Coca Cola Life - Market Development Strategy in UAE

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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

Transcript of Coca Cola Life - Market Development Strategy in UAE

PRATEEK DHARIWALMMAY16CM19

MGB - CMM

Formulating Market Development Strategies for

in United Arab Emirates

LET SURPRISE YOU

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TABLE OF CONTENTS

INTRODUCTION

RESEARCH OBJECTIVES

LITERATURE REVIEW

EXPERT INTERVIEW ANALYSIS

FOCUS GROUP STUDY ANALYSIS

RESEARCH METHODOLOGY

DATA COLLECTION

CLUSTER ANALYSIS

INSIGHTS & OPPORTUNITIES

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INTRODUCTIONF

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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

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INTRODUCTIONWHAT’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)

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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.

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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

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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

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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

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EXPERT INTERVIEW ANALYSISKEY INSIGHTS FROM EXPERT INTERVIEW:

Mr. Hicham KabbageMarketing 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

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EXPERT INTERVIEW ANALYSISKEY INSIGHTS FROM EXPERT INTERVIEW:

Mr. FarooqDept. 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

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FOCUS GROUP STUDY ANALYSISFocus 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

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RESEARCH METHODOLOGY - TIMELINE

Research Objective

Literature Review

Conceptual Framework

Data Collection & Analysis

Conclusion & Recommendations

JANUARY 2017 FEBRUARY 2017 MARCH & APRIL 2017

Exploratory Descriptive Causal

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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

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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

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DATA COLLECTION - QUESTIONNAIREF

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DATA INTERPRETATIONF

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DATA INTERPRETATIONF

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CLUSTER ANALYSISF

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STEP 1 : Find the Factors using SPSS!

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- KMO Test Value = 0.832(This has to be greater than 0.6)

- This implies that the data collected is adequate for factor analysis!

CLUSTER ANALYSISF

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STEP 2 : Form Clusters based on Factors

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F2

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EXTERNAL INFLUENCE

CHILLED-OUT / COOL ATTITUDE

CALORIE-CONSCIOUS

PRICE & BRAND CONSCIOUS

PHYSICAL FITNESS

C1

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C5

Which cluster can we provide maximum value to ?

CLUSTER ANALYSISF

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STEP 3 : Choose a Cluster

Cluster 2 SELECTED!

External Influence, Calorie Conscious, Physical Activity

Cluster Characteristics

CLUSTER ANALYSISF

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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 >

CLUSTER ANALYSISF

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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 >

CLUSTER ANALYSISF

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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>

CLUSTER ANALYSISF

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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>

INSIGHTS & OPPORTUNITIES F

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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

STRATEGY FRAMEWORK

ANSOFFMATRIX

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REFERENCES1. 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.

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THANK YOU

ITS TIME FOR Q&A!