Introduction
Considering the future Olympic Games, the main world brands and trademarks are aimed at using those games for their benefit. It is not surprising as the Olympic Games predetermine the concourse of a great number of people. The advertising and presentation of the companies’ products during such events may have many reasons, each of which is focused on earning more financial profit for the company. Taking the Coca-Cola Company, we shall focus our attention on how to influence the UK target audience, consider the determining price elasticity of demand for Coca Cola Company at the Olympics, and the likely effects of advertising the Coca Cola products during Olympics.
The new product for the Coca Cola target audience on the Olympics
Before focusing attention on the price elasticity of demand for Coca-Cola Company and the effects of future advertising campaigns, it is crucial to consider the target audience and understand its desires and preferences.
Checking the audience of the previous Olympic games, it may be concluded that there were mostly people from 18 to 49 (Wikerson 2010). It is also notable to notice that the rating of the Olympics and the interest of people in those Games increase from year to year. Furthermore, it is crucial to remember that youth activates its interests in different spheres of life now. Young people become more and more involved in different social and cultural activities. So, it would be natural if the Coca-Cola Company made notice of this segment of the UK Olympics audience and created a new product for it.
Before considering the qualities and characteristics of a new Coca-Cola product for young people, the needs and desires of this target audience should be considered. It is crucial to notice that the youth all over the world is similar, they want the same things and they are interested in the same activities. Several research shows that contrary to the negative perception of the modern youth, most of them are active people who won’t help the community for creating better conditions for them (Gross 2007). Being rather active, young people want to do much, but they are unable to put all their activities in 24 hours.
There is one product the Coca Cola Company may offer for young and active people who want to have time to complete all their business in time and have some leisure time for parties. It is possible to offer for the Coca-Cola Company the manufacturing of the new Coca-Cola Energy Drink, which will be based on the traditional tastes people got used to but with the putting of caffeine or guarana for adding new qualities for the beverage.
The idea will have success for several reasons. First, the audience is already familiarized with the Coca-Cola brand name and the invention of a new product will only increase their interests. Furthermore, the company has not been inventing anything new lately and some people may feel bored of the products. Furthermore, the popularity of energy drinks increases (Wilson 2010). It may allow the Coca-Cola Company to enter the new market and embrace the new segment.
What determines the PeD for Coca-Cola at a major event like the Olympics?
There are a great many factors that may influence the price elasticity of demand for the new Coca-Cola product that was offered. There is no need to dwell upon such determines as “the number and the closeness of substitute goods”, “the proportion of income spend on the good”, “the time period” (Sloman 2010, p. 58), and some other traditional ones. It is more important to stress the very idea of the Olympics in the Coca-Cola Company advertising campaign and its influence on the price elasticity of demand.
To adjust the main idea of the advertising campaign of a newly offered energy drink by the Coca Cola Company and its other products to the main characteristics of the Olympic Games, such as speed, energy, enjoy, and victory, the demand for its products will increase with a great pace. Considering this idea, it is also possible to stress that the advertising campaign should push the customers to the idea that the taste of the Coca-Cola products should be associated with the taste of struggle and victory as it is what the Olympics is.
The likely effects of advertising Coca Cola during the Olympics
The illustration of the demand curve may be checked in Picture 1.
Considering the main peculiarities of the Coca-Cola products in the relation to the demand curve, it is obvious that the Company is aimed at shifting the demand curve to the right. There are several reasons for the demand curve shift to the right. Ignoring the traditional ones, such as the increase of the price for substitute products, the customers’ income increase, the change of the expected price and others (Mankiw 2008), it is crucial to mention that the advertizing campaign with the relation to speed, energy, enjoy, and victory will leave the association of the Olympic Games with the Coca Cola products.
One of the best effects for those actions will be the shift of the demand curve to the right. Watching the ads, people are sure to consume more Coca Cola beverages and this will also shift the demand curve to the right. One more reason for the desired shift is the attraction of the investments. The higher level of the quantity of Coca Cola products at any price level will shift the demand curve to the desired right direction. This action may be necessary in case of the presentation of a new Coca Cola product to the audience during Olympics. Despite the competitors’ use of partial equilibrium supply, the Coca-Cola Company should not be involved in the process and should conduct its price and quantity politics.
In conclusion, the new product the Coca-Cola Company may offer is the energy drink that should be directed to the youth target audience, from 18 to 25 or even 30 as this audience is the most numerous. Furthermore, the advertising campaign of the company products should be conducted in the relation to the Olympic Games subject matter. Speed, energy, joy, and victory should be the main direction for the Coca-Cola Company advertising campaign. The main aim of the company should be the shift of the demand curve to the right. Such reaction may be achieved via the increase of the quantity of the sold products via successful ads associated with the Olympics.
References
Gross, K., 2007. Youth Monitor. Youth Studies Australia 26(2), pp. 3-9.
Mankiw, N. G., 2008. Principles of Macroeconomics. Stamford: Cengage Learning.
Sloman, J., 2010. Essentials of economics. London: Pearson Education.
Wikerson, D. B., 2010. After seven days, Olympic ratings biggest since ’94. MarketWatch. Web.
Wilson, T., 2010. Nutrition Guide for Physicians. New York: Springer.