1.What would Coca-Cola have considered before entering the Canadian Market? Describe one model they would have used and explain how it would have guided their analysis in determining how attractive the market was for their product (5 marks).

SCM950 - COCA-COLA BRINGS GOLD PEAK TEA TO CANADA

The new brand joins Nestea as Coke looks to increase choice in the growing ready-to-drink category. In today's hectic world, there's nothing like the delicious taste of home-brewed iced tea for a calming respite. Today, Canadians can enjoy just such a refreshing break with the launch of Gold Peak, Coca-Cola's new premium ready-to-drink (RTD) tea, featuring a delicious, homebrewed taste. Gold Peak is crafted with real tea and lightly sweetened with cane sugar for a home-brewed taste that is taste-preferred to its premium RTD tea competitor. Gold Peak is now available in lemon and raspberry flavours in 547mL bottles and 1.75L carafes at retail and foodservice outlets across Canada. Gold Peak is also available unsweetened in 547mL bottles. "Crafted with mountain grown tea leaves and natural flavours, Gold Peak delivers on a taste so good you'll swear it's homemade," said Michael Samoszewski, Vice President, Marketing, CocaCola Ltd. "Each sip reminds you of what matters most - the comforting feeling of home and family and being surrounded by loved ones. Gold Peak is truly the taste that brings you home." Canada is the first market outside the U.S. to begin selling Gold Peak, and joins Nestea, the No. 1 RTD tea in Canada, to bolster the company's tea portfolio in the Canadian market. The brand has been sold south of the border since 2006 and has grown to a $1- billion brand. With Gold Peak and Nestea together, Coca-Cola is offering Canadians a variety of great-tasting RTD tea options. The product itself is slightly different than what's offered in the U.S., where sweet tea is the most popular flavour. Here, Coca-Cola has launched the brand with lemon and raspberry flavours to appeal more to Canadian tastes (based on consumer research conducted last year ahead of the launch and insights from its Nestea portfolio). Canada's ready-to-drink tea market already has strong brands competing for share. PepsiCo's Pure Leaf debuted in 2014, going up against Nestea's evolving lineup of new options. While Nestea is focused more on tea and fruit flavours and targets a teen and millennial demographic, Gold Peak is positioned as a homebrewed flavour and skews older to adults 25 to 49. The premium RTD tea category grew 39% last year, and the Gold Peak launch aims to provide more choice based on an area that's showing consumer demand. Brand awareness for Gold Peak in Canada is low, so initial marketing support will focus on sampling and mass advertising centered on the brand's home-brewed taste positioning and ingredients (such as cane sugar). It's also launched a Canadian website for the brand, focused on recipes and entertaining. The integrated marketing campaign will include television advertising, social media, retail activation, and exciting events, including a tiny home that will tour major markets in Canada for Gold Peak samplings. The brand currently has retail support underway, including POS and atshelf marketing materials and in-store sampling.