Thursday, December 12, 2019
A behavioural perspective on the consumers - MyAssignmenthelp.com
Question: Discuss about the A behavioural perspective on the consumers. Answer: Introduction Marketing research and survey play a significant role to examine and evaluate the environment and challenges of the market. It also helps to assist and guide the firm in promoting and enhancing the operations and practices. Here is the discussion about the company, which has been chosen in the previous assessment, i.e. Coca-Cola Company. The paper explains the growth, pestle analysis, profitability and current trends of the organization. Furthermore, the report also explains the significance of the primary and secondary market of the company. None of the firm can survive its business without a target audience. Coca-Cola is one of the biggest leaders in the beverage sector, but still, some challenges and barriers are faced by the firm. It depicts that how primary market affects decision-making process in an organization. At the end, a positioning map is formulated by considering the primary market, competition, and level of involvement of the target audience. Description about organization and industry Coca-Cola Company is an American multinational beverage corporation, marketer, and retailer of nonalcoholic beverage syrups. The firm is famous for its flagship products and services. The organization was founded in 1886 with its headquartered is located in the United States. Coca-Cola franchise is the biggest beverage industry in the world. It dominated a 48% of the global market share. The firm operates its business activities and operations in more than 200 countries. The company offers a wide range of products such as juices, tea, coffee, sports beverages, and water. Muhtar Kent is the chairmen of the organization with James Quincey as a chief executive officer and president. The main objective of the firm is to maximize and increase the long-term return to shareholders while being attentive to overall roles and responsibilities. In todays modern world, Coca-Cola Company is increasing and maximizing returns and revenue of the firm. The firm is a soft drink empire and serves custo mers across the world (Coca Cola, 2017). Growth Coca-Cola is the biggest seller of non-alcoholic beverages in the world. The company reported fall in revenue in the third quarter by 14.62% to $ 9, 078,00 million from the same quarter in 2016. On the other hand, the dividend of the organization has been increased. Approximately, 22,000 Coca-Cola beverages and soft drinks are consumed every second in the market. Apart from this, the firm uses growth and corporate level strategies to increase the demand and sale of the products and services. (Source: Adam Levine, 2017) Profitability The statistic indicates the Coca-Cola financial key figures and companys revenue from 2009 to 2016. In 2016, the firm revenue amounted to 35,12 billion U.S. dollars. The organization is a producer, manufacturer, marketer and retailer of non-alcoholic beverages and Coca-Cola is well known and famous for its soft drinks and beverages in the market (Statista, 2017). The revenue and income of the company have been shown in below diagram. (Source: Statista, 2018) Environmental analysis (Pestle analysis) PESTLE analysis is conducted for analyzing and identifying various macro environment factors in a country that influence progress and success of the firm. It comprises several macro environment factors such as political factors, economic factors, social factors, technology, legal and environmental factors (Mashhadi Ijaz-Ur-Rehman, 2012). The pestle analysis for Coca-Cola Company has been discussed below. Political factors: These factors play an integral role to achieve objectives and goals of the firm. The political factors include tax policy, trade limit, environmental laws and regulations imposed on the recruiting and appointing workers and services rendered by the government. Coca-Cola needs to monitor political factors to recognize and measure strengths and weaknesses of the competitors. Economic factors: It is significant to consider economic factors in order to gain long-term profitability and returns. Coca-Cola distributes its products different countries. These countries follow different cultures, desires, values, and customers. The key economic elements include disposable income, inflation rate, interest rate, unemployment rate, gross domestic product, retail price index and exchange rates. All these factors affect demand and supply of the firm. These factors should be considered by the organization to gain outputs and results. Social factors: Coca-Cola distributes its beverage products in several countries. Therefore, social factors affect the sustainability of the organization. The social factors include customs, values, belief, and culture. For example, in Japan, the company creates 30 alternatives flavors to appeal to Japanese consumers. On the other hand, in America, people focus on their health. The organization needs to respond to these needs, requirements, and desires by creating healthy products and services (Anders, 2011). Technology factors: Coca-Cola focuses on technology development to expand and flourish business activities and operations globally. The company has factories in Britain with the top of the name machinery to ensure quality product development and fast delivery items. The firm uses social media technology to connect with the target audience (Ashurst, 2016). Legal factors: The association maintains and retains all rights and legislation related to their business, including future and past products developed and built with a patented process. Environmental factors: Coca-Cola is influenced by water accessibility. Water is essential for soft drink development. Along with this, climate changes and weather also affect the growth and development of the firm. Various water accessibility issues are faced by the firm. As a result, Coca-Cola company will have to suffer loses. All these are the significant factors that are affecting the business growth of Coca-Cola company in the United States. Therefore, the organization needs to consider these factors to evaluate and analyze the plans, policies, and strategies of the competitors (Rothaermel, 2015). Market segmentation Market segmentation is the process of segmenting a broad customer or business market into different sub-groups or consumers on the basis of choices and characteristics of people. Coca-Cola uses different methods and techniques to divide the market into different customers. The firm divides its market between primary and secondary market (Wedel Kamakura, 2012). The target market for Coca-Cola Company has been stated below. Primary target market The primary target market is the target audience of the market that provides better opportunities to the firm for maximizing the sale of its beverage products. The company is monitoring needs, requirements, and choices of customers. Coca-Cola divides its primary market on the basis of demographic and behavioral (Powell Gard, 2015). The primary target market of the organization is 12 years older. Along with this, the people who are the between 20 to 30 years also prefer Coca-Cola beverage products. The drink is conveniently packaged to take with customers on the go anywhere. Coca-Cola drink is considered most successful drink that is popular in many countries. Furthermore, athletes also prefer soft drink of the firm because it is healthier for people. These are the target audiences, which help to increase profitability and sales in the competitive market. In addition, primary target customers are the people who buy its products to fulfill the basic needs and demands (Weinstein Cahil l, 2014). Secondary market Secondary target market plays an integral role to attract and retain more consumers in the global world. In the secondary market, consumers may have fewer needs, requirements, and demand for the beverage products of the firm. For Coca-Cola, the secondary market is adults and teenagers (De Mooij, 2013). This target segment involves student from schools, colleges who require soft drinks to become healthy and well being. In this market segment demand and requirements of Coca-Cola products and services are less in comparison to the primary target market. Now it is assumed that the company should focus on the primary and secondary target audience to increase and enhance the sale of food and beverage products. The firm is also trying to target health-conscious consumers in the global market. For this purpose, the organization is enhancing and encouraging advertisement and promotional strategies (Paliwoda Thomas, 2013). Level of involvement of primary target market in organizational decision making Market segmentation plays is an integral role to make effective and dynamic decisions. Coca-Cola divides its market on the basis of psychographic, behavioral, demographic and geographic attributes and features. Primary target market is an essential part of the company to make unique decisions. When Coca-Cola produces new food and beverage products, enormous types of marketing research and survey are conducted by the organization to attract the target audience. The level of involvement of primary target audience is too high to participate in decision-making process in the organization. After considering the primary target audience, Coca-Cola is able to make a decision regarding to produce new products. The firm focuses on the needs, desires, and choices of the target market to introduce new beverage products and services. After using targeting and segmentation strategies, the company will make decisions related its positioning of food and beverage products (Coenen, Huitema O'Toole Jr , 2012). For example, Coca-Cola is introducing new soft drinks and beverages by dividing the target market on the basis of age, gender, and caste. The organization launches its products as per the demands and needs of the primary target market. After segmenting the market, the firm focuses on the targeting to attain mission and vision of the firm (Oliver, 2014). Various types of marketing surveys and advertisement campaigns are conducted by the company to reach its target market. In the last phase, Coca Cola determine consumers perceptions and wants by using positioning strategies. The association also focuses on the positions of competitors in the global market. It also focuses on tastes and preferences of consumers to stand out against the competitors in the market. Now it can be said that primary target market highly involves in the decision-making process to make an innovative decision in the organization (Solomon, Russell-Bennett Previte, 2012). Nature of competition When an organization launches new products and services in the market, various researchers and surveys are conducted by the firm to evaluate and analyze the nature and level of competition in the competitive market. It also helps to analyze and identify the risks and opportunities of the market. There is immense and high competition exists among the soft drink and beverage companies in the market (Keller Price, 2011). Pepsico, Red Bull, Fanta, Coke, and Sprite are the primary competitors of Coca-Cola Company. PepsiCo is the biggest competitor of the company that affects the trading activities and operations of Coca-Cola. SWOT analysis and porter five model are used by the firm to identify the strengths and weaknesses of competitors (Nair Selover, 2012). The comparison and contrast between strengths and weaknesses of Coca-Cola and PepsiCo have been discussed below. Strengths Coca Cola PepsiCo Effective and dynamic brand equity is maintained by the firm. It provides a large market share to expand and explore the business activities. Coca-Cola uses attractive and fantastic marketing and promotional strategies. It provides effective distribution network and maintains customers loyalty. It is one of the significant and well-known brands in the world in the beverage and food sector. It uses effective and unique product portfolio. Employee strength of the firm is approx 300,000 people. It uses effective supply chain network to increase the demand for the products. Weaknesses Coca-Cola PepsiCo There is high competition in the market. Product diversification is poor and low. Water management is another issue in the organization and it does not provide healthy beverages. Many foods and beverage products hurt image and position of the firm. Heavy and strong competition in their soft drinks category. From this competitive analysis, it can be assumed that the firm maintains one of the largest positions in soft drinks and food industry. The comparison and contrasting of strengths and weaknesses of the firm show that both the organizations are rivalry with their own policies, plans, strategies and attributes to beat the competitors in the world. Positioning map of Coca-Cola After taking consideration to primary target audience, competition, and level of involvement of primary market, a positioning map is originated for Coca-Cola Company. By this positioning map, the firm indicates perceptions and wants of its customers in the market. The positioning map for Coca-Cola is drawn below. Conclusion On the above-mentioned analysis, it can be evaluated that Coca-Cola maintains an effective and dynamic position in food and beverage industry across the world. The trading activities and operations of the firm are continuously growing with increasing the demand for its products and services. Pestle analysis and SWOT analysis show strengths and weaknesses of the competitors in the global world. Apart from this, the firm also focuses on the target market to promote and enhance its business operations and activities. Competition also influences the growth rate of the firm adversely. Therefore, the firm set appropriate prices to attract and retain more consumers in the competitive market. In addition, a positioning map is created by the firm on the basis of competition and level of involvement of customers. References Anders, J. (2011). Coca-Colas Marketing Strategy: An Analysis of Price, Product and Communication. Ashurst, P. R. 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