Analyse de la Demande: Coca-Cola (document en anglais)

DEMAND

Factors affecting demand

One of the major differences between Canada and its giant neighbor to the south is that

despite having been hurt by the 2008 crisis, 63% of Canadians think that current economic

conditions are great, whereas only 20% of Americans hold that view.

Consumer Confidence Index 2006-2011

See Chart 1 in Appendices

This graph demonstrates that the due to the economic crisis Canadians’ confidence

decreased by -17.8% between 2006 and 2011 according to Euromonitor data. Current

indicators forecast a new rise of the consumer confidence index during the next decade. A

decrease in consumer confidence usually entails that people purchase and spend less in

general, which means less revenue for the businesses.

Secondly, given the problem of obesity (that has become the main topic of Coke’s 2012

advertisings and that has been hitting the headlines since New York Mayor Michael Bloomberg

tried to limit the consumption of soda in New York City) is on the rise, it is important to take into

account the difference of demand between the American states with a low obesity rate and

those with a high obesity rate (i.e. southern state’s demand, see charts below). The chart below

demonstrates the prevalence of obesity by state.

Prevalence of Obesity by State for 2012

See Chart 2 in Appendices

The following graph demonstrates the per capita sales growth by product category for

2007 to 2012. During that period the total US growth rate was approximately -8%. Despite this

decline in sales, carbonates still represent the main consumption product before water and

beer.

Per Capita Sales Growth by Category: 2007-12

See Chart 3 In Appendices

8

Demand trends in the soft drink market

Concerning the demand for sodas, if we link it with macro trends for the 5 next years

identified by Euromonitor, we must keep an eye on the fact that our consumers are and will from

now on always be multicultural, that the new generation will be more health conscious (ex:

concerns about the calories from the high fructose corn syrup drinks) and that people will have a

greater level of environmental responsibility (ex: ecological & biodegradable bottles). However,

people don’t want health to have an impact on the original taste.

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