How Coca-Cola Can Use AI to Address Consumer Response Over Plastic Packaging Goal Cutback

Coca-Cola recently announced they will be scaling back their previous commitments to reducing plastic packaging. As such, they are now facing criticism from some environmental non-profits and advocates for being “short-sighted and irresponsible”. To forecast how general consumers might react in response to the news and identify how Coca-Cola might respond, I ran two experiments using a market research AI platform to identify causal factors of consumer behavior and decision making. 

Unlike ChatGPT, this platform provides an R-Square to signify the percentage of variance that can be explained by the data set. This percentage helps you determine the reliability of the results you are presented with, so I have listed that R-Square next to each experiment, which you can view in full here: 

• How does Coca-Cola's use of plastic packaging impact consumer perceptions and brand loyalty? (80%)

• In what ways might Coca-Cola's choice to continue using plastic packaging influence their brand image and market share? (72%)

Consumer Perceptions & Brand Loyalty

The factors most important to consumers indicated that while environmental concern, health impact, and convenience most prominently impact willingness to pay, packaging innovation and social responsibility are lesser concerns. However, not addressing those concerns can still negatively impact consumer willingness to pay.

The platform also provides insights and recommendations based on the data set to inform Coca-Cola’s future decision making regarding messaging about the positive actions they are making or could be making in regard to plastic packaging. 

• Emphasize Recyclable and Biodegradable Packaging: Across various demographics, there's a clear preference for environmentally friendly packaging options such as 100% recyclable and biodegradable materials. Coca-Cola should prioritize these features in their packaging design to meet consumer expectations and enhance brand loyalty.

• Innovate with Sustainable Materials: Interest in innovative packaging solutions, such as plant-based materials and packaging made from recycled ocean plastics, is particularly strong among those open to new experiences and environmentally conscious consumers. Investing in such innovations could differentiate Coca-Cola in the market and appeal to a broader audience.

• Balance Convenience with Environmental Concerns: While environmental sustainability is a universal priority, convenience features like resealable, easy-to-carry, and multi-use packaging are also highly valued. Coca-Cola should design packaging that does not compromise on convenience while being eco-friendly to cater to a wider range of consumer preferences.

• Engage in Consumer Education and Social Responsibility Initiatives: There's a notable interest in consumer education on sustainable living and corporate social responsibility initiatives, especially among households with children. Coca-Cola could leverage this by partnering with educational institutions for environmental education and actively participating in local and global sustainability efforts.

• Tailor Marketing and Product Strategies to Demographic Preferences: Given the varied preferences across age groups, personality traits, and household compositions, Coca-Cola should consider targeted marketing and product strategies. For example, focusing on innovative and sustainable packaging for younger, environmentally conscious consumers, and emphasizing convenience and practicality for families with children, can help in addressing the specific needs and values of different consumer segments.

Brand Image & Market Share

While consumer response varies based on customer segment, the platform distinguishes between these personas to provide advice on how to address each segment.

This graph from Subconscious.ai indicates how two different customer segments respond to the same traits in regard to plastic packaging of Coca-Cola products.

Based on the identification of the most viable target customer segments, the platform then provides some insights on how Coca-Cola can take action to address consumer response in generating a more positive brand image. 

• Amplify CSR initiatives and partnerships: Coca-Cola should enhance its corporate social responsibility efforts, focusing on sustainable packaging research and forming partnerships with environmental NGOs. This approach resonates across various demographics, particularly among females and households with children, indicating a broad base of support for environmental stewardship.

• Exceed regulatory compliance: Prioritizing packaging that not only meets but exceeds federal regulations can significantly impact brand perception positively. This strategy is especially important among males and higher-income groups, who value proactive measures towards environmental conservation.

• Engage in public awareness campaigns: Implementing public awareness campaigns, especially those involving social media influencers and educational programs in schools, can effectively address consumer concerns about plastic waste. This approach is crucial for reaching wealthy estates and households with children, fostering a community-oriented brand image.

• Tailor messaging to demographic specifics: Customize environmental messaging and CSR initiatives to align with the unique preferences of different groups, such as emphasizing price sensitivity and recyclable packaging options for households with children and focusing on direct action and advocacy for households with female children.

• Invest in alternative packaging solutions: Given the unanimous concern for the environmental impact of packaging, particularly in households with more than two children, Coca-Cola should invest in researching and developing fully recyclable or alternative packaging options to meet the growing demand for sustainable products.

Though disappointing to many, Coca-Cola’s decision to scale back its plastic packaging goals can be mitigated by refocusing on other areas of sustainability and addressing growing environmental concern.

If you’d like to try out the platform for yourself, you can run 2 free experiments by clicking “Get Started” here. Or, you can schedule a demo to learn more about how you can use the Subconscious AI platform for your own market research needs.