Coca Cola Marketing Experiment

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1.

Introduction
The brand I have chosen for this experiment is Coca Cola. The experiment chosen is to host stand-up
comedy shows in Mumbai where they will be offering a complimentary bottle of Coca Cola (including
variants) to everyone in the audience. This will be a before-after experiment since the lift from previous
years’ sales numbers of the month will be taken into consideration along with sales numbers of other
cities which have approximately the same population and host stand-up comedy shows. Stand-up
comedy is very popular among the youth, the target and loyal customer base of Coca Cola.

2. Experiment Design
The independent variables will be the number of shows hosted and the total number of people in the
audience. This can be easily manipulated by hosting more shows or otherwise. Since stand-up comedy
audiences do not certainly belong within a certain radius of a show, we will be considering the sales of a
large area, possibly the entire city which will undoubtedly include all individuals who have been part of
a stand-up comedy audience. The control groups will be other metropolitan cities where stand-up
comedy shows are held. Sales numbers from these cities sufficiently covering all individuals in the
audiences will be simultaneously recorded. This will adequately randomise the groups. Also, this will
ensure that the cities are of similar population size, and have identical forms of available entertainment.
The experiment can be conducted during the summer months of April and May. The sales numbers for
the next two months, i.e. June and July will indicate the lift (causality rule #3: Time Sequence). During
all these four months the temperatures are high and people are likely to buy a bottle of Coca Cola and
we will be able to observe whether the experiment has successfully modified their tendency to buy one
(causality rule #1: changing marketing mix changes sales). Previous years’ sales numbers from control
cities will indicate whether no change in marketing mix did increase sales or not (causality rule #2). Other
external factors can affect sales, e.g. extreme heatwave in the experiment or control cities may increase
sales. This experiment does not satisfy causality rule #4.

3. Anticipated Issues
Negative popularity of the comedian (due to offensive tweet, etc.) may lead to smaller audience size in
a show. Also, another famous comedian performing nearby may lead to the same results. Coca Cola
hosting two shows simultaneously nearby may cannibalise each other’s audiences.
Weather conditions of cities are different, and also different on different days of a city. This may increase
or decrease sales across cities. The audience may not be pleased to get a bottle of Coca Cola if it rains
just before the show and maybe extremely delighted to get a complimentary bottle on a hot summer
day.

4. Experiment Adaptation
The experiment can be differently adapted by hosting other kinds of shows (not just comedy) or at
different places like restaurants, bars and cafes and not only in comedy clubs. These attract a different
crowd and audiences have different background and hence can cause significant variation.
Different cities can be experimented with the other cities as control. Some cities have higher average
temperatures than Mumbai and also have different weather patterns. The percentage of sales lift in a
hotter city may be higher than the sales lift in Mumbai for the same experiment.

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