Individual Element 2: New Target Market

Identification of the new target market

As shown in the survey list, Fanta Orange is now the leading flavor among all the other fruits. It is coherent with the data published by Coca-cola company. It is estimated that 47.8% of Fanta’s products sold in Ireland are Fanta Orange (Coca-cola, 2020). However, Fanta currently is targeting at millennials According to the statistics released by You.gov, over half of Fanta’s products are sold to millennials. At a global level, as shown in the figure below, currently 74% of global millennials hold a positive opinion toward Fanta products (YouGov, 2020).

Source Credit: You.gov, 2020

Fig 1: Fanta’s popularity among different age group

The consumption of Fanta products by this target group contributes significantly to the net sales of Fanta in Ireland. However, in order to increase overall business performance, it is necessary and essential to develop new market segment. From the survey result collected by our research group, Generation Z or Gen Z should be made as the new market segment for Fanta’s products. Gen Z is a new term often used by researchers to refer to young people born in the mid to late 1990s (Williams et al. 2010 p21). Gen Z is much younger than millennials. Most of them are now between 20 and 22 years old (Bloomberg, 2020).

Summary of Target Audiences

Two sample target audiences are created as follows.

Fig 2: Connor Wilson (22 years old), College Student, from Ireland

Fig 3: Aileen Anne (20 years old), College Student, from Ireland

Table 1: Target Audiences

As shown in Table 1, both Connor and Aileen are from Gen in Ireland. They are currently college students. Even though they do not earn a stable monthly income as working professionals, they both have part-time jobs. Connor Wilson works as a sales assistant. He earns about €10.56 per hour whereas Aileen earns €9.77 per hour as a shop assistant. Besides, both of them also receive economic support from their respective families. They do not have difficulties to consume Fanta’s products. From the survey question, “how often do consumer drink soft drinks”, it shows that majority of the surveyed respondents from Generation Z indicates at least “three times or more a week”. It reflects that Gen Z customers do prefer to consume soft drinks in their daily activities. There is a huge market potential among this target group. However, from the survey question, “have you ever avoided consuming soft drinks due to health or diet reasons”, it seems that 15 out of 30 participants indicate “yes” as their answer. In other words, half of the participants are concerned about healthiness perspective of drinking Fanta products. Fanta Orange and other soft drink products are criticized for containing high-calorie contents. Hence, in order to propose a new target market, it is necessary to address the concerns and expectations of this very group.

In order to meet the expectation of Gen Z, it is necessary for Fanta to provide healthier soft drink options for them. Through understanding the perceived-value and demand of the target group, Fanta should re-adjust its marketing strategies to reach the potential and target customers through promoting healthier beverage options. Fanta Zero (Orange flavor) as shown in the figure below can be advertised to young women. It is largely because Fanta Zero orange contains zero calorie and meanwhile the orange flavor is preferred by 84% of the surveyed participants.

Source Credit:Coca-colaproductfacts (TCCC 2020 p1)

Fig 4: Fanta Zero (Orange)

New Target Market analysis and Market Segmentation

Through performing individual research, the new target market is identified to Gen Z from Ireland who are concerned about the health factors and calorie contents of the Fanta products.

Demographically, Gen Z customers are much younger and genetic than Millennials, the previous generation. The primarily targeted age group is between 20 and 22 years old. Psychographically, Gen Z customers prefer to purchase soft drinks as they perceive this special beverage as sports drinks. Fanta drinks can replenish them with energy to do sports and other daily activities. Most importantly, they are concerning about the calorie contents contained in Fanta’s drinks. Gen Z especially young women care about their body shape and fitness(IBEC, 2020, p3). They are reluctant to make a buying decision if the soft drinks contain too much fat and carbohydrates. Behaviorally, customers from the target group are adventurous and dynamic. They prefer to do sports and outdoor activities (McGuire, 2019). Last, geographically, the primary target market is identified to be Ireland. But in the future, as more and more customers in the world start to realize the importance of having healthier food and beverage choices, the Coca-cola company may further promote the Fanta Zero and other healthier Fanta beverage products to the markets in Ireland.

After identifying the new target market, it is also critical to learn about how to approach the target group efficiently and effectively. From the survey results, 10 out of 25 surveyed respondents say that they are more influenced by social media advertising. It shows that most target customers from generation Z are used to receive information or marketing information from social media platforms. Therefore, in order to reach the target group and create brand awareness, it is necessary for Fanta marketers to maintain their social media accounts regularly. For instance, important promotional events and tools such as vouchers, discounts and promotions should be updated through the major social media platforms such as Facebook.

Reference

Bloomberg (2020). The Rise of Gen Z. [Online]: https://www.bloomberg.com/gen-z

IBEC (2020). Soft drinks are leading with less: Helping Irish consumers manage sugar intake through innovation. [Online]: https://www.fooddrinkireland.ie/Sectors/FDI/FDI.nsf/vPages/Publications~the-evolution-of-foodand-drink-in-ireland-2005-2017-20-02-2019/$file/Soft+drinks+are+leading+with+less+-+Helping+Irish+consumers+manage+sugar+intake+through+innovation.pdf

The Coca-cola Company (2020). Fanta Zero, Orange - 12 fl oz. [Online]: https://www.coca-colaproductfacts.com/en/products/fanta-zero/orange/12-oz/

The Coca-cola Company (2020). Fanta. Coca-cola HBC Ireland & Northern Ireland. [Online]: https://ie.coca-colahellenic.com/en/brands-and-campaigns/explore-our-brands-and-products/fanta/

McDonald, M. (2015). Market segmentation. Wiley Encyclopedia of Management, 1-10.

McGuire, P. (2019). Move aside millennials: Generation Z is set to reshape the workplace of the future. The IRISH Times. [Online]:https://www.irishtimes.com/news/education/move-aside-millennials-generation-z-is-set-to-reshape-the-workplace-of-the-future-1.3808379

Williams, K. C., Page, R. A., Petrosky, A. R., & Hernandez, E. H. (2010). Multi-generational marketing: Descriptions, characteristics, lifestyles, and attitudes. The Journal of Applied Business and Economics, 11(2), 21.

YouGov(2020). Fanta. [Online]: https://yougov.co.uk/topics/food/explore/brand/Fanta