Coca Cola And The Soft Drink Industry

1178 WordsMar 15, 20175 Pages
Despite the mistake of introducing New Coke 32 years ago, Coca-Cola remains a force in the soft drink industry. However, amid this success, Coca-Cola has found themselves in the middle of criticism due to undesirable health effects. These health effects include both short-term and long-term concerns. In terms of long-term affects, Coca-Cola has been associated with type 2 diabetes and obesity (Malik VS, Popkin BM…). In fact, individuals who drink 1-2 cans of sugary beverages, including Coca Cola, everyday are 26% more likely to develop type 2 diabetes (Malik VS, Popkin BM…). Additionally, a study found the damage a can of coke has one hour after consumption. This study, which offers a wonderful perspective to Coca-Cola’s damaging affect…show more content…
This is most evident with the focus group conducted for New Coke. Coca-Cola’s emphasis on taste prevented important discussions regarding the emotional attachment individuals had with the original Coke (Schindler, 23). This central focus on taste sets a poor model for conducting market research and may have potentially prevented opportunities from altering Coca-Cola’s brand identity into a more health-conscious brand. Additionally, this issue stems from Coca-Cola segmenting the improper way. As a cheap drink that baby boomers demand it seems evident that Coca-Cola has inadvertently segmented their customers by demographic variables such as income and age. Segmenting customer based on demographic variables have their limitations (Sirsi, 53). For example, segmenting by income is ineffective due to the reason that people making the same amount of money tend to spend it differently (Sirsi, 53). Coca-Cola inadvertently segmenting by demographic variables such as income and age shifted focus away from correctly segmenting based on customer needs, which would include health effects. Moreover, Coca-Cola’s approach to competitor analysis throughout their history may have potentially caused this marketing issue. The New Coke example illustrates Coca-Cola’s difficulty with this aspect of marketing as New Coke was an attempt to duplicate Pepsi (Schindler, 22). This conflicts with a primary purpose of customer analysis, which is differentiating themselves with
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