Understanding Target Markets
February 13, 2017
Professor Brett Tweedie
Understanding Target Markets
To understand a working relationship with a company and the marketing team, The Coca-Cola Company needs to understand the target markets buying influence and behaviors. The following research will show examples of The Coca-Cola Company’s primary research, SWOT Analysis, Potential Future Opportunities, Potential Future Threat, Target Markets, and Insights.
The first element discussed, within The Coca-Cola Company, is the marketing strategy of Coca-Cola. Coca-Cola operates in more than 200 countries around the world and is one of the leading beverage company. The Coca-Cola Company researches the areas that sell the most product and provides information on the products that sell within their region. For example, when traveling to Russia, the major cities have Coca-Cola Light, while the towns and villages we visit, do not have a high enough demand for such product. The Coca-Cola Company provide their customers with a tagline, “Refreshing the world, one story at a time” (Marketing91, 2017). Brand loyalty is also an important factor, “Brand loyalty is essential to every organization to make the customers/consumers stick to the products” (Vijay, 2016). The Coca-Cola Company’s operations are outsourced and currently works with a franchisee, FEMSA to help provide the growth opportunities. The Coca-Cola Company is one of the most recognized companies around the world, with Pepsi playing the role of the single largest competitor across the segments (Marketing91, 2017). Energy drinks are also playing a role into The Coca-Cola Company’s future. By “understanding issues related to retail channel strategy development in fast-changing international consumer markets, and the challenges of adapting legacy routes-to-market systems to changing consumer demands”, the company is going to determine the best way to market internationally (Wilson, 2017).
Potential Future Opportunities
The second element of discussion within The Coca-Cola Company is the potential future opportunities. Although with the decrease in sales and operating profits declining, The Coca-Cola Company is far from the end. Coca-Cola has over 20 brands and makes over $1 Billion per year with sales alone (Suredividend, 2017). A few of their brands, to name a few are: Minute Maid, Glaceau Vitamin Water, Schweppes, Gold Tea, and Fuze Tea. With the reduction of interests in sugar sodas, many of the other products that Coca-Cola owns, are of those beverages that are better for you. “The beverage industry is expected to increase by $300 billion between 2015 and 2020, and the company continues to hold dominant market share” (Suredividend, 2017).
Potential Future Threat
The third and final element to discuss with The Coca-Cola Company are the potential future threats. With the net income falling in 2014, The Coca-Cola Company plans to see growth within the loyal consumers. The Coca-Cola Company is also working together with Monster and Keurig Green Mountain (Forbes, 2017), in hopes to increase their line of business. The Coca-Cola Company also through the Minute Maid milk called Fairlife is a great business venture but with the U.S. population drinking less milk, the sales are falling. In the end, Fairlife can either impact the company in either direction.
The demographic information for The Coca-Cola Company is Caucasian males within the age bracket of 45 – 65+. Income ranges between 20K and 80K with no kids and no college education. The psychographics includes purchasing at dollar, gas and convenience stores by using cash.
The insights I have researched are far from what I expected, being an avid Coca-Cola consumer, my demographics are part of the lower consumer sales. Being a Hispanic female 35-44 years of age, with a child and a college degree, I purchase Coca-Cola beverages at gas, convenience and retail markets, paying by debit card. The demographics for The Coca-Cola Company is wider than I would have expected it to be.
Forbes website (n.d.) http://www.forbes.com/sites/greatspeculations/2015/03/17/scenarios-that-could-change-coca-cola-as-we-know-it/#6be79d370967http://www.forbes.com/sites/greatspeculations/2015/03/17/scenarios-that-could-change-coca-cola-as-we-know-it/#6be79d370967
Infoscout website (n.d.) http://infoscout.co/brand/cocacola
Marketing 91 website (n.d.) http://www.marketing91.com/marketing-strategy-of-coca-cola/
Marketing 91 website (n.d.) http://www.marketing91.com/swot-coca-cola/
Sure Dividend website (n.d.) http://www.suredividend.com/coca-colas-growth-potential/
Richard E. Wilson, “Coca-Cola Amatil: A Bottler Recharging Growth With Energy Drinks”, Kellogg School of Management Cases, (2017)
Vijay Anand, V., Renganathan, R., Balachandran, S., Tony Jerry Suganth, L., Sravanthi, C., Kumarappan, R., & Santhoshi, . (2016). Brand Loyalty – A Study with Special Reference to Coca Cola in Rural Areas. Indian Journal Of Science And Technology, 9(27). doi:10.17485/ijst/2016/v9i27/97623
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MKT 571 Week 2 Assignment Understanding Target Markets.docx