Coca Cola C2. It went on sale in Canada in August 2004. Brand recognition
is also important. Coca Cola uses white text on a red background, with the
words being quite bold. It is really attract consumers. There are varieties
types of packaging available, such as 2 L bottle package, 1 L bottle package
24 can package, 12 can package and 8can package etc. Usually, most 1 L
bottle packages are sold in vending machine.
Figure 1 illustrates the market share of the Coca Cola Company:
Figure 1
Rank companies and Brands (2003)
PRICE
Coca cola is based on adaptive pricing strategy. It allow different
stores set different prices. It also uses odd pricing strategy. For example, a
24-can package of Coke classic is $8.99 rather than $9.00. 2L Coke classic
is $0.99, and so on. Sometimes, Coke offers special prices, like if customers
buy three 12-can packages Coke for only $10.00. Coca Cola can creates low
price, because it recycles the used cans, and has high-tech production line
with massive production.
PROMOTION
Coca cola has some impressive advertising on TV. And, there is some
contests for customers. For example, the company set a couple of million
prize, after customers purchased Coke, they can open and see the back of lid,
whether they win or not. Coca Cola also donate a lot of many to charity and
support Olympic game. The well-know Coke promotion is “Coca Cola
Christmas”, Coca Cola has a great “reprehensive” and considerable amount
of Coke will be sold during that period.
PLACE (DISTRIBUTION)
Coca Cola Company manufactures beverage syrup and concentrates
which then sell to a network of independently operated bottlers. For example,
there is a bottler in Prince Alberta which is located in Saskatchewan. Some
of the bottler independently owned, some of them are owned by The Coca
Cola Company. Bottlers are responsible for producing, packaging and
distributing the products to their territories. The method of the transportation
usually is trucks. Trucks deliver products to intermediaries like retailer and
restaurant. They also fill up the vending machine regularly which can be
found all over the city.
According to Figure 1, we can easily notice that some other soft drinks
compete with coke classic. Although Coke classic takes big amount of
market, other soft drinks also has big market share, such as Pepsi Cola,
Mt.Dew, and so on. I like to drink Coke classic, because it is not as sweet as
Pepsi product. Coke classic also is famous and reliable brand with a
reasonable price. It is easy for customer to get in everywhere in the world.
2.
The target market I am going to choose, who are young adults (20-29
years old). Some of people are in the baby boom echo group (20-24), and the
other in buster (20-24). The Coke classic is suitable for my market
segment. In this age group, they are not all busters, there are sizable people
consume this product. These young adults are either in postsecondary school
or have a job already, they will have party more often, So, Coke might be
their choice. Coke can let young people energetic, when they are studying or
working.
According to stats Canada, in 2006, my target market’s birth year will
be 1977-1986. there will be a little bit busters (1977-1979), majority of them
are baby boom echo (1980-1986), the total young adult’s population will
increase from 4197300 to 4361700. In 2011, all of the young adults are baby
boom echo, because their birth year is between 1982 to 1991. Population of
this group is keep growing from 4361700 in year 2006 to 4504900 in year
2011. Finally, in 2016, my target market’s birth year will be 1987-1996. It
means that they are still in baby boom echo, except the year in 1996 which is
baby bust. The population in my target market will increase from 4504900 in
year 2011 to 4597600 in year 2016.
3.
From 2006-2016 population projection for Canada, we know that the
population of young adults are increasing. There will be more potential
costumers for Coke classic. Coke classic still should be the major product
for Coca Cola, and the formula will be remained, since some young
customers have already have brand loyalty over 20 years with Coke classic.
For example, Coke changed the formula in 1985; most people complain the
“New Coke” is not as good as original one. The price of the Coke product
may keep constant, even though the Coca Cola company will face inflation
problem. In the mean time, the high-tech producing line should take over old
one, and reduce the cost as low as possible, then, using cost-oriented pricing
strategy. It will let Coke classic’s price more competitive to appeal my target
market. I will make the promotion in happy and peaceful style. Sports can
also used in promotion, for example, young adults’ favorite sport- hockey.
With the increasing young adults’ population, I will use intensive
distribution, and put Coke classic into as many place connected with young
adults as possible such as restaurant, bars, and postsecondary school, and so
on. It is possible to gain more Market share.
WORKS CITED
Statistics Canada Home Page. 28 July 2004. Statistics Canada’s Internet Site.
9 October 2004 < >.
Coca Cola Home Page. 2003. The Coca Cola Company. 9 October 2004
< http://www.cocacola.com >.
The Beverage Net Work Home Page. “Beverage Digest/Maxwell Ranks
U.S. Soft Drink Industry for 2003.” 4 March 2004. BevNET.com,
Inc. 9 October 2004. < >.
