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CS-114 Cola Wars 1940 Niche Marketing v05

[Case Studies] CS-114 Cola Wars 1940 Niche Marketing
Case Study (CS-114) - Cola Wars 1940 Niche MarketingSimulates another battle between Coke and Pepsi starting in the 1940's inwhich Pepsi targeted the largely ignored African American market. Competitive Story:[Wikipedia] In the 1940's, Pepsi noticed that the company's advertising ignoredAfrican Americans. Pepsi realized that blacks were an untapped niche market andthat Pepsi stood to gain market share by targeting its advertising directly towardsthem. To fix this, Pepsi hired an advertising executive "from the Negro newspaperfield" to lead a new, all-black sales team. As a result, Pepsi's market share ascompared to Coca-Cola's shot up dramatically in the 1950s with African Americansoft-drink consumers three times more likely to purchase Pepsi over Coke. References:Pepsi (Beverage):https://en.wikipedia.org/wiki/PepsiRacial and Ethnic Demographics of the United States:https://en.wikipedia.org/wiki/Historical_racial_and_ethnic_demographics_of_the_United_States Assign a lower Willingness ToPay (WTP) to minorities as theywere ignored by 1940'sAdvertising. Generate an initial Market ofCustomers based upon the USADemographics of 1940. The WTP Customers have forPepsi is lower than for Coke, butthe value Customers have forCoke and Pepsi is correlated. In 1940 more Black Customerspreferred Coke to Pepsi, but ahigh percentage of Blackconsumers preferred not topurchase any brand of Cola. A fixed Marketing budget wasspread across all targetCustomers. But the budget wasnot evenly spread as someCustomers were easier to target. By 1950 Black Customerspreferred Pepsi over Coke by aratio of more than 3-to-1. Black Customers entered theMarket and switched from Coke.The White Market Share for Cokeand Pepsi remained unchanged.Racial and EthnicDemographics USA1940 WikipediaAll ColaCustomersRandomly AssignEthnic Groupsto CustomersCokeWTPPepsiDifferencePepsiWTPCoke vs PepsiWTP MatrixCoke PepsiProduct Price1940Market ShareTargetedMarketingAfrican Americans1940 Purchased1950Market Share1940 Sales byDemographic1950 Sales byDemographicAfrican Americans1950 PurchasedCoke vs PepsiCorrelation Table Creator Empty Table Creator Random LabelAssigner (Data) Gaussian DistributedAssigner Gaussian DistributedAssigner Math Formula Column Filter Table Creator Simulate Market Scale Demographic Row Splitter Simulate Market GroupBy GroupBy Row Splitter Linear Correlation Case Study (CS-114) - Cola Wars 1940 Niche MarketingSimulates another battle between Coke and Pepsi starting in the 1940's inwhich Pepsi targeted the largely ignored African American market. Competitive Story:[Wikipedia] In the 1940's, Pepsi noticed that the company's advertising ignoredAfrican Americans. Pepsi realized that blacks were an untapped niche market andthat Pepsi stood to gain market share by targeting its advertising directly towardsthem. To fix this, Pepsi hired an advertising executive "from the Negro newspaperfield" to lead a new, all-black sales team. As a result, Pepsi's market share ascompared to Coca-Cola's shot up dramatically in the 1950s with African Americansoft-drink consumers three times more likely to purchase Pepsi over Coke. References:Pepsi (Beverage):https://en.wikipedia.org/wiki/PepsiRacial and Ethnic Demographics of the United States:https://en.wikipedia.org/wiki/Historical_racial_and_ethnic_demographics_of_the_United_States Assign a lower Willingness ToPay (WTP) to minorities as theywere ignored by 1940'sAdvertising. Generate an initial Market ofCustomers based upon the USADemographics of 1940. The WTP Customers have forPepsi is lower than for Coke, butthe value Customers have forCoke and Pepsi is correlated. In 1940 more Black Customerspreferred Coke to Pepsi, but ahigh percentage of Blackconsumers preferred not topurchase any brand of Cola. A fixed Marketing budget wasspread across all targetCustomers. But the budget wasnot evenly spread as someCustomers were easier to target. By 1950 Black Customerspreferred Pepsi over Coke by aratio of more than 3-to-1. Black Customers entered theMarket and switched from Coke.The White Market Share for Cokeand Pepsi remained unchanged.Racial and EthnicDemographics USA1940 WikipediaAll ColaCustomersRandomly AssignEthnic Groupsto CustomersCokeWTPPepsiDifferencePepsiWTPCoke vs PepsiWTP MatrixCoke PepsiProduct Price1940Market ShareTargetedMarketingAfrican Americans1940 Purchased1950Market Share1940 Sales byDemographic1950 Sales byDemographicAfrican Americans1950 PurchasedCoke vs PepsiCorrelationTable Creator Empty Table Creator Random LabelAssigner (Data) Gaussian DistributedAssigner Gaussian DistributedAssigner Math Formula Column Filter Table Creator Simulate Market Scale Demographic Row Splitter Simulate Market GroupBy GroupBy Row Splitter Linear Correlation

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Created by: Berlin
Created at: 2018-12-07
On NodePit since: 2021-02-05
Last update: 2024-11-23
Created with KNIME version: v4.3.0

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