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Brand Development of Coca-Cola Company (UK)

Exploring new branding opportunities for Coca-Cola Company (UK)

Term Paper 2011 26 Pages

Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media

Excerpt

Table of contents

1.0 Introduction
1.1 Sophisticated Sparkling Juice Drink
1.2 Target Market
1.3 Market Trends

2.0 Justification
2.1 Size of Chosen Market
2.2 Competitive Analysis
2.3 Feasibility
2.4 Activity in Other Countries

3.0 Brand Analysis
3.1 Psychographics of Baby Boomers
3.2 Brand Personality
3.3 Brand Identity
3.4 Brand Architecture
3.5 Brand Positioning

4.0 Logistics
4.1 Pricing
4.2 Placement
4.3 Promotion
4.4 International Dimension

5.0 References

6.0 Appendices
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Appendix F

1.0 Introduction

1.1 Sophisticated Sparkling Juice Drink

‘Uva’ is the name given to the Coca-Cola Company’s latest venture within the carbonates market; targeting consumers from late forties upwards, the chilled sparkling juice drink is addressing a gap in the market as seen in Figure 1.0. Using no additives or sweeteners, the product is to be perceived as a healthy, sparkling beverage.

The Latin name for ‘grape’ (McKeown, 2010:386) was chosen as the brand name for this product as it has connotations of simplicity and elegance.

Satisfying the need state of ‘thirst’ (Franzen and Moriarty, 2009:202), ‘Uva’ will differentiate itself from competitors by targeting older consumers. The main competitor within the premium adult’s soft drink market is Shloer, with a 29% market share of premium soft drinks (Mintel, 2010). However, Shloer actively targets a consumers within the age range of 16 to 34 years, with emphasis on ‘mums-to-be’ as seen on the Shloer website (Shloer, 2011).

1.2 Target Market

As can be seen from the perceptual map (see Figure 1.0), a gap in the market is visible within the ‘premium’ and older consumer categories.

Targeting those aged from mid forties is justified by the research provided by Mintel (2010) that strongly suggests consumers over the age of 45 are being overlooked in terms of an attractive market segment in which to target premium soft drinks. Additionally, consumers within the age range of 55 to 64, and 65 to 74 represent the two wealthiest age groups within the United Kingdom respectively (Office of National Statistics, 2008). In this way, disposable income can be said to be highest within these age groups and consequently spending will be significantly higher than the national average weekly spend on non-alcoholic drinks of £4.10 (Office of National Statistics, 2009).

Figure 1.0 - Perceptual Map – Coca-Cola Company (UK)

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Figure 2.0 substantiates the claim that older consumers are a strong market segment that has not been fully exploited with regards to premium soft drink usage. As seen in Figure 2.0, users are primarily within the ABC1 sector, this correlates with the Office of National Statistics (2008) figures regarding optimum wealth between the ages of 55 to 74.

Figure 2.0 - Premium Soft Drinks – Key Demographics

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ABC1’s from the age range of 45 onwards are said to be keen on beverages with connotations of health, especially those that contain carbonate (Mintel2, 2010).

Finally, an aging population as suggested by Office for National Statistics further develops the case for marketing to the older consumer (see figure 3.0).

Figure 3.0 - Population Estimates - UK

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1.3 Market Trends

Premium drinks sales are over £100 million within the United Kingdom (Mintel, 2010). Furthermore, older generations are more health-conscious, consequently looking for healthy alternatives to alcohol (Patterson, 2006:221).

In this way, the trend for healthier produce is not limited to consumers up to a certain age; therefore, the suggestion of targeting older consumers by creating a premium priced soft drink with natural ingredients is in-line with the current market trend towards a healthier lifestyle as outlined by Hudson and Moore (2009:99).

Finally, a trend towards beverages consumed in-home that have an element of ‘shareability’ has meant that the bottles of ‘Uva’ will be produced in typical 75cl bottles in order to encourage the social aspect of shareability (Mintel3, 2009).

2.0 Justification

2.1 Size of Chosen Target Market

As previously mentioned, the UK has an aging population; Brotherton (2008:52) states the United Kingdom’s ‘largest consumer group’ is the baby boomer generation, holding 80% of the UK’s wealth (Walker, 2004).

Baby boomers are currently within the age range of 47 – 65 and consequently, branding and marketing will be tailored towards to psychographics of this, extremely wealthy, generation.

If solely targeting the two wealthiest age groups (55 – 64 and 65 – 74 years old), the predicted market size in 2011 is 12.8 million consumers (Office for National Statistics2, 2009). On average, 55% of the UK population are within the socio-economic ABC1 category (Mintel4, 2009); therefore, a conservative estimate of the ‘Uva’ target market is 7.4million (12.8/55%).

2.2 Competitive Analysis

Shloer holds 29% of the premium soft drinks market (Mintel5, 2010), this illustrates a strong level of awareness of the premium adult soft drink concept. However, as previously mentioned, Shloer targets a younger market, therefore competition concerning the ‘Uva’ target market is minimal given the specific marketing and branding that will take place.

Within the carbonated non-alcoholic adult drink market, Schweppes can be said to be a key competitor; however, the functionality of ‘Uva’ is differentiated to that of Schweppes in that it is a ready-to-drink beverage rather than a mixer to be teamed with alcohol. In this way, Coca-Cola UK can only be seen to gain from the introduction of ‘Uva’ as the Coca-Cola Company looks to increase its overall share of the carbonates market.

2.3 Feasibility

In terms of financial feasibility, the Coca-Cola Company turned over $31 billion in 2009 (Coca-Cola UK, 2011); therefore, the international company has the means with which to successfully launch a new product within the UK market.

In terms of practicality, the Coca-Cola Company have been successfully marketing the ‘Schweppes’ brand to older consumers; as a result of this, the strategic marketing that is required in order to target a specific proportion of the population is currently in place and therefore ‘Uva’ will not be a completely new consumer market for Coca-Cola UK to target.

As well as this, production of ‘Uva’ will encounter minimal complications due to the Coca-Cola Company’s previous manufacturing and bottling of carbonates experience.

Additionally, in terms of the fit within the portfolio, ‘Uva’ maintains the ‘carbonate’ credentials that all other Coca-Cola UK products do; as well as this, the product can be perceived to be similar to Schweppes due to a similar target market.

2.4 Activity in Other Countries

Muslim countries such as Saudia Arabia would appreciate ‘Uva’ as a product; Muslims are teetotal and as such, are likely to spend more money on soft drinks on a weekly basis that the United Kingdom. Also, socialising with the same gender within Muslim countries is a regular occurrence (Olofsson, 2004:74); as such, the element of ‘shareability’ would work well in such regular situations.

3.0 Brand Analysis

3.1 Psychographics of Baby Boomers

The analysis of ‘consumer lifestyle’ enables marketing that specifically communicates with the target market (Wright, 2006:397). In the case of ‘Uva,’ it was discussed that the ‘baby boomer’ generation within the target market segment was the wealthiest generation within the UK (Brotherton, 2008:52); consequently, specific marketing and branding attention is placed on communicating with this generation.

De Pelsmacker, Geuens and Ven den Bergh (2007:123) illustrate the preference of ‘quality products’ upheld by this generation. The preference for quality goods as well as an above average level of wealth can lead to assumptions being made regarding the buying behaviours of this generation.

A fair assumption of the lifestyle led by this generation is that it is considerably more indulgent than the average family expenditure within the UK; the preference for quality products can be associated with the preference for quality groceries. Morgan and Kunkel (2011:278) suggest the ‘medical advances’ and general improvement of health awareness within the lifetime of this generation suggests a strong tendency towards products with connotations of health. Within this, it can be argued that a product that would implement a reduction in alcohol consumption would be greatly appreciated by this generation.

As such, health benefits can be said to be an important factor in consideration of product purchasing, alongside this, the requirement for quality goods suggests ‘Uva’ would effectively fulfill a gap in the market concerning premium priced, healthy beverages with ‘shareability’ (Mintel3, 2009).

The inclusion of ‘shareability’ is particularly resonant within the chosen target market as they are entering, or have entered, retirement and consequently have more time for social activity.

3.2 Brand Personality

Figure 4.0 outlines the theory by Aaker regarding brand personality; within the research conducted, Aaker identified five main dimensions of personality that would aid brand managers in providing a ‘set of human characteristics’ (Aaker 1997:347; cited in Pydde 2008:9) that are relevant to the brand.

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Details

Pages
26
Year
2011
ISBN (eBook)
9783656121893
ISBN (Book)
9783656122999
File size
730 KB
Language
English
Catalog Number
v188296
Institution / College
University of Westminster
Grade
72% (First)
Tags
Coca-Cola UK Branding

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Title: Brand Development of Coca-Cola Company (UK)