A new energy drink

It is very difficult to change people's buying habits after the age of 35. A lot of companies want to find customers in the 18-30 age group. This group often spends more money and buys more new products. Coca-Cola Ireland focussed on this age group for a new energy drink called BPM Energy. The market for energy drinks is large. BPM was the result of 18 months of product development. This included market research and consumer testing. Finally, the company decided that the

target group was men in the 18-21 age group.

The company organised a project team. It had people from many different departments including marketing, technical, finance and operations. They met regularly to discuss progress. Finally, they introduced the product. Coca-Cola Ireland had the biggest marketing campaign in its history. There was advertising on television, cinema, radio and the Internet. The company gave free samples and had in-store promotions. The product was unusual because it was developed just for the Irish market.

From the Irish Times

1. Are these sentences true or false?

a) It is easy to change people's buying habits after the age of 35.

b) The 18-30 age group spends more money.

c) There isn't a big market for energy drinks.

d) BPM was for women in the 18-21 age group.

e) The project team had people from different departments.

f) The product had a small marketing campaign.

2. Put these product development and marketing steps in the same order that they appear in the article.

• advertise the product

• do consumer testing

• organise a project team

• do market research

• give free samples

• introduce the product

Over to you

In your country what age group has the most money to spend? What products or services does this group usually buy? Can you think of any new products to introduce to this market?

Unit 8 Markets

New markets for older people

Level of difficulty ***

Before you read

Match the words 1-5 to their meanings a)-e). Use a dictionary to help you.

1. healthy a) have lots of interests and friends

2. active lives b) give attention to

3. wealth c) not ill

4. focus on d) don’t give attention to

5. ignore e) have money

Reading

Read this article adapted from the Guardian and answer the questions.

Older people, new markets

They are 40 percent of the population. They have 80 percent of Britain's wealth. They are 40 per­cent of the consumer market. So why don't more companies focus marketing and advertising on people over 50 years old? And why don't companies develop products and services for this group? Today the over 50s live longer, are healthier and lead active lives. They also have money to spend. But companies ignore this market.

Advertisers focus on young people. But young people have less money to spend and their market is getting smaller. A survey showed that most over 50s didn't like 86 percent of all advertising. This includes advertising for cars. But this group spends more on cars, including sports models, than any of the younger groups. Two-thirds of cars bought privately were bought by the over 50s.

Adverts don’t have to focus only on the over 50s. But advertisers shouldn’t ignore this group. Why aren’t advertising agencies and marketing companies interested? Perhaps, because the people who work in advertising and marketing are often under 50.

From the Guardian.

1. Correct the numbers in the sentences.

a) The over 50s are 14 percent of the population.

b) They have eight percent of Britain's wealth.

c) Four percent of the consumer market is over 50.

d) Why don't more companies focus on people over 20?

e) This group didn't like 68 percent of all advertising.

f) Half of the cars bought privately were bought by the over 50s.

2. Tick (*) the items in the list below that are mentioned in the article.

The over 50s

• play sports.

• lead active lives.

• spend money on cars.

• go skiing.

• have money to spend.

• are healthy

Over to you you

You work for an advertising agency. Think of five products or services for the over 50s market. Compare your list with a partner. Explain your choices

Ex. I think holidays are good for this market because the over 50s have time and money ...

Unit 9 Companies

Respected companies

Level of difficulty *

Before you read

Complete the sentences using one of the words below. Use a dictionary to help you.

respect survey around

a) The…………… asked lots of questions about different companies.

b) The companies are from different countries all the world.

c) I……………..my boss. She is a good manager and a good leader.

Reading

Read this article adapted from FT.com and answer the questions.