Running head: COCA-COLA COMPANY ANALYSIS 1

Coca-Cola Company Analysis

Student’s Name

Institution Affiliation

Date of Submission
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Question 1

I. Describe the specific type of consumer that the Coca-Cola Company is targeting with
each of the following products:
a. Diet coke

The Coca-Cola Company introduced the diet coke brand to target with the women consumers

b. Coke zero

The Coca-Cola Company’s coke zero brand targets men consumers who are aged between 18

and 30 years.

c. Coke life

The brand targets the young adult market segment.

d. New diet cokes

The Coca-Cola brand targets the Health conscious consumers market

II. What types of benefits sought, usage rates, demographic & lifestyle segmentation is
each product’s target consumer most likely to include?

Diet Coke Coke Zero Coke Life New Flavored

Diet Coke
Benefits Sought Zero-sugar with Has zero sugar Natural feisty cherry
low kilo joules and classic taste sweetness with and “twisted
low kilojoules mango and
zesty blood
orange flavored

Usage Rates Moderate High moderate High

Demographics 18 and above 18-29 years age 35-55 years age All ages
Lifestyle Weight loss Classic lifestyle Aerated Healthy
consumers for men consumers lifestyle
`

Source: (Yoffie, Kim, & Harvard Graduate School of Business Administration, 2016)
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Question 2
2. Coke is sold in many restaurants. What type of buyer is the restaurant community as
identified in chapter 7?
The buyers who are mostly in restraint are spendthrift buyers. The main reason is because

these type of buyers are not remorseful when they are purchasing any commodities. They

spend without hesitation. These type of buyers are the best buyers to make a sell to.

Question 3
According the video “Choice, Happiness and Spaghetti Sauce” with Malcom Gladwell, what
was the product strategy error made in the introduction of “New Coke” in 1985? Research the
New Coke introduction further, (much has been written about this case) what consumer
research process errors were made as well?
The Coca-Cola Company faced a lot of competition from the pepsi-cola company. The

Pepsi cola company had narrowed its market to youth. In that account, pepsi-cola market

share increased significantly. This rapid increase sent the Coca-Cola think tank to go back to

the drawing board and to rethink what were the best measures the company was supposed to

make to ensure they encounter the competition from pepsi-cola. Consequently, in 1985, the

company launched its new brand. The new Coca-Cola. However, the company was in

dilemma to keep the two competing brands in its shelves. As a result the company sacrifices

its original brand to concentrate on the new brand. The two decision that were made

simultaneously were the worst marketing blander that the company made.

The Coca-Cola researchers did not conduct through research on the emotional attachment

that the original brand had on its consumers. They underestimated the passion the people had

in classic Coca-Cola. They only focused on the taste of the brand hence they launched the

product with belief that its taste would out do the Pepsi-cola. Although the taste was better

than that of pepsi-cola, there was public outcry when the original Coca-Cola was removed

from the shelves. The sales for Coca-Cola went low and the company had to strategize and

return the new product to the market. The researchers failed to understand its consumer
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perception because they only focused on taste hence they caused the company to lose its

market to Pepsi and other beverage companies.

Question 4

Why did TCCC (The Coca-Cola Company) make the decision to develop and launch Coke
Life? What external and internal factors led to that decision? Do additional research into the
success of this product. How would you evaluate this attempt at offering a “green” soft drink
(15 pts)

The Coca-Cola Company launched the coke-life brand because of the demand for naturally

sweetened soft-carbonated drinks. Therefore, the brand served as substitute for sugar drinks.

The drinks sugar is from stevia extracts and has lower calorie and 35% less sugar than6n the

classic Coca-Cola brand. Moreover the company targeted the adult consumer who were more

cautious with their health status (Ivy, 2016). The US government had introduced special tax

for the soft carbonated drink .also, they had compelled the soft-carbonated company to put a

warning label. Furthermore, more consumers were rejecting the soft-carbonated drinks since

they were classified as causes of obesity in human because of high rate of calorie and sugar.

The product success is grantee since the year 1985 the Coca-Cola products have been

successful. People perception on Coca-Cola product are passionate. The drink has a lot of

influence on global population any product that the company launches gives meaning to

consumers (Yoffie, Kim, & Harvard Graduate School of Business Administration, 2016). In

that account the company product like hood to success are high.

Offering the ‘’ green” soft drink to consumers was a fantastic idea from the Coca-Cola

company. The drink gives the health conscious people an option when they want to have a

drink. In that account, the drinks are fantastic and enjoyable. Ultimately, the drink will serve

as a substitute for the shrinking soft-carbonated drink market segment.

Question 5

The Honest Tea Case speaks of the early days of rapid organic product segment growth and
corporate acquisitions into that category. RTD beverage trends have continued with “non-soft
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drinks” providing the bulk of the growth – such as RTD teas, nutrient and antioxidant infused
waters, energy drinks, and alternative milks leading the category.

a) Seth Goldman said Honest Tea aspired to be a “change agent” in the industry. What
did he mean by that? Is this a realistic goal?

Seth Goldman meant that the business can change the social life of people by improving

their health, preserve environment through creation of reliable food system agriculture and

the labour when the product is good. The goal of providing the healthier is realistic if the

business considers in producing products using the organic products.

b) Was he on the way to achieving that goal before the sale to Coca-Cola, and has the
sale impeded or helped further progress?

By the year 2006 the honest tea company had become the best-selling bottled tea in more

than 15000 locations at whole food. The sell to the Coca-Cola Company is helpful to the

community and the progress of the product growth (Ferrell, 2016). Since the Coca-Cola

penetrate almost all the markets of beverage across the globe the healthy organic product

would therefore be available to consumers in an easy way when compared with the market

connection of honest tea.

c) When smaller organic companies are bought by large firms like Coca-Cola, are they
“selling out”? What is your opinion of these acquisitions? (Coke-Honest Tea;
Unilever-Ben & Jerry’s; Clorox-Burt’s Bees)

The smaller organic companies have challenges when they are marketing their product.

Big corporations takes almost all of the market of the organic product. As a result, the small

companies are left struggling for attention and branding. In that case the only way for the

companies to survive and to have their products penetrate in the market is through

acquisitions by the larger firms( Paynter , Senecal , Start , Tam , Weinglass and Whisnant

,2016). In summary, the acquisition by the big companies is necessary to ensure the healthier

products are accessible in the market.

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Refrences

Ferrell, O. C. (2016). Marketing strategy. Place of publication not identified: Cengage

Learning

Ivy R. (2016). Coca-Cola goes green: the launch of coke life.

Paynter A.E, Senecal E., Start L, Tam T, Weinglass D, and Whisnant R, (2016).Honest

Tea—Sell Up or Sell Out?

Yoffie, D. B., Kim, R., & Harvard Graduate School of Business Administration. (2011). Cola

Wars continue: Coke and Pepsi in 2010.