Coca cola vending machine case study analysis

So, when creating a strategy for increasing profit margins in vending machines, Coke must make sure to keep its precious brand image in tact.

If the general public did find out that prices increased in hot weather, Coke should have only emphasized the lower prices of products in the cooler weather. You have also been reporting for several years that market research with consumers indicates that taste is the main factor for falling market share of the main Coke brand.

Therefore, your role is to help the team reach the right decision for the firm overall and you may even act as the facilitator for the group. Allow student groups around 30 minutes to review the case, decide roles and discuss and debate their final marketing strategy.

The Marketing Manager You are the marketing manager responsible for the Coke brand.

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The last issue is a difficult one to measure and predict. Many consumers saw Coke as a cultural icon and were angry that it was no longer available.

The character and role descriptions provided are based upon the real players and their generalized motivations.

Coca-Colas New Vending Machine - Case Study Example

The second issue here is the actual pricing and promotional matters involved with this new technology. Those alternatives will be discussed later. The only area of concern raised in your research was that in focus groups some consumers got angry at the idea of withdrawing old Coke, but this finding was not replicated in individual surveys where respondents were generally positive about the idea of a new better tasting Coke.

Coca Cola Vending Machines

Its reintroduction was driven by John Sculley, who would later go on to run Apple and sack Steve Jobs. It was this kind of persuasive argument that helped convince the Burger King chain switch from Coke to Pepsi two years ago. It must also take into account how this growth strategy fits in line with the overall brand strategy.

The cumulative impact of all these marketing activities by Pepsi against Coke were designed to reposition the brands in the minds of the consumers, as shown in the following perceptual map.

In you brought Diet Coke to market; the first ever extension of the Coke brand. You have concluded that the new formula is clearly preferred by respondents in blind taste tests against both existing Coke as well as Pepsi. For example, the Burger King chains switched from Coke to Pepsi in The advantage to this is that it makes the consumer think that he or she is getting a better value for their money.

However, this will usually mean that Coke must raise vending machine prices across the board to be able to offer the special pricing while still receiving its higher margins.

At the same time, it was designed to reposition Coke in the minds of the consumers as old, tired and boring. Coke was able to maintain its market share lead because of its distribution and retailer relationships e. You have just conducted an enormous market research study on the new formula for Coke.

The new flavor outperformed both traditional Coke and Pepsi in market research taste tests. Needless to say, Pepsi consistently won all the Pepsi Challenges — usually by a narrow margin. It charges a higher price during warmer temperatures and a lower price during colder times. And to add to the concern of a falling market share for Coke, the overall soft drink market was in slight decline.

The most important thing to remember in pricing issues is the term value. Conditions of elasticity of demand e It was hugely successful, becoming the 3rd best selling drink in the market, behind Coke and Pepsi, making it one of the most successful new products in FMCG marketing history.

Your culture change program has challenged management to be more entrepreneurial, but you always insist on analysis and professional decision making, with decisions tied to financial outcomes for Coke.

You are rational in your approach, but will force the other players consider both the up and downsides of their preferred solution. Who sets the minimum and maximum temperatures in each market?

The Market Researcher As the marketing research manager for Coca-Cola, your prior taste test research for Diet Coke was spot on as Diet Coke became the best-selling diet soft drink on the market within two years, primarily because of its taste. If a customer is in a theater that only sells Coke products, he or she is forced to choose that company if he or she wants a beverage.Case Study Coca-Cola Vending Machines Information Systems Carolina Malhou da Costa Coca-Cola, in Australia and in the Asia-Pacif region Australian company Founded in Equipped about 35, of its vending machines the cost-benefit analysis An analysis of the vending machines performance.

Case Study on Coca Cola Taylor Levesque Case Study #2 – Alternative Marketing April 27th, Professor Milbourne Coca – Cola Happiness Machine Description: In Coca Cola developed a plan to reinstate the message Coca – Cola has had for quite some time “Open Happiness”. Scott Morrow MGT Case #1 1/31/08 Coca-Cola's New Vending Machine Statement of Problem Coca Cola, the world's largest beverage company, has been under a tremendous amount of media scrutiny lately/5(1).

Coca Cola a Vending Machine Case Study Problem Statement: Coca Cola Co., the world’s largest beverage company is facing a public relation nightmare which can ultimately put their brand image at stake.

This means Coke will only stock Coca-Cola Classic, Diet Coke, Dasani water and other Coke family products in its vending machines. Therefore, there is minimal immediate competition for vending machine business and it can price its products within a reasonable range that consumers are willing to pay.

Coca-Colas New Vending Machine (A): Pricing to Capture Value or Not Case Solution,Coca-Colas New Vending Machine (A): Pricing to Capture Value or Not Case Analysis, Coca-Colas New Vending Machine (A): Pricing to Capture Value or Not Case Study Solution, Chairman and CEO M.

Douglas Ivester stumbles when he tells Brazilian magazine show about the new Coca-Cola vending machine .

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Coca cola vending machine case study analysis
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