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TITLE: Coca-Cola Market

Seen in Nigeria / adapted and developed by Peter Baerenz / prepared by Anja Vrandecic

1. INTERNET PROFILE
By simply using five tins of Coca Cola (or a similar product) the exercise simulates the
market. In a simply to organize way, participants will have several buying options and
nicely experience marketing mix and marketing strategy. Coca-Cola market also
emphasizes that cheap prices are not the key to success in marketing. Participants learn
to apply marketing alternatives to products and services. Coca Cola Market is an
alternative to the much more complicated market room simulation exercise.

2. CEFE EXERCISE MATRIX

This exercise is suitable for the following fields of learning

Enterprise Development Special Areas

Entrepreneurship √ Communication
Project Idea Consulting
Market(ing) √ Creativity
Organization Decision Making
Costs Ethics & Social Responsibility
Finance Motivation
Business Plan √ Negotiation

Innovation Planning
Re-Written from CEFE Manual Problem Analysis
Adapted from CEFE Manual Selling
New Exercise √ Team Building
TOT Special

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Difficulty level: easy ( ) – medium ( √ ) – difficult ( ) – very difficult ( )

3. STORY
This is an exercise that will make the participants experience the need to formulate
appropriate strategies in the market situations. The Coca-Cola market helps the
participants not only to think of the marketing mix in a very narrow way but also to
expand their understanding covering areas related to market penetration, product
development, market development and diversification.

In processing the exercise, the results and marketing strategies are analysed.

The trainer in this exercise requires 5 similar tins of Coca Cola (if not available take Fanta
or something like that). One tin of the drink is kept in a freezer (if possible), two hours
before the exercise starts, it should really be cold (not frozen); and one tin is damaged
(dented) and really looks old and dirty.

Participants leave the room and each of them gets one small paper (cut from metaplan or
ordinary paper) as play money. The trainer prepares round 1 by placing three chairs in
different locations of the training room: One very close to the entrance, one in the centre
of the room, one in a distant or slightly hidden place. Then he puts one tin on each chair
(all tins are equal – so, no cold or dirty tin in this round) and labels on the chairs to help
distinguishing the chairs. Participants are instructed that they shall chose in which shop
they would prefer to buy a coke. They enter the room and make their decision by placing
their individual play money on the chair (shop) they prefer. The results are counted and
written on a chart. Then the plenary discusses why they gave priority to some shop.
Usually it is the shop in the center.

The exercise continues like this with 4 more rounds which represent the 5 P’s of
marketing mix.

4. OBJECTIVES
 understanding and appreciating that there are different aspects in marketing

 learning by self-experience that price is not the decisive aspect for successful
sales and marketing

 understanding the simplicity and complexity of marketing mix

 using marketing mix for their own business

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5. REQUIREMENTS
Time 1 ½ to 2 hrs
Preparation of room Normal training room is enough, if participants can move around in
it.
Requirements
Trainers/assistants 1 trainer, 1 assistant (can be a participant)
Didactic aids to prepare
 3 chairs (one marked with a yellow metaplan, one with blue, one
with white)

 masking tape,1 advertisement poster of Coca Cola (borrow it

from a shop! You can also enlarge and print the attached
pictures in colours but it is not as good as original material)

 a self made advertisement – not very well done, with statements

like “best shop in town”, “come here, other shops are bad”, “my
Coca Cola is the only Coke”

 some napkins, a nice tablet, small papers from metaplan cards

(cut as many as you have participants; from 1 metaplan you can
cut about 8)
Materials for the trainers 5 identical tins of Coca Cola (one of them should be nicely cooled,
(during the exercise) one should be dirty and dented: do it yourself). You can use
alternative products like Fanta or chocolate, provided you get 5
identical products of it and a nice advertisement.
Performance chart
Materials for the Play money
participants (during the
exercise)
Important conditions of  none
the room

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6. EXERCISE PROCESS
Step Tim Most important content Hints
e

Preparation, Explication of rules, 5’ Explication of the task, rules and conditions for Briefing: see instructions below
instructions the exercise and ask participants to go out of
the room and prepare for the SHOPPING 
Give them each a piece of metaplan which
presents their decision voucher
15’
First Round you put the three chairs into different locations white: right in the entrance area, easy to find
(you can even hide one chair e.g. behind the
(PLACE) board); and put one tin (all the same) on each yellow: in the centre of the room
chair:
blue: somewhere hidden behind, difficult to access
Now you call them back into the room and ask
them to make a quick decision and put their
papers. You distribute the papers again and send them
When they are ready, you ask a participant to In ALL rounds, take notes of their main statements
count the papers and write the results on the on a flip chart – examples in this round: easy to
prepared flip chart (see annex). Usually most find / good place / I have not seen the shop at all…
will have selected the ‘yellow shop’, then
white, and only a few blue.

Publish the result on the chart and start

processing:

Ask “why did you choose your shop?”

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After some contributions, ask “What was the

main reason to buy it in a given shop?”. They
should come up with “location” or “place” and
you write it on the flip chart under
(Observation)
15’
Second Round You place all three chairs in the centre of the white: the dirty, damaged tin
room (could be like a triangle). Tins are
(PRODUCT & Packaging) different now (see right column). You call them yellow: a normal tin
back. Let them choose and count the papers.
. Usually most will have taken blue, then yellow, blue: the cold tin, on a nice tablet with some
and only a few white. Publish the result on the napkins (maybe you have some straws, as well)
chart and start processing:
The tins contain the same product! The discussion
Ask “Why did you choose your shop?” shall make clear that you buy much more than just
only the product itself. You buy “packaging, feeling
Ask “Who has chosen the white shop (dirty tin) well…” And this seems to be MORE important than
why did you do so?” just the product. Make it absolutely clear that the
product is not only the product itself. Ask for
Ask others as well examples from their life experience (not only on
Coca Cola).
When it comes to a discussion, make clear
Finally, they should be able to state what the main
“What do you actually want to buy here?” “So, aspect of buying was – “product” and you write it on
what is the difference of the Coca Cola in the the flip chart.
tins?” Actually: no difference.
You distribute the papers again and send them out.
“But yet most preferred to buy from blue shop
and hesitated to buy in the white shop! Why?
20’
Third Round You leave all three chairs in the centre of the Then you put: white: with the professional
room (could be like a triangle). All tins are advertisement
(PROMOTION) normal now.

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You call them back. Let them chose and count yellow: with the self-made advertisement
the papers. Usually most will have taken white,
then blue, and only a few yellow. Publish the blue: with no advertisement
result on the chart and start processing:
When it is clear that the advertisement was the
Ask “why did you choose your shop?” reason for decision, write it on the flip chart and
make clear, by discussing:
Ask some participants from specific chairs as
well. With good promotion, you can increase your sales
significantly.
You distribute the papers again and send them
out. (=promotion) With bad promotion you may even decrease results.

20’
Fourth Round Before you start with this round, you ask for Then you put:
three volunteers. Make sure that at least one
(PRICE) is a woman. Then you give them the role white: with the normal shop price of the region
instruction (annex) and send them out. They (prices simply written on a metaplan and put on the
will only come back in the last (fifth) round. chair)

You leave all three chairs in the centre of the yellow: with a price 20% below normal shop price
room (could be like a triangle). All tins are
normal now. blue: with a price 20% above normal shop price.

You call them back. Let them chose and count This round is the most important one in the
the papers. Usually most will have taken exercise: Marketing means to sell something and to
yellow, then white, and only a few blue. even increase sales WITH a good profit margin.
Publish the result on the chart and start Simply reducing the sales price is NOT a marketing
processing: strategy. It is LAZY marketing.

Ask “why did you choose your shop?” as After discussion, you distribute the papers again
before. and, this time, you don’t send them out. Thus 3

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Ask someone from blue shop “why did you volunteers will be coming one by one.
purchase it at a more expensive price?”

Ask “What was the point here?” and the

answer – price – should be clear. Write it on
the chart.

Now start a discussion: “Which strategy would

you have chosen as shop owner”. If the
answer is “yellow” (lower price) ask the others
“What do you think about it?” You actually
want to get to the following point: may be you
can increase the sales volume but do you still
make a profit? And who makes more profit?
20’
Fifth Round You give instruction: “You will now see 3 Please explain that the participants should not use
sellers, trying to convince you to buy from their the sellers’ names but by the colour of their shop
shop. The sequence is blue, white, and yellow. when giving comments and sharing observations
Please, pay attention to their performance (e.g. “blue did not convince me at all, because he
(PERSON) and, after all three presentations, choose your did not have one argument”)
. favourite shop and put your papers on the
chairs accordingly. (The chairs are in front of
them. Each chair with one normal tin and the
colour labels)

You call in the first seller. Let him / her present

Take care of the time (1 minute, not more).

Second seller.

Third seller.

Let participants now chose and put their

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papers on the chairs. Let them count the

papers. Publish the result on the chart and
start processing: Ask “why did you choose
your shop?” as before.

Bring out, how important are “personal

behaviour”, “communication skills”, “sales
competence”, “good arguments”. The last
point for the chart, of course, is “person”
20’
Generalising Refer to the chart and ask “What are the main At the end, summarize things like…
aspects of marketing?”
“Remember second round (product) – would you
“What seems to be most important?” This, in have bought the dirty tin (show it) for a cheaper
fact is a misguiding question. They should not price?”
answer on single P (like e.g. “product”) but
come to the point: “the right mix of all”. And “Can you imagine, with good promotion, product
then you have your Marketing Mix. and person you could increase the price and still
sell at lot more?”

“What could you do in your reality – give us

examples.”

And you now finish by saying: “now please take this

lesson home and apply the right mix in your
business!”

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7. HINTS AND VARIATIONS

You can play additional rounds. One would be: combination of product (quality) and
price. But don’t overdue. Participants are usually tired after 5 rounds. It is better to get
the lessons out by a good discussion.

Take care that you are quick when preparing the room between the rounds. It does not
need more than 1 min. Participants don’t want to wait outside.

CEFEpedia also offers the exercise “market room simulation”. This is more intensive,
very complex to handle, but also more intensive for learning. Use this one (additionally) if
you need reinforced training especially with regard to the wide spread illusion of business
people that better quality combined with lower price would be a brilliant marketing
strategy. In this other exercise, participants play with real own money and experience
financially what it means to enter into price competition without adequate marketing.

8. INSTRUCTION AND RESULT CHARTS

The Coca Cola Market – Role Instruction for Sellers

You have volunteered. Thank you very much.

Your task will be to come into the room, in about 5 minutes, and try to convince all
participants to buy a Coca Cola from YOU. You will have exactly 1 minute to do so. You
can chose whatever way and arguments you want, BUT

 you cannot sell it at a lower price (the price is ………….)

 you cannot give free extras (like: buy two get one for free…)

 you cannot cooperate with your competitors

Concentrate on other arguments and ways.

The participants will choose their “shop” after they have seen all three presentations.

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The Coca Cola Market

Observation Round white blue yellow

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9. PHOTOS

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10. HAND OUT MATERIAL

Marketing Mix and Marketing Strategy
The marketing mix is the integrated approach towards Marketing. The Marketing Strategy
has the task to ensure the achievement of the business sales target (x % share of the
market for the products / services a, b, c within y time). The elements of the marketing
mix, as instrument of the marketing strategy must be necessary and sufficient to achieve
the targets. Nevertheless

1. PRODUCT / program (refers to both, products and services)

1.1. program policy

[Link] (how many and which product / service lines)
[Link] (what within a product line is offered)

1.2. product strategy

[Link] design
[Link]
[Link]
[Link] services

2. PRICE

2.1. price policy

[Link] by pricing
[Link] price segment targeting
[Link]

2.2. price decision based on

[Link]
[Link]
[Link]

2.3. price conditions

[Link]
[Link] targets

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3. PLACE

3.1. location
[Link] to and for the target market
[Link] position in the market and with competitors

3.2. infra-structure
[Link]
[Link]
[Link] and communication

3.3. distribution
[Link]
[Link]. direct
[Link]. indirect

[Link]
[Link]. intensive
[Link]. exclusive
[Link]. selective

4. PROMOTION

4.1. public relations

4.2. advertisement
[Link]
[Link]

4.3. incentives
[Link]
[Link]

5. PERSON / PERSONNEL

5.1. capacity
[Link] levels
[Link] tasks

5.2. quality
[Link]
[Link]

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Marketing Alternatives
Basically every organization, be it micro, small, medium or large have four options from
the point of view of expanding their marketing operations. They are market penetration,
product development, market development and diversification.

Markets / Target Groups

New
Current
Products / Services sell more
sell
somewhere
else
Current Market
Market
use what you have
penetration development
New
Product
make old stuff better or get Diversification
development
innovations

Organizational growth strategies (Sources: Adapted from H. I. Ansoff, New corporate

strategy, John Wiley, New York 1988.)

Market penetration – This is a strategy of increasing sales of existing products in current

market. Generally, it focuses either on changing the price, or intensifying the promotional
measures or improving the distribution system. In the marketing mix, penetration
depends on price, place and promotion related strategies.

Product development – This is a strategy of increasing sales by improving existing

products or developing new products for current markets.

Market development - A strategy of increasing sales by introducing current products into

new markets. In this, new target groups or potential users are identified and marketing is
focused on the new markets.

Diversification - A strategy of developing new products to sell in new market(s). A

completely new marketing mix has to be developed and introduced to new markets.

Often confusion arises between product development and diversification. Though there is
no hard and fast rule of segregation, it could be better understood that the additional
investment required is greater for diversification than product development. Also, it
should be remembered that in product development the market does not change whilst in
diversification, the market focus is on new markets.

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Marketing
Marketing is an important operating arm of a business enterprise. Its activities begin even
before the product or service is produced and continues after the sale is made. This paper
will provide an overview of the marketing function. Starting with basic definitions of
marketing and market and discussing marketing functions and the role of marketing in the
economy, the paper proceeds to cover the development of marketing strategy, consumer
behaviour and marketing research, and concludes with a treatment of the marketing
decision areas - product, price, distribution and promotion.

Marketing is as old as history itself. It embraces the activities we engage in to satisfy our
economic needs and wants.

The central idea in marketing is the transaction, which is the exchange of desired objects by
two parties. Such exchange could be product for product (as in trade by barter), or product
for money in its various forms. For marketing or exchange to take place, it is necessary that
there be:

1. two or more parties who have unsatisfied wants;

2. some products or services and money to exchange; and

3. some means of communication between the parties involved.

We now give a definition of marketing.

Marketing is the set of activities that facilitates exchange transactions involving economic
goods and services for the ultimate purpose of satisfying human needs. What activities are
implied in the above definition? They are many, but will be discussed under 'marketing
functions'.

Market as product buyers

A market for a product or service consists of individuals or organisations that have

purchasing power and that are current or potential buyers of the product or service.

We should note three things about this definition.

1. A market could be ordinary people purchasing their needs or it could be

organisations such as business firms, non-profit institutions such as schools and
hospitals, or the government - federal, state or local.

2. To be included in the market for a product, an entity must have purchasing power,
that is money in its various forms - cash, cheque, credit.

3. Current buyers and potential buyers are included in defining a market. Thus, for a
product being newly introduced in an area, the market consists entirely of potential
buyers. A major challenge to marketing is to convert potential buyers to actual
buyers; in short to create a customer.

A third meaning of market is the verb sense, that is 'to market a product'. It suggests the
performance of activities needed to bring an existing product to buyers, a meaning clearly

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related to the meaning of marketing. We now take up a discussion of these activities or
marketing functions.

Marketing functions

Within any business organisation, the marketing arm of the company fulfils some important
functions which are activities that must be performed to move products from producers to
consumers. From the literature ten such activities may be identified as follows.

1. Product development Marketing advises on what to produce; the quality, style,

design, brand name and packaging - all based on consumer and market research.

2. Pricing Marketing plays a large role in setting prices, whether at, above or below the
competitor's prices, and in determining a system of discounts for the middlemen
who handle the product.

3. Buying This involves selecting from an assortment of goods, determining quantity

and quality, selecting sources of supply and negotiating the terms of purchase. (This
is sometimes called purchasing or procurement.)

4. Advertising is the impersonal presentation of goods through the mass media - radio,
television, newspapers, etc. Advertising agencies may assist marketing in
performing this function.

5. Personal selling This is selling done through person-to-person contact. A large

number of salesmen are engaged in outside sales work or in retail sales in shops
and market-places. The sales force must be properly selected, trained and
motivated to perform.

6. Sales promotion and merchandising This involves the development of such tools as
point-of-purchase displays, window displays, free samples of th

e product, exhibitions at trade fairs, news releases, price reductions during special 'sales'
and so forth.

7. Physical distribution Marketing arranges for the physical handling of goods: storage,
transportation and proper inventory management.

8. Market research Marketing must gather and analyse information about demand,
consumer wants, competition, government policies, new products and general
changes in our social structure. This function underscores the fact that marketing
begins even before the product is produced.

9. Credit management and financing Credit is often used in serious business

transactions where firms buy and sell on credit. In addition, various types of
financing provide permanent as well as temporary capital for the marketing process.

10. Post-sale transactions Marketing must arrange to handle customer complaints after
the sale, and provide for after-sales service, especially for machines, equipment and
consumer durable goods. This shows that marketing does not end with the ringing
of the cash register.

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