TAN, DIANA ROSE C. TOLENTINO, KATHERINE MAE V.

ARIBE, GIAN CARLO

2FM1

June 22, 2013

Chapter 3 1. Describe the current competitive market for your product. Can you identify the number of brands or market share that they hold? Expand your analysis to include other products that are similar or could be substituted for yours. The major brand competitors of Coca Cola Inc. are the PepsiCo Inc., Nestle S.A., and Dr Pepper Snapple Group, Inc. They compose the top beverage companies and each is one of the most recognizable brands. These companies are producing matching products that serve the market the same benefit the other can give. According to Yahoo! Finance, Nestle has a market cap of 214.46B, Coca Cola has 183.00B, following it is PepsiCo Inc that has 133.63B, and Dr Pepper Snapple Group, Inc. that has 9.85B. Nestle hold a various number of products that makes its market difficult to be infiltrated. Although Coke Zero continues its strong momentum globally, as of 2012, volume grew 5%. Changes in markets preferences or taste go along with the vast changing of environment that greatly affects every organization. As Coca Colas total sales comes mostly from its soft drinks, and the current environment shifts to a more healthy living, Coca Cola will decline; and companies like Nestle who has diverse products of water, iced tea, juice that serves as the alternative for the market will improve.

2. Using a business cycle pattern, in which of the four stages is the current state of the economy? Can you identify any changes in consumer buying power that would affect the sale and use of your products? The current state of economy according to the business cycle pattern is in recession. There is an increase in unemployment and a decline in total buying power which directly affects the market. With the decline of the consumers buying power they tend to look for a product that is more beneficial, thus healthier ones. This challenges Coca Cola to set up a marketing strategy to maintain its position and to maintain its market. As the world becomes more and more health-oriented, Coca Cola sales will be declining and people will shift to use alternatives such as water, iced tea, or juice that is in favor of the other companies.

3. Referring to table 3.2 through 3.9, do you recognize any laws or regulatory agencies that would have jurisdiction over your type of product? Yes. One Major U.S. Federal Laws that may have jurisdiction over Coca Colas product is the Lanham Act which provides protections for and regulation of brand names, brand marks, trade names, and trademarks; since Coca Cola has already established its brand name all over the world. Federal Trademark Dilution Act may also protect Coca Cola. FTC and FDA help regulate Coca Cola products in the market. FTC (Federal Trade Commission) controls the organizations business practices, how it allocates resources, false advertising, deceptive pricing, packaging and labeling to maintain an organization form violating laws that can mislead the market and abuse their buying power over ones product. As Coca Cola has already set high standards and are already trusted by the market, it is too perilous to be engaged in unlawful acts that can ruin its name. Also, FDA (Food and Drug Administration) prevents adultered or misbranded products that may possibly harm the consumers. Coca Cola has already created good relationship with its market so it is responsible for the safety and health of its consumers who trusts their products. Coca Cola must ensure that no harmful ingredients exists in all their products to maintain not only the quality of its product but as well the good relationship with the customers. 4. Conduct a brief technology assessment, determining the impact that technology has on your product, in sale or use. Technology is already engaged in almost every human activity and is beneficial to human race. It has made its way in the market; in production, promotion and even in distribution. Coca Cola is one of the organizations that adopt technology as it develops over time to also keep up with the changing environment that greatly affects its market. It uses the latest technologies in advertising like tv commercials, print ads and others to attract people to purchase their product. It also uses technology to increase production which is needed as the population increases and the demand for Coca Colas product also increases. It is also easier to have the latest technology in distribution to help Coca Cola organize and easily allocate its product that is available all over the world. 5. Discuss how your product could be affected by changes in social attitudes, demographic characteristics or life style. Nowadays, people tend to be more health conscious; this affects their buying habits of the products of Coca-Cola. They tend to search for alternatives which are healthier compare to the products offered by the company, and this leads to the decrease in total sales. Also, Coca Colas products are more attractive to those people living in hotter places. The satisfying factor from serving Coca Colas products chilled makes a greater appeal. The higher the populations of the youth, the more Coca Cola products are sold too. Youth loves to drink sweet beverage, thats why the company tries to attract and targets the growing youth sector of the market for their products. The changes in science also affect the products. As Science develops, more and more discoveries are revealed, one factor that affects the buying habit of people.

TAN, DIANA ROSE C. TOLENTINO, KATHERINE MAE V. ARIBE, GIAN CARLO

2FM1

June 22, 2013

Chapter 4 1. Define the nature and scope of the questions you must answer with regards to your market. Identify the types of information you will need about the market to answer those questions. For example, do you need to know about the buying habits, household income levels or attitudes of potential customers? First and foremost, Coca Cola Company needs to know who are their potential buyers, so that they can widen their market. We need to gather primary information about the peoples buying habits, how much money they are willing to spend for the products of Coca Cola, what taste the people prefer for their beverages and what factors they consider in buying their drinks. We also need to further understand the existing market we have, we may ask for the buyers suggestions and comments to improve the quality and satisfaction they get from our products. We need information about the environment such as the competitors, the population and the economy to help us make decisions. 2. Determine whether or not this information can be obtained from secondary sources. Visit the websites provided in 4.3 as possible resources for the secondary data. This information can be gotten from a marketing research. We can consider secondary data available in the internet, newspapers and magazines. We may look after the economic census to further understand the changing economy so we can adapt to it. We can also consider FindArticles.com to search for existing information about the peoples attitudes and lifestyle, and to search for articles about their suggestions and comments about our products. We may look into the NSO records to see whether what part of the sector is growing, thus making it our bigger target market. But because secondary data available are not up to date, we still need to do some surveys and interviews for the more accurate results. 3. Using table 4.4, choose the appropriate method(s) you would use to collect primary data for one of your information needs. What sampling data would you use? Surveys and interviews would contribute a lot to the development of Coca Colas company. The primary data gathered from these tools would help our company in its continuing success and improvement. The answer for our questions like the peoples buying habits, the amount of money they are willing to spend on our products, and the taste preference can be gotten from the surveys and interviews. We can also make an experiment, introduce new products and see if it catches the market.