermarkets, school/universities. Samples are a way to
avoid product resistance since people are not used to find bubbles in their drinks.
Arguments: It will encourage new product purchases and it represents low risk
for consumers since they get it for free. They have nothing to lose by trying it.
Point-of-purchase: in supermarkets (to reach the parents of generation Y).
Arguments: It is also a mean to increase product trial and provides a good
product visibility.
Others: In subsequent years, engage in product placement in TV shows or
movies.
Trade oriented:
Allowances and discounts: case allowance (Arguments: The “free goods” approach will
be used so it can encourage retailers to buy more of the product to get a certain amount
for free).
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37. ______________Coca-Cola Company_____________
Cooperative advertising: to encourage retailers to buy our product and to maintain our
high level of advertisement that consumers expect from Coca-Cola.
Place (Distribution Strategy): Bubble Buzz will be distributed through these channels:
supermarkets, convenience stores, independent food stores, discount stores, multiple
grocers, vending machines, direct sales.
Financial Projections
Requirement for success analysis:
C.M. per bottle = 382,159.36 / 328,000 = $1.17
Break-even: (113,453.56+25,676.33) / 1.17 = 118,914 (bottles)
Market share: 118,914 / 1,000,000 = 11.9%
In one year, if Coca-cola can sell 118,914 bottles of Bubble Buzz, or in other words
achieve 11.9% of the functional drink market share, it will break even. After this point,
every bottle Coca cola sells will generate average $1.17 towards the profits. The potential
profits can up to $1,030,770.00 based on our target market.
Expected Costs:
COGS: $597,124 * 36% = $214,964.64O/H: $597,124* 38% = $226,907.12
Expected Revenues (total) = $597,124
China is the target country we’re going to expand our product.
Reasons:
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38. ______________Coca-Cola Company_____________
1.With a total population of 1,313,015,000 in the end of 2008 and 327,714,000 in
our target market (age 10 to 25 years old), compared with the total population of
Canada---304,453 million, there definitely is a great potential worth to work on.
2.Absolute expenditure on food and non-alcoholic beverages is expected to
increase from 1,777 billion in 2005 to 2,154 billion in 2010 (though the
proportion of consumer expenditure on this part is decreasing from 28.39% to
25.75% )
3.Soft drinks industry is one of the fast growing industries in China, especially fruit/
vegetable juice, RTD tea, and Asian specialty drinks and bottled water have
shown a sharp increase during 1998 to 2003.
4.Bubble tea was originated in Taiwan. Soon after its introduction in China, it
became one of the most popular beverages sold in tea stores on the streets due to
the similar taste and similar cultural background. So, it is a good chance for us to
enter into this market.5.Since we are the top sponsor for the upcoming Beijing
Olympic in 2008. With more opportunities to expose to the public, it is going to
benefit our sale there.
Our entry-strategy for entering China is through licensing.
Reasons:
1.We have already provided licenses for manufacturing our products in China
(licensing the bottlers and supply them with our syrup required for producing).
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39. ______________Coca-Cola Company_____________
Therefore, added in one or two more products in our production chain would not
be that difficult.
2.It is relatively low risk when compared with direct investment there. It is low cost
to export our new products there since we can maintain lower labor cost and
lower material cost if we produce our products locally, especially in China.
Changes to be made:
1.Price: Price sold in China is going to change to accommodate the local desire. As
we set our price sold in Canada $2.00. Compared to the price sold in the bubble
tea store ($ 3.50), it is about 57.14%. So, with the information we gathered from
the tea store in China, the price sold there would be 57.14% of what sold in the
tea store---$12 Yuen in China currency. Then, it would be around $7 Yuen.
2.Naming the product: In order to be recognized and accepted more easily for the
local market, we need not only translate our product name but also make sure
there’s not hidden unintended meaning that would damage our product.3.Develop
other flavors that would attract the local market: Since milk based bubble tea sell
better in China, we will add in this product line. Also, we will avoid using too
many artificial colors as they are not appreciated as much as in Canada.
Moreover, people in China are becoming more and more health concerned,
especially the amount of sugar and additives added in the drinks. We will make
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40. ______________Coca-Cola Company_____________
some changes in the ingredients used to appeal the local market, i.e. less sugary
drinks.
3.Promotion: In contrast to the radio ads in Canada, we will use more TV and Web
advertisement there due to the highly exposed environment in China. Also, we
will put more emphasis on the ads on the public transportation such as
underground/subway system and bus service due to the more frequent use of the
public transport service there. Also, since the outdoor display screen is quite
popular in big cities, we will also take advantage of it.
Implementation Plan
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41. ______________Coca-Cola Company_____________
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42. ______________Coca-Cola Company_____________
Off-Trade Sales of Soft Drinks by Sector: Value 1999-2004
C$ million 1999 2000 2001 2002 2003 2004
Carbonates  4,651.404,726.304,828.204,991.104,959.604,938.90
Fruit/vegetable juice 2,135.202,239.602,347.002,454.602,497.602,613.10
Bottled water  385.9 447.3 551.2 666.8 763 859.4
Functional drinks 296.7 312.1 318.1 324.7 327.4 342.2
Concentrates  193 186.5 171.3 166.5 159.2 161.9
RTD tea  234 257.4 265 275.4 286.8 307.4
RTD coffee  0.2 0.4 0.6 0.8 0.9 1.1
TOTAL 7,896.408,169.608,481.308,879.908,994.509,224.10
Off-Trade Sales of Soft Drinks by Sector (2004)
Carbonates
Fruit/vegetable juice
Bottled water
Functional drinks
Concentrates
RTD tea
RTD coffee
TOTAL
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43. ______________Coca-Cola Company_____________
Graph helped prepared by Dr. Thomas Grooms and Jon Shook
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44. ______________Coca-Cola Company_____________
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45. ______________Coca-Cola Company_____________
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46. ______________Coca-Cola Company_____________

METHODOLOGY
Sample
The concept is to find out if the respondents are willing to try a new green tea/fruit juice
infusion that is made by the Coca-Cola brand. As a methodology, it can be applied to
deepen a Marketers’ understanding of brand loyalty while explaining the opinions,
influences and attitudes that lies behind the respondents’ opinion about a brand, the
product and the reason behind the purchase.
The specific questions work in conjunction with the background of the typologies to
enable a rich understanding of purchasing decisions and explain opinions based on the
reason the respondent will continue to purchase a brand.
Core Aspects
·Focus on the key demographic of 17 years and older
·Features Surrounding Areas– Killeen, Fort Hood, Cedar Hill, Garland, and Dallas,
Texas
·A series of both qualitative and quantitative questions
·Every respondent can put theory input ideas and research themes into the
qualitative topic guides, therefore enabling specific findings from each
respondent.
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47. ______________Coca-Cola Company_____________
The Background and Development
The methodology was designed through a combination of vast amounts of qualitative
research and quantitative representation across 100 consumers. There is no prearranged
plan with how the methodology or typologies would be formed. The primary philosophy
was to find out if consumers were open to try a fruit juice flavored green tea. The idea
was to create a method to determine what the respondents feel about green tea drinks in
general and how they respond to new drinks on the market. The researchers goal was to
map out the best way to reach the precise demographic in such a way that handles the
issues of brand loyalty with complexity and fluidity to thoroughly explain the thinking of
the respondents.
The difficulty was that the respondents do not all think the same when purchasing a
product nor do they all prefer to drink green tea. Depending on the respondents’ beliefs
and personal experiences with a brand or product, there are many opinions on the subject,
The processes of the research were kept extremely open to all demographics to keep the
idea of biased opinions under assumption. The beginning process is to pass out ten of
survey instruments. The researcher asked the respondents if the questions were clearly
worded and if there were any misspellings.
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48. ______________Coca-Cola Company_____________
The next stage of the research was to continue passing out the survey instruments to
make sure a variety of opinions would be represented in the research. The researcher also
emailed the survey instruments, as well as telephoned different respondents who were
willing to participate in the study.
As always with quantitative studies, they formulated a series of theories and hypotheses
that could be tested through a number of questions. The survey was then conducted
across 100 respondents aged 17 or older who lived in the Dallas/Fort Worth area and
other areas throughout the state of Texas. The study was then modeled with the data on
the key variables of preferred drink of choice, preferred brand choice, health conscious
drinks, and price.
Reliability and Validity
The reliability and validity of brand loyalty is going to be understood. The reliability with
the results will be proven in the findings section. For instances, each respondent wrote
their exact opinion or the researcher wrote down word for word the respondents’
response. This provides the reliability of the research. The respondents were strictly
voluntary and gave the most honest answers for the survey.
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49. ______________Coca-Cola Company_____________
The validity will be with the findings of the survey. This will better be exemplified with
understanding on how the respondents answered to the survey. Showing the reliability of
the respondents’ answers and how they made the survey into their own.
Biased Opinion
When conducting the survey there were no biased opinions. To prove that there were no
biased opinions the researcher numbered each of the surveys when received from the
respondents. Obtaining the research in a non-biased form gives more reliability and
validity to the research.
The following section will examine the findings of the research about opinions on green
tea and brand loyalty. It will be based upon the survey that was conducted and be
analyzed. The information is being tested from the hypotheses that were in the proposal.
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50. ______________Coca-Cola Company_____________
Findings
In this chapter the findings will be introduced. The information is produced from the
survey instruments that were given to one-hundred respondents. The information that will
be given is to help prove or fault the hypotheses about green tea/fruit juice based drinks
and the customer perception of Coca-Cola. The information will also test if there is a
market for this new drink.
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51. ______________Coca-Cola Company_____________
Gender Q1: Are you…?
The first question on the survey is the gender of the respondent. Asking are you male or
female? This question was important in conducting the survey because it helps to grasp
understanding for the rest of the responses from the respondents. The genders that were
surveyed by the researcher ended up being primarily female versus male. The graph
below shows the actual percentage of the Male gender that took the survey of 33% and
the female gender responding to the survey with 67%.
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52. ______________Coca-Cola Company_____________
The table above clearly shows the genders divided. One assumption that one could be
speculated is that that there were more women than men surveyed because the women
were more open to taking the survey.
Age Q2: What is your age?
The reason this question was important in conducting the survey is to determine the age
range that is being used. It was also used to determine how each age range differed on the
answers that were given.
Most respondents that were surveyed were between the ages of thirty six or older. The
percentage of that age range is 40%. Even the second runner up was ages twenty six to
thirty five and that range was not far behind with 30%.
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53. ______________Coca-Cola Company_____________
In the research the ages were for the most part all over the age of eighteen. The research
that is concluded from the respondents is that most of them, if not all of them, are out of
High School.
Income Q3: What is your total household income?
This particular question of household income is vital because a household that makes $0-
$10,000 will of course have a different outlook on purchasing a new Coca-Cola tea
product versus a household with an income of $46,000 or more.
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54. ______________Coca-Cola Company_____________
Most of the respondents had a household income of $46,000 or more. The next highest
income was $26,000 to $45,000. The one that had the least was $0 to $10,000.

Q4: Have you been affected financially by the recession?
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55. ______________Coca-Cola Company_____________
This question was important because it gave the researcher an idea if price mattered to
the respondent. If the respondent was not affected by the recession, then the respondent
probably would not mind spending the money to try a new product.
The results were 67% of the respondents were not affected by the recession. This is a
surprising amount of respondents who were not affected financially by the recession.
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56. ______________Coca-Cola Company_____________
Q5: Does Advertising influence your choice of brand when shopping?
This was a vital question to the researcher because advertising is an important part of
today’s society. Many are influenced by advertising and that helps them decide what
products to purchase. The researcher was curious to know if advertising influences the
respondents shopping choices.
The results were sixty-seven percent of the respondents were not influenced by
advertising when choosing a brand. Only thirty three percent responded yes.
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57. ______________Coca-Cola Company_____________
Q6: Have you ever purchased a green tea product?
This was one of the most vital questions of the survey. If the respondent had never
purchased a green tea product then the survey was not as relevant to them as others.
The results for this question were that 70% of the respondents had purchased a green tea
product. An overwhelming amount of the respondents had bought some kind of green tea
product.
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58. ______________Coca-Cola Company_____________
Q7: Did the fact that green tea is advertised as healthy affect your decision to buy?
This question is important in the survey because this is one to test the hypothesis.
Without asking this question in the survey the hypothesis could not be tested and
concluded with the findings.
Participants in this survey prove that the hypothesis is true. The hypothesis stated,
customers are swayed more to buy green tea because it is advertised as healthy. The
respondents stated that they purchased the green tea because it was healthy for them.
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59. ______________Coca-Cola Company_____________
Q8: Do you prefer to drink tea and/or juices over carbonated beverages?
This was an important question because it plays a huge role in determining how open the
respondent would be to purchasing a green tea product or if the respondent would
alternatively look for another drink product to buy all together.
As shown above in the chart, 67% of the respondents stated that they would consider
buying the tea and/or juice drinks. 33% of the respondents said they would not consider
a tea and/or juice drink.
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60. ______________Coca-Cola Company_____________
Q9: If you saw a green tea/fruit juice beverage made by Coca-Cola in the store
would you be intrigued to buy it?
Question nine is another question that evaluates and tests one hypothesis. The hypothesis
stated, the Coca-Cola brand alone would intrigue people to buy the new beverage. Due to
the information conducted from the survey respondents felt that the Coca-Cola brand
alone was not enough to interest them in buying the new beverage. 67% agreed with that
statement.
Respondents concluded through the survey that the Coca-Cola name alone does not make
them want to buy the product. The findings in this section prove to be false when looking
at the hypotheses.
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61. ______________Coca-Cola Company_____________
Q10: Do your friends or family influence your decisions on what brands you
purchase?
This particular question was vital in the research to determine if purchasing decisions are
based upon influence of friends and family. A lot of times a buying decision is made
based upon the influence of a friend or family member.
67% of the respondents felt that their friends and family do not influence what brands
they purchase.
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62. ______________Coca-Cola Company_____________
Q11: If you were sent a coupon to try a free sample of Bubble Fuzz Green tea would
you pass up the opportunity?
This question was asked to see if Coca-Cola marketed their product through direct mail
coupons, would it be successful.
The results were 33% answered that they would use the coupon to sample the drink
Bubble Fuzz. The 67% that checked no felt that they would just trash the coupon and not
even use it.
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63. ______________Coca-Cola Company_____________
Q12: In today’s society, do you think it is considered “cool” to purchase and drink
healthy beverages?
Just like question number 11, this was more of an opinionated question to really
understand how the respondents felt about how purchases of green tea play into social
status. This is the main reason why this particular question was vital in conducting this
study.
67% felt that purchasing a healthy drink does not play into a certain social status. 33%
disagreed and felt that purchasing a drink does play into your social status.
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64. ______________Coca-Cola Company_____________
Q13: Do you think adding fruit juice to flavor the green tea will ruin the taste?
This question was put in the survey to discover if the respondents felt that the fruit juice
would ruin the authenticity of the green tea flavor.
The findings to the question were 67% no and 33% yes. Most respondents, according to
the survey, felt that adding the fruit juice would not ruin the flavor of the tea.
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65. ______________Coca-Cola Company_____________
Q14: I believe that Coca-Cola could make a healthy, great tasting drink.
The respondents answered the question and picked the number they felt most strong
about in the survey. The respondents could choose from the following: 1-strongly
disagree, 2-disagree, 3-neutral, 4-agree and 5-strongly agree.
The results came to be with a mean (average) of 3.54. Most respondents felt neutral with
the statement that was given. The medium, which is the middle value reported with this
statement as 4. The mode in this statement is 3 which gave most used value in this
question of the survey.
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66. ______________Coca-Cola Company_____________
Q15: I think that green tea is a great way to not only cleanse my body but my mind
as well.
Out of the one hundred respondents this statement was evaluated in a number order. The
choices were: 1-strongly disagree, 2-disagree, 3-neutral, 4-agree and 5-strongly agree.
The following were analyzed into mean, medium and mode.
The results that were calculated with were the mean 3.16. The medium resulted in 3,
neutral. The mode calculated as a 3, neutral.
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67. ______________Coca-Cola Company_____________
Q16: Most healthy drinks do not have a great taste.
The respondents answered the question and picked the number they felt most strong
about in the survey. The respondents could choose from the following: 1-strongly
disagree, 2-disagree, 3-neutral, 4-agree and 5-strongly agree.
The results came to be with a mean (average) of 3.75. Most respondents felt they agreed
with the statement that was given. The medium, which is the middle value reported with
this statement as 4. The mode in this statement is 5 which gave the value of the most used
in this question of the survey.
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68. ______________Coca-Cola Company_____________
Q17: Do you think that health conscious drinks are overpriced? If yes, why do you
think this way?
The following results are part of the qualitative section in the survey. When reported,
there were very different opinions that relate with many of the top results but had more
elaboration. The results are arranged according to the survey number. If another
respondent puts the same opinion or something similar, that survey number will appear
next to the opinion stated.
1.Most healthy drinks are disgusting and expensive
2.No
(5,7,9,10,11,.12,13,14,16,17,19,20,21,22,24,25,31,40,42,44,45,47,48,49,51,52,53
,54,56,57,58,59,66,67,72,73,77,78,81,82,83,84,85,86,87,88,89,90,91,92,93,94,97
,98,99,100)
3.Yes, Gatorade is great for you and it tastes great.
4.Taste, quality, price, you can’t find that all in one.
6.No response (26,33,35,36,37)
‘
8.No, you get what you pay for
15.No, price and quality are number one
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69. ______________Coca-Cola Company_____________
18.No – I feel brands change over time so what is used today is different from the
same product of yesterday-new, improved remember?
23. No, I buy what I like and get what I want to make me happy. I eat my feelings
away.
27. I buy a certain brand because I’ve tried it and I like it.
28. Yes, some brands are better than others.
29. Some brands yes.
30. Yes
32. No, I buy what I like and can afford.
34. Yea
39. Yes
41. No, I buy because I like it
43. No I do not believe that. I enjoy finding good deals and using coupons.
45. Yes, but I don’t change my ways unless something forces me to.
50. Yes
55. Yes
60. I’ve worked out for years so I am used to the price and taste
61. No response (65,69,70,79,80,95)
62. Yes
63. Not really
64. Sometimes
68. Yes
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70. ______________Coca-Cola Company_____________
71. I prefer to buy items that are expensive
74. Depends on the brand and the product. Some brands are better quality and value
based on the research and work put into them
96. Sometimes depends on the price. Trust the brand name sometimes.
Q18: Do you think that a green tea/fruit juice infused beverage would entice the
younger crowd to purchase it?
The following results were given by the respondents. The findings or this qualitative
question had diverse variety of results. The findings are reported with the first recorded
with the highest number of the same result then followed by the rest. The results are
arranged according to the survey number. If another respondent puts the same opinion or
something similar, that survey number will appear next to the opinion stated.
1.No (1, 2, 8,10,14,19,46,52,55,56,57,66,70,82,83,84,85,86,87,88,89,92)
2.No, they should not be knocked off for some brands are just as good. It all
depends on what it is you are a getting.
3.In some cases generic products may differ slightly but may still work for
intended use.
4.No response (33,36,37,44,54,61,65,69,75,76,80,81,94,95)
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71. ______________Coca-Cola Company_____________
5.No absolutely not. Kids drink more soft drink/sugary drinks then teas.
6.Maybe Kids now a days are not interested in being healthy
7.Yes, sounds like it tastes very good. (15, 16-18, 20-32, 45)
8.I think that kids should start drinking more healthy drinks and I think that it
would make them buy it.
9.Yes
10.Depends on the price, kids today are broker then ever
11.Yea
12. My son would not even look at green tea just because he knows how green
tea tastes.
13.Yes that is possible
Findings Conclusion
The findings were all resulted in a statistical analysis conducted from all 100 survey
instruments. The results were each divided into a graph to give the reader a quick view of
the findings.
The findings gave the reader a broad understanding of what is people’s true opinion on
the proposed drink Bubble Fuzz. Many respondents felt that green tea could be a stretch
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72. ______________Coca-Cola Company_____________
for advertising purposes, but with the health conscious society that we live in now, it
could have a chance of succeeding.
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73. ______________Coca-Cola Company_____________
APPENDIX A
REFERENCES
1.The Coca-Cola Co. (Company Profile) . Global Market Information Database (Euromonitor).
Jul 20, 2009. Accessed Jan 08, 2010.
2.Functional Drinks Off-trade Sales in Canada (Country Report) . Global Market Information
Database (Euromonitor). Oct 03, 2005. Accessed Feb 25, 2010.
3.Functional Drinks, Canada, Retail Volume (Statistics) . Global Market Information Database
(Euromonitor). Oct 03, 2005. Accessed Feb 25, 2010.
4.Soft Drinks in Canada (Industry Report) . Global Market Information Database
(Euromonitor). Oct 03, 2005. Accessed Jan 08, 2010.
5.Functional Drinks in the United States . Datamonitor. Dec 2008. Accessed Feb 02, 2010.
6.COSGROVE, Joanna. The 2008 Soft Drink Report. Beverage Industry. Mar 2008; 96; 3;
p.22. Accessed via ABI/INFORM Global. Feb 02, 2010..
7.THEODORE, Sarah. RTD coffee, tea creates a buzz. Beverage Industry. Feb 2005; 96; 2;
p.16. Accessed via ABI/INFORM Global. Jan 08, 2010.
8.The Coca-Cola Company. (Company Profile). Datamonitor. Jun 2005. Accessed Jan 08,
2010.
9.HANNAFORD, Steve. Industry Brief, Beverages I. Oligopolywatch.
http://www.oligopolywatch.com/2003/04/21.html. Accessed Feb 07, 2010.
10.POPP, Jamie. Leading in a healthy direction. Beverage Industry. Dec 2007; 95; 12; p.22.
Accessed via ABI/INFORM Global. Feb 01, 2010.
11.BERKOWITZ, Eric N. CRANE, Frederick G. KERIN Roger A. HARTLEY, Steven W.
RUDELIUS, William. Marketing, 5
th
Canadian Edition. McGraw-Hill Ryerson. 2003.
12.Consumer Lifestyles in Canada . Global Market Information Database (Euromonitor). Feb 01,
2007. Accessed Feb 08, 2010.
13.Top 20 Global Brands, Ranked by Brand Value, 2004 & 2005 (in billions and as a %
increase/decrease vs. prior year). Business Week; Interbrand. Jul 22, 2006. Accessed via
eMarketer. Feb 28, 2010.
14.THEODORE, Sarah. Surprising suggestions from teens. Beverage Industry. Vol.96, no 7. Jul
2005. p.4.
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74. ______________Coca-Cola Company_____________
15.Canadian Statistics – Population by Sex and Age Group . Statistics Canada.
http://www40.statcan.ca/101/cst01/demo10a.htm. Modified Oct 27, 2005. Accessed Feb 28,
2010.
16.2008 Annual Report – Form 10K (The Coca-Cola Co.) . The Coca-Cola Co. US Securities and
Exchange Commission, File no. 1-2217. http://www2.coca-
cola.com/investors/annual_other_reports.html. Accessed Feb 13, 2010.
17.WILBERT, Caroline. Coke, Pepsi focus on China market. The Daily Sentinel.
http://www.gjsentinel.com/world/content/shared/news/stories/COKE_0224_COX.html. Cox
News Service. February 24, 2010.
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