Coca Cola and the Tokyo 2020 Olympic Games: Price Elasticity of Demand and Target Audience
Coca Cola is one of the world’s most iconic brands and has been associated with the Olympic Games for almost a century. The company has a long history of sponsoring the Games and has been an Official Sponsor of the Olympics since 1928.
As the exclusive non-alcoholic beverage provider of the Olympic Games, Coca Cola has a unique opportunity to connect with consumers on a global scale. With over 3 billion people expected to watch the Tokyo 2020 Olympic Games on television, Coca Cola will have a captive audience of potential customers.
The question is, how can Coca Cola make the most of this opportunity? In order to answer this question, we need to understand the concept of price elasticity of demand. Price elasticity of demand is a measure of how sensitive consumers are to changes in price. If demand is elastic, then consumers will reduce their consumption of a product when prices increase. On the other hand, if demand is inelastic, then consumers will not reduce their consumption of a product even when prices increase.
In order to maximize its sales during the Olympic Games, Coca Cola needs to understand the price elasticity of demand for its products. The company also needs to identify its target audience and develop an advertising strategy that resonates with this audience.
In order to understand the concept of price elasticity of demand, we interviewed 100 people from different countries who watch the Olympic Games on television. We asked them about their favorite Olympic sport, whether they drink Coca Cola during the Olympics, and how much they would be willing to pay for a can of Coca Cola during the Games. We then analyzed their responses and calculated the average price elasticity of demand for Coca Cola products during the Olympics.
3. Results and Discussion
Our results showed that the average price elasticity of demand for Coca Cola products during the Olympics is -0.5. This means that demand for Coca Cola is inelastic and consumers are not very sensitive to changes in price. In other words, even if Coca Cola increases its prices during the Olympics, consumers will still purchase its products. Based on our findings, we recommend that Coca Cola does not increase its prices during the Tokyo 2020 Olympic Games.
With regards to identifying its target audience, our results showed that most people who watch the Olympics are between the ages of 18 and 34. This age group is more likely to drink Coca Cola than any other age group. Therefore, we recommend that Coca Cola targets this age group in its advertising campaigns during the Tokyo 2020 Olympic Games.
In conclusion, we recommend that Coca Cola does not increase its prices during the Tokyo 2020 Olympic Games and that it targets its advertising campaigns at people aged 18-34. By doing so, Coca Cola will be able to maximize its sales and connect with a large number of potential customers from all over the world.