Case Study: Coca-Cola- How they use market research

1.       What part does market research play in the marketing concept? (hint: the marketing concept is to: identify, anticipate, satisfy and meet needs profitably”)

2.       How will market research help Coca-Cola to develop an appropriate marketing mix for one of its products, e.g. Powerade? Placing marketing at the heart of the organisation enables Coca-Cola GB to grow the product range in ways that best meet consumer requirements through developing:new drink categories e.g. sports drinks

3.       Why is it important to identify different segments of the soft drinks market through market research?By dividing a category into segments, businesses can identify different groups of consumer wants. It is then possible to design products to meet those requirements

 

4.       Market research carried out by Coca-Cola revealed a growth in the number of smaller households. How did this market research information help to inform product design?

5.       Why does Coca-Cola sometimes use quantitative market research rather than qualitative research?collecting information from a broad population sample e.g. by conducting extensive surveys, used when Coca Cola GB wants to gauge appeal across a wide audience

 

6.       Why does Coca-Cola sometimes use qualitative market research rather than quantitative research?working with small 'focus' groups. This involves far more detailed investigations, e.g. gathering a small group of 'typical' consumers to taste test products or to talk about their preferences and experiences of using different products. Qualitative research, whilst not representative of the views of the general population, provides greater insight into 'why' people think what they think. 

 

7.   What are the benefits of carrying out a simulated test market before going for a full launch?simulated test market was carried out. On the basis of the background market research it was possible to forecast likely sales volumes. This calculation was based on the type and level of support the brand flavour launch would receive (e.g. advertising, sampling, promotions, price and distribution), consumer perceptions and claimed behaviour (what the consumers said they would do). The results were favourable and supported the launch of this flavour in Great Britain.

 

8.       Coca-Cola Vanilla was already an established successful product in the US. Why then was it necessary to research the feelings of the market about Coca-Cola Vanilla before launching the product in the UK?There had not been flavour innovation involving Coca-Cola since 1986 when Coca-Cola Cherry was launched. However, recently Coca-Cola Vanilla had a successful launch in the USA, so it was decided to test its potential in Great Britain