“Long term market growth of 3-4%” (www.cocacola.com)
This marketing objective links into the first one. This is because there are two ways of increasing marketing growth. One way is for competitors to make mistakes like coca coal did when it revised the recipe for coca cola. If another company made mistakes like this then coca cola would be able to increase its market share but this is very unlikely as Pepsi its main competitor is very profitable and has good procedures in place to make sure that its brand is liked. The other way is the first objective. This is because if the main brands are promoted further than they could increase there share of the market. Or new brands could capture part of the market. This would mean that competitors like Pepsi would be put under pressure because their profits would decrease which may mean that it spends less on marketing. This in turn may mean that less people buy their products and this may continue allowing coca cola markets share to increase. My new product will help achieve this objective because it will compete directly with nestles ready to drink coffee. This will mean that it will help increase coca colas market share because the product will not be taking customers from its own brands.
“Direct investment to highest-potential areas across all markets” (www.cocacola.com)
This means that coca cola invest into new and diverse areas which will mean that it will be one of the first companies into a new market which means that it will be able to gain a foothold before other competitors promote their new products. It will also mean that people will associate more with the coca cola brand because it was one the first in that market e.g. vacuum cleaners are still sometimes called hoovers because it was one of the pioneering brands. This will increase brand loyalty and make it difficult for other brands to enter the market. My new product will be entering a market that coca cola has not entered before and it is a potentially high profit area for coca cola.
“The category is growing, including 13% in 2003”
“about 45% of adults are consumers”
“9% drink bottled or canned coffees”
This research is based on the US only. It shows that this niche market has double-digit growth with a large amount of room for expansion.
My new product fits in with coca colas current product portfolio because it does not have as far as I can tell a coffee beverage in the UK or USA.
“The missing player here is obvious: Coca-Cola, which is not in the U.S. ready-to-drink coffee market.” (http://www.preparedfoods.com/CDA/Archives/57c72af4e4788010VgnVCM100000f932a8c0____)
This means that there is a gap in coca colas current market portfolio that my new product will fill. It will also be competing against Pepsi. “Ready-to-drink coffees” “dominated by a partnership of Pepsi-Cola North America and Starbucks” (http://www.preparedfoods.com/CDA/Archives/57c72af4e4788010VgnVCM100000f932a8c0____)
This is import for coca cola because it has not been in that ready to drink coffee market which has meant that Pepsi could control it. It may already be too late for coca cola to enter and become the market leader because Pepsi already has control, experience and brand loyalty with its partnership with star bucks in the market. It may mean that coca cola may have to settle for number 2 spot for many years because of the head start Pepsi has which could be compared to Pepsi cola entering the cola market against coca cola but the other way around.