Universidad de La Sabana
Mercadeo
Presentado a: Luis Fernando Correa
Presentado por: John Jairo Arango Sánchez 201220119 Sergio Franco Borda 200920863 Vivian Jimena Mesa Torres 201120968
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Miguel Orlando Rincón Latorre 201210277
Case chapter 8
Coke Zero : Do real men drink diet coke ?
Case Analysis
1. Background :
The Coca Cola Company identified that no company was satisfying young men needs. Almost 10 years ago, Coke executives set out to change the by introducing Diet Coke and Diet Coke Plus, and in 2005 they launched a brand that defied the odds:
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Pepsi Max was introduced in 1993 in international markets and in the U.S. in 2007.
Despite the accolades, Coke Zero stumbled out of the gate. Big success came only after Coca-Cola adjusted on the fly.
The drink was initially marketed with a tagline of "everybody chill" -- a vague emotional message that didn 't work. Consumers were left confused about what the brand meant. The Coke Zero brand team had studied beer ads for clues to appealing to young adult men, but the team hadn 't clearly explained Coke Zero 's reason for being in the market.
The company sought to boil down Coke Zero 's intrinsic value with a message that it delivered "real Coke taste, zero calories." Five years on, the marketing pitch remains the same.
Coke Zero was initially sold in white cans and bottles. In the feedback from consumers, Coca-Cola researchers noticed a problem. The white packaging connoted diet drinks, and among the coveted young male demographic, diet connoted "female." The company quickly borrowed an idea from its Australian division and swathed Coke Zero in black. Within six months, the new marketing and packaging were in place, and the brand took off.
In 2009, a year in which overall soda sales shrank by about 2 percent, Coke Zero sales jumped 20 percent in the U.S., from 97 million cases to 116 million,
Message strategy – “Good really wins in the end.” This is in some respects a rather odd “big idea.” Contrast this with the early Coca-Cola campaigns that focused on the benefit of refreshment, something that is very relevant to the functional utility of the product. However, nowadays, that is not enough. For many years, there have been numerous alternatives that satisfy the need for quenching thirst. This big idea falls in line with that of more recent campaigns. That is, it drives home an emotional benefit rather than a functional one.
Marketing strategies began to take broader dimensions as the soft drink industry continued to expand and became more complex. In 1976, Pepsi introduced the Pepsi Challenge in its campaigns, a moved that directly challenged Coca-Cola’s longstanding dominance. In 1985, responding to the pressure of the taste tests, which Pepsi always won, Coca-Cola decided to change its formula. This move set off a shock wave across America. Consumers angrily demanded that the old formula be returned, and Coca-Cola responded three months later with Classic Coke. Five years after the infamous Coke fiasco, the Coca-Cola
Coca-Cola, as the leading brand in the world, has the highest position in soft drink industry. Its outstanding product “Coke” has been won the heart of everyone. However, in this case, we realize that they had a failed attempt at introducing the new product called New Coke in 1985.
In the Pepsi Challenge in the 1980’s, customers took a blind sip test of Coca-Cola and Pepsi and most people ended up favoring Pepsi. Coca-Cola became worried and started to alter their drink to make it sweeter however after the change people disliked the new Coca-Cola so they changed it back. Though after the challenge people thought
products to suit customer’s needs, Coca-Cola was able to make a positive step forward in their
Coca-Cola is shifting its product strategy to develop healthy beverages. “Minnick’s ambitions, if they hold, would utterly redefine Coca-Cola’s image as a purveyor of sugar-laden junk that you should’ve give your kids” (Carvens & Piercy, 2009). Entering a healthy-beverage market segment can potentially improve as well as expand Coca-Cola image. The new market segment will reel in even more consumers for the company, only
The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical
A company must be in tune with what consumers want. Consumers get bored, and often want new products. In order to meet the wants and needs of customers a company must introduce new products or services (Bateman &Snell, 2003). Coca-Cola, in an effort to meet customer's needs, created C2 which is a low carb soft drink. This was in response to the low carb diets and the demands of consumers. They also intend to launch a new soft drink called Coca-Cola Zero. This is a zero calorie soft drink. Knowing the importance of innovation the Coca-Cola Company has always strived to create new products. They already have Coke with Lime, Lemon, Vanilla and Cherry. Raspberry will be the new flavor added to Coke coming soon. They also have plans to sweeten Diet Coke with Splenda, a sugar substitute that is safe for
Coca-Cola’s value proposition is unique in that is has a patented secret formula that others can only imitate. They have over 500 brands and 3500 products worldwide including soft drinks, water, juice, coffees, teas, decaffeinated, low calorie, zero calorie, and energy drinks that meet every kind of thirst need. They usually provide the best sale prices on many different size of drinks. They offer Coke Rewards where individuals can get free drinks, clothing and amusement park tickets.
The history of Coca Cola began in 1886 when Dr. John S Pemberton, an Atlanta pharmacist created a tasty soft drink which could sell at soda fountains. Since then, Coca Cola grew to be a global brand and touched great heights. Today, it sells across 200 countries and is just as popular across all the markets and nations. The company today, owns or licenses and markets more than 500 non alcoholic beverage brands. The brand has only few major competitors in the global market. The daily servings of coca cola are estimated to be at 1.9 billion globally. (Coca-Colahellenic, n.d.) This is just another proof of the popularity of the brand which has a very large and diversified
The Coca Cola company has promoted a new campaign launch to help catch consumer’s attention. From 1886 to 2016 Coca Cola has been a well-known soft drink. The campaign launch “Share a Coke with a Friend” that was released in 2014 had grabbed consumer’s attention tremendously. The new campaign was targeting everyone. The Coca Cola company knew they needed to create a campaign that would make an impression on the newer generation. The “Share a Coke with a Friend” Campaign was an interesting approach that made a tremendous change in the Coca Cola advertisement industry. The new ad had drawn in even more consumers.
The designed advertisement for Coke Zero focuses on the truth and facts provided by the industrial researchers and medical professionals. It provides the transparent information of how the products help to keep customers healthy and fit and will not incur any negative health effects. Different age of customers and different customer segments found it as the economic, easy to approach and handy products. There will not be any guilty feeling after they consume the products. The designed advertisement reflects a true and transparent information and fact and there is no ethical and legal concerns involved.
The soft drinks market is dominated by 3 household Coca Cola, PepsiCo and Dr Pepper Snapple. Coke Zero is successful because it was carried to new category – sugar free coke and be first to get into the prospect’s mind. It is filled a need for an underserved consumer -- young adult males, offering to anyone seeking great Coca Cola taste with zero calories. In a world where new products rise and
Coca-Cola has been around for generations with the same iconic taste, logo and symbolism. Its brand has represented family and the memories of good times, celebrations and comfort of being with those we love. Unfortunately, the company has not made good marketing decisions in the recent past and has lost relevancy. The purpose of this essay is to assess the conditions that created Coca-Colas marketing problems, evaluate the future of healthy beverages and non-carb drink brand extensions, and provide recommendations to the management.
Coca-Cola spends huge amounts of fund on marketing every year to remain its competitiveness. However, recently, Coca-Cola had a weak global growth. The sales volume of soda is not so satisfactory. Coke is claimed to have too many calories and sugar, thus being bad to health, as a result of which, consumers turn their attention to other drinks (Kell n. pag.).