Coke Tabs PLAN

Coca-Cola Marketing Plan

April, 2013

Connor Barrett Evan Bond Alex Hayes Lucy King Kate Zhukova Table of Contents

Executive Summary...... 2

Situational Analysis...... 3

Internal! Analysis ...... 3 Objectives...... 3

SWOT Analysis...... 4

External Analysis...... 5

Potential Projects...... 7

Marketing Strategy...... 9

Product Options and Analysis...... 9

Segmentation Scheme...... 10

Product Market Focus...... 10

Target Market...... 10

Marketing Mix...... 11 Market Research...... 13

Implementation and Control Plan...... 15

Exhibits...... 16

Biblography...... 21 Executive Summary

In recent years, Coca Cola has lost significant market share due to changing consumer needs and a static product development. This loss in market share has also resulted in financial implications, including decreased net income. Changing consumer needs mean that Coca Cola must adapt to continue its position as a market place leader.

During the next five years, Coca Cola will be implementing a new product, Coke Tabs, to target the most current and growing consumer trend: convenience. Tabs are a new product featuring tablets that dissolve in water, creating both carbonation and authentic Coca Cola brand flavors whenever or wherever a consumer chooses. Additional flavors, including Diet Coke, Fanta, Sprite, and more will also be adapted as tablets, to appeal to all of Coca Cola’s current users. Through this new product, Coca Cola will target segments desiring greater convenience, ultimately expanding its target market and overall market share.

Tabs will stand out from other products because they are portable and easy to use, as well as attractive in their innovation and bright packaging. They also promote overall sustainable practices for Coca Cola and its customers, featuring recyclable and reusable containers and encourage reusable bottles, thereby eliminating plastic, cans, and waste.

Coca Cola will implement this product aggressively. With one of the widest global distribution systems, Tabs will be pushed everywhere. The main target market of Tabs is 18-35 year olds with busy, active lifestyles, interested in new and trendy products. Promotions, communications, and advertising will be directed at this segment, and include popular brand ambassadors, upbeat concerts and other events, and marketing on college campuses and social media. With an aggressive five year manufacturing, distribution, and marketing plan, Tabs will be the next generation of Coca Cola beverages.

2 Situational Analysis

Internal Analysis

Business The Coca-Cola Company is the world’s largest beverage company with a current market capitalization of approximately $170 billion. The company produces and markets more than 500 non-alcoholic sparkling and still brands with 15 of those being billion dollar brands such as Diet Coke, Fanta, Sprite, Coca-Cola Zero, Vitamin Water, Powerade, Minute Maid, Simply, Georgia, Del Valle and most importantly Coca-Cola, the signature soft drink of the company. Through one of the largest and most efficient beverage distribution systems, the company is able to sell its products in over 200 countries. Consumers worldwide drink Coca-Cola products at a rate of 1.8 billion servings a day. The company, along with its bottling partners, has more than 700,000 system employees.

Company Mission “To refresh the world, to inspire moments of optimism, to create value and make a difference.”

Positioning The company positions itself within the non-alcoholic beverage segment, producing beverages that appeal to different target markets within that segment. One way the company attempts to differentiate itself from competitors with products similar to Coke such as Pepsi is through brand name recognition. In a recent report by Interbrand, Coca-Cola was viewed as the world’s most valuable brand, worth about $78 billion, while Pepsi, the company’s main competitor, was ranked #22. Coca-Cola is also percieved very well by it’s customers, compared to others in the non-alchoholic beverage market (see exhibit 1). Coca-Cola also attempts to differentiate itself by gaining customer loyalty. It does so through various promotional offers, such as Coke Rewards, so that it can retain existing customers and also appeal to potential customers in the process. While Coke’s products may be similar in taste and quality as other competitors, the company differentiates itself through building brand name recognition as well as customer loyalty.

Objectives

Coca-Cola states that their main objectives are as follows: • People: Encourage hard work and enthusiasm • Portfolio: Have a portfolio of brand name products that satisfy the needs and wants of consumers worldwide • Partners: Strengthen the company/customer and company/supplier relationship for the mutual benefit of both parties • Planet: Be a more eco-friendly company by reducing the environmental footprint • Profit: Consistently make a profit and attempt to increase it each year in order to maximize the long-run return of the shareholders

3 • Productivity: Be an efficient, effective and fast-moving company that responds to changing consumer wants and needs

Like any corporation, Coca-Cola’s main objective is to make a profit. The rest of the said objectives (people, portfolio, partners, planet, and productivity) help to achieve this main objective and also improve the company’s image.

SWOT Analysis Strengths: • The company has notable brand name products (it is able to price its products at a premium relative to generic products, higher gross profit margin than PepsiCo) • Coca-Cola has very high market share (it is the world’s largest beverage company) • They generate lots of cash flow from internal operations, which makes Coke financially flexible • The company has an extensive and well-organized global distribution network • Coca-Cola’s customers are loyal to the brand • The company has contracts with restaurants, universities, etc., which provides stable cash flows over the life of the contract • The product portfolio of Coca-Cola is very wide which results in a large customer base Weaknesses: • The company has notable brand name products (it is able to price its products at a premium relative to generic products, higher gross profit margin than PepsiCo) • Coca-Cola has very high market share (it is the world’s largest beverage company) • They generate lots of cash flow from internal operations, which makes Coke financially flexible • The company has an extensive and well-organized global distribution network • Coca-Cola’s customers are loyal to the brand • The company has contracts with restaurants, universities, etc., which provides stable cash flows over the life of the contract • The product portfolio of Coca-Cola is very wide which results in a large customer base Opportunities: • Consumers have new health needs, including natural/organic ingredients and energy drinks to support exercising habits • Demand for products supporting child nutrition are rising in popularity, creating a growing market segment • Accelerated lifestyles mean convenience/ready-to-go beverages and caffeinated beverages are in increased demand • Sustainable practices reduce waste and long term costs, and also give companies a positive public image based on eco-friendly practices • Coca Cola can expand as a distributor, which they have done in their “freestyle” machines resembling vending machines for Coca Cola products

4 Threats: • Increased health needs mean Coca-Cola is at risk for losing market share from unhealthy products • Competitors have advantages in healthy drink markets such as juices and teas • Possible health risks for diet sodas are arising, which would detract from their market share in the beverage industry • With so many substitutes in the beverage industry, consumers have the majority of purchasing power • New players are constantly entering the beverage market, meaning existing firms will have difficulties securing market share

External Analysis

Consumer lifestyle - There has been an increase in consumer value of smaller-sized multipacks of their favorite beverage, since they are beneficial for the “on-the-go” lifestyles of many consumers today. Consumers see themselves as needing smaller sizes of beverages, as opposed to the traditional large liter bottles. Therefore, many companies are offering travel-friendly versions of their products. For example, recently Coke’s primary competitor Pepsi released a “slim” version of its can for Diet Pepsi, and these were met with very positive reactions from consumers. They were sold in large multi-packs and were easy to grab and travel with. Because consumers view themselves as so busy in their daily lives, Coke needs to find ways to adapt to these consumer lifestyle needs. See exhibit 2 for a graphical representation of changing needs.

Sustainability - Consumers are becoming increasingly interested in sustainability and environmental protection, specifically in the beverages market. Plastic bottles and aluminum cans can be considered wasteful, and although recycling efforts have improved in recent years, it is still an important issue. Currently, many beverage companies are creating “eco-friendly” bottles that use less plastic and are sometimes even made from different plant-based materials, which help to improve their “green” rating in the eyes of the consumer. Additionally, it is important to consumers that the packaging is preservative-free. Re-using water in-plant and utilizing hybrid delivery vehicles are strategies that certain companies are considering in order to improve their eco-friendly image.

Growing emphasis on kids and families - Beverage companies are becoming increasingly focused on targeting the kid and family markets. Parents want to find drinks for their children that are healthier than the typical offerings of carbonated, additive-filled beverages, and so they are turning more towards half-juice, half-water options. Younger children do not get to make the decision in what is purchased for their family’s home, therefore, these drinks are often marketed towards parents who are interested in the health of their children.

Technology - It is important for companies to keep up with the latest trends in the technology market. Smartphones have changed the way that consumers are able to interact with companies, and those that are able to quickly adapt stand to gain the most from these changes in technology. Consumers now have the ability to track beverage ingredients, play games, and follow the latest updates from their favorite companies.

5 Vitamins, minerals, and science - Consumers are becoming increasingly aware of the potential health benefits of supplying their body with certain vitamins and minerals. These vitamins and minerals can be found in beverages, so advanced scientific research is an important trend in the beverage industry. Additionally, our knowledge of what is “healthy” is constantly changing, and so beverage companies need to adapt. Natural minerals and vitamins are a big draw for consumers, and this is further enhanced by the fact that consumer awareness of ingredients is now very high.

Economic - Despite consumers having an increased focus on healthy alternatives to carbonated beverages, the carbonated soft drink market has reemerged in the past couple years and has shown significant growth. This trend can be attributed to the current economic downturn. Currently, many consumers are turning to sodas as an affordable “treat” for their families and offer a cheap indulgence for many. Many companies are now offering “real sugar” versions of their sodas, which are increasingly alluring to the average consumer - these sodas are not much more expensive than their high-fructose corn syrup counterparts, but the added value of real sugar makes them attractive to those seeking a cheap indulgence.

Competitor Analysis

PepsiCo Positioned as a leading company in snack foods, fast foods, and non-alcoholic beverages. Strengths: Weaknesses: • Famous and recognizable branding • Not a key player in the international • Diversified products market • High quality • Smaller market share than Coke • Customer loyalty • Health problems from drinking • Operates in the snack food market carbonated soft drinks (effects on teeth, high sugar content)

The Dr. Pepper Snapple Group Positioned as a non-alcoholic beverage company, mainly located in the US, Mexico, Canada, and the Caribbean. Strengths: Weaknesses: • Differentiate themselves through • Not a key player in the international their unique tasting beverages market • Strong and recognizable brand • Smaller compared to other companies • Strongly promote and are known for their healthy products

The National Beverage Corporation Positioned as the fifth-largest non-alcoholic soft drink company in the United States. Strengths: Weaknesses: • A vertically integrated beverage company • Concentrated in the US involved directly in its production and • Does not generate as much revenue as distribution the other leading companies • Diversified products

6 Nestlé Positioned as the largest snack food and beverage company in the world, according to revenues. Strengths: Weaknesses: • Consistently innovate their products • Product recalls damaged image to fit changing markets • Complex supply chain management • Provide quality products that are • Too many products in their company, well-known causing less time allocated to each • Operate globally division

Segmentation On the broadest level, Coke is in the non-alcoholic beverage segment of the market. This segment is further broken down into geographical region, which are further segmented by brands. In this second level of segmentation, Coke focuses on a number of segments, including diet (low-calorie), refreshment, health-conscious, social (those who drink soda only when others do) and on-the-go segments. Coke is also beginning to segment based on sales in current stores, using technology to gather information about which products are being sold there, and stocking more of the high-demand items in particular stores.

Segmentation is important geographically due to cultural definitions of good taste, or cultural beverage habits that occupy certain regions. Coke has also developed different brands to appeal to different customers; for instance, when Diet Coke unintentionally became presented as a “female beverage,” Coke developed Coke Zero—essentially the same drink—in order to provide a low calorie option for health conscious males.

Potential Products

Objectives • Continue current product lines and keep up customer satisfaction in already penetrated market segments • Develop a product that will help Coca-Cola capture additional market penetration and secure more of the beverage market share • Work with growing consumer trends to attract a new target market (such as the growing on- the-go market or a new health conscious market)

Success Criteria for New Product Introduction • Better address changing consumer needs and lifestyles • Attract a minimum of 20 million customers for the new product • Generate $6 billion of revenue within four years of sale • By 2016, achieve profit of at least $1 billion • Achieve 3% of total soda industry market share within four years

Opportunities to Explore On-the-Go Coffee Drink: “Frapp” For the consumer with an accelerated lifestyle who values convenience and on-the-go beverages, Coke’s on-the-go coffee drink line would prove to be very attractive. They would be provided in

7 slim, futuristic cans and be marketed for the businessman or woman who needs a quick pick-me- up. Cans could be re-sealable for those who need to worry about the drink spilling during their busy day. Possible threats may include health concerns and competition from coffee companies, such as Starbucks.

Healthy Option: “Green Machine” For the consumer who is not only interested in his or her own personal health, but also for the health of the environment, Coke’s new “Green Machine” would prove to be an appealing option. Coke understands that consumers are worried about the environment, as well as their own health, and so this new drink would meet these wants of our consumers. “Green Machine” will be bottled in a new, 100% plant-based material bottle that can also be recycled just as any other bottle. This drink will meet the dietary needs of our consumers and will feature all-natural, exotic ingredients, while also maintaining itself as a low-calorie option when compared to competitors such as Snapple and Nantucket Nectars.

Dissolving Tablets: “Coke Tabs” An appealing product for on-the-go soft drink consumers, Coke Tabs give you the power to turn a glass of water into a Coke product in seconds. Coke Tabs are convenient, easy to carry, and don’t require wasteful packaging, making them a perfect product for the ever-busy, environment- conscious modern individual. Possible threats may include production difficulties, imperfect taste, or competitors (such as Mio or Crystal Light) drawing from potential consumers.

8 Marketing Strategy

Product Options and Analysis The three options that Coca Cola can choose to pursue are a new coffee drink, Frapp; a healthy juice option, Green Machine; or the dissolving tablets, Coke Tabs.

Frapp First Year Revenue: $300 million. First Year Expenses: $1.2 billion. Pros: Cons: • Eco-friendly, glass containers • Established competitors (like Starbucks) • Modern/futuristic design • Not very healthy • Serving on-the-go consumers • Does little to expand the market • Company will need to introduce a new brand and build loyalty The Green Machine First Year Revenue: $400 million. First Year Expenses: $1.5 billion.

Pros: Cons: • Healthy (organic, has vitamins, • Expensive electrolytes) • Coke is not known for producing these • Low calorie kinds of drinks • Sustainable packaging • Lots of competitors • Expands the market • Requires a lot of R&D

Coke Tabs First Year Revenue: $659 million. First Year Expenses: $1.5 billion.

Pros: Cons: • Targets the growing on-the-go lifestyle • Expensive • Attention grabbing and innovative • Difficult to develop, lots of R&D • Recyclable/reuseable package • Artificial • Smaller size for easier distribution • Based off of well-known beverages (Coke, Sprite, Fanta etc.) • Same taste as successful Coke Products • Follows brand image

Justification By looking at the table of new product options, it is clear the Coke Tabs are the best new product to introduce. They target the quickly growing on-the-go consumers, follow our current brand image, and have sustainable features that will attract environmentally friendly customers as well. Their taste will remain consistent with the already established and successful products of Coca Cola. Coke Tabs are suited to become an extension of the Coca Cola family, in contrast to The Green Machine and Frapp; Coca Cola is not known for producing these types of products, and would need to find a way to attract new, loyal customers to have a chance at being successful.

9 While the cost to produce Coke Tabs would total to $1.5 billion in the first year, the company will recover this investment within the next 4 years, as the revenues received from this product would be the greatest, totaling $659 million within the first year (see exhibit 3). In addition, by investing in Coke Tabs, the company would receive a net income of $1 billion by the end of its fourth year in the market. It is clear that both financially, logistically, and logically Coke Tabs are the best option that Coca Cola should invest in to increase its market share and profits.

Segmentation Scheme Coca-Cola’s segmentation scheme is the non-alcoholic, soft drink segment, which includes a variety of smaller segments within it, all of which have different needs. These segments include: • Diet Segment: Diet Coke and other diet products of Coca Cola are specifically targeting a segment of beverage drinkers looking for a low calorie option. These consumers are aiming for a low calorie option without sacrificing high quality taste or giving off a temporary or strictly weightloss image. • Health-Conscious Segment: These consumers are primarily concerned with organic, all- natural beverages. Typically, these consumers avoid preservatives and other artificial additives in their beverages, as well as manufactured ingredients. • Social Segment: Another segment of the nonalcoholic beverage industry is social drinkers – there is a specific group of consumers who drink soda or other beverages in social settings, such as parties or other group events. These consumers are often looking to buy in bulk and buy well known brands. • On-the-Go Segment: These consumers have active and busy lifestyles and are looking for beverages that they can easily carry with them on-the-go and are not looking to sit down to have their beverage. • Refreshment Segment: The consumers in this segment value taste and quality the most. In this project, Coke has decided to target the on-the-go segment, with the new product, Coke Tabs.

Product Market Focus The product market focus for the Coke Tabs is convenience, innovation, and sustainability. Since Coke Tabs are mainly targeting the on-the-go segment, the convenience of the product will be very appealing as they are easy to carry, are pocket-sized, and simple to use. The easiness, effectiveness, and modern thinking of the Coke Tabs will attract these target consumers. These customers are looking for something unique, for the next generation of Coke, and Coke Tabs will deliver what they want. In terms of innovation, Coke Tabs will have a bright and modern packaging design to emphasize the radical new thinking behind their creation and usage. Finally, the brand will also devote a part of its attention to sustainability, since this would not only save money for the company, but also help the global community. Tabs will feature sustainable packaging, reusable containers and bulk buying options.

Target Market With Coke Tabs, Coke hopes to attract a market of 18-35 year olds with busy, active lifestyles, interested in new and trendy products. The product’s marketing will stress the convenience of Coke Tabs, focusing first on their on-the-go nature, secondly on the innovative aspect of the Coke Tabs, and finally highlighting the potential to serve as a sustainable, environmentally-

10 friendly alternative to traditional sodas and soft drinks. Coke Tabs will be positioned as the newest feature of the non-alcoholic beverage market. The product’s target consumers require a good-tasting product that is designed for an on-the go lifestyle, convenience, a touch of caffeine, an attractive, trendy package, and an overall new approach to soda. Coke has chosen to pursue this segment in order to further market penetration, and to enhance our image as an eco-friendly, innovative company.

Marketing Mix

Product The essence of the new brand will be exemplified in the product itself. The individual tabs are small, nickel-sized, and easy to carry around. The small size of the packages will enforce the idea of convenience and the on-the-go lifestyle, while also making distribution and inventory holding more convenient, as more products can fit in a smaller space than traditional soda cans. The packaging for each tab or set of tabs will be either reusable or recyclable. The trendy packaging will also serve to attract Coke Tab’s target customers, especially those who value artistic and innovative design. Customers will have several packaging choices. One package will be a reusable container for the tabs, which customers can refill when needed, by purchasing packs of 12 new tabs in recyclable package. Another packaging option is a set of tabs in a single- use container that is completely recyclable or compostable. The tabs will come in many flavors, all varieties of Coke products. The packaging will vary based on product; Coke tab packaging will be brick red in color, the Sprite tabs green, the Fanta orange etc. This will build upon existing brand loyalty, and will help the customers understand which flavor they are choosing. Because this is a new product, there will be significant product development requirements of both money and employee time. However, the product will be so popular that the costs are completely worthwhile.

Place Distribution will be a relatively easy endeavor for this new product. As Coke is a pre-existing company that is well established in its distribution, we can use our existing channels of distribution for the new product. Coke Tabs will be sold wherever Coke products are already sold, starting in the United States and trickling into other areas in North America in the first quarter. Later, once Coca Cola has a stronger understanding of market reactions to this product based on market research analysis and other decision-making criteria, the product will slowly be introduced into other regions starting with Western Europe, specifically France, Germany, Switzerland, Spain, and the United Kingdom. Following this expansion, Coke Tabs will grow further into Eastern Europe, and later South America, Asia, and Australia. Coke Tabs will be primarily at grocery stores and convenience stores, both in bulk and individual packages.

Promotion The promotion of the new product will be primarily designed around the themes of innovation and convenience through multimedia advertisements and special events to garner support and raise product awareness. These events will be mainly held at college campuses, sporting events, concerts and public recreation areas. At these events, there will be a combination of product demonstrations and explanations of product use with entertainment focused at our target

11 customers. Such entertainment could include a carnival-type atmosphere, a concert sponsored by Coke Tabs, or an event featuring a celebrity brand ambassador. At these events, each attendee will be provided with a reuseable water bottle emblazoned with the Coke Tabs logo, containing a Coke Tab. By providing free samples of our products in such an atmosphere, customers will think of Coke Tabs as a fun, trendy, and innovative product.

Tab media advertisements will feature celebrity endorsements (publicity) in order to attract target customers. The ads will have a simple design with colors that pop and draw the eye (see exhibit 4). They will be featured on television channels frequented by our target customers, including air time during the Super Bowl. In addition, the company will make print ads to go in newspapers and magazines nationwide. In social media, the company plans to make short, viral YouTube videos presenting Coke Tabs in a humorous way, as well as using facebook, twitter, and other viral social media sites to further the product in the places Coke Tab’s target customers visit most. Advertising strategy may be seen in the product life cycle graph in exhibit 5.

Pricing Pricing will vary based on the package a customer chooses to purchase. An individual tab will cost around 75 cents, but a pack of 12 will only cost between $8 and $10, which is quite inexpensive, especially when one considers this is equivalent to 12 bottles of Coke. As a whole, the price of Coke Tabs will be lower than an equivalent can of soda. Pricing will also vary based on packaging (reusable packages will cost about $1 extra at first purchase, but the refill packs will be discounted for future purchases). Overall, the price of the tabs will be attractive to customers, while still bringing in substantial profit for the company.

12 Market Research

In beginning this research, Coca Cola needs to primarily address five questions: what they need to know, why they need to know it, when they need to know it, what will be done differently, and what resources are available to the company. With the introduction of Coke Tabs, Coca Cola needs to know how people will react to this product, as well as gage the impact of the product on the brand identity of Coke. Because Coca Cola already has such a well established line of beverages, adding a new product will pose certain challenges. Successful market research that addresses the taste, convenience, innovation, and sustainability of Coke Tabs, will allow Coca Cola to evaluate and even predict consumer reaction to the product.

Exploratory research can serve as a valuable tool for Coke, particularly through conducting focus group interviews and surveys. Along with this exploratory research, Coke’s market research will also focus on descriptive and causal research methods to ensure that that company is receiving a variety of information from multiple sources.

Pre-Launch Phase Market Research In the pre-launch phase, Coca Cola will conduct both focus group interviews and surveys, with market research beginning immediately. Primarily, Coca Cola should observe and analyze small focus groups consisting of men and women between the ages of 18-35 with busy, active lifestyles, as this is the product’s target market. By conducting these interviews, Coca Cola will be able to collect qualitative data to better understand the target market consumer and her needs, which can be beneficial in designing the taste, brand image, packaging, and price of the product. Questions asked in the focus group interview will focus on factors important to the Coke Tabs product such as taste in comparison to current Coke products, the price that consumers would be willing to pay, and the lifestyles of the target market consumer. Additionally, collecting quantitative data will allow Coke to forecast future interest in the Tabs product. To collect this data, Coke will issue surveys in addition to the focus group interviews. These surveys will again be issued to our target market, and will be sent to a large number of people to ascertain a variety of opinions and interests.

Launch and Post-Launch Market Research Following the pre-launch phase, Coca Cola will continue to perform market research. During the launch and post-launch phases, it is necessary to continue to assess consumer opinion of Coke Tabs. Without this information, Coca Cola would not be able to analyze consumer opinion in relation to the company’s planned success criteria for Coke Tabs. However, during these phases, the focus of the market research will be geared more specifically to even narrower target segments, and not just the exploratory analysis that the company began with.

Descriptive and causal research are also essential tools that Coca Cola can utilize to gauge specific answers to questions. Because Coca Cola is a well-known brand name, the company will be able to perform longitudinal research studies with a continuous panel of households over a period of time. Because these panels are not as randomly selected as focus groups or surveys, the panel will consist primarily of consumers in critical target segments for Coke Tabs, and in order to encourage participation, incentives such as discounts on Coke products will be offered.

13 Additionally, Coke can perform causal experiments to determine what variables might affect consumer buying behavior of Coke Tabs. For example, field studies can provide information that will help the company understand what factors account for a consumer deciding to purchase a box of Coke Tabs as opposed to a 24-pack of Coke, whether it be the size, price, taste, or other component of the marketing mix. Coca Cola should be prepared to emphasize certain factors that prove successful, while at the same time being ready to adjust if any elements of Coke Tabs are not attractive to its target market.

Coca Cola’s Market Research Resources Coca Cola has the necessary resources to conduct such marketing research. Market research is a vital component of any business, and Coca Cola has the workers, manpower, and financial capacity needed to conduct such interviews. Coca Cola is already a powerful and established company, and Coke has previous experience in conducting and analyzing large amounts of information collected through market research. Lastly, Coca Cola will have the funding that is necessary to carry out such large-scale market research because it is such a successful company.

Market Research Consequences This market research will be geared towards addressing the plan, as well as creating a product that inspires convenience, innovation, and sustainability. By beginning this research at the beginning of the product development phase, Coke will able to address consumer feedback as the product is being developed - the more market research that is collected, the less of a risk this product will pose to the company. Coke will also be able to more easily adapt the Coke Tabs product to the opinions and consumer feedback gathered throughout the pre-launch, launch, and post-launch phases, as well as consumer feedback on the advertising and promotional tools. Ultimately, the goal of Coca Cola is to be able to quickly recognize, react to, and address consumer opinions on the entire marketing mix of Coke Tabs.

14 Implementation and Control

The company plans on implementing this product over the span of four basic time periods: pre- launch, launch, post-launch and ongoing. The pre-launch phase will last approximately one quarter in which the company will invest in research and development, market research and different forms of advertising such as website/social media/online, TV, print/billboards and radio. This is the period in which Coca-Cola will introduce the ideas surrounding the product to the target consumers. The launch phase will take place over two quarters. During this time, the company will begin to produce the product and simultaneously continue to advertise, research the market, and invest in research and development. Coca-Cola will take a look at how effective the research and development investments were from the previous quarter and change them if necessary. The company will use market research to identify the target consumer’s perceptions of the new product. The next time period for implementing the product will be the post-launch phase. Coca-Cola will continue to analyze what the consumers think about the product and change any advertising or research and development in response. Lastly, the ongoing phase will follow the post-launch phase. During this period, the company will continue to monitor the target consumer’s needs and wants and change the marketing mix if necessary. Based upon many different factors, such as where the product falls in the BCG matrix, the company will determine the appropriate plan for the product.

In order to make this product work, a lot of investment in research and development is necessary. Investing in research and development will give us more information surrounding how the product will work and any limitations to it. Specifically, the company can research similar products or ideas and apply it to the new brand.

The quality and the taste of this drink has the possibility to be less than that of a regular Coca- Cola beverage. The fact that this product is a tab that transforms into a carbonated beverage implies that it would most likely need artificial ingredients to it in order to make it work, something consumers might disprove of. Also, the initial investments in research and development may be ineffective and require continual investment, which may put a strain on the company’s financial position, although this is not a huge threat given Coke’s strong finances. Lastly, consumers could be indifferent to either drinking the beverage with the Coke tab or just a regular Coca-Cola, making initial investments useless.

In order to make the product successful, it is imperative to invest heavily in the appropriate researchers who will use their knowledge and apply it in creating this product. Market research is also crucial in order to estimate how effective the implementation of this product will be. If consumers have any specific problems with the product, their concerns must be addressed, and the Marketing Mix appropriately revised.

15 Exhibits

Exhibit 1: Perceptual Map

16 Exhibits

Exhibit 2: Graph of Changing Consumer Needs

17 Exhibits

Exhibit 3: Profit and Loss Statement

18 Exhibits

Exhibit 4: Mock Advertisement

19 Exhibits

Exhibit 5: Product Life Cycle Graph

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