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    Coca-Cola Case Study

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    Tahseen Ahmed
    Coca-Cola used a new shopper insight approach called MOTOR (Moment of Truth Opportunity Research) to understand shopper behavior in Thailand's traditional trade channel where it was losing market share. MOTOR provided a holistic framework integrating observations, interviews, and outlet profiling to map the shopping environment. Key insights included understanding the impulse continuum in decision making and identifying drivers of category growth. Coca-Cola leveraged these insights to develop an integrated marketing campaign of in-store promotions and product placements targeting occasions and segments. This successful campaign led to double digit volume and revenue growth in the traditional trade channel, reviving the category and allowing Coca-Cola to regain its leadership position.

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    Coca-Cola Case Study

    Uploaded by

    Tahseen Ahmed
    173 views4 pages
    Coca-Cola used a new shopper insight approach called MOTOR (Moment of Truth Opportunity Research) to understand shopper behavior in Thailand's traditional trade channel where it was losing market share. MOTOR provided a holistic framework integrating observations, interviews, and outlet profiling to map the shopping environment. Key insights included understanding the impulse continuum in decision making and identifying drivers of category growth. Coca-Cola leveraged these insights to develop an integrated marketing campaign of in-store promotions and product placements targeting occasions and segments. This successful campaign led to double digit volume and revenue growth in the traditional trade channel, reviving the category and allowing Coca-Cola to regain its leadership position.

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    Coca-Cola used a new shopper insight approach called MOTOR (Moment of Truth Opportunity Research) to understand shopper behavior in Thailand's traditional trade channel where it was losing market share. MOTOR provided a holistic framework integrating observations, interviews, and outlet profiling to map the shopping environment. Key insights included understanding the impulse continuum in decision making and identifying drivers of category growth. Coca-Cola leveraged these insights to develop an integrated marketing campaign of in-store promotions and product placements targeting occasions and segments. This successful campaign led to double digit volume and revenue growth in the traditional trade channel, reviving the category and allowing Coca-Cola to regain its leadership position.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    173 views4 pages

    Coca-Cola Case Study

    Uploaded by

    Tahseen Ahmed
    Coca-Cola used a new shopper insight approach called MOTOR (Moment of Truth Opportunity Research) to understand shopper behavior in Thailand's traditional trade channel where it was losing market share. MOTOR provided a holistic framework integrating observations, interviews, and outlet profiling to map the shopping environment. Key insights included understanding the impulse continuum in decision making and identifying drivers of category growth. Coca-Cola leveraged these insights to develop an integrated marketing campaign of in-store promotions and product placements targeting occasions and segments. This successful campaign led to double digit volume and revenue growth in the traditional trade channel, reviving the category and allowing Coca-Cola to regain its leadership position.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Shopper Marketing Silver Winner: Coca-Cola - ‘MOTOR’ing to WIN

     
    Business Situation: 
    Thailand is a mid size (Population: 65 MM), developing market, with an established culture of consuming 
    Sparkling Soft Drinks. It represents a huge business opportunity for the Coca‐Cola System. 
    Market situation in early 2007: Back in 2006/2007, the growth of sparkling soft drink in Thailand was 
    relatively flat and Traditional Trade continued to be the dominant channel (55% of volumes) despite the 
    emerging popularity of Modern Trade Channels (Hyper/Super/Convenience). While The Coca‐Cola System 
    (KO) won consistently in Thailand in absolute terms (volume, profit, and value share in Non‐Alcoholic 
    Ready‐to‐Drink beverages) – the business has been losing share in Traditional Trade in relative terms 
    within the sparkling beverage segment since 2001.  
    By the end of 2006, our competitor had a lead over KO in the Traditional Trade channel. This was driven 
    by a first mover advantage by launching an ‘upsized Glass Bottle after the Asian currency crisis – offering 
    great value proposition ‘just 1 Baht extra for 50% more volume’ at a time when consumer confidence & 
    spending were at an all time low.  

    BUSINESS AND MARKETING OBJECTIVE 
    To revitalize Category Volumes in the Traditional Trade channel & regain market leadership.  

    RESEARCH OBJECTIVES 
    With this backdrop in mind, Coca‐Cola and Nielsen partnered to develop a holistic shopper framework –
    MOTOR (Moment of Truth Opportunity Research) that integrated insights from the shopping environment 
    to address the unique challenges of our business by:  
    • Demystifying  the  Moment  of  Truth  –  by  understanding  shopper’s  engagement  &  by  detailing 
    purchase/consumption behavior 
    • Identifying  Opportunity  –  by  quantifying  the  role  &  impact  of  key  elements  in  the  shopping 
    environment –to capture opportunity 
    • Adjacencies/Assortment –  by analyzing the shopping basket  

    RESEARCH APPROACH 
    Our approach focused on capturing both ‐ shopper behavior & attitude since impulse plays a major role in 
    final  shopper  decision  making.  This  was  made  possible  by  synthesizing  data  across  all  the  lenses  – 
    observations, interviews & outlet profiling.  

    1
     
    The advantages of the ‘MOTOR’ approach are driven by the facts that it: 
    ‐ Focuses heavily on a 360‐degree 
    mapping by following a multi‐
    pronged questioning approach 
    (observation and interviews)  
    ‐ Provides the linkages between 
    shopper/retailer/market data 
    which was analyzed separately in 
    the past 
    ‐ Employs advanced Analytics  to 
    quantify the impact of different 
    elements on the dependent 
    variables 

    BUSINESS INSIGHTS & IMPLICATIONS 
    We leveraged insights from the MOTOR study to develop a 3600 marketing plan that revitalized category 
    growth & helped us regain share leadership.  
    Key learnings that led to shape our strategy in traditional trade channel are: 
    ‐ Understanding the Shopping Decision Process helped develop a strategic shopper marking 
    framework & for designing in‐store communication. This included an understanding of the Impulse 
    continuum: to factoring the role of “impulse” in the shopper decision making 
    o We experimented with multiple questions to factor in the impact of these key elements with 
    shoppers – Was the outlet planned? Was the trip/mission planned? Was the category planned? 
    Was the brand planned? Was the pack planned? Etc.  
    o Learnings from the above helped us focus on driving impulse using a mix of on‐air and in‐store 
    promotions, to influence the ‘unplanned elements’ during shopping decision making. 
    ‐ Among the different activation elements, MOTOR helped us identify factors that are drivers of 
    category growth and to develop merchandising standards  
    o This comprehensive understanding of the impact of all key elements at the point of purchase 
    helped prioritize our spends & to optimize returns  
    o We sub‐segmented outlets on the basis of their location (residential/commercial), turnover, 
    demographic skew, etc., to develop merchandizing standards by segments  
    ‐ De‐mystifying purchase/consumption behavior helped identify opportunities by new segments for 
    new launches to reinvigorate category growth  
    o Actionable occasion segments were arrived at by understanding occasions by shopping mission 
    (top‐up vs stock up), purchase behavior (planned vs impulse), place of consumption, method of 
    consumption, time of consumption, etc.  
    o This formed the foundation of a new segmentation plan to launch new products to leverage these 
    segments by having the relevant products for each segment 

    2
     
    CAMPAIGN DEVELOPMENT 
    With clarity on occasions and shopper behavior paving the way, an integrated marketing communication 
    program was developed to support on the ground activation and product placement. Some of the 
    elements of the program were: 
    • In‐store Point‐of‐sale material communicating relevant products/specialized programs for key 
    segments & targeted sampling program among key consumer segments 
    • Key programs activated via promotions, TVC & special loyalty programs targeting purchasers  
     
      
      

    3
     
     
    BUSINESS RESULTS  
    This integrated marketing campaign has been immensely successful leading to double digit growth volume 
    & revenue in this channel.  
    ‐ Category Revival: The momentum gained in this channel, helped drive overall category revival in a 
    tough year (despite tough economic  conditions) 
    ‐ Regain Leadership in Traditional Trade: The strong volume performance initially helped reverse 
    declining share trend & subsequently to re‐establish significant share lead (volume/value)  
     

     
     
    The success of MOTOR as a shopper insight approach has been internally validated in Coca‐Cola as we 
    have seen significant share gains not just in Thailand but also in other countries after applying the 
    learnings to refine our Shopper Marketing strategy in other key emerging markets.  
    MOTOR is now recognized as a best in class Shopper Insight approach within the Coca‐Cola System.  

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