Consumer behavior analysis of the Coca-Cola Company

Consumer Behavior - Analysis of Coca-Cola

Consumer Behavior - Analysis of a Product or Service

The objectives of this report are to discuss what consumer behavior is, why consumer behavior is vital, and how consumer behavior is influenced by the needs, goals, and motivations of the consumer. The purchase and use of a product by the Coca-Cola Company will provide support for this report. The consumer behavior of consumers of soft drinks will be analyzed in order to determine their demographics, influencers, and why they prefer one drink over another. Customer segmentation will also be presented in the report. The segmentation will be based on the Coca-Cola Company and how they have segmented their consumers. The company's marketing mix will be discussed with an aim to determine if it is effective, and how it impacts the consumer behavior.

Introduction

In the current times, the marketplaces have become extremely competitive. It is vital for a company to recognize the needs of its consumers and ensure that it satisfies these needs with goods or services they provide. A company will have to satisfy the needs and requirements of the consumers if it is to survive in the competitive market place. The company that has an ability to meet the consumer needs, and identify their behavior better than its competitors will have an advantage and will be more likely to succeed. Consumer behavior focuses on the study of groups, or individuals and the processes they make use of when selecting, buying, and using a product or service Grubb and Grathwohl, 1967.

Consumer behavior also focuses on how the product or service impacts the consumer and society. It will blend sociology, psychology, economics, and social anthropology elements in the attempt to understand a customer's decision making process. Consumer behavior studies the characteristics of an individual consumer like behavioral variables, and demographics in order to establish the wants of people. Peter and Olson (2005)

states that consumer behavior will also try to assess what influences consumers into buying certain products over others. The influences could be friends, family, society, and reference groups. The study of consumer behavior is based upon the buying behavior of consumers. The customer plays three distinct roles of buyer, payer, and user. According to research it has been established that consumer behavior is hard to predict. Experts in the field have also recognized that it is difficult to predict the consumer behavior.

It should be noted that consumer behavior only focuses on consumer buying behavior of the customers who will use a good or service for their own personal consumption. The analysis will involve the ability for recognizing what influences the consumer in their decision making process. Influencers like social class, culture, lifestyle, age, cravings, and many more. Linking a person's self-concept with their symbolism is one theory for understanding consumer behavior. This would be determined by the consumer's personality and their perspective image regarding the good. This indicates that a marketer should find out how different individuals perceive themselves and the symbols that appeal to them in influencing their buying process Brinkmann, 2004.

Decisions regarding the marketing mix to be used by a company can be assisted by understanding a consumer's behavior through symbolism and self-concept. This would be essential to the company as it would formulate effective marketing strategies. Consumer behavior analysis can lead to establishing the product value and assist in developing a price that appeals to the consumers.

Target consumer segments

Coca-Cola has segmented its consumers based on their age, lifestyle, family, and geographical location. Youngsters and the youth are the main target market for Coca-Cola. Persons aged between 15-35 years have been the main focus of the company. The company has not segmented its consumers based on gender as research has shown that both genders have the same liking for the product, and they do drink Coca-Cola. The lifestyle of its likely consumers can be defined as people who want to be recognized in society. People who have associated the product with entertainment and fun loving are also the likely consumers of the product. Having advertisements that demonstrate the drink been enjoyed by families assists in promoting the product to the whole family. Geographically the product is consumed worldwide. There is no much difference in the quality and taste of the product. The branding and packaging of the product is universal, and this makes it easy to be recognized no matter the location. The company targets geographical locations that are climatically hot. Since the drink is recommended to be served cold, the company promotes its product to the hot areas in order to influence the consumers. Consumers living in urban areas have been identified as more likely to purchase the product. This is because the product is associated with trend of urban society. Brand conscious consumers are more likely to consume Coca-Cola than any other drink in the market.

Some of the external factors that will influence consumers of Coca-Cola are education, social status, product recognition, income, and lifestyle. These are external factors that will influence people to purchase the product instead of its rivals. The level of education is an external determinant as educated people are more likely to identify with the known brand. The advertisements the company develops have hidden messages that not all people would understand. Educated people would be more willing to purchase the product as they understand and recognize the product. Social status will also influence people to purchase the product. Coca-Cola is recognized as a prestigious brand and people will want to be seen drinking the product. Consumers have a desire to be recognized and any product that will assist in increasing their recognition within their social circle is likely to be preferred by the consumer. Coca-Cola is a product that is recognized worldwide, which makes people to be more willing to drink it without hesitation irrespective of where they are located. Been a worldwide brand means that people all over the world will easily recognize the product and will be more willing to purchase it instead of the little known brands. A person's income will influence the products they purchase. Coca-Cola has recognized this fact, and it has provided products that will suit all income levels. The company has Coca-Cola drinks suited for all the income levels from the low income to the high income levels. Creating different packaging for the same product has ensured that the company is able to satisfy the needs of the different consumers.

Purchase decision making process

The purchase for any bottle of Coca-Cola can be fitted under the decision making concept of habitual Hoyer, 1984.

Consumers of Coca-Cola already know the drink they prefer, and they have made it a habit to be purchasing a bottle of Coca-Cola anytime they visit the store. Habitual purchase have the following characteristics frequent purchase, low cost product, familiar product, requires little involvement form the consumer, and little thought is required in the purchase. The purchase of a Coca-Cola drink requires little decision making effort from the consumer. This differs from other purchases like a car, fridge, or television. This process might require little effort from the consumer, but the consumer is affected in different ways when they purchase the product.

In the decision making process of purchasing the product, the consumer receives inputs from marketers and social influencers Hanley and Thorpe, 2009.

These are external factors that the consumer might not be aware of when they are purchasing the product. The marketing inputs from Coca-Cola will consist of the various efforts that the company employs in its marketing mix. The company uses advertisements, sponsorship of events and sports, and branding to reach out to its potential customers. There have been health issues that are associated with the consumption of Coca-Cola. It has been constantly argued that the drink contains high levels of sugar, which is adverse to a person's health. In order to counter this issue the company has developed a light drink that would suit the health conscious consumers. The company has Coke Zero, and Diet Coke which are both low calorie drinks.

The purchasing process for Coca-Cola drink is based on the need to quench thirst. The consumer has a desire to quench their thirst and increase their sugar levels. The need for a Coca-Cola drink is sudden in case the consumer wants to quench their thirst. In case they would want to mix the drink with vodka for a party the need is planned. The consumer does not spend a lot of time researching information before making the purchase. This is because the risks are not high and the purchase is simple. There is also no need to evaluate alternative drinks, which makes the purchase decision easy. The product is readily available in all stores, which makes it easy for the consumer to find the product. It is least likely that the product will be sold out. Therefore, the consumer does not have to search for another brand or move from store to store.

Marketing mix

Coca-Cola Company uses the Four P's marketing mix. It consists of place, price, product, and promotion Borden, 1964.

The concept of place is replaced with distribution in their marketing mix. Distribution involves the delivery of the product to the customers. Their distribution system is key to its marketing strategy. The company ensures that its products are available worldwide, which ensures that the consumers will not fail to find the product in the stores. Making sure that the delivery and distribution of its products is seamless the company makes it easy for the consumer to get its products, which promotes customer loyalty. The pricing strategy adopted by Coca-Cola is value oriented. The company is a leader in its industry, but due to the fierce rivalry with its competitor Pepsi the company is forced to maintain affordable prices. This assists the company to maintain its market share and appeal to the middle class market. The company has been criticized by shareholders for maintaining low prices, but its strategy allows the company to have price drops for brief periods.

The company has invested billions for promotional and advertising purposes. The advertisements and promotions allow the company to maintain its leadership position in the industry. The company employs different advertising and promotional strategies to increase the demand of its products. The advertisements and promotions are associated with behavior, and lifestyle. The company has advertisements that are individualized for specific festivals or general message. Coca-Cola has a wide portfolio of products that cater for all age groups and different dietary needs. The Coca-Cola drink is recognized worldwide, and the company uses the same branding for the drink. This makes it easy for customers to recognize the drink no matter their geographical location. The product uses the same ingredients worldwide, which maintains the same taste. Consumers can be assured of the product quality across the world.

Conclusion

Coca-Cola has taken a different approach towards marketing its brands. Promoting sports events and having promotions that are geared towards specific festivals or events allows the company to reach out to consumers worldwide. The company also uses advertisements that appeal to the emotional side of consumers. They also have humorous advertisements. The company needs to ensure it satisfies the needs of its consumers in order to keep them motivated and satisfied. Continuous research should be carried out to determine the different consumer behaviors of people around the world. This will assist the company understand how to influence their consumers. The company should maintain its pricing strategy in order to cater for the needs of all levels of consumers. Providing different packaging ensures that the consumer income levels are catered for in the market. The different packaging that the company provides for its Coca-Cola drink enables consumers to easily pick the product that is suitable for their needs.