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Coca Cola Life - Market Development Strategy in UAE

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“Bringing Coca Cola Life to Life!” The project aimed to gain knowledge of the factors that drive target consumers’ intention to buy soft drinks in UAE and how Coca Cola Life could fulfill their needs. Since Coca Cola Life is in its introduction phase in the UAE, efficient market-development strategy to increase sales and tap new segments of the market, has been proposed.

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Coca Cola Life - Market Development Strategy in UAE

  1. 1. PRATEEK DHARIWAL MMAY16CM19 MGB - CMM Formulating Market Development Strategies for in United Arab Emirates LET SURPRISE YOU F I N A L P R O J E C T P R E S E N T A T I O N
  2. 2. TABLE OF CONTENTS INTRODUCTION RESEARCH OBJECTIVES LITERATURE REVIEW EXPERT INTERVIEW ANALYSIS FOCUS GROUP STUDY ANALYSIS RESEARCH METHODOLOGY DATA COLLECTION CLUSTER ANALYSIS INSIGHTS & OPPORTUNITIES F I N A L P R O J E C T P R E S E N T A T I O N
  3. 3. M I D R E V I E W P R E S E N T A T I O N INTRODUCTION F I N A L P R O J E C T P R E S E N T A T I O N
  4. 4. M I D R E V I E W P R E S E N T A T I O N INTRODUCTION The Colours of UAE  Coca-Cola Life is the latest line extension of Coca Cola and is an appealing option for those seeking a healthier alternative  Launched in the UAE in November 2016 (Introduction Phase of the Product lifecycle)  Initially, sampling opportunities at selected malls such as Carrefour of Mall of the Emirates, Spinneys Motor City, GEANT Yas Mall (out of 60 Malls in UAE)  Priced at AED 2.5 whereas all other soft drinks are priced at AED 1.5 F I N A L P R O J E C T P R E S E N T A T I O N
  5. 5. INTRODUCTION WHAT’S THE POINT OF HAVING COCA COLA LIFE IN UAE?  UAE Residents guzzle soft drinks 3 times more than global average (Avg Adult - 103 litres of soft drinks every year)  745,000 people have diabetes in UAE ; Affects 1 in every 5 Emiratis  UAE – 5th fattest nation in the world  High Volume of sugar and fructose in soft drinks increase the risk of developing diabetes, hypertension and asthma attacks (Source: Al Arabiya) F I N A L P R O J E C T P R E S E N T A T I O N
  6. 6. RESEARCH OBJECTIVES  To increase the brand awareness of Coca Cola – Life in the UAE segment  To formulate a market development strategy for Coca-Cola’s new extension – Coca Cola Life in the UAE using various Integrated Marketing Communications’ (IMC) tools to reach the masses.  To change the behaviors and attitudes of potential consumers who think soft drinks are not good for health by providing them with the Coca Cola- Life alternative. F I N A L P R O J E C T P R E S E N T A T I O N
  7. 7. LITERATURE REVIEW UAE Beverages Market Coke in UAE  Basu, et al. (2013)’s study of 75 countries - the soft drink consumption poses a huge health risk of worsening obesity and diabetes – Obesity has doubled since 1980s due to soft drinks  Piernas et al. (2014) concluded that more and more customers start to adopt the health life style, and therefore, they demand less sugar consumption.  Coca Cola enjoys a market share of 49% globally in the carbonated soft drink segment (Source: Statista)  Aaker (1990) suggested that the extension strategy of Coca Cola was so successful because of high recognition. In Landor Survey, Coke was the strongest brand by a large margin due to its brand and line extensions Global Soft drinks Market Coca-Cola GLOBAL F I N A L P R O J E C T P R E S E N T A T I O N
  8. 8. LITERATURE REVIEW Global Soft drinks Market Coca-Cola GLOBAL UAE Beverages Market Coke in UAE  Soft drink industry in MENA region is growing at 4.3% and will account for 5% of the total global retail value by 2021  Health and Wellness is the overarching trend dictating soft drink sales in the UAE.  KEY TRENDS: Those with low or zero artificial sweeteners. Beverages that provide for the luxury experience and tells a story. Plant based varieties (Source: Euromonitor International) Source: Euromonitor F I N A L P R O J E C T P R E S E N T A T I O N
  9. 9. TARGET MARKET – COCA COLA LIFE UAE Beverages Market (Source: World Bank) UAE Population : 9.35 Million MILLENIALS or Generation Y : 5.6 Million 18-34 Years (Source: Emirates24x7) The Age-group which is more health-conscious than any other! (Source: Gulf News) Direct Competition: Diet Coke, Coke Light, Diet Pepsi, 7UP Lite – Low Calorie Colas Indirect Competition: Juices , Sparkling Water – Al Marai, Al Rawabi, Al Safa, Masafi F I N A L P R O J E C T P R E S E N T A T I O N
  10. 10. EXPERT INTERVIEW ANALYSIS KEY INSIGHTS FROM EXPERT INTERVIEW: Mr. Hicham Kabbage Marketing Consultant Key Challenges in Beverages Industry: - High dose of sugar and carbs. - Consumers lately are more concerned about their health. - Sodas with Aspartame were introduced as a great solution (Coca Cola light for instance) but in the past 10 years reports showed that the molecule causes cancer. - Consumers prefer now a sweet healthy drink. Emerging Trends: The design of packaging and the introduction of a natural sweetener called Stevia. Brand Personality with Coca Cola Life: Extraverted/Full-of-Life/ Loving/Group oriented/Accessible F I N A L P R O J E C T P R E S E N T A T I O N
  11. 11. EXPERT INTERVIEW ANALYSIS KEY INSIGHTS FROM EXPERT INTERVIEW: Mr. Farooq Dept. Head, Dragon Mart - 2 - Coca-Cola Life not much in demand due to lack of knowledge and awareness - Company must use push strategy to generate demand - Order only 40 crates a month in comparison to 200 for the other brands - Mainly bought by Arabs & Europeans (during weekends) - Approx. 1 in 10 Asians buys Coca-Cola Life F I N A L P R O J E C T P R E S E N T A T I O N
  12. 12. FOCUS GROUP STUDY ANALYSIS Focus Group : 11 Students 4 Nationalities – INDIAN, VIETNAMESE, SYRIAN, EGYPTIAN Gender Males Females Taste GOOD DOESN’T MATTER Packaging Good Doesn’t Matter Cola Preference Diet Sugary Brand Knowledge Yes No Somewhat F I N A L P R O J E C T P R E S E N T A T I O N
  13. 13. RESEARCH METHODOLOGY - TIMELINE Research Objective Literature Review Conceptual Framework Data Collection & Analysis Conclusion & Recommendations JANUARY 2017 FEBRUARY 2017 MARCH & APRIL 2017 Exploratory Descriptive Causal F I N A L P R O J E C T P R E S E N T A T I O N
  14. 14. CONCEPTUAL FRAMEWORK THEORY OF PLANNED BEHAVIOR Attitude Subjective Norm Perceived Behavioural Control Behavioural Intention Behaviour Beliefs (Price, Lifestyle, Packaging, Taste) - Promotions - Friends / Family Recommendations - Knowledge - Age - Income F I N A L P R O J E C T P R E S E N T A T I O N
  15. 15. DATA COLLECTION & ANALYSIS Territory – United Arab Emirates Sample Size: 102 Data Points ; 17 Variables - Independent  Main Targets - Young Professionals / Students  Type of Data – Primary Data, Secondary Data (Company Information)  Data Collection Method: Survey/Questionnaire, Expert Interview  Data Collection Duration: Feb-March 2017 F I N A L P R O J E C T P R E S E N T A T I O N
  16. 16. DATA COLLECTION - QUESTIONNAIRE F I N A L P R O J E C T P R E S E N T A T I O N
  17. 17. DATA INTERPRETATION F I N A L P R O J E C T P R E S E N T A T I O N
  18. 18. DATA INTERPRETATION F I N A L P R O J E C T P R E S E N T A T I O N
  19. 19. CLUSTER ANALYSIS F I N A L P R O J E C T P R E S E N T A T I O N STEP 1 : Find the Factors using SPSS! F1 F2 F3 F4 F5 - KMO Test Value = 0.832 (This has to be greater than 0.6) - This implies that the data collected is adequate for factor analysis!
  20. 20. CLUSTER ANALYSIS F I N A L P R O J E C T P R E S E N T A T I O N STEP 2 : Form Clusters based on Factors F1 F2 F3 F4 F5 EXTERNAL INFLUENCE CHILLED-OUT / COOL ATTITUDE CALORIE-CONSCIOUS PRICE & BRAND CONSCIOUS PHYSICAL FITNESS C1 C2 C3 C4 C5 Which cluster can we provide maximum value to ?
  21. 21. CLUSTER ANALYSIS F I N A L P R O J E C T P R E S E N T A T I O N STEP 3 : Choose a Cluster Cluster 2 SELECTED! External Influence, Calorie Conscious, Physical Activity Cluster Characteristics
  22. 22. CLUSTER ANALYSIS F I N A L P R O J E C T P R E S E N T A T I O N STEP 4 : Profiling the Selected Cluster Gender # Female 17 Male 22 Total 39 GENDER Income # < AED 5000 19 AED 5000 - 10000 5 AED 10000 - 20000 12 AED 20000 + 3 Total 39 INCOME 56% Males in this Cluster Close to 49% of the members have income less than AED 5000. 30% of the members have income between AED 10,000 to AED 20,000 More than 50% male not aware about Coca-Cola Life Most of the people from age 15-34 fall into the 2nd Cluster (40%) Age Group # 15-24 years 10 25-34 years 22 35-44 years 5 45+ years 2 Total 39 AGE < DEMOGRAPHICS >
  23. 23. CLUSTER ANALYSIS F I N A L P R O J E C T P R E S E N T A T I O N STEP 4 : Profiling the Selected Cluster Age HoReCa HyperMarket Small / Medium Grocery Vending Machines TOTAL 15-24 3 7 10 25-34 5 9 8 22 35-44 1 3 1 5 45+ 2 2 Total 5 15 18 1 39 CHANNEL WISE Cluster 2 PROFILE - "External Influence - Calorie Conscious - Physical Activity" Age Cola-Sugary Cola-Diet NonCola-Sugary NonCola-Diet TOTAL 15-24 4 2 2 2 10 25-34 8 6 6 2 22 35-44 3 0 1 1 5 45+ 1 1 2 Total 15 9 9 6 39 Cluster 2 PROFILE - "External Influence - Calorie Conscious - Physical Activity" SOFT DRINK PREFERENCE < BUYING PATTERN >
  24. 24. CLUSTER ANALYSIS F I N A L P R O J E C T P R E S E N T A T I O N STEP 4 : Profiling the Selected Cluster Age 1-3 times 3-6 times Less than once a week TOTAL 15-24 4 6 10 25-34 8 14 22 35-44 3 1 1 5 45+ 1 1 2 Total 16 1 22 39 FREQUENCY OF CONSUMPTION Age Classic Coke Coke Zero Diet Coke Coca Cola Life Total 15-24 6 2 2 10 25-34 14 3 5 22 35-44 5 5 45+ 1 1 2 Total 26 5 8 0 39 COKE PREFERENCE - No. 1 < CONSUMPTION PATTERN>
  25. 25. CLUSTER ANALYSIS F I N A L P R O J E C T P R E S E N T A T I O N STEP 4 : Profiling the Selected Cluster Age Indian Sub-Cont Middle East Europe South East Asia Australia Americas Africa Total 15-24 8 1 1 10 25-34 12 3 3 4 22 35-44 1 1 1 1 1 5 45+ 2 2 Total 23 5 3 5 1 1 1 39 NATIONALITY Age Aware, not tried Aware, try again Aware, don't want to try Not Aware Total 15-24 3 3 4 10 25-34 3 2 3 14 22 35-44 3 1 1 5 45+ 1 1 2 Total 9 7 3 20 39 Coca Cola Life - BRAND AWARENESS < BRAND AWARENESS>
  26. 26. INSIGHTS & OPPORTUNITIES F I N A L P R O J E C T P R E S E N T A T I O N INSIGHTS OPPORTUNITIES 50% of the cluster isn’t aware about Coca-Cola Life Great opportunity to spread awareness! Majority still prefer Classic Coca-Cola as their favourite soft-drink Coca-Cola Life can be positioned as a natural version of the All-time classic 60% of the cluster consumes soft-drinks very rarely ( Health – conscious trend ) Can be positioned as a “soft-drink” alternative to healthy juices More than 60% of the cluster consumes Cola drinks – 40% drink Diet Colas Trends towards low sugar, low caffeine is increasing 85 % shop for soft-drinks from Hypermarkets and Small/Medium Grocery stores Big Opportunity to introduce Coca-Cola Life in small/medium convenience stores to increase sales and awareness
  27. 27. STRATEGY FRAMEWORK ANSOFF MATRIX F I N A L P R O J E C T P R E S E N T A T I O N
  28. 28. M I D R E V I E W P R E S E N T A T I O N REFERENCES 1. Anderson, C. R., & Zeithaml, C. P. (1984). Stage of the product life cycle, business strategy, and business performance. Academy of Management journal, 27(1), 5-24. 2. Hardle, B. G., Lodish, L. M., Kilmer, J. V., Beatty, D. R., Farris, P. W., Biel, A. L., ... & Aaker, D. A. (1994). The logic of product-line extensions. Harvard Business Review, 72(6), 53. 3. Pitta, Dennis A., and Lea Prevel Katsanis. "Understanding brand equity for successful brand extension." Journal of consumer marketing 12.4 (1995): 51-64. 4. Ambler, T., & Styles, C. (1997). Brand development versus new product development: toward a process model of extension decisions. Journal of Product & Brand Management, 6(4), 222-234. 5. Sheinin, D. A. (2000). The effects of experience with brand extensions on parent brand knowledge. Journal of Business Research, 49(1), 47-55. 6. Kassem, N. O., Lee, J. W., Modeste, N. N., & Johnston, P. K. (2003). Understanding soft drink consumption among female adolescents using the Theory of Planned Behavior. Health Education Research, 18(3), 278-291. 7. Kassem, Nada O., and Jerry W. Lee. "Understanding soft drink consumption among male adolescents using the theory of planned behavior." Journal of behavioral medicine 27.3 (2004): 273- 296. 8. Aaker, D. (1990). Brand extensions: The good, the bad, and the ugly. MIT Sloan Management Review, 31(4), 47. 9. "GCC F&B Firms 'Must Track Consumer Trends’". Tradearabia.com. N.p., 2017. Web. 19 Jan. 2017. 10. "Coca-Cola Life: A Healthy Brand Extension, But Will It Succeed?". Siegelgale.com. N.p., 2017. Web. 26 Jan. 2017.
  29. 29. M I D R E V I E W P R E S E N T A T I O N THANK YOU ITS TIME FOR Q&A!

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