Analyzing Demographics and Technological Trends- Impacts on Business Strategy and Adaptation

Analyzing Demographics and Technological Trends- Impacts on Business Strategy and Adaptation

Demographics

Coca-Cola Company has a broad targeting strategy. The company’s global presence and the many products mean they must target a wider audience. Besides, consumers have diverse attitudes, affecting the company’s targeting strategy. For instance, some consumers are wary of how consumption affects their health, while others are not concerned. Nonetheless, the company’s primary target demographics are youths aged 10-25 years. A secondary target market includes people who are aged 25-40 years.

Change at Coca-Cola

According to Cramer (2021), a recent change made by the Coca-Cola Company was the adoption of a new taste for the New Coke drink. The change was intended to catch up with the growing success of Pepsi. The change is internally viewed as a growth strategy. It is part of a strategy by Coca-Cola to differentiate and innovate new products to stay ahead in the marketplace. Despite changing flavors, the ingredients used to process the Coca-Cola drink remain the same.

Handling Change

The change in the taste of Coca-Cola drinks often leads to consumer backlash. The company transformed to become a full beverage company to respond to this. The move was intended to diversify the company’s product portfolio (Cramer, 2021). As a result, consumers will not have to complain whenever the company changes tastes. Each consumer can access their preferred traditional drinks if they do not like new ones. The company’s transition to a total beverage company is part of an effort to give people the drinks they want.

Ethical Perspective of Change

Many reasons inspired Coca-Cola’s decision to diversify its product portfolio. One such reason is the desire to maintain its competitive edge, albeit market penetration by its rival, Pepsi. The change raises a few ethical concerns, but Coca-Cola’s response to the changes fulfills ethical business needs. For instance, the company communicated adequately and in advance of the desire to introduce a new product. When consumers raised concerns at the market level, the company’s top leadership responded to consumers’ concerns. Honest and transparent communication about change is key to effective change management (Jacobs & Keegan, 2016).

Technology

How Coca-Cola Uses Technology

Coca Cola leverages technology to understand the ever-changing consumer needs. Consumer changes are widespread in the food and beverages industry. For instance, health awareness amongst consumers has led the company to adopt new products. Healthier beverages are now replacing the traditional CPG brands due to health concerns (Pathak, 2020). The company uses machine learning to identify the ever-changing consumer needs.

Coca-Cola also uses AI (artificial intelligence) for advertising purposes. The company has had a massive following over the years. However, the introduction of AI promises to boost the company’s following even further. It uses AI to search for its brand mentions across the web. The company uses the data collected to identify strategic information about users (Pathak, 2020). AI helps a business to identify the consumers’ location and what prompts them to talk about a company’s products. Coca-Cola uses such information to personalize its products and experiences according to the consumers’ needs. For instance, in 2015, the company identified that they are talked about at least twice every two seconds.

Moreover, Coca Cola uses AI to aid its day-to-day promotional activities. Initially, customers were required to enter a 14-digit promotional code to verify the consumption of a product. However, these days the company requires customers only to take a picture with their smartphones to verify a purchase (Pathak, 2020).

Types of Technologies Used at Coca-Cola

Coca Cola uses a myriad of technologies to improve customer experiences. Machine learning, big data analytics, and artificial intelligence play a crucial role in the company’s day-to-day operations (Coca Cola, 2018). These technologies have almost completely replaced the traditional way of doing things. These technologies help the company to drive its products in the market.

How Technological Changes Affect Coca-Cola

Technological changes have changed how Coca-Cola delivers its products to consumers. Technological advancement led to the establishment of digital technologies. These technologies have significantly changed how Coca-Cola relates to the final consumer, retail stores, and distributors. For instance, stores and other retail enterprises can replenish their drink inventories through the company’s online platform called MyCoke (Coca-Cola, 2018). The gradual shift to online platforms promises to improve the company’s distribution capability.

References

Coca Cola. (2018). Tech and Big Data Accelerate Innovation Strategy – News & Articles. Coca Colacompany.com. https://www.Coca Colacompany.com/news/tech-and-big-data-accelerate-innovation-strategy

Cramer, M. (2021). Coca-Cola Is Changing the Flavor of a Soda. Again. The New York Times. https://www.nytimes.com/2021/07/14/business/coke-zero-change.html

Jacobs, G., & Keegan, A. (2016). Ethical Considerations and Change Recipients’ Reactions: “It’s Not All About Me.” Journal of Business Ethics, 152(1), 73–90. https://doi.org/10.1007/s10551-016-3311-7

Pathak, R. (2020). How does Coca-Cola use technology to stay at the top? | Analytics Steps. Www.analyticssteps.com. https://www.analyticssteps.com/blogs/how-Coca Cola-uses-technology-stay-top

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An organization’s demographics are an important factor to consider for its business strategies. Review your company’s demographic and technological information to complete the activity below. If the information is not public, base your decisions on research and research from a similar company.

Analyzing Demographics and Technological Trends- Impacts on Business Strategy and Adaptation

This information will assist you with the Wk 6 assignment.

Create a 350- to 700-word outline that conveys the information in the following format:

Demographics
What are the current demographics? (e.g., age, gender, ethnicity, etc.)
What was a recent change?
How did the company handle it?
Was the change handled ethically? If not, how should they have handled it? If it was, what stands out as something to emulate in your future business endeavors?
Technology
How does the company utilize technology in day-to-day business?
What types of technology are used?
How does a change in technology affect the organization?