“Bringing Coca Cola Life to Life!” The project aimed to gain knowledge of the factors that drive target consumers’ intention to buy soft drinks in UAE and how Coca Cola Life could fulfill their needs. Since Coca Cola Life is in its introduction phase in the UAE, efficient market-development strategy to increase sales and tap new segments of the market, has been proposed.
Rise and fall of Kulula.com, an airline won consumers by different marketing ...
Coca Cola Life - Market Development Strategy in UAE
1. PRATEEK DHARIWAL
MMAY16CM19
MGB - CMM
Formulating Market Development Strategies for
in United Arab Emirates
LET SURPRISE YOU
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2. 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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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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5. INTRODUCTION
WHAT’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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6. 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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7. 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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8. 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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9. 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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10. EXPERT INTERVIEW ANALYSIS
KEY INSIGHTS FROM EXPERT INTERVIEW:
Mr. Hicham Kabbage
Marketing 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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11. EXPERT INTERVIEW ANALYSIS
KEY INSIGHTS FROM EXPERT INTERVIEW:
Mr. Farooq
Dept. 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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12. FOCUS GROUP STUDY ANALYSIS
Focus 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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13. 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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14. 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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15. 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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16. DATA COLLECTION - QUESTIONNAIRE
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20. CLUSTER ANALYSIS
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STEP 2 : Form Clusters based on Factors
F1
F2
F3
F4
F5
EXTERNAL INFLUENCE
CHILLED-OUT / COOL ATTITUDE
CALORIE-CONSCIOUS
PRICE & BRAND CONSCIOUS
PHYSICAL FITNESS
C1
C2
C3
C4
C5
Which cluster can we provide maximum value to ?
22. CLUSTER ANALYSIS
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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 >
23. CLUSTER ANALYSIS
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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 >
24. CLUSTER ANALYSIS
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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>
25. CLUSTER ANALYSIS
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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>
26. INSIGHTS & OPPORTUNITIES
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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
28. M
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REFERENCES
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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.
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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
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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-
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9. "GCC F&B Firms 'Must Track Consumer Trends’". Tradearabia.com. N.p., 2017. Web. 19 Jan. 2017.
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Web. 26 Jan. 2017.
