It s a Coke World. I. Situation Analysis: ADV 425 Situation Analysis

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Stephanie Boyd
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1 It s a Coke World I. Situation Analysis: What you ve learned about my brand, or my competitors that I don t already know and forms the basis for your recommendation. The Industry: The soda production industry amounted to $17 billion in revenue in The Coca- Cola Company dominates the industry with a hefty 41.2% market share. PepsiCo Inc. follows the Coca- Cola Company with 33.6% of the market. Furthermore, Coca- Cola Classic leads all beverages with 16.7% market share. Carbonated soft drink consumption has been decreasing over the last decade, and manufacturers have responded by introducing healthier alternatives for the health conscious consumers. Ultimately, over the next 5 years, industry revenue is projected to decrease by an annual rate of 2%, to $15.4 billion. Carbonated soft drinks also carry seasonal aspects, as sales usually increase during hotter months, and in southern states (IBISWorld.com). Competition: The top four producers in the industry account for 93.7% of the total market. The Coca-Cola Company - Market Share: 41.2% Brand Names: Coca-Cola, Diet Coke, Fanta, Sprite, Coca- Cola Zero, Barq's, Vanilla Coke, Cherry Coke, Mello Yello The company was founded in the late 1800s as a wine producer but Coke soon came to be the first flavored soda in the world, after prohibition began.

2 PepsiCo Inc. - Market Share: 33.6% Brand Names: Pepsi, Mountain Dew, Sierra Mist, Mug Root Beer, Izze, Diet Pepsi, Pepsi ONE, Pepsi Max Dr Pepper Snapple Group Inc. - Market Share: 15.4% Brand Names: Dr Pepper, 7- UP, Schweppes, A&W Root Beer, Canada Dry, RC Cola II. Vision: Give me a corporate vision (based on facts) that tells me what my company can be. Give me an ambitious target that your work will help me reach. The Coca- Cola Co. s Vision is to double sales worldwide by To achieve this, Coke understands they must capture the digital ecosystem and become a leader of the online world, as nontraditional platforms are capturing more and more consumption every day. The current target market is comprised of adults between the ages of The market consists of various segments including: Whites (more so diet), Asians, and Latinos. However, Pepsi shares a very similar target market, but has effectively captured the Black/African American segment. Thus, Coke should not only focus its efforts on expanding on its current market, but garnering a portion of Pepsi s market share as well. Mintel reports further indicated that Blacks and Hispanics are the heaviest consumers of regular soda, while Hispanics represent the most growth potential. Many consumers do not have a high school degree and currently work in occupations such as natural resources, construction, and maintenance organization.

3 Their annual household income is generally below $40,000. Interestingly, Coke consumers either never been married or are engaged, but once married they do not continue to consume Coke. This might be due to the health aspects regarding the beverage. Once married, couples attempt to start a family and attempt to quit their bad habits such as smoking, eating junk food, etc. Although they may not be married, they do have children, predominantly below the age of six. Other segments that must be acknowledged include teenagers. According to Mintel reports, 86% of teens aged reported drinking soda in 2011, and this segment are continuing to grow. Younger children aged 6-11 are also drinking more soda as well. In 2011, 77% of children aged 6-11 reported drinking regular cola.

4 CREATIVE BRIEF Hatching Ideas (Objectives) The three main objectives of this Coke World is to connect with consumers at a younger age, steal a fraction of Pepsi s market share (specifically within the African American demographic), and establish Coca- Cola as a globally- responsible big business. Plan of Attack (Strategy) Raptor5 s strategy for Coke is simple: engage users in a positive way to increase top of mind awareness and maintain competitive edge over other soft drinks. This can be achieved by infusing everyday situations with brand values to encourage discourse between Coca- Cola and its consumers. The Prey (Target) Coca- Cola is already found in almost all corners of the world, though they must pervade the digital space to achieve their goals. According to MRI+, Coke s highest usage is from Whites, Asians, Latinos age without a high school degree. They are unmarried but may have children below age 6, and work in natural resources and construction, making a HHI of below $40,000. Coca- Cola also has a chance to take market share away from Pepsi drinkers, specifically the African American audience that currently prefers Pepsi. Predatory Instinct (Consumer Insight) Coke s challenge is engaging users in a manner that both allows them the opportunity for conversation between brand and consumers while not impeding on their online activities. The challenge for marketers is keeping advertising friendly and unobtrusive, as some ads can be seen as roadblocks by online consumers. Leaving a Footprint (What the advertising is intended to achieve) The Coke World campaign is intended to reinforce Coca- Cola s mission to refresh the world and share happiness with others. The digital executions should reflect the values of the brand and inspire people to spread happiness across the world and in their own communities. Fossilized Proof (Reason to believe) The values of Coca- Cola that aim to spread happiness around the world, is as ingrained in consumers minds as the bold red color that is synonymous with the brand. Users have a reason to believe in Coke s mission merely because of the brand s already well established presence in the world. Taking Flight (Call to Action) The call to action from this campaign will be to encourage the sharing of happiness in one s own life, as well as in the lives of those around them. Drinking Coke will reinforce these ideals, as it is a soft drink that will bring joy to all those connected to it.

5 III. Your Media Strategy & Plan Based on research conducted on MRI+, current Coke consumers can be reached effectively on the following websites (labeled in red), compared to Pepsi s audience (in blue): Websites CDI Univision.com 160 Any Spanish Site 150 NBA.com 132 NBC Sports 128 MySpace.com 126 Yahoo! HotJobs 125 Flickr.com 124 MTV.com 124 Yahoo! Movies 122 Photobucket.com 119 Hulu.com 117 CBSNews.com 116 YouTube.com 116 ESPN.com 114 Yahoo! Sports 114 Websites CDI NFL.com 123 CBSSports.com 120 MLB.com 115 Disney.com 114 Nascar.com 113

food industry progress

Monitoring and evaluating food industry progress Jennifer L. Harris Institute of Medicine Workshop November 5, 2012 Independent research Benefits Transparent, rigorous methods Name names Objectives Identify