Market Analysis
Market Analysis
Monique Settles, Daniel Shadle, Andy Staples, Angie Trumps
BUSI 520 Strategic Marketing Management
Professor Muriel Wilson
Liberty University
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Market Analysis
In order for the Coca-Cola team to effectively market its products to customers, they must
understand who those customers are. People’s needs and wants can be drastically different.
“Culture is the fundamental determinant of a person’s wants and behavior” (Kotler & Keller,
2016, pg. 157). Geert Hofstede did extensive research on culture and its effects on behavior
noting that culture could not be changed but one should understand and respect it.
Coca-Cola acknowledged India has the potential to be its third largest market (Trefis
Team, 2017). Coca-Cola recognized milk is deeply rooted in Indian culture. Enter VIO in 2016,
a milk based drink that Coca-Cola formulated with saffron and almond flavors to cater to the
Indian consumers (George, 2017). This product has become a win-win for Coca-Cola India
because it helps repair its reputation with the locals as well as increasing its brand sales.
Social factors are shaped by family, reference groups, and social status which affect
buying behavior as well. For consumers over the age of 28 carbonated drinks have become less
attractive. 2015 study by Beverage Digest (Kell, 2016) revealed soda sales continued to decline
as many consumers look for healthier alternatives. Coca-Cola has combated the perception of its
unhealthy soda drinks by moving into other beverage categories such as juice, tea, and even
coffees. In one of the more recent branding strategies, Coca-Cola renamed and repackaged a
previous product known as Coke Zero to Coke Zero Sugar and its packaging was changed to the
traditional iconic red Coca-Cola disc (Journey Staff, 2017).
Personal factors such as age, occupation, economic status, as well as your personal
lifestyle and values can influence purchase behavior. Coca-Cola is aware of all the personal
factors that they must overcome to get one of their beverages in a consumer’s hand. For the
athlete, they provide brands such as PowerAde Zero or Vitamin Water. For the adolescent, a
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Market Analysis
parent might choose Minute Maid or Simply Beverage brand. For the hard worker who is
always on the go a Coca-Cola classic, Sprite or Fanta could be there to go to beverage of choice.
In order for a company to create a sound customer base they must understand what
appeals to the population subconsciously. The company must have knowledge about what
motivates their target consumer. “Some needs are biogenic; they arise from psychological states
of tension such as hunger, thirst, or discomfort” (Kolter & Keller, 2016, pg. 165). Marketing
strategies who need to appeal the needs for people to feel like the services or goods to make them
feel better and provide them a sense of community. Both needs that fall under biogenic or
psychogenic are what is described as a motive. A company will use these motives of the
consumers to appeal to them to patronize their business.
The theory of human motivation has been a topic of study for years. The company has
however found recently that the general consumer base has become more health conscious.
Coca-Cola has chosen to stay with the strategy that gained them the success they have enjoyed.
Even though, they acknowledged that there is a change in consumer’s desire Coca-Cola “… still
brings in 86% of the firm’s turnover, and so Coca-Cola remains committed to this strategy”
(Strategic Direction, 2006).
In the current environment, analyst have stated that Coca-Cola, while still a giant in the
business has in fact lost some of its appeal. Coca-Cola has attempted to tap into the market of
non-carbonated beverages but has not been able to achieve the success its main competitor Pepsi
has. “… Coke struggled badly with its Dasani water and there are strong signs their Minute Maid
juice brand is struggling and set to do worse” (Strategic Direction, 2017). Coke’s continued
success has come from revamped core products.
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Market Analysis
Coca-Cola has been effective in hitting all the factors in their advertisement. They have
been extremely successful at branding themselves as the long-standing family friendly and good-
fell company. While Coca-Cola has neglected to innovate to include more healthy choices, their
consistency has actually been attractive to customers.
Geography is one of the largest segmentation of the Coca-Cola Company. The company
currently sells their products in over 200 countries. The company states that while the flagship
beverages are universal, there are certain drinks which are location specific.
Geographic targeting can clearly be seen by navigating to one of Coca-Cola’s country-
specific sites. “The Korean website portrays… two very modern adolescents… dressed in
fashionable casual clothes. The Malawi website is at the other end of the spectrum and uses an
image of a mature woman in traditional clothing” (Being delicious, 2006, p. 28). This geographic
segmentation can further be noticed in the verbiage used on Coca-Cola’s Chinese website. While
the site is instantly recognizable due to Coca-Cola’s branding, the verbiage pays homage to the
Chinese Communist ethos (Being delicious, 2006).
Coca-Cola also segments its target markets based on the health-conscious consumer. The
Coca-Cola product page breaks down the different beverages manufactured, of these, Diet Coke,
Coke Zero/ Coke Zero Sugar, and Coke Life are produced as healthy alternatives in the United
States. Diet Coke and the Coke Zero beverages are promoted for their zero calories and zero
carbs.
The Coca-Cola company also has a strong presence in the athletic market segment with
its PowerAde sports drink and partial ownership of Monster energy drinks. In 2010 PowerAde
launched a global campaign that will give athletes the inspiration and ability to "Keep Playing”
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Market Analysis
(PowerAde launch, 2010). PowerAde was also chosen by FIFA to Hydrate 2010 FIFA World Cup
Players (PowerAde launch, 2010). The Coca-Cola company also has sponsorship contracts with
EA Sports, NHRA, NASCAR, NBA, NCAA, and the Olympic games (Coca-Cola Sponsorships,
2012).
The attractiveness of the health market can be seen through the national shift away from
soda towards water, energy drinks, and healthy sodas. Per the Food Industry Report, “Consumers
are becoming more aware of the amount and type of sugar they take into their bodies now as
well, and sugar-free or less sweet drinks are becoming another trend” (2008, para. 3). The
Beverage Industry referenced Euromonitor Internationals findings stating that the health and
wellness industry had a value of $774 billion in 2014 with a growth rate near 7%.
The athletic market segment is also growing at a rapid rate. Euromonitor found that off-
trade drink sales rose to 15.6 billion at a rate of 4% in 2013 (Sports and Energy, 2014). This
growth has continued into 2016 with a rate of 7% (Sports Drinks, 2017). The sports drink market
is currently dominated by PepsiCo and Coca-Cola with the Gatorade and PowerAde beverages
(Research and markets, 2016). The growth rate is expected to continue at least through 2020
(Research and markets, 2016).
The Coca-Cola Company should, and does, pursue a full market coverage strategy for
many of its products. While some products are regionally specific, Coca-Cola’s primary
beverages are universally available in all 200 countries. This full market coverage for many of
Coca-Cola’s products allows for economies of scale leading to some reduction in operational
cost. Coca-Cola uses a mass marketing approach to sell their top beverages.
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Market Analysis
“Companies cannot connect with all customers in large, broad, or diverse markets. They
need to identify the market segments they can serve effectively” (Kotler & Keller, 2016, p. 244).
By specifying a target market, a company can narrow down what is popular within that particular
market. The Coca-Cola Company targets those who are 12 years and above and tries to keep the
marketing commercials veered toward the older generation even though the company claims to
not have a specific target. It has also recently started targeting the obesity epidemic to try and cut
down on worldwide health problems.
To address each target market that The Coca-Cola Company has, it produces different
products. For the obesity campaign, the company made smaller size drinks and revamped their
diet sodas and juices. The company also released new commercials in hopes to change how the
public in takes daily calories. “The Coca-Cola commercial says, “The simple common-sense fact
is that all calories count, no matter where they come from . . . If you eat or drink more calories
than you burn off you will gain weight” (Tanne, 2013, p. 346). For this market, the company
focuses on the nutritional values of the products and trying to educate the public.
For the different age and international markets, the company keeps a large variety of
flavorful products rolling out of the factory. Coca-Cola is targeting the entire world and wants to
bring together everyone with one common aspect-thirst. The company is attempting to untie the
world with jingles about one brand. “New 'One Brand' global marketing strategy that, for the first
time ever, unites Coca-Cola, Coca-Cola Light/Diet Coca-Cola, Coca-Cola Zero, and Coca-Cola
Life under the iconic Coca-Cola brand positioning in one global creative campaign, "Taste the
Feeling” (The Coca-Cola Company, 2016, p. 3). The company continues to roll out new and
different flavors but also keeps most of the original advertising that it started with to keep up
with the target markets.
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Market Analysis
References
Being delicious and being happy: The Coca‐Cola Corporation can be deliciously happy about its
success in adopting a “local” marketing strategy in the world's biggest emerging
consumer nation. (2006). Strategic Direction, 22(7), 27-29.
doi:10.1108/02580540610669071
Bhasin, H. (2017, April 14). Marketing strategy of Coca cola – Coca cola marketing strategy.
Retrieved from Marketing 91: https://www.marketing91.com/marketing-strategy-of-coca-
cola/
Coca-Cola. (cover story). (2011). Coca-Cola Case Study: The World’s Most Recognizable Brand,
1-18. Retrieved from http://ezproxy.liberty.edu/login?
url=http://search.ebscohost.com/login.aspx?
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George, Smriti. (2017). 5 Reasons VIO is Perfect for India. Retrieved from http://www.coca-
colaindia.com/choices/vios-flavours-with-the-Goodness-of-Milk
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ground-this-year
Healthy trend drives sales of functional beverages. (2008). The Food Institute Report, 81(4), 1.
Hofstede, G. (n.d.). National Culture. Retrieved November 15, 2017, from Geert Hofstede:
https://www.hofstede-insights.com/models/national-culture/
Journey Staff. (2017). What’s the difference between Coke Zero and Coca-Cola Zero Sugar.
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Kell, John. (2016). Soda consumption falls to 30 year low in the US. Retrieved from Fortune:
http://fortune.com/2016/03/29/soda-sales-drop-11th-year/
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Market Analysis
Kotler, P. T., & Keller, K. L. (2016). Marketing management (15th ed.). Upper Saddle River, NJ:
Pearson, Inc.
PowerAde launches new global marketing campaign. (2010). Entertainment Close-Up.
Research and markets; global sports drink market worth USD 5.6 billion by 2020 - analysis,
technologies & forecasts report 2015-2020 - vendors: PepsiCo, Coca-Cola, 100Plus -
research and markets. (2016, Dec 05). Journal of Engineering. Retrieved
from http://ezproxy.liberty.edu/login?
url=https://searchproquestcom.ezproxy.liberty.edu/docview/1844984762?
accountid=12085
Sports and Energy Drinks in The Us. (2014). London: Euromonitor International Ltd. Retrieved
from http://ezproxy.liberty.edu/login?
url=https://searchproquestcom.ezproxy.liberty.edu/docview/1539810133?
accountid=12085
Sports Drinks in The Us. (2017). London: Euromonitor International Ltd. Retrieved
from http://ezproxy.liberty.edu/login?
url=https://searchproquestcom.ezproxy.liberty.edu/docview/1875336245?
accountid=12085
Tanne, J. H. (2013). Coca-cola launches antiobesity advertisements. BMJ :. British Medical
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Marketing Approach. Retrieved from Coca-Cola Company: http://www.coca-
colacompany.com/press-center/press-releases/coca-cola-announces-one-brand-global-
marketing-approach
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Market Analysis
The Coca-Cola Company. (2017, April 25). The Coca-Cola Company Reports First Quarter 2017
Results. Retrieved November 17, 2017, from http://www.coca-colacompany.com/press-
center/press-releases/the-coca-cola-company-reports-first-quarter-2017-results
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from http://www.coca-colaproductfacts.com/en/products/
The Coca-Cola Company. (2012, January 01). Coca-Cola Sponsorships. Retrieved November 17,
2017, from http://www.coca-colacompany.com/stories/coca-cola-sponsorships
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every country? Retrieved November 16, 2017, from http://www.coca-
cola.co.uk/faq/products/does-coca-cola-produce-the-same-drinks-in-every-country
Trefis Team. (2017). How Coca-Cola Plans to Make India Its Third Largest Market. Retrieved
from Forbes: https://www.forbes.com/sites/greatspeculations/2017/09/07/how-coca-cola-
plans-to-make-india-its-third-largest-market/#48e3d5eb2e84
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