This document analyzes market share data for soft drink companies in the UK carbonates market from 2008-2014. It shows that Coca-Cola Company (CCE) has consistently maintained the largest market share over this period at around 50%, whereas Britvic has seen its market share increase from 18% to around 30%. The document also discusses Coca-Cola's strategies to promote product differentiation between its brands like Coca-Cola, Coca-Cola Zero and its new brand Coca-Cola Life through advertising and informing consumers. It argues that promotions do not significantly impact medium-term market share and that Coca-Cola has stable loyal consumers based on modeling of purchase behavior.
7. Effect of promotions on purchases:
x Promotions don’t change market
share on a medium-term basis
Pepsi:
- Beyoncé sponsorship
- ‘Maximum taste, no sugar’ campaign
Source: Ehrenberg et al. (1990)
9. Impact of Coca-Cola Zero
0
1
2
3
4
5
6
2010 2011 2012
Coca-Cola
Coca-Cola Zero
Source: Euromonitor (2014)
10. NBD-Dirichlet model
and penetration rates show that
ü Coca-Cola has stable rate of
loyal consumers
in terms of market
share
Sources: Sharp (2010)
11. 50%of Coca-Cola Zero drinkers are not aware
that the product has no calories and no sugar
Source: Marketing Week (2015a)
The aim for the long-term
brand management is to
about the differences between
their product
inform consumers
12. ‘One Brand Strategy’:
the advertisements will aim to
inform consumers about the
differences amongst their products.
Source: Marketing Week, 2015b
15. on social media about
product differentiation
Informing consumers
Promote the new
brand Coca-Cola Life
extension through
TV advertising
16.
17. ü Ehrenberg, A. S. C. (1988) Repeat-Buying, 2nd ed. London: Charles
Griffin & Co.
ü Ehrenberg, A. S., Goodhardt, G. J. and Barwise, T. P. (1990). ‘Double
Jeopardy Revisited’. Journal of Marketing. 54(3). pp.82-91.
ü Euromonitor (2014). Carbonates in the United Kingdom. [online]. Available
at: https://www.portal.euromonitor.com/portal/analysis/tab (Accessed:
12th March 2015)
ü Key Note (2011). Soft Drinks. [online]. Available at:
http://www.keynote.co.uk.ezproxy.kingston.ac.uk (Accessed: 12th
March 2015)
ü Key Note (2013). Soft Drinks. [online] Available at:
http://www.keynote.co.uk.ezproxy.kingston.ac.uk (Accessed: 12th
March 2015)
ü Marketing Week (2015a). Coke’s GB marketing boss on why it’s
overhauling its brand strategy. Available at: http://
www.marketingweek.com/2015/03/05/coca-cola-to-hero-differing-
products-under-new-strategy/ (Accessed: 15th March 2015)
ü Marketing Week (2015b) Coke’s ‘One Brand’ push part of global rethink of
marketing strategy. Available at: http://www.marketingweek.com/
2015/03/05/coca-colas-one-brand-push-shows-its-commitment-to-re-
investing-savings-in-media/?nocache=true&adfesuccess=1 (Accessed:
15th March 2015).
ü Mintel (2014). Carbonated Soft Drinks. [online]. Available at:
http://academic.mintel.com.ezproxy.kingston.ac.uk (Accessed: 12th
March 2015)
ü Sharp, B. (2010). How brands grow?. Victoria, AU: Oxford Press
University Press.