Inca Kola

1.Market segmentation
Buyers, from any type of market, have completely different needs, desires, resources and
behaviors, which is why it is impossible for a company to decide to address all segments in
general. In order to have a more efficient and effective arrival, it is extremely important to resort
to market segmentation. For this there are 4 main variables:

 Geographic
 Demographic
 Psychographic
 Behavioral
Below we will explain how Inca kola has segmented its market and what variables it has used.

Geographic:
Although Inca kola is a soft drink that is currently found in other countries around the world, it is
still headed mainly to Peru. Here there is no one that is more present in one place or another of
the country since it is a national drink. Being this way, the reach is the same in any part of Peru.
There is also no difference in terms of districts.
Demographic:
It should be noted that said company, since it is a soft drink, does not make a selection or
differentiation in terms of gender, income or occupation. However, it directs its product more
toward an age range that would range from approximately 15 to 50. It is a fairly wide range that
covers both youth and adulthood. In terms of race, it is directed more towards mestizos since
76% of Peruvians are of this race.
Psychographic:
Inca kola buyers are people who tend to be in family and/or friendly environments. By this we
mean that they care a lot about family unity and social life. In addition to feeling such
identification with this national drink due to its Peruvian origin. In social classes it reaches
everyone.
Behavioral:
People buy this product for all kinds of occasions: For daily use, vacations, gatherings
of friends or family, etc. Likewise, the benefits they seek are to quench their thirst and
be able to accompany their lunches with a rich, soft and refreshing drink.

The selection of Inca Kola's target markets is the niche market since Inca Kola seeks to know
and satisfy the needs of its customers. In this way, it has released various containers with
different amounts of content and prices in order to satisfy the different needs of its consumers,
being able to buy the presentation that is most comfortable for them. Furthermore, Inca Kola
directs each of its containers to different markets. For example, the 1.5 L presentation. It relates
it directly to the nuclear family, that is, dad, mom and children.

1. Product positioning
Inca Kola is well positioned in the consumer's mind as a quality product, highlighted by
its original flavor, the creativity of Peruvians. Furthermore, it is a drink that has been on
the market for a long time, claiming to always be the drink of Peru, which is why it has
made Peruvians feel identified. It has a competitive advantage because it is a family
business that remains close to all consumers, values its audience and is always
providing new experiences.
 Inca Kola has competitors such as Coca Cola, Sprite, Fanta.

1. Prepare a positioning map. Develop competitive posture and strategy

POSITIONING MAP:
Inca Kola is focused on high quality and high prices
quality (-)
COMPETITIVE POSTURE
After 15 years of rebuilding the soft drink market in our country, even with the entry of Kola
Real, in 1997, which with its low prices made the consumption of these drinks grow, today,
among the 45 competing brands, only four dominate. 70% of sales, according to the report by
the consulting firm Euromonitor published by Gestión. Regarding the companies, the study
indicates that five stand out with almost the total market share, but of that number the one that
takes 60% of the market share in volume is Corporación Lindley (bottling), followed by the local
Aje, which holds 15%.

Inca Kola has the competitive posture of a challenger, since it occupies 24% in sales, while the
international brand Coca-Cola continues to occupy first place in sales, with 27% of sales value
due to strong marketing campaigns to Ensure brand awareness through strong distribution
networks. and Pepsi is in third place with 7%.
STRATEGIES:
Inca Kola uses the Product Development and Market Penetration strategy

Product development:

Since they launched a product called 'La moradita' from Inca Kola, with chicha flavor. It
is Inca Kola's first new flavor in its 80-year history. The first fear was whether Inca Kola
should add a new flavor after 80 years with the same one, whether it was good or bad
for the brand. Consumers embraced the idea in surveys. Later, they had doubts about
breaking the paradigm that chicha is a non-carbonated product, but in the end they
managed to launch the La moradita product.

Market Penetration:
One of the great keys to the success of Inca Kola in Peru has resided in the successful
advertising campaigns that have been developed within the Lindley Corporation. This activity
has been carried out with determination and great cunning; Proof of this is that Inca Kola
advertisements are everywhere: near the roads, in the most remote small villages (in lost
Andean rancherías and even in the desert or in the Amazon) or in the most elegant and
exclusive restaurants in Lima, passing through the American fast food chains; simply anywhere.
1. Product
At the most basic level what customers are buying goes beyond a refreshing drink. Inca kola
has been sold in such a way that the customer in the store buys happiness, creativity and more
Peruvianness, that is much more than a simple soda. In the second level, the product has been
made with certain characteristics that include quality, taste and color that make this product real
making it more in demand. Within this there is also the packaging and label that characterize
inca kola. Finally, at the third level, it is what the product additionally gives you. In the case of
inca kola, this drink offers its consumers a product that will not only quench their thirst but will
also give them satisfaction through its flavor. In addition, it allows the public to have a
participation in the products or products of Inca Kola. An example is when La “moradita” was
taken off the market due to consumer complaints.
Inca kola is included within consumer goods in the classification of “convenience products.” This
is because this soda is a low-priced product and is located in such a way that it is accessible to
everyone. Furthermore, this is a product that is usually purchased, for the most part, with some
frequency.
Referring to the brand specifically, it has been properly managed and administered. The brand
provides trust and creates a direct connection with the buyer and the consumer. That is to say,
flavor is an important factor in the sale of the product, however, in Inca Kola what benefits it the
most and draws the attention of customers is the brand. For years he has been working on
creating content that has gained loyalty among Inca Kola's target market. That is one of the
reasons why it is the most consumed brand of soft drinks in Peru.
Inca kola packaging and labeling are, evidently, a form of marketing used by this company. A
person can identify and directly relate the contents of the container (the drink) with the very
particular Inca Kola label. On the one hand, the packaging is a little more common since it is a
plastic bottle; what differentiates it is its peculiar shape. On the other hand, the labeling is a
larger identifier since, as has been seen, it has a very significant blue color and, in addition, it
has a design drawn that is quickly related to Peru and specifically to Inca Kola.
And finally, regarding the services that Inca Kola provides, the main one, and the one that most
companies have, is customer service. The difference is that this company does take into
account the suggestions and complaints of clients and consumers in order to keep them within
its market.
2. Price decisions
The Coca Cola Company's decision is not at all criticizable from an economic point of view.
They seek to be an economy of scale. A company is an economy of scale if it is able to reduce
its costs (average totals) in the long term while increasing its level of production. When the
company has these characteristics, it increases its level of profits very easily.
Inka Cola has a long history of high-quality products and in this way it has been overcoming with
great effort the difficulties that have occurred in Peru. In order to stand out, you have had to
follow a series of steps so that you can establish a price for your products, which is not just
putting a “price” on your products but you have had to define each of these points.

 Production and distribution costs

 The margin you want to get
 The elements of the environment: THE COMPETITION
 The marketing strategies adopted
 The established objectives

The price of this product is accessible for the Peruvian market and is similar to its competitors in
the same market. Prices vary depending on the size and content of the container, approximately
these values range from s/2 to 7.
 Price strategy
In order to assign the price of Inca Kola, the Lindley Corporation offers a quality product, so the
strategy is based on demonstrating to the customer that Inca Kola is a good product and that
the price they are paying is in line with the quality.
Secondly, in its advertising it conveys to its consumers the benefits of buying this soda and in
this case the benefit that the person will receive is the possibility of saving money.

INKA COLA
Product Suggested
price
 S/1.50

D
isposable personnel

S/. 5.00

1.5 liter disposable

S/ 8.90

3 Liters disposable

S/. 1.00

glass staff
1. Strategic decisions regarding the distribution channel and system

 Inca Kola carries out its strategic sales points with retail clients (in
supermarkets, wineries, cinemas, restaurants, among others)
 Inca Kola has a large number of growth in terms of machinery and plants for
producing the drink that allowed its rapid and continued distribution throughout
the country.
 The consumer can easily find the product, since even street stalls sell our
product.

2. Promotion decisions
7.1. Formulation of advertising objectives
Informative advertising objective
Tell the market about a new product
“New TOPLINE Inca Kola Zero, fusion of creativity and freshness in your mouth”
This was the phrase that Arcor and Inca Kola announced, in television advertising, these
companies came together to present an innovative version of chewing gum, TOPLINE Inca Kola
Zero, a new creative and fun way to consume Inca Kola with freshness that Topline offers. The
product was successfully presented among Peruvian consumers who currently consume Inca
Kola and in addition to being a surprise for this group of consumers, an excellent flavor
evaluation and a high purchase intention were obtained for this new
product.
.

Reminder advertising objective

Keep the brand in the mind of a customer
“Proud ambassador of Peru”
The company, as is already known, carries out, from time to time, when it sees fit, advertising to
Peruvian consumers of this brand that identifies a country and is a promoter of the customs,
gastronomy and traditions of Peru.
 7. 2. Budget Decision
Inca Kola celebrates its 80 years with the “Let's go for more” campaign
Inca Kola turned 80 in January 2015 and celebrated with its largest advertising campaign of the
year. With an investment that reflects approximately 40% of the brand's total budget. In this
campaign to establish the budget, the objective and task method was used, since the brand
sought three main objectives through this campaign.
 Effectively celebrate 80 years of the brand, the soft drink that represents the Country
 Likewise, the brand planned that this advertising campaign would allow it to maintain
the 5% annual growth that it has been presenting in recent years.
 Continue reminding the Peruvian market that Inca kola accompanies Peruvian foods,
creativity and Peruvian pride.
7.3. Advertising Strategy Development
At this stage, Inca kola must point out two very important aspects. The first is to create
the advertising message according to the objectives you want to achieve. The second,
select the essential media where the messages you want to give to the market will be
transmitted and where it will have the most reach to the target market. For the Inca
Kola soft drink brand, it is very important to focus on advertising, public relations and
direct marketing. Since this promotional mix will allow it to remain in the minds of
Peruvian consumers as the most preferred soft drink for consumption. The promotions
carried out by the brand are based on gastronomic, cultural, traditional aspects, the
season or summer, love or feelings, etc. This has allowed it to be more than a
consumer soft drink, for Peruvians to drink it for something more than a simple
physiological need at the moment, but rather to represent us as a typical Peruvian soft
drink. On the other hand, Inca Kola maintains a very effective strategy, since these
advertisements first show Peruvian elements such as chullo, cajon, typical dances,
landscapes such as Machu Picchu, the people who appear in the commercials are of
their own race. of Peru, etc. This combination of elements in the advertisements means
that first the brand flatters society by telling it how proud and how very lucky it must be
of the diversity of aspects it has of all kinds, and then it just shows its product. In such a
way , this advertising that it has continued to do over the years has worked as expected with
the great reception it has in Peru.
Communication strategy carried out for the final consumer

Pull Strategy
Inca kola, being a brand already established in the Peruvian market, and very loved. It usually
uses the “PULL” strategy in most of its brand promotions. Through television, concerts, events
and more, the company spends a lot of money on promotion and advertising such as its highly
anticipated campaigns in the summer and on national holidays. This makes the consumer buy
Inca Kola of their own free will, encouraged by being persuaded by the promotions they are
exposed to.
 8. Ansoff matrix
Market Penetration
Inca kola is a soft drink brand that is highly positioned in the Peruvian market unlike its
competitors, and is consumed by various individuals. The latter has allowed him to charge
higher prices for the drink. The current disposable personal-sized soda is found in stores at a
price of 1.50, this price is not always affordable for some citizens, since they are not willing to
pay this value for Inca kola as it is very expensive and they end up purchasing a substitute for
this soda. With the market penetration strategy, the brand could create a bottle size that is
smaller, and therefore at a lower price compared to the personal one. This measure would allow
it to bring the product to those sectors that are looking for substitutes for the brand, since the
new price would adjust to the available price that they are willing to deliver .

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Sunday, May 1, 2016

Inca Kola
Inca Kola
1. Need satisfies

The need that this drink satisfies is the thirst of the subject who consumes it.

 Coca Cola

 Pepsi
 fanta

 Sprite
 7 up

 English Kola
 Guarana

 Concord

 Royal Kola
  Triple Kola

 Peru cola

Companies they belong to

- “Coca Cola, Fanta, Crush and Sprite”
Coca Cola, Fanta, Crush, and Sprite soft drinks belong to The Coca-Cola Company , which is
an American multinational beverage corporation. Based in Atlanta, Georgia, the company is
famous for producing the most consumed drink in the world, in this case the first mentioned
above. In addition, the company is considered one of the largest American corporations.
- “Pepsi and 7 up”
Pepsi and 7 up soft drinks belong to the company:

“PepsiCo Inc is an American multinational beverage and snack company. It is

headquartered in Purchase, New York, United States, with interests in the manufacturing,
marketing and distribution of grain-based snack foods, beverages and other products.
PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay.
[1] (Wikipedia, 2010)

- “KR”
AJE is a multinational beverage company of Peruvian origin with presence in 23 countries in
Latin America, Asia, and Africa. Aje is the fourth company in sales volume of non-alcoholic
beverages and the third world producer of carbonated beverages in the countries in which it
operates. With the purpose of ensuring that consumers purchase their products at good quality
and at a fair price.
KR, belongs to the Aje group, which began to produce and sell in 1988 by the “Añaños” family in
the city of Ayacucho, Peru. They created this soda in the patio of their house, to generate more
income because Peru was going through terrorism and it affected agriculture, its main activity.
Currently the drink is marketed in Peru, Canada, Dominican Republic, Venezuela, El Salvador,
Guatemala, Thailand, Colombia, Ecuador, Mexico, Brazil, Nicaragua, Panama, Costa Rica. KR
being known in the last ten countries as Big Cola.

- “Guarana”
This drink belongs to the Peruvian company Backus. Which was founded by two Americans
Jacobo Backus and John Howard Johnston in 1876, who arrived in Peru with the aim of starting
an artificial ice factory in Lima, and expanded their activity three years later by dedicating
themselves to the brewing industry, since at that time there was a great demand for this drink.
Currently Backus is a leading company in the beer industry in Peru, it has five production plants
in Arequipa, Cusco, Motupe, and Pucallpa.

Product value to the consumer

 One of the great keys to the success of Inca Kola in Peru is that it transmits to the consumer
the value of equality, since through the advertising carried out by the brand, it reaches different
places, on the roads, in small villages further away from the city, in the finest restaurants, which,
unlike their competitors, only concentrate on an audience of higher economic power.

 Thanks to its advertising carried out in advertisements such as “Take Inca Kola”, “It is ours”,
“De flavor del Perú”, “Inca kola la drink del Perú”. It makes both Peruvian and foreign
consumers identify this drink with Peru. Since they have managed to connect Peruvian values
through these slogans, making national consumers feel proud of their customs, traditions,
landscapes, and food and at the same time making foreign consumers identify Peru for these
characteristics, and also the promotion of its brand as the only one that promotes national
values.

2. Environment of Inca Kola

MICROENVIRONMENT

to. Customers

The success of Inca Kola is due to the fact that it knew how to reach its customers and they
became loyal to the brand, since what they sell is a product with the typical Peruvian symbol
that characterizes it.

b. Public

Most of the impact group that falls on Inca Kola is the media. The Lindley Corporation launches
advertising through this channel and also makes its clients aware of the great contributions it
makes to society, which gives this brand a good perception by its clients.

MACROENVIRONMENT

to. Economic

The exchange rate is very important for this company, since there may be a significant variation
with prices when importing and exporting the product. In addition, the inflation percentage of
each country, which in this case is Peru, can affect the prices of the products.

b. Technological

Lindley has cutting-edge technology and thanks to this, the bottling processes that were
previously manual are today carried out by state-of-the-art machinery. For sellers and the
logistics area, they have incorporated software that allows them to enter orders faster and
deliver orders in less time.

c. Cultural partner

The corporation has carried out a study of the environment where its product is developed.
With the results obtained, it has been determined which are the symbols of pride for the
Peruvian consumer, which in this case is gastronomy, which is reflected in each of its
advertising spots.

3. Final Consumer
 Cultural Factors:

to. Culture: Inca Kola is dominated as a drink of national flavor, since Peruvians feel identified with
positive stereotypes such as creativity and gastronomy. That is why we consume it in various
areas of life such as meetings, parties, lunches, all of this is based on a family atmosphere.

b. Social Class : It is not intended for a single social class. The middle class is the one that
consumes the most; However, the upper class has no problem consuming it, since Inca Kola is
a soda that generates a perception of quality in people.

 Social factors:

1. Groups

to. Belonging Groups : The most influential turns out to be the family, we also have the influence
of friends and co-workers.

b. Reference Groups: Inca Kola used recognized figures in its advertising to allow consumers to be
influenced by the admiration they have for these characters and therefore tries to imitate their
behavior and attitudes.

1. Family : Inca Kola is aimed at the Peruvian family and is preferred by them, since this drink is the
most consumed due to the quality and cultural identity it shows unlike other soft drinks.

 Personal Factors:

to. Economic Situation: Low-income consumers tend to buy other soft drinks, since the price of
Inca Kola is relatively high compared to others such as Kola Real, Issac Cola.

b. Lifestyle: Many consumers prefer to take care of their health and not drink carbonated drinks,
but despite this Inca Kola has adapted to the “Light” public demand by launching its line of
products as Inca Kola Light.

 Psychological factors:

to. Perception: Inca Kola is recognized as a Peruvian brand and aims to recognize creativity as a
notable quality that is part of Peruvians and therefore of the brand.

b. Beliefs and attitudes: There are many people who do not like to drink soda because of the
chemicals and components that these drinks have.

4. Product purchase steps

Step 1: Recognition of the need

This process starts with the consumer's recognition of satisfying a need, in our case being a
drink, the consumer needs to satisfy his thirst by consuming a drink, which can be (soda, water,
rehydrating drinks, energy drinks).

Step 2: Search for alternatives

Customers seek product information to find out if it will adequately meet their expectations
among the variety of brands on the market. Likewise, to search for information you will resort to
your memory (advertisements and publicity), and also the recommendations and experiences
that friends and family around you and on the Internet have had.

Step 3: Evaluation of alternatives

 Once with all the information, the buyer decides between the variety of brands, in our case
brands such as: Coca Cola, Fanta, Sprite, Pepsi, Guaraná, etc. Whether Inca Cola is the
chosen brand will depend on the marketing strategies used. Likewise, economic factors and
people's opinions.

Step 4: Purchase Decision

Once the buyer chooses the Inca Kola soda to satisfy his need, he completes the purchase
decision process.

Step 5: Post-purchase behavior

Once the consumer has satisfied their need, they will evaluate conciliation vs. Cognitive
Dissonance. If the Inca Kola soda met all of our customer's expectations and if they will decide
to consume them again. This stage is key to building customer loyalty. In addition, it is essential
for sales.

5. Qualitative and quantitative studies

QUALITATIVE

 Open interview:

A survey is a previously prepared questionnaire that is provided to a varied audience where

they have the possibility of responding openly, that is, giving reasons for their opinions and
justifying them. Inca Kola did a series of interviews to learn more closely and more deeply about
the opinion of the select public about the product in question. In this way, the company was able
to collect opinions and ideas from the public to improve the product and, therefore, greater
customer satisfaction.

 Ethnographic:

This study consists of investigating the usual environment of customers to determine and
capture their reactions to possible variations in the product. In addition, this study contributes to
determining locations, whether a city or a neighborhood, where the product would be most
required and purchased.

QUANTITATIVE

 Sampling:

Before beginning any study, Inca Kola had to segment the population and then make a
sampling plan. In this way he was able to draw conclusions from studies using only a part of the
population that would represent the total.

 Survey:

This is the method most used by large and small companies for data collection. In the case of
Inca Kola it was used since it was necessary to know and understand people's tastes about the
tastes and preferences of the select public. In this way Inca Kola will have the power to reach
the public more easily and make the product a successful product in its sale and liked by
customers.

 Experimental:

This study consists of the causal observation of a similar group. In this case, Inca kola
introduced the same product to two extremely similar places, as far as the public is concerned,
with a difference, not very abysmal, in the price. Thus the company was able to verify and
determine what would be the appropriate price for said
product.
 6. Conclusions

 Firstly, a key to the success of Inca Kola in Peru is that it transmits the value of equality in
society.
 Secondly, microenvironment and macroenvironment factors can harm both positively and
negatively the sales and production of Inca Kola soft drinks.
 Thirdly, with respect to the final consumer, cultural, social, personal and psychological factors
are directly related to the decision-making process when purchasing Inca Kola soda.
Finally, to purchase the product, five important steps are followed. The recognition of
the need, the search for alternatives, the evaluation of alternatives, the purchase
decision and finally the subsequent purchase behavior.