...Case assignment: Coke Zero Do Real Men Drink Diet Coke? 1. Describe the specific type of consumer that the Coca-Cola Company is targeting with each of the following products: Diet Coke, Coke Zero, Diet Coke Plus, Coca-Cola Blak, and Full Throttle Blue Demon. What types of demographic segmentation is each product’s marketing most likely to include? Coke Zero for customer who are becoming more health conscious customers of regular carbonated soft drinks Diet Coke Plus: Was targeted to consumer who are becoming more health-conscious. Everyone who is concerned about their health but want the product sweeter Coca-Cola Blak Was targeted to more sophisticated consumers who are willing to pay more. People who more busy and on the go. Full Throttle Blue Demon this product was designed for Hispanic men. The men who want a more Hispanic taste like enjoy alcoholic beverages. 2. Some industry analysts think soft-drink companies should develop products that will bring new customers into the market rather than just creating variants on the old. They warn that products like Coke Zero will cannibalize lost market share from other soft drink categories instead of increasing the number of consumers overall. Which Coca-Cola products are most likely to lose customers to Coke Zero? The products that will be lost customers will be the Diet Coke because it taste same as consumer isn’t going to pay for the same or even more for a product that taste similar. 3. Why do you think...
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...from end of case 1. Diet Coke: It seems to be common that only women drink diet coke since it has less calories, low sodium, and low carbs than the original Coke. There are only a few males that drink diet coke compared to the large amount of females that drink it. Diet coke would be based on gender segmentation. Coke Zero: This product is more of a young male drink. Although it doesn’t have sugar and the calories people tend to like the artificial sweetener, which makes it drinkable. I personally don’t see a difference in drinking Coke Zero or Diet Coke, both tastes the same to me. Males didn’t want to be seen drinking Diet Coke so they prefer drinking Coke Zero. This product would fall under gender and age segmentation. Diet Coke Plus: Diet Coke Plus would also be considered a female drink since its part of the Diet Coke family. This product is for the females who are concerned about health and nutrition as well as losing weight. Diet Coke Plus would be considered gender segmentation. Coca-Cola Blak: This product is especially for older Males and Females who are more sophisticated and are willing to pay a little extra. Coca-Cola Blak would be age, gender, and income segmentation. Full Throttle Blue Dragon: This energy drink is an attraction for young Hispanic males who want a little kick to the energy drink. This product would categorize under age, gender, and ethnic segmentation. 2. Coke Zero is most likely to affect sales of Coke and Diet Coke with selling...
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...Case Study: Coke Zero I highly agree with the statement that “companies should develop products what will bring new customers into market rather than just creating variants on the old” (Lamb et al. 289) because when old products failed, it is an opportunity for the company to invest in different market segments— “a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs” (Lamb et al. 261)—that could potentially increase additional consumers. For instance, Coke Cherry has been the “dog”— a “poor performer [and]it has only a small share of a slow-growth market” (Draft 213)— product line compared to other successful drinks such as Diet Coke, Coke Zero, and regular Coke. Thus, managers must foresee the concept: why continuing to invest in older products that do not produce profits and lose additional money in the investment; hence, why not take the risk of manufacturing new products that could be the “cash cow”—the “dominant business in the industry, with a large market share” (Daft 213)—in the market? Diet Coke and Coke Zero are the “star”, which have “additional growth potential” (Daft 213) and “will generate profits and a positive cash flow” (Daft 213). Both Diet Coke and Coke Zero are concentrating on the demographic segmentation—“segmenting markets by age, gender, income, ethic background, and family life cycle” (Lamb et al. 265)—by particularly age; therefore, the target market of Diet Coke and Coke...
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...Assignment #1 - Segmentation and Targeting Please read the following Case Study and answer the questions at the 4 questions at the end. Segmenting and Targeting Markets: Case Study: Coke Zero When a couple of marketing managers for Coca-Cola told lawyer Elizabeth Finn Johnson that they wanted to sue their Coke Zero colleagues for “taste infringement,” she was baffled. She tried to talk them out of it, but they were determined. They argued that Coca-Cola Classic should be protected from the age discrimination it would suffer with the introduction of a newer, younger soft drink that tasted exactly the same as the original. Frustrated, Finn Johnson held up the Coke can and shouted, “It's not a person! Title VII doesn't cover these things!” What she didn't know was that the marketing managers were actors. Hidden cameras had been planted around the meeting room to capture the reactions of several unsuspecting lawyers who had been asked to consider the case, including an immigration lawyer who was asked if he could get the Coke Zero marketing head deported back to Canada. Coke Zero Immigration Lawyer Ad - YouTube The short videos were strategically placed on websites such as to promote Coke Zero as the hip, new alternative to Diet Coke for men. The Coca-Cola Company knows it has to be creative if it's going to sell more pop after sales dropped two years in a row in 2005 and 2006. Morgan Stanley analyst Bill Pecoriello explains, “Consumers are becoming ever more health-conscious...
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...1) Why, historically, has the soft drink industry been so profitable? Coca-Cola and Pepsi are 2 common soft drink companies that have been in existence for many years. Coca-Cola was founded in 1886 by a pharmacist, and the company grew from there. During World War II, soldiers were given reduced price Coca-Cola. Similarly, Pepsi (called Pepsi-Cola) was invented by a pharmacist in 1893. During the Great Depression, a 12 ounce bottle of Pepsi cost the same as a 6.5 ounce bottle of Coke, thus keeping it in business. Both companies have since capitalized on the booming industry. In 1970, Americans were drinking 23 gallons of soft drinks a year, on average, and that amount grew by 3% annually for the next 30 years. Soft drinks were the most popular beverage of choice for Americans. They were inexpensive to buy, and this was due in part to Coke and Pepsi’s cost strategies. Making soft drink concentrate required very few ingredients and very little equipment. They also coordinated with their suppliers to get fast delivery and low prices. Both companies offered significant funds to large chain grocery stores to help with marketing and promotion in exchange for shelf space and point-of-purchase displays, in order to boost revenues. Coca-Cola and Pepsi have historically had many of the same strategies, including the introduction of a diet option and a large variety of flavors. This was because having an aggressive and similarly matched competitor forced both companies to be focused, sharp...
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...India case, President and CEO of Coca-Cola India (Coke India) Sanjiv Gupta is faced with this question: Should he act further on the Center for Science and Environment’s (CSE) allegations that cold drinks contain too much pesticides or should he remain silent and let the information fade from public view? Section 1: Assumptions and Stakeholder Analysis The first assumption taken in this case is Coke India is not breaking any laws and telling the truth when it comes to the level of pesticides in its products and its routine testing for chemicals. This case is not about concealing illegal activity or lying to the public, rather, it discusses the question whether or not corporations have a right to influence government to regulate various systems. If the analysis takes lying and cheating into consideration, this interesting discussion would appear convoluted. The second assumption taken in this case is the definition of “acting further” means for Coke India. Because Coke India and Pepsi already called the study “baseless” in a press conference launched independent marketing campaigns and published open letters referring to fact/myth websites, this analysis assumes acting further means more than public relations (Coke India, 12). Pepsi has already “filed a petition with the high court questioning the credibility of the CSE’s claims” and Coke India has threatened legal recourse meaning acting further means more than legal recourse against the CSE (Coke India, 1). The case also states...
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...COKE CASE STUDY: ISSUES IN THE GLOBAL SECTOR BY COREY J. GRIFFIN Coke is a major product brand that has grown from 1886 to becoming the number 1 brand in the world according to Interbrand’s Global Scorecard in 2003. All this success has not come with a little hardship, due to the fact that Coke is a global brand. Just as it was seen in the Nike case study, when a company becomes globalized it is hard to monitor and maintain every sector of the product name. On August 5, 2003 the CSE (Center for Science and Environment) released a critical press release that name 12 soft drinks brands, Coke brand included, that were sold in and around Delhi to have contain a deadly pesticide residues (CSE Press Release, “Hard Truths about Soft Drinks, 5 Aug 2003). CSE claimed that these dangerous pesticides were known to cause cancer, cause failure of the nervous and reproductive systems, birth defects, and damage to the immune system. Along with the hazardous chemicals found by CSE, there were very limited regulations in place for this industry to follow. These soft drink companies were receiving exemptions for the industrial licensing under the Industries (Development and Regulation) Act of 1951 that would have probably had a chance to take notice to these soft drink contamination events (CSE Press Release, 5 Aug 2003). In response to these very strong allegations from the Center for Science and Environment, Coke Enterprise of India launched their own internal investigation...
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...PEST CASE STUDY: COCA COLA PEST analysis examines changes in a marketplace caused by Political, Economical, Social and Technological factors. Look at the following statements abstracted from various sources, and group them under the following headings: Political; Economic; Social; Technological After the shock of the attacks on September 11, 2001, and despite the debilitating effect of the Iraq War, the USA’s economy had returned to sustained growth by 2006. However, things have changed quite dramatically recently; following the sub-prime loan catastrophe in the housing market, the economy is again in trouble. Most economists are now predicting a severe recession (negative growth for a year or more), and some predict depression (prolonged recession and contraction of the economy by more than 10 per cent). There have been recent major government interventions around the world, most notably in the banking sector, in an attempt to prevent the world economy from following the USA in a downwards spiral; it is too early to tell if, how and when these efforts will be successful. The recent election of Barack Obama as president is seen by many as a glimmer of hope, but it is recognised that once he takes office on January 20th 2009 he will be inundated with a whole sheaf of major internal problems that will take time, ingenuity and cash to sort out. Internationally, the range of political instabilities, civil unrest, military posturing, protectionism, economic distress, and other...
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...Coca-Cola vs. Pepsi-Cola Introduction The soft drink industry has been a profitable one in spite of the “cola wars” between the two largest players. Several factors contribute to this profitability, and these factors also help to show why the profitability of the concentrate production side of the industry has been so much greater than the bottling side. Over the years the concentrate producers have experimented with different levels of vertical integration, and although it has not necessarily been clear which have been more successful historically, some decision criteria can be developed to help determine if and when complete vertical integration is necessary. Profitability in the soft drink industry As analysis using Porter’s five forces shows why the soft drink industry has been so profitable. Suppliers and buyers have not had more power over the industry than it has had over them. Internal rivalry, while seeming intense, has not eroded the profitability of the industry because of its concentration and the fact that the two major players have primarily competed on the basis of advertising and promotion and not price. Entry is difficult both for reasons of scale and the strong brand identity of the current major players. Substitutes have not been close enough to take away significant market share, although the emergence of new substitutes may pose the largest threat to the industry’s profitability. Suppliers and Buyers Suppliers to the soft drink industry...
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...Chapter Eight Case Study - Coke Zero Coke Zero Coca Cola has been the leader in the soft drink market for decades, consistently besting their nearest competitor, Pepsi. The struggle for the top spot has been on-going for over one hundred years, and at times has been fairly interesting. Both companies have been trying new strategies, flavors; can designs and even recipe changes in order to gain market share, niche competitive advantage as well as a sustainable competitive advantage. (Lamb, Hair Jr., & McDaniel, 2013, p. 26) Both companies constantly change their products and their marketing techniques in order to secure an advantage over one another. Coca Cola over the years has used common good business practices in order to evaluate their business, so they would know which direction to take it, next. Sometimes their choices were effective, other times they were not. A Coca-Cola marketing situation comes to mind going back to 1985, when seemingly out of the blue, Coke changed their formula. The onslaught of public outcry then began, forcing Coca Cola to re-think their strategy and into damage control mode. It was either a brilliant strategy designed to be a publicity stunt, or one of the worse blunders ever in corporate America. The answer is still not clear to this day, however the results were interesting and have been fodder for Marketing classes ever since. News about the “New Coke” dominated the airwaves for weeks on end, and people rushed out to try it. Most did...
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...designate the economic sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industry, and the sixth digit designates the national industry. Section II—Game Theory and Hypothesis 2a In the set-up to Hypothesis 2a, the authors discuss the notion that players learn from past experiences and have a perfect memory. They discuss a “tit-for-tat” strategy that should over time result in an attenuation of the competitive moves between players. This interaction over time should make it easier for a firm to predict the direction and nature of their rival’s next (competitive) move. The authors suggest in Hypothesis 2a that the volatility of the relationship between Coke and Pepsi’s competitive moves...
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...Edition: 1.1 February 2002 Distance Education Course ML–302.5 Marine Terminal Operations Unit 1 Marine Terminals The three lessons in this unit will cover the topics of: • the role and function of marine terminals • terminal development • operational planning • civil engineering aspects of terminal design. Module B: Certificate in Maritime Logistics Diploma in Shipping Logistics—Jamaica Maritime Institute 1−1 Unit 1: Marine terminals Marine Terminal Operations Unit 1 ...........Activities and expectations Agenda To complete this unit, you will: • Read and study the text in this unit and any assigned passages in the Student Reader. • Apply the information by performing the Activities • Test yourself by doing the Practice Exercises and checking your answers. Resources There is no textbook for this course. All the information you require is in this Study Guide. In addition, your Student Manual lists some books that you may wish to read to expand your knowledge. Learning outcomes When you have completed this unit you will be able to: • • Explain some of the considerations in equipment selection. • Discuss the needs for storage areas. • Discuss safety and emergency response considerations. • 1−2 Describe the role and functions of marine terminals. List the broad categories of studies that are needed in planning a new terminal. Module B: Certificate in Maritime Logistics (Course...
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...5) How can Pepsi and Coke confront the issues of water use in the manufacture of their products? How can they defuse further boycotts or demonstrations against their products? How effective are activist groups like the one that launched the campaign in California? Should Coke address the group directly or just let the furor subside? Pepsi and Coke should have responded faster to the concerns of the general public. The companies formed committees within India and the United States to work on legal and public relations issues. They commissioned their own laboratories to conduct tests and waited until the results came through before commenting in detail. Their approaches backfired. Their reluctance to give details fanned consumer suspicion. If the companies acted faster to the situation when it first came to light, the could have spared a lot of grief. Pepsi and Coke can defuse further boycotts by speaking directly to the cause of the boycott/demonstration or by allowing demonstrators to investigate their product themselves. The activists groups have proven to be very effective in their efforts. Fear campaigns (like the ones assembled in California) can do a great deal of damage to the brand. They are even more effective when the people targeted are not in the country being referred to as in this case (America/India). They are unable to use their own judgement to dismiss the campaign. Moreover, Coke should address the group directly in order to sort out any misunderstandings as...
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...Case Study – Coke in India Adapted by Lesley Fleischman from: Hills, Jonathan and Welford, Richard. Corporate Social Responsibility and Environmental Management. 12, 168–177 (2005) August 2003 • • • • • October 2003 • • Coke has 44 wholly owned and franchise owned bottling plants in India Indian NGO finds that Coke and Pepsi products bottled in India contain pesticides. Immediate impact on Coke stock price. Coke threatened legal action over allegations. Indian government tests confirm findings. Coke hires PR firm, develops strategy to deflect media attention away Escalating community protests at bottling plants, demonstrations, hunger strikes, etc. December 2003 February 2004 March 2004 • • • • • • • • June 2004 • • • September 2004 • • October 2004 • • • February 2005 • • April 2005 • • May 2005 • • Ordered by Indian court to stop drawing groundwater for its bottling plant in Plachimada, Kerala Judge ruled that no power to allow a private party to extract such a huge quantity of groundwater Protesters claim that Coke water use was reducing agricultural yields Coke cited lack of rainfall, not their operations, as cause of crop declines Parliamentary committee finds high amounts of pesticide residue in Coke and Pepsi products bottled in India Not illegal, Indian safety standards weak Coke application for new bottling plant in Plachimada denied by local authorities because...
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...Managerial Economics Coke vs. Pepsi: An Economic Analysis Rebecca Simmons Managerial Economics Dr Sol Drescher December 4, 2012 Executive Summary In this case study we will do an economic analysis of two major competitors; Coke® and Pepsi®. We will look at the history of these to competitive giants and discuss how they have evolved over the years to become rivals in the 21st Century. In this case study we will also look at the supply and demand of each company’s products. Coke and Pepsi are not only in the beverage business they have branched out into other arenas to continue being the leaders in their market. Both companies do business all over the world; we will also look at how they size up internationally as well as nationally. We will look at production and cost in the short run and long run by analyzing each company economically. Each company has foreta where they will be financially in the 21st Century and in this analysis we will calculate if they have forecasted close to where they are today. Management is a big part of the success of large firms such as Coke and Pepsi so we will look at the management styles of each one. By looking at management will analyze the strategic decision making of each firm and note any issues they have had in the past or present with upper management. Finally strategic decisions in oligopoly markets with regards to profit maximization is vital to the...
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