Opening up markets

Aims
This lesson presents students with a business problem solving activity. It could also be used in English or Citizenship lessons.

Preparation
Students need paper, writing instruments and access to ICT/Internet. In order to complete the worksheet you will need to download the following case study:

Coca-Cola Ed 9

Differentiated target
By the end of the lesson:

• All students will understand that businesses often face problems that require solutions.
• Most students will understand that there are usually different solutions that have to be weighed against each other to settle on the best possibility.
• Some students will understand that businesses are constantly solving problems and that problem solving ability is therefore an important transferable skill.

Activities
Students look at the different ways in which a business can expand its product range. They debate the differences and decide on a direction for expansion. They then compare their solution to real life product solutions that Coca-Cola have launched.

Thought starter
(20 minutes)

a) Students work with a partner or in a group of four. The group of four relates to the development exercise. They list as many products as possible. These should all relate to Coca-Cola's core business of soft drinks. These are then reported back to the rest of the class.

b) Again, students work with a partner or group of four. This time they are looking for specific market niches that Coca-Cola does not yet serve. These should then be reported back to the class.

Expected outcome

a) (10 minutes)

In addition to listing existing Coca-Cola products, answers could include iced tea, iced coffee, flavoured milk, special flavours of drink and linked products such as Coca-Cola lollies or even Coca-Cola bars.

b) (10 minutes)

Coca-Cola has many brands with different target markets. Students should give examples of the different soft drink categories, e.g. hot/cold, carbonated/non-carbonated, drinks for different ages, occasions etc.

('Coca-Cola' and 'Coke' are registered trade marks of The Coca-Cola Company.)

Development
(30 minutes)

c) This should be carried out by groups of four students as far as possible, although pairs could be used to 'defend a corner'. Arguments could include the size of the market, likely competition, the likely cost, the likely popularity of the concept and how advertising and promotion could be used.

d) A general discussion on the different solutions and how effective the new products Coca-Cola launched are in addressing the different market needs.

Expected outcome

c) (15 minutes)
The ways to expand can be summarised using a grid called 'Ansoff's matrix'. Businesses can either expand their existing product by selling more to the same market, or targeting new markets. Alternatively they can develop new products to sell to their existing market, or new products to sell to new markets.

d) (15 minutes)
A general discussion on the different solutions and how effective the new products Coca-Cola launched are in addressing the different market needs.

Plenary
(10 minutes)

e) This could be another of The Times 100 businesses (such as Audi and the car market, Arcadia and the retail clothes market) or any business that the student is familiar with, such as where s/he did work experience.

Extension Activity

Sometimes businesses develop product ranges that are entirely different to those that they already have. Students could look at a business that is heavily diversified and see how it has expanded and suggest the reasons why. Virgin is a good example, as is the EasyGroup of companies.

Opening up markets

('Coca-Cola' and 'Coke' are registered trade marks of The Coca-Cola Company.)