Economics assignment on : Essay on Coca Cola economy

1.0 Introduction

In recent years introducing new products and services to the market has been in booming stage with the new technology and the new booming economy. However, as in this case this new product need a critical systematic research in order to introduce to the market .The purpures of the research is to find out the survival of the product, to gain maximum profits, and to find the best target market to the product in the market. The main research tools are customer surveys and the other similar products in the same market that targeting the same target market.

As such it is necessary to have a range of marketing tools to conduct this research the product has to have to build its own product profile in this case it’s a unique product profile which gives a great advantage. Participating locality is another great useful tool that this research will use.

PURE BOOST, This is a unique and new product to the market which has never been around. This unique product is a form of mineral water with a hint of caffeine. The uniqueness is that the product is not comes with any flavour so it’s a non-flavoured drink.

The purpose of this research proposal is presented as below:

To determine the survival and how well this product will perform in a given market

To Finding out witch marketing tools and the best suitable research methods

To reveal advantages and disadvantages in research methods

To identify of the gap in the current research (Brannen 1980)

2.0 Background to the marketing research

Creating a list of research questions is a great method to start a good research. Getting the customer feet back on this product before the launch of the product will give a good idea about the consumers’ expectation on a new product. Secondly since the internet is most popular marketing method introducing this new unique product in its webpage will give a good marketing potential to the product. Using webpages that offers both advertising and customer support.Applied business research is a solid foundation for a good research; this will help to address a specific business dissection for a specific business firm in this case it can apply to this new unique product. By asking specific questions. (Tarka 2012)

Should this product add any flavor to its original non flavor drink?
Witch neutrinos should add to this product?
Witch color is more suitable for tis labeling?
What’s the best price for the product?
How much the profit margin should be?

Creating a questionnaire like this will help the hall business plan to go well in the long run. When the data is available to conduct a research like this the manufactures should consider the basic business research too. Getting all the results of a basic business research will help to understand the consumer very well and what they’re expecting from the product.

Justification for the proposal research is to determine the increase the probability of the optimum dissection and success full market impact. The model of the research will help to fast the research proses.(roberts, 2010)

2.1 New product development stage

For a new product (Pure Boost) market research becomes one of matching stage of new product and right market research method. Using data from other new product (same category), intelligence, ideas and drivers to the product development and marketing proses will help the marketing and product research and capabilities of the business will stand.

(‘Power decision group’ 2012, p. 01)

http://www.powerdecisions.com/product-research.cfm

2.2 Marketing strategy

All most all the organizations and all the new products operate according to a formal plan. Time is the key thing for planning small businesses might not spend or allocate enough time for planning this is depends on the size of the organization or the product. Sometimes the changers of the marketplace have a great impact on building a market plan. But it’s very important have a solid marketing plan for a new product. (Edward D. 2010)

Formal planning is a great way to yield many benefits for all types of companies in this case for the new product. This will encourage the management to think a head clearly and systematically. Clearly identifying the marketing resources and the integration of the marketing mix will clearly help to achieve desired results.

3.3 Strategic planning steps

(Kotler etal.2010)

Chapter 3 Literature review

3.1 Introduction

Literature review is an important section of the research study as it helps in justifying the research topic and the questions that are chosen for the research. In addition to this, it provides relevant information related to the study in the form of collection and analysis of previously done research and studies by scholars and researchers. The present literature review takes into account authentic information available on internet, journal articles, books, empirical studies,etc. in order to provide theoretical base to the research study in concern and helps in attaining aim and objectives of the research in an effective manner.

3.2 Industry of flavoured and non-flavoured mineral water drinks

Healthy diet is considered important for healthy life. It is recommended that people eat adequate amount of water so as to cater to the water requirement of the body. In relation to this, bottled water industry has seen boom in past ten years all over the world. The industry is very profitable and key players in the industry make huge profits on bottled water. There are many countries that have become oriented towards bottled mineral water, both flavoured and non-flavoured. According to the World Wildlife Fund Survey (2001), there is consumption of approximately 89 billion litres of bottled water yearly. Specifically, in Europe and North America, consumption of mineral water drinks is high, in comparison to other parts of the world (Dege 2011).

On the global front, almost every nation is accepting the culture of bottled water, and it has essentially become a part of the culture today. People all over the world prefer to drink healthy bottled water rather than tap water so as to remain healthy and get rid of tasteless plain water. Dege (2011) mentions the reasons for popularity of mineral drinking water over tap water. There is growing recognition of the significance and benefits of bottled mineral drinking water all over the world. It is recognized both as a commodity and as an effective alternative to plain tap water. There is also an increased trend among bottlers to develop the markets for beverages that are functional i.e. they bring with them the added value to the customer in terms of providing benefits by presence of herbal extracts, vitamins and added minerals in the beverage (Dege 2011).

Ward et al (2009) mentions in his research the health benefits related to bottled mineral water. The author has stated that mineral water has some health benefits and they are supported by scientific proofs to the levels of varying degrees. Bottled mineral water is the fastest growing section of the overall non-alcoholic beverage market all over the world. The main reasons due to which consumers prefer mineral drinking water over tap waterare health, odour, taste and sight.Health beliefs are the driving force for choosing mineral drinking water over tap water. These health beliefs have contribution in making bottled drinking water popular, thus, leading to profound increase in the growth of the market concerned (Ward et al 2009).

Other than health beliefs, other factors that play a critical role in framing positive opinions about bottled drinking water among consumers are taste, convenience and cost.Therefore, if cost is adequate, taste and good and the product is conveniently available, people prefer to buy mineral drinking water.

Copes et al (2009) states that the in comparison to tap water, mineral water does not contain chlorine residual, therefore, it is necessary to transport it properly, use and store appropriately in order to maintain the microbiological integrity of the water. Although, bottled water is at higher risk of contamination, but consumers prefer it due to cost, taste and convenience along-with their health benefits.

3.3 Current trends in mineral drinking water

Salazer (2012) states that the current trends in the market of packaged mineral drinking water involve development of new product, huge marketing and efforts on packaging. All these trends are positive for bottled water industry and new industries are emerging in order to tap the bottled water market. There is development of an array of products for bottled water, such as,purified water, bottled mineral water, hyper-caffeinated water, vitamin infused water, flavoured water, such as mint and fruits, fluoridated water, etc.

Although, innovation is tapping the bottled water industry, but still the major portion of revenues of the industry come from unflavoured sector. Other innovative products in the category are at initial stage and there is potential for huge growth of flavoured sector (Salazer 2012).Sizer and Whitney (2012) mention the growing popularity of innovative bottled water products, such as, water containing herbal extracts, caffeine, flavours, colours, sweeteners, minerals, vitamins, etc. Caffeine water is the bottled water that has added caffeine. Given the importance of water in the body, there is increasing trend and acceptance of bottled water with its varieties due to the health concerns of people regarding the consumption of tap water.

On the use of caffeine, Institute of Medicine Committee on military nutrition research (2001) sheds light on use of caffeine in the world. According to the Institute, the use of caffeine is in the form of food additive and is also used as a drug as well as a component of various pharmaceutical products. It acts as a central nervous system stimulant. Bottled water with a hint of caffeine is a food additive and is at growing stage in the bottled water industry.

Important minerals that are added in bottled water are fluoride and calcium. They are essential for body growth and development. Small amounts of fluoride when added in bottled water can lead to oral health care. Although there are benefits of bottled drinking water, there are some disadvantages concerned with this kind of water. These disadvantages include pollution and risk of contamination during transport and storage. Plain bottled water contain no calories and is a perfect diet drink for those who want to lose weight, while flavoured drinking water contains flavours, such as caffeine, herbal extracts, minerals, vitamins, and other nutrients. There is presence of market for these bottled products as well but nutrients in these products are not in enough quantity so as to make any big difference in the nutrition diet of those who consume these flavoured bottled water products (Institute of Medicine Committee on military nutrition research 2001).

3.4 Critical analysis

Bottled water has seen an unprecedented growth in last decade and people prefer drinking bottled water as they do not consider tap water to be quite safe to drink. There are certain health beliefs that people have regarding bottled drinking water, although, most of the popularity of the bottled drinking water is due to the cost, convenience and taste of these products. As mentioned by Dege (2011), there is significant increase in number of bottled water drinkers specifically in Europe and North America. Due to increased awareness of people all over the world regarding the healthy diet and considering the importance of water content in the human body, people are giving preferences to bottled drinking water and its certain variants, such as mineral water, vitamin containing water, food additives in the form of caffeine and fruit containing bottled water products, etc. (Copes et al 2009).

However, it has been mentioned in the study by Ward et al (2009) that most of the consumers who prefer bottled drinking water due to health benefits do not know whether such water is helping them and caring for their health. Such water is preferred over normal tap water due to its convenience, cost and taste. It is considered as a commodity and not an absolute alternative of tap water. There are no calories in bottled drinking water and certain nutrients can be specifically added in the form of flavours for attracting consumers. Although, the amount of nutrients in the bottled water is small but it can be used to cater to those people who prefer taste in drinking water along-with some benefit of nutrient intake (Institute of Medicine Committee on military nutrition research 2001).

Major revenues for the bottled water industry come from unflavoured products and variants, but flavoured [products and its varieties are also carving out niche in the market. Flavoured segment has still to attain growth, which is a positive sign for development of new products in this segment. Potential to attain market share makes flavoured drinking water a current trend in eyes of players of the whole industry. The boom in the industry during the past decade creates ample opportunities for big companies as well as small players to find their market share in developing markets as well as developed markets by bringing in innovation and creativity in context of development of new products and diverse varieties (Copes et al 2009).Appropriate packaging and advertising has helped the industry to gain huge popularity for its products all over the world.

It can be inferred from the section of literature review that the product under research study that contain caffeine is appropriate to launch in the market. Advertising and packaging are an important concern. They should be appropriate while the cost should be low as cost is one of the major criteria for consumers to prefer to bottled water products.

Chapter 4.0: Research Methodology

4.1 Introduction

The research methodology chapter is quite significant in helping the researcher in the effective accomplishment of research aim and objectives. It is because for effectiveness of a research study, it is essential to use the most appropriate research approaches, methods and strategies, so that research aim and objectives could be achieved successfully (Jackson 2008). This chapter includes the most appropriate strategies and approaches in concern to this research study that are significant for the accomplishment of the objectives of this research study.

4.2 Research objectives:

For the purpose of conducting an effective research process, it is quite essential for the researcher to formulate some specific research objectives. For the purpose of undertaking a competent research process, there are some of the specific objectives of this research process:

 To develop a set of research methods to identify direct competitive products.

 To develop a promotional plan.

 To develop a research plan to identify the target market.

4.3 Nature and type of research work

The research which is being explored through this study is exploratory in nature as it aims to reveal the some insight information related with demands and requirements of customers of mineral water industry. In order to conduct the research work, there is a need of some in depth information for which there is a need of employing some different types of data collection sources. In order to explore the research context in the most crucial manner, there is a need of detailed and elaborative information. Owing to this reason, the quality and accuracy of data has a significant impact over the research credibility, so the qualitative design is applied over the research process. This design is also effective with the phenomenology philosophy and inductive research approach. The research nature is also meaningful according to the selected research strategies as it is also effective to provide quality information in context of research problem. In direction to overall credibility of the research process, different subjective and qualitative types of data is collected and analyzed within the research work (Cohen, Manion, Morrison and Morrison 2007).

4.4 Research fields:

For enhancing the effectiveness and validity of a research study, it is essential to use the appropriate methods of data collection, so that data could be gathered in context of research aim and objectives with proper authenticity and accuracy. For this research, both primary and secondary data sources are used for the collection of data. However both types of data collection sources are quite directed to reveal only subjective and qualitative data, which is quite aligned with the nature of the research. These both types of researches can be classified under three different categories:

4.4.1 Web base research

Web-based research has been taken into account with the help of internet and related applications. With the help of this type of research, already collected information published on web sources is analysed in the light of research aim and objectives. Different books, journal articles, company reports, websites are analysed to obtain theoretical information. At the same time, this method is also effective in providing quality information as scholarly and literary sources provides more accurate, reliable and authentic information and data that is also effective to increase the research credibility and authenticity (Gulati 2009).

This is the method of collecting secondary type of data related with the context of the research work. In the secondary data collection methods different concepts and theories related with consumer behaviour and their purchasing decision have been studied and a competent conceptual framework can also be potted. On the basis of this framework, different information collected from other sources can be assessed (Jackson 2008).

4.4.2 Local marketing research

Along with web based research local market exploration is one of the most effective methods of retrieving data. In direction to this, observation method has been used for the purpose of having proper understanding of existing trends of local market. In this method of data collection, a keen observation of past data and buying habits of consumer is done so that some specific and effective trends of the existing can be revealed. This information will be proved quite helpful for the researcher to make forecasting of the future performance of the organization in the existing market. In addition to this, within this method, the analysis of the development of similar type of products within the target market has been taken into consideration so that opportunities and threats prevailing within local business environment can be revealed. The prime rationale behind adoption of this research approach is this method of data collection aims to provide some practical and useful information regarding market in which, the product is to be launched (Collins 2010).

4.4.3 Consumer feedback

Consumer feedback is the method through which, primary information related with the research context can be extracted. Primary data collection methods are the methods, which have been designed for the purpose of extracting only first hand information. These information have been gained through personal experiences, personal point of views and perception of the related entities and respondents. This information is quite raw by nature, which have not been used by any researcher in his research work. There can be a number of different methods, which have allowed the researcher to collect primary information. These methods are survey through questionnaire methods, observation methods, and interview method (Cooper and Schindler 2007).

Among such different methods, interview method is quite suitable methods for the research work as it allows the researcher to have detailed and subjective information on the basis of the personal experience of the respondents. In direction to this, in this research work, in-depth and personal interviews of randomly selected customers have been taken into account. In this interview, different questions related with the preference and taste, have been asked with the interviewee so that practical information related with the research context can be collected quite easily (Hackley 2003).

In order to undertake interviewee random sampling method has been chosen. In this method, the selection of respondents within the sample is done on a random basis. For this research the interview is conducted with five randomly selected customers who are the frequent buyers of packed mineral water. In the interview, some question regarding their preferences, tastes, habits and experience with other brand can be revealed in the most effective manner.

4.5 research tasks

While conducting research work, the determination of the historical development of similar product in the market is studied as a research task. In context to this, bottled water industry of Australia is one of the lucrative industries as there is intensive growth and development within the industry has been registered. There are a number of different similar types of products operating within the market. There are about 1000 and more different types of brands available within the country, that fulfill the demand of more than 520 million liters of bottled water every year. Among such brands, Coca-Cola Amatil is the most prominent brand operating within the country (Water, water everywhere 2004).

The success of Coca-Cola Amatil within the country is quite encouraging story for business organizations operating within the industry. The company was established in the year1966 in Sydney. The company has registered and remarkable growth within the market in terms of profits and market share. Recently, in 2010, the company has made an intensive investment of $45 million for making its in-line blowing and filling of PET bottles system more effective and automated so that the company can be able to registered growth in existing highly competitive marketing place. In addition to this, the company has also recently announced its market capitalization of over $8 billion, which has proved the company as top 50 listed companies within the country. In existing period of time the company is having more than 265 million consumers across the market, which denotes the positive attributes of the local bottled water market, which is positive sign for the newly launched product (About us 2012).

4.6 Research timetable

In order to make the research effective and useful it is quite essential to have proper time for conducting the research work (Goddard and Melville 2004). In the context of this statement, a focused and full marketing and customer research have been conducted before two years of launching of the product in the market.

Chapter 5.0 Research plan and outline

Research plan for this research is to find out information about the survival of the product and how its goanna perform in a given market. The research plan formulated for this research work is consisted of three different stages discussed as below:

Collection of the data:

This will be preliminary stage of plan in which, some important and relevant data is collected from different selected methods such as web based research, Local marketing research, and consumer feedback.

Findings of the data

In this an intensive review and analysis of the data is collected and some important data or findings that can be used in this research work are retrieved. These findings can be proved quite effective in retrieving an adequate conclusion on the entire research work.

Retrieving conclusion and making recommendations

This will be the final stage of the research work in which an intensive discussion over all the findings retrieved from various methods is done so that an applicable and adequate result of the research work can be retrieved.

5.1 Findings retrieved with the help of research plan

There are different methods used for retrieving some of the effective and relevant data related with the research context. On the basis of this data some crucial findings have been revealed which can be aligned with the newly launched non-flavoured bottled drinking water. On the basis of the findings of the research work, some assumptions and conditions for the newly launched products can be articulated. These specific findings in the context of the products can be listed as below:

(1) The intensive competition prevailing within the existing market place is one of the major threats for the company. Web based research and observation of the local market has articulated that there are a number of product items in the market related to non-flavoured bottled beverages, which can make the sustainability of the product in the market quite effective.

(2) In the context of pricing policies, the company is also required to be quite attentive as the web research has demonstrated that price is one of the utmost factors that affect consumer buying behaviour quite intensively. Consumer feedback has also reported that price deference with the existing brand can be proved a major factor for the establishment of PURE BOOST within the highly competitive market place.

(3) The research methods have also revealed findings related with selling avenues for the product in which, the company can avail maximum advantages, in direction to this, major selling venues for the company has been spotted by the company as supermarkets, grocery stores, convenience stores Etc. In direction to this customer feedbacks have revealed that Supermarkets and local shops are the place, which are preferred by customer for shopping. Owing to this reason, such places can be a good place for the company to promote its product.

(4) Along with this, the interview undertaken from customers reveals that Nutritional value and other benefits like harmless ingredients, purity and safety associated with the product makes the product popular among consumer. Owing to this reason, the company requires to put some intensive attention over establishing the high standards of quality in the presented product to the customers (McDaniel and Gates 1998).

(5) Observation undertaken within the research work has revealed the existing status of bottled water industry and its attractiveness. For this purpose, the growth and development of Coca-Cola Amatil, one of the leading company in the industry, has been observed. The company has a long history of presenting some innovative products within the market places. The success of the company is existing market place is demonstrating the high probability of the survival of the different unique products and product growth in the market, which is a positive and encouraging sign for the company.

(5) Along with the product positions, the place of introduction is also an important area of concern for the business organization. As per the perception of the customers revealed through interview and local market trend observation, it has been found out that the usage of bottled drinking water and other energy beverages in major cities is quite higher in comparison to that in semi urban and rural areas. In context to this, web research also shows that in the selection of the most suitable geographical area to introduce the product, the preference and usage of the product must be taken into consideration. The effective and proper selection of the accurate geographical guides the company towards an effective marketing campaign (Lancaster and Massingham 2010).

(6) Along with the most suitable geographical area to introduce the product, selection of the most suitable time for the introduction of the product is also can be considered as one of the major factor, which is required to be taken into account while designing an effective marketing campaign. As per the perception of customers, in the summer season their consumption of bottled water increases. The existing trend of the market is also advocating that summer season is the most suitable season for the bottled water industry of the country. On the basis of this, findings, it can be articulated that starting of the summer will be the most suitable time for the product introduction within the market (Anyim 2012).

(7) Promotional activities and allocation of human resources is one of the most crucial aspects for a new product introduced within the market. This notion has been elaborated trough web research. There are different literatures that have shown that for a new product in a new market, it is quite essential to allocate human resources for the research and product promotion so effectively that efficient use of available resources can be possible. Customer feedback has also revealed that effective promotional activities within existing marketing place affect their purchasing behavior quite intensively. Owing to this reason, for the business organization undertaking of some crucial and relevant marketing communication channels such as print media and electronic media and personal promotion, can be proved quite fruitful in the long run (Hackley 2010).

These are some of the crucial and effective findings of the different type of data retrieved with the help of different methods of data collection. These findings have presented some intensive and applicable constitutional propositions for PURE BOOST, which is to be launched within the market place. These findings are also presenting some recommendations made by customers as well as literatures for the organization. In order to make the launching of the product successful in the market, these findings are required to be taken into account by the management of the business organization. These findings will be used for retrieving the most relevant and rational conclusion of the research process.

Chapter 6.0: Conclusion

For the purpose of launching a product quite successfully within the market place it is quite essential for the business organization to make some in-depth marketing research. In marketing, a number of different methods and tools are targeted to be revealed in the most effective manner. In direction to this, the presented research work has shaded some intensive lights over pre launching scenario and environment prevailing in existing business scenario for a new product, i.e. non-flavored mineral water, namely PURE BOOST. On the basis of an intensive review of entire research report, it can be concluded that the business organization should undertake some effective and innovative tools of marketing communication, so that this new product can be positioned within the market in the most effective manner. For the purpose of revealing this conclusion, different information collected from several sources like web search, local market investigation and consumer feedback have been taken into account. These all the data collection methods have presented that that for the organization , there are a number of different tools of marketing communication such as print media, electronic media direct communication and marketing and so on, which can be employed by the organization for the purpose of making the products successful. In addition to this, the paper has also revealed that for the company starting of summer season is the most suitable period of time for the purpose of introducing products with the market. Moreover, for the purpose of getting a good start the organization is required to launch its product within the major cities of the country as the culture of major cities supports the trend of bottled and packed drinking water.

Furthermore, the research paper has also concluded that different type of research methods namely web based research, local market investigation and consumer feedbacks are some crucial as well as effective methods for retrieving perception and feedback of customers and conditions of external business environment of the country. The combination of such methods allows the organization to avail theoretical as well as practical information regarding external and internal environmental information, which is quite helpful in formulating some effective strategies for launching new product. However along with advantages, some disadvantages of integrating these research methods have also been revealed in the research work. For instance, sometimes these different sources of information provide different type of information, which are quite contradictory by nature. In this condition, compiling different findings of such methods for the purpose of revealing a unified strategic direction of the organization is one of the most critical tasks for the research.

In all the research work can be summed up by saying that existing marketing and industrial conditions for PURE BOOST is quite positive. The company can avail long term advantages of such condition by employing some effective marketing tools and techniques.

Chapter 7.0: Recommendation

The presented research work has highlighted some effective tools available for the organization that will lead the company to get established in the market effectively. For the purpose of using these tools, there are several important and effective recommendations can be provided to the organization. Some of recommendations can be presented as below:

(1) For the purpose of launching the new product in the market, it is quite crucial for the company to put emphasis over planning process. An in-depth planning allows the organization to use right resource at right time so that maximum advantages can be gained. In direction to this the company is recommended to use different IT related, and high tech tools and techniques such as SPSS software, Microsoft project and so on. The usage of IT in planning will make the planning of the organization more effective and scientific (FitzGerald and Arnott 2000).

(2) The installation of new and updated Management Information System (MIS) is another important recommendation for the organization. A competent MIS enables the organization to have some relevant and timely information regarding changes in internal as well as external business environment. For the management of organization, these information works as base of taking different strategic decision. Owing to this reason, the success of the organization highly depends upon competency and accuracy of MIS. For this, the organization is required to have a new and effective MIS (FitzGerald and Arnott 2000).

(3) In addition to this, another important recommendation provided to the organization is related with training and skill development of employees of the organization. In order to undertake different important tasks related with launching of the new product in the most effective manner, it is quite crucial for the organization to have skilled and well trained workforce. In direction to this, the organization should use different effective and innovative training methods for its employees so that skills of employees can be enhanced up to a significant level (Welsing 2006).

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