group assignment the cocacola company

It wasinvented in the late 19th century by John StithPemberton and acquired by businessman AsaGriggs Candler, whose clever marketing tacticsled Coca-Cola to dominate the world beveragema

Group Assignment

MKT201

Group 4

Nguyen Hoai Phuong - HS163012

Pham Hoang Mai - HS160238

Nguyen Tuan Anh - HS163017

Class: MKT1609 Course: Consumer Behavior (MKT201)

Lecturer: Le Thi Viet Ha

/ C O N T E N T S

I I N T R O D U C T I O N

SHORT PROFILETARGET

CUSTOMER AND TARGET

MARKET

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A N A L Y S I S THE CONSUMER BEHAVIOR CURRENT 4PS MARKETING STRATEGY

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S U G G E S T I O N S A N D

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CO CA

C OL

A

Coca Cola

I N T R O D U C T I O N

corporation, founded in 1886 and headquartered in

Atlanta, Georgia

The company specializes in the production, retail, and

promotion of non-alcoholic beverages and syrups with

more than 3,500 products present in more than 200

countries around the world

In addition, the Company operates a franchised

distribution system since 1889 in which the Coca-Cola

Company produces concentrated syrup, which is then

sold to various bottlers around the world around the

world, who hold the exclusive right to do business in

each territory The Coca-Cola Company owns bottling

companies in North America, its name is Coca-Cola

Refreshments

Purpose: Refresh the world Make a difference

Vision: Our vision is to craft the brands and choice of drinks that people love, to refresh them in body & spirit And done in ways that create a more sustainable business and better shared future that makes a difference

in people’s lives, communities and our planet

P A G E 1

S H O R T P R O F I L E

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manufactured by the Coca-Cola Company According to statistics, Coke is the 2nd most popular word in the world, after Ok It was invented in the late 19th century by John Stith Pemberton and acquired by businessman Asa Griggs Candler, whose clever marketing tactics led Coca-Cola to dominate the world beverage market throughout the 20th century

The name of the drink is a combination of two ingredients: coca leaves and kola seeds (a

type of caffeine) Coca-Cola's current recipe remains a trade secret, although various

experimental recipes have been published

The Coca-Cola Company manufactures the concentrate, which it then sells to licensed

Coca-Cola bottlers worldwide

Bottlers then sell, distribute, and ship Coca-Cola to retail stores, restaurants, and vending

machines around the world

Currently, Coca-Cola has become a world famous soft drink company with a wide

variety of products such as Diet Coke, Caffeine-Free Cola, Cola Cherry,

Coca-Cola Zero, Coca-Coca-Cola Vanilla, and versions Special edition with lemon and coffee flavor

P A G E 2

TARGET CUSTOME

AND TARGET MARKET

Ages from 10 to 35: These young consumers are the segment that Coca-Cola has targeted since its establishment and development until now The company's main soft drinks products are always in line with the consumption trends of young people with a variety of product lines that are suitable for taste Coca-Cola seems to be an important part of young people's lives

Customers over 40 years old: This is also the age group segment with healthy consumption trends that Coca-Cola is aiming for They care a lot about their health and do not like to drink carbonated soft drinks Therefore, the company has launched the product lines of diet Coca-Cola (Diet Coke), pure to attract this customer segment

Target customer: Coca-Cola's potential customers are diverse and are identified and researched based on many different criteria (geographic, demographic, psychological and behavioral):

Target market: Coca cola's target market is very broad because it meets the needs of many different consumers Coca Cola does not target a specific segment but adjusts its marketing strategy by developing new products, tailored to the needs of customers

P A G E 3

A N A L Y S I S

I I

A N A L Y S I S A B O U T

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T H E C O N S U M E R B E H A V I O U R

Personal Factors

Generation X (age 42-57): They look to Coca-Cola as a beverage to help rejuvenate themselves To reach this audience, CocaCola uses print, television, direct mail and internet media

Generation Y (age 26-41): Millennials are a difficult target audience to impress due to their very short attention span Their selection of favorite content is also quite demanding They drink Coca

to quench their thirst simply, not to be loyal to the brand

Generation Z (10-25 years old): Unlike previous generations who were more concerned with product quality, Gen Z focuses on diversity, novelty, inspiration, story and social responsibility more association of the brand with the community

Age: Customers have different needs for products at different stages throughout their life cycle

=> Gen X people are interested in health products Therefore, the introduction of Diet Coke as a good drink has helped the company position a positive image in the eyes of this generation while still bringing a youthful and dynamic feeling

=> To reach customers, companies often use Emotional Advertising associated with a good cause For example, buying a Coke bottle, saving a child or Coca-Cola will always accompany you in happy family moments

=> It can be seen that Coca Cola is one of the brands that regularly launch campaigns to convey high social responsibility to "nourish" and "please" consumers, especially young people who are about to become adults become the economic "pillars" of the family

Personalization Strategy: The marketing campaign "printing names on coke cans" has caused

an uproar in the market, because it has never appeared before and it makes customers feel excited about this job of Coca-Cola

The "Share a coke" campaign is a connection, moments of reunion with family and friends, sharing comfortable moments together with Coca-Cola

Coca Cola's trend-catching advertising campaign from the US-North Korea summit in Vietnam attracts a lot of attention with the message "For peace, hope and understanding"

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P A G E 4

A N A L Y S I S A B O U T

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T H E C O N S U M E R B E H A V I O U R

A N A L Y S I S

I I

Personal Factors

Low income: can buy small returnable glass bottles

Average income: plastic bottles, no need to return

High income: buy cans

For example, the Coca Zero product of this brand has a strong flavor and is preferred by men while the Coca Light market is quite popular among women

Besides, Coca-Cola also adopts many other factors to divide its potential customers They consider many factors such as consumer needs, preferences, consumption trends, feelings, consumption history, scale, audience to divide and build specific strategies suitable for each subject

The launch of new healthy product lines has helped this brand attract many potential customers with healthy lifestyles and health concerns

The remaining group of potential consumers are those who appreciate their taste and preferences for soft drinks This is the potential customer that Coca Cola always aims for and focuses on developing relationships

Income: Coca-Cola's potential customers have very diverse income levels: medium, low or high Coca-Cola offers its products with a variety of designs, sizes, packaging and different prices to be able to suit the consumer needs of customers

Gender: Coca-Cola targets both male and female customers However, there are quite different tastes and preferences between these two target segments

Lifestyle: As mentioned above, Coca-Cola also divides potential customers into 2 groups according to lifestyle criteria

P A G E 5

Social Factors

The 'Share-a-Coke' campaign uses the concept of special occasions giveaways, where it gives people the opportunity to order personalized Coke bottles through the Facebook app In this way, the brand connected with the audience on a super-personal level, calling the customer's name directly as well as the people around to draw attention to this product

'Recipe for great meals' - In this campaign, Coca-Cola has published many recipes and video tutorials for many different occasions, be it a picnic, a family party, It positions itself as an integral part of a great meal, along with family and delicious food

Family: Buyer behavior is strongly influenced by members of a family

For example, children love sugary drinks like Coca-Cola, but their parents are aware that sugar is bad for them Parents can buy Coca-Cola for their kids to make them happy or they can choose a healthier alternative It is decided by each parent's point of view

CocaCola has come up with various strategies to capitalize on this aspect of influencing consumer behaviour

A N A L Y S I S

Maaza - fruit drink mainly aimed at children,

Sprite is aimed at young people going to school,

Thums Up is aimed at young people who love adventure,

Minute Maid - fruit juice for women

Role and Status: A person's consumption behavior is influenced by the role and status he holds in society

Coca-Cola products are also researched and manufactured according to this criterion Example:

Reference Groups: Groups influence consumer behavior, attitudes, and decisions toward a brand because individuals in the same group tend to share the same interests These include clubs, schools, or acquaintances or groups of friends,

For example, if a leader in a group likes to drink Coca-Cola because it symbolizes youth, the rest of the group will also tend to use this product

Therefore, Coca-Cola uses the concept of potential reference groups in advertising to influence consumer behavior by describing Coca-Cola widely consumed at any time, anywhere from: schools , offices, in the fields with farmers,

P A G E 6

A N A L Y S I S

Pschychological

P E R C E P T I O N

Coke is defined a learge beverage brand in the

world because:

Impressive brand image:

A typical brand logo of Coca-Cola is pictured as white letters in red background, or red letters in white background The strong contrast colors in Coca-Cola brand image convey impressive brand identity to customers The color red in white is striking, expressing the brand promotion of passion, active lifestyle The taste of Coca-Cola is a distinctive element that make it different from others, especially Pepsi Tastes of Coca-Cola carbonated drinks with unique formula to produce are unique for customers Senses conducted by Coca-Cola place the impressive brand image of Coca-Cola into the mind of customers

Brand name - Coca: easy to pronounce and memorable

Unique Shape of the bottle The result was the iconic Coca-Cola bottle inspired by the curves and grooves of the gourd-shaped cocoa bean, an ingredient the designers originally thought was in the product (The Coca-Cola Company, 2022) One of the most famous shapes in the world is the iconic contour fluted lines of the Coca-Cola bottle Renowned as a design classic and described by noted industrial designer, Raymond Loewy as the <perfect liquid wrapper,= the bottle has been celebrated in art, music, and advertising

Coca-Cola delivers an active lifestyle and a perception of the good life which are accessible for customers The perception is enhanced by its repeated exposures over and over again through its ads in different ads, media, and places With its recognizable brand image, brand associations are created in the process of learning and memory (Solomon, 2014)

Coke uses advertising to increase exposure and

brand awareness with many special advertising

campaigns that direct the insight of the

customer

Campaign Hilltop (1971) - "I'd Like to Teach the

World to Sing": using vintage imagery On a

hilltop in Italy, a group of people regardless of

skin color or race, holding a traditional

Coca-Cola bottle in their hands and singing the song

"I'd Like to Teach the World to Sing" together At

the time of its release, the song became an

instant symbol of the brand and was broadcast

to radio stations across the United States

P A G E 7

"Holidays are coming" (1995 - present): Opening with the jingle of sleigh bells and sparkling Coca-Cola truck, "Holidays are coming" has become the symbol of Christmas of the company millions of people around the world

<The Polar Bowl= (2012): During the 2012 Super Bowl XLVI football season, the polar bear image became the mascot in Coca-Cola's advertising campaigns The company estimates that 60% of the 111 million Super Bowl viewers will use a second screen when watching the game The campaign exploded with 9 million social media users curious to check out what the polar bears were up to

<Share a Coke= (2011): First tested in Australia to promote brand awareness among young customers, <Share a coke= suddenly became a global phenomenon and created a landmark

<to life= for Coca-Cola

A N A L Y S I S

Pschychological

P E R C E P T I O N

Coke advertising brings about meaningful messages, which evoke meaningfulness, happiness, engagement, love, connections These advertisements completely influenced significantly to the customer's psyche, which then increases brand awareness, brand retention, brand loyalty, and other factors that constitute brand equity

Integrated with the green tendency of the world, many green marketing campaigns have appeared (i.e: Recently, Coca-Cola has launched the bold message "Recycle Me" on the packaging of all brands and products in the Southeast Asian market (Chìa khóa <h nh phúc= c aạ ủ Coca-Cola, 2022)

However, in competition with Pepsi, Coke had faced some failures due to wrong decisionmaking related to the psychological factor A typical example is 1985 the Coca-Cola Company decided to terminate its most popular soft drink and replace it with a formula it would market as New Coke Coke had increased the amount of sugar in the new products that make loyal customers feel that they are deceptive This problem is also related to concern about obesity in the US decreased in sales volume and market share

P A G E 8

According to Maslow, an individual will try to satisfy the vital needs first and when he achieves it, such needs, at that level, stop being a motivator and the individual is motivated

by the desire to seek the most important need in the next level As in the case of coca-cola, quenching the thirst is the fundamental thing and the most basic drive, satisfying it using water is primary as compared to using coca-cola which is expensive and it is only fit for those who have satisfied their psychological and social needs

Herzberg’s theory operates on two fundamental principles; first, the seller should be in a position to produce good quality goods to prevent dissatisfaction that is prompted by factors like poor quality of products This is evident when coca-cola experienced low sales and customer dissatisfaction that was brought about by the change in formula to the New Coke

Coke does not only satisfy the biogenic needs of people (thirst) but also the psychological needs in higher levels such as self-esteem and self-actualization (coca-cola, as opposed to water, makes an individual appear modern and potent) People in developed countries often take cola to satisfy their thirst whereas in the developing world people satisfy their thirst by taking water, this is a clear indication that coca-cola is a want and a need at the same time (Coca-Cola Company: Consumer Behavior, 2022)

Consumers want convenience: consumers desire goods that are well organized and attractively displayed since this will facilitate convenient shopping Coca-cola vendors should display the good in an attractive place as a persuasive measure (Coca-Cola Company: Consumer Behavior, 2022)

Price and value: pricing is a factor that is necessary and often consumers consider it in buying coca-cola or/and other substitutes or competitive products (Coca-Cola Company: Consumer Behavior, 2022)

Advertising: This is also an indirect benefit that consumers consider in determining their wants Aggressive advertising may result in an increase in the volume of sales since consumers will be persuaded into buying the product (Coca-Cola Company: Consumer Behavior, 2022) Packaging: Good or attractive packaging is likely to lure consumers into buying the product (Coca-Cola Company: Consumer Behavior, 2022)

However, in some cases, psychological factors are the challenges for Coke’s development, even bringing about failure Some research is based on the classical model to explain the failure of the Coke in past

A N A L Y S I S

M O T I V A T I O N

Pschychological

P A G E 9