Royal Crown Cola (RC Cola) is an American soda that was developed in 1905 to compete with the soda market giant, Coca-Cola. RC Cola gained a loyal following and market share through the 1950s. Although it pioneered cola innovations in cola marketing such as canning soft drinks and diet colas, RC Cola lags far behind the market leaders, Coca-Cola and Pepsi Cola. The marketing manager of RC Cola knows that if the American brand is going to survive, it needs to increase its sales and market share. Making matters worse is the trend toward healthy beverage choices, without added sugar, and away from sodas which is particularly pronounced in the middle-aged adult segments. In fact, soda consumption has dropped approximately 1 percent each year for the past 11 years in the U.S. market. To look for opportunities, the marketing manager created a spreadsheet with key marketing metrics including market share, soda consumption, market size, category development index, and brand development index. The goal of this activity is to understand how a firm can use marketing metrics to uncover segments in the market where its brand is underperforming. Keep in mind that: Category development index = [Percent of a product category's total U.S. sales in a market segment/Percent of the total U.S. population in a market segment] 100 Brand development index = [Percent of a brand's total U.S. sales in a market segment/Percent of the total U.S. population in a market segment 100 Use the formulas above and the spreadsheet below to help answer the questions that follow. The spreadsheet fields highlighted in yellow can be changed in order to determine possible outcomes. You can find the initial values in the corresponding blue cells in columns G to J. Start by entering the initial values into columns B to E. Then review the questions below and adjust the values in columns B to E to determine the correct answers. Royal Crown Cola (RC Cola) is an American soda that was developed in 1905 to compete with the soda market giant, Coca-Cola. RC Cola gained a loyal following and market share through the 1950s. Although it pioneered cola innovations in cola marketing such as canning soft drinks and diet colas, RC Cola lags far behind the market leaders, Coca-Cola and Pepsi Cola. The marketing manager of RC Cola knows that if the American brand is going to survive, it needs to increase its sales and market share. Making matters worse is the trend toward healthy beverage choices, without added sugar, and away from sodas which is particularly pronounced in the middle-aged adult segments. In fact, soda consumption has dropped approximately 1 percent each year for the past 11 years in the U.S. market. To look for opportunities, the marketing manager created a spreadsheet with key marketing metrics including market share, soda consumption, market size, category development index, and brand development index. The goal of this activity is to understand how a firm can use marketing metrics to uncover segments in the market where its brand is underperforming. Keep in mind that: Category development index = [Percent of a product category's total U.S. sales in a market segment/Percent of the total U.S. population in a market segment] 100 Brand development index = [Percent of a brand's total U.S. sales in a market segment/Percent of the total U.S. population in a market segment 100 Use the formulas above and the spreadsheet below to help answer the questions that follow. The spreadsheet fields highlighted in yellow can be changed in order to determine possible outcomes. You can find the initial values in the corresponding blue cells in columns G to J. Start by entering the initial values into columns B to E. Then review the questions below and adjust the values in columns B to E to determine the correct answers
