Coca-Cola Projects Future Consumers’ Choices With System Dynamics
Marketers behind major brands look into consumer data to spot trends and craft possible futures. Their vision and strategy relies on a balance of art and science, based on raw marketing talent and supported by extensive data on consumer behavior.
Virtually all available brand tracking data is grounded in the past.
Although social media give vast amounts of real-time information, much of this is qualitative, incomplete and unreliable. But the historic information is critically valuable for two reasons.
First, that data explains how interactions between consumers, retailers and competitors actually operate and how the entire system responds to marketing and pricing changes. Secondly, historic actions and choices are already strong determinants of what will happen in the near- to mid-term future.
The Coca-Cola Company’s Brand Beverage Barometer is a massive global brand tracker that informs decision-makers about their brand’s health, and gives clues on how well marketing programs perform. But, powerful as it is, this solution alone cannot give good forward-looking consumer insights.
The solution developed was achieved through a behavioral and attitudinal segmentation, plus system dynamics modeling that allows Coca-Cola to project current understanding of consumers’ choices into future changes to brand preferences. The approach is analogous to taking a series of snapshots of consumer behavior, turning them into a movie, and running the movie forward in time.
The result is a strategic planning tool that can identify high return-on-investment marketing initiatives, which can be replicated across regions and numerous product categories. This also provides a common language for marketing professionals to share their insights.
OTHER SUCCESSFUL APPLICATIONS
RSC Uses System Dynamics to Increase HVACR Sales Against the Tide “Using the proven Strategy Dynamic process focused our limited resources on organizing strategic issues, identifying the critical resources, and developing the insight to more rapidly create intuitive...
Achieving a Polio-Free World Through System Dynamics Simulation EXECUTIVE Summary This System Dynamics model underpinned a 192 country resolution to eradicate polio globally and led the Bill and Melinda Gates Foundation to give Rotary International $100 million to...
MasterCard Halts Market Share Slide With Scenario Planning The Problem MasterCard, a major credit card company, once held a dominant market position US Market Share with only one primary competitor, Visa. They woke up one day and realized that, after six years of...
Monthly meetings of the Policy Council occur on the last Wednesday of the month with the exception of conference month. All Society members are welcome to attend. Login to see the meeting location which will be displayed here to members 15 minutes prior to the start...
The System Dynamics Conference From the Perspective of a Multi-Method Simulations Developer System Dynamics, Agent-Based and Discrete-Event simulations are three competing and complementary simulation methods that are used to address a wide range of real-world...
Data & Uncertainty in System Dynamics Jay Forrester cautioned that “fitting curves to past system data can be misleading”. Certainly, that can be true, if the model is deficient. But we can have our cake and eat it too: a good model that passes traditional System...
Modeling for Improved Organizational Staff Diversity We cannot all succeed when (more than) half of us are held back. This slightly modified quote is from Malala Yousafzai, the courageous young woman who stood up for her right to be educated. It summarizes the ethos...
LET US BE PART OF YOUR JOURNEY
Do you want to lead your organization into the future by overcoming paradigms and creating change? With Systems Thinking and System Dynamics you will enable powerful decision-making and find the leverage points to improve profits, strategy, efficiency, sustainability, and more.
Talk with Us
The most efficient way to align your needs with our offerings is to schedule a meeting with our Executive Director, Rebecca Niles
Engage a Systems Consultant
Looking for a Systems Consultant? Fill out this form and we will follow up with a call and, soon enough, the right person for the job.
Experience Systems Thinking
Join the WPI Sytem Dynamics Fundamentals Course to understand the causes of dynamic behavior at a basiic level and much more! The course is self-led and self-paced.