...Chapter Eight Case Study - Coke Zero Coke Zero Coca Cola has been the leader in the soft drink market for decades, consistently besting their nearest competitor, Pepsi. The struggle for the top spot has been on-going for over one hundred years, and at times has been fairly interesting. Both companies have been trying new strategies, flavors; can designs and even recipe changes in order to gain market share, niche competitive advantage as well as a sustainable competitive advantage. (Lamb, Hair Jr., & McDaniel, 2013, p. 26) Both companies constantly change their products and their marketing techniques in order to secure an advantage over one another. Coca Cola over the years has used common good business practices in order to evaluate their business, so they would know which direction to take it, next. Sometimes their choices were effective, other times they were not. A Coca-Cola marketing situation comes to mind going back to 1985, when seemingly out of the blue, Coke changed their formula. The onslaught of public outcry then began, forcing Coca Cola to re-think their strategy and into damage control mode. It was either a brilliant strategy designed to be a publicity stunt, or one of the worse blunders ever in corporate America. The answer is still not clear to this day, however the results were interesting and have been fodder for Marketing classes ever since. News about the “New Coke” dominated the airwaves for weeks on end, and people rushed out to try it. Most did...
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...Case Study: Coke Zero I highly agree with the statement that “companies should develop products what will bring new customers into market rather than just creating variants on the old” (Lamb et al. 289) because when old products failed, it is an opportunity for the company to invest in different market segments— “a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs” (Lamb et al. 261)—that could potentially increase additional consumers. For instance, Coke Cherry has been the “dog”— a “poor performer [and]it has only a small share of a slow-growth market” (Draft 213)— product line compared to other successful drinks such as Diet Coke, Coke Zero, and regular Coke. Thus, managers must foresee the concept: why continuing to invest in older products that do not produce profits and lose additional money in the investment; hence, why not take the risk of manufacturing new products that could be the “cash cow”—the “dominant business in the industry, with a large market share” (Daft 213)—in the market? Diet Coke and Coke Zero are the “star”, which have “additional growth potential” (Daft 213) and “will generate profits and a positive cash flow” (Daft 213). Both Diet Coke and Coke Zero are concentrating on the demographic segmentation—“segmenting markets by age, gender, income, ethic background, and family life cycle” (Lamb et al. 265)—by particularly age; therefore, the target market of Diet Coke and Coke...
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...Assignment #1 - Segmentation and Targeting Please read the following Case Study and answer the questions at the 4 questions at the end. Segmenting and Targeting Markets: Case Study: Coke Zero When a couple of marketing managers for Coca-Cola told lawyer Elizabeth Finn Johnson that they wanted to sue their Coke Zero colleagues for “taste infringement,” she was baffled. She tried to talk them out of it, but they were determined. They argued that Coca-Cola Classic should be protected from the age discrimination it would suffer with the introduction of a newer, younger soft drink that tasted exactly the same as the original. Frustrated, Finn Johnson held up the Coke can and shouted, “It's not a person! Title VII doesn't cover these things!” What she didn't know was that the marketing managers were actors. Hidden cameras had been planted around the meeting room to capture the reactions of several unsuspecting lawyers who had been asked to consider the case, including an immigration lawyer who was asked if he could get the Coke Zero marketing head deported back to Canada. Coke Zero Immigration Lawyer Ad - YouTube The short videos were strategically placed on websites such as to promote Coke Zero as the hip, new alternative to Diet Coke for men. The Coca-Cola Company knows it has to be creative if it's going to sell more pop after sales dropped two years in a row in 2005 and 2006. Morgan Stanley analyst Bill Pecoriello explains, “Consumers are becoming ever more health-conscious...
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...Case Study 1: Coke Zero: Do Real Men Drink Diet Coke? 1.Describe the specific type of consumer that the Coca-Cola Company is targeting with each of the following products: Diet Coke, Coke Zero, Diet Coke Plus, Coca-Cola Blak, and Full Throttle Blue Demon. What types of demographic segmentation is each product’s marketing most likely to include? Diet Coke mainly target women who want to lose weight and this is under Gender Segmentation. Coke Zero is designed for younger men from 18 to 34, who don’t want the sugar and calories in regular soda but don’t like the taste of artificial sweetener. This is fall in the Gender and age segmentation. Diet Coke Plus targets those are more health conscious. It is fall in Gender segmentation. Coca- Cola Blak: It is designed for older men have more money. It is in the gender and income segmentation. Full Throttle Blue Demon target Hispanic Men. This is in both gender and ethnic segmentation. 2. Some industry analysts think soft-drink companies should develop products that will bring new customers into the market rather than just creating variants on the old. They warn that products like Coke Zero will cannibalize lost market share from other soft drink categories instead of increasing the number of consumers overall. Which Coca-Cola products are most likely to lose customers to Coke Zero? Coke Zero is most likely to affect sales of Diet Coke Plus because Coke Zero has the same benefits and reaches the target market of Diet Coke Plus. Also...
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...Marketing Case Study: Coke 1) The Coca-Cola company is being very strategic as to who it markets each of its products. For the most part, they do not overlap on who they market each product to; instead they are trying to create a brand that can be easily identifiable with one market. The first product primarily uses gender segmentation, Diet Coke is for the most part marketed to women who are trying to watch or lose weight. The next product, Coke Zero also uses gender segmentation as it is marketed towards the male population. Two products Coca-Cola produces is Diet Coke Plus and Coca-Cola Blak, each of these products uses psychographic segmentation. Instead of marketing to a gender they are marketing to lifestyles. Diet Coke Plus is marketed to those that are concerned about vitamins and nutrients, while Coca-Cola Blak is market to those that are more sophisticated. Finally, Full Throttle Blue Demon is an energy drink that uses gender and ethnic segmentation as its target market is Hispanic males. 2) Diet Coke, original Coca-Cola, and finally Diet Coke Plus are the products that are most likely to lose customers to Coke Zero. First, Coke Zero is going to take customers away from Diet Coke because it is more appealing to male consumers. Additionally, Original Coke will lose customers that are interested in a zero calorie drink but did not want to sacrifice taste. Finally, Diet Coke Plus will also lose customers to Coke Zero because of the original-like taste it brings...
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...INNOVATION: THE COCA-COLA CHALLENGE Abstract The Coca-Cola Company fully understands the meaning of innovation as evidenced by their ever-growing brand portfolio and internal processes. In this paper, I discuss Coke's three cola strategy as both a product and service innovation. Such strategy was implemented to widen the market presence of Classic Coke, Diet Coke and Coke Zero. The three cola strategy was developed initially for the purpose of rekindling the growth of the sparkling beverages. The strategy is basically a campaign to boost public confidence wherein an array of marketing, advertising and promotion was implemented. The three cola strategy was backed by Research Council towards the development of consumer-centered innovation. Introduction Overview of the Organization The Coca-Cola Company Founded by Asa Griggs Candler in 1882 in Atlanta, Georgia, a company that fully understands the importance of innovation in business is the Coca-Cola Company. Coca-Cola, or simply Coke, chose to concentrate their operation on production of soft drink syrup while maintaining an intimate relationship with its bottlers and distributors at the retail level. Basically, the company is engaged into blending raw material ingredients (product planning), packaging in plastic canisters (market research) and shipping to bottlers (advertising). In 1886, John Stith Pemberton invented the company’s flagship product Coca-Cola. Today, Coca-Cola Company offers more...
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...and their appearance. Coke is no longer ‘it’. In 2004 and 2005 Coca-Cola sales were actually falling in America and Europe, for the first time since the brand’s birth in 1886. The brand may be struggling, but the company itself is fighting fit. The 2006 launch of Coke Zero was a huge success in America and Britain. The idea of ‘Bloke Coke’ showed great marketing understanding in a market where Diet Coke is largely targeted at 20-30 year old women. In the first 16 weeks from its July 2006 launch, Coke Zero sales were £24.1 million, the biggest launch success of any new grocery product for the last 3 years. The success of Coke Zero has reversed the sales drift among men. But what about women? Autumn 2007 sees the next stage in coca-cola’s marketing strategy: the launch of diet coke plus. Diet coke has been a fantastic success since its launch in 1982. Its 25th birthday has been celebrated in 2007 through a special silver can (very hard to get hold of). Diet coke has been called ‘the greatest extension strategy in business history’. In the UK Diet Coke’s silver can often outsells coke’s red one. But although it meets the consumer demand for low calories, diet coke cannot offer the positive health benefits claimed by smoothies, juices or ‘functional’ dairy drinks such as Danone’s Actimel. Coke has watched sales of smoothies rising at 100% a year, and has decided to act. Diet coke plus comes in two varieties: diet coke plus vitamins and diet coke plus antioxidants. As coca-cola...
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...MGT 4630 Developing New Product and Services Coke Zero study by Antonio Cardoso M9820394 The aim of this report is to critically evaluate a new product that has been launched in the last 10years. The report will assess the performance of the new product, the strategy and process used by the company in developing and launching the product and to see if it was successful or not. What is a new product and what is a new product development process According to Crawford and Di Benedetto (2011) a new product is one that is either new to an organisation or a market and that it can be broken down into the following categories They go on to suggest that a new product goes through the following stages 1. Opportunity Identification and selection 2. Concept Generation 3. Concept/Project Evaluation 4. Development 5. Launch New Products Management Tenth Edition Crawford and Di Benedetto (p30, 2011) It is worth noting that the text goes on to say about the above processes that “the activities are not sequential but overlapping and it is not implied that one phase must be completed before work can begin on the next one” . I’m expecting my analysis of a real world product will not only show that the process overlaps but that it is more flexible/agile. I think that two phases can be completed at the same time, or that in some circumstances or possibly for certain products that the new products team might go from phase 1 to 2 to 4 and then possibly back to 2 before returning...
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...this may have an effect on product taste. Climatic – Different products for various climates – Coca-Cola sells more in hotter regions where the demand may be higher as persons seek cold refreshing drinks more. In many tea centric countries such as Britain and The Middle East tea beverages like Honest Tea and Fuze Tea are sold. Local – Certain products are not available in all countries (eg. Del Valle only available in LATAM) Demographic :- Age – Coca Cola is targeted to - children (appeal to their tastes- Vanilla, Cherry and Lime flavors), 15-25 year old (young adults) and 40 plus. Gender – the company targets all genders with various products. Family type – Different sizes cater to several family types and sizes (Single 2L, 20oz case vs. 20oz 6pk) Income – Various sizes in...
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...Running head: COCA-COLA Five Year Marketing Plan Coca-Cola Company Liberty University Jennifer Bachelder, Ryan Belush, Teresa Bissette, Travis Boyce, Carol Brown, Brenda Chamlee, and James Crandall Abstract Our group has decided to market an existing product, but we would like to add a variety pack to this product. We feel if Coca-Cola would add a variety pack to their existing products it would offer more choices for the consumer and we feel this would increase sales by meeting the needs of those consumers with different taste. We would like for the variety pack to consist of Coke, Diet Coke, and Coke Zero. Not only would this benefit different age groups it would increase sales for Coca-Cola. Because it allows convenience to the consumers who have church events, work parties, or school events. 1. Executive Summary Since Coca Cola was launched as a company, the company has exceeded expectations by a long shot. Innovators who get into the practice of trying to market something like a soda can sometimes fall behind the competition as other sodas have in the past such as generic brand sodas produced by companies such as Food Lion and Wal-Mart. Coca Cola strives to continue providing better soda quality than its competitors by hiring only the best employees and producing the highest quality product while ensuring that distribution is also performed effectively. Coca Cola intends on using its large fan base of the product to continue...
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...Scientific studies have also shown that sugary drinks are the leading cause of obesity amongst children today. “The best science tells us sugary drinks are the leading cause of obesity,” Bloomberg said…” (Pop science: Case for and against the soda ban Liz neporent). As you can see, sugary drinks are the biggest source of added sugar and obesity in America. So, banning sugary drinks would make the amount of obese children with heart disease and diabetes drop tenfold. Some people may argue that sugary drinks shouldn’t be banned, but they forget that sugary drinks are the leading cause of obesity, diabetes, and heart disease. Certainly it could be said that sugary drinks aren’t the only cause of obesity, heart disease, and diabetes. In Evan Cook's article “Let us enjoy our sweet drinks in peace” he stated “First of all, soda is not the only cause of obesity. Not even close,” (20). While that is a good point, it fails to account that sugary drinks are the leading cause of obesity in America today. Some may also argue that banning sugary drinks won’t work because previous bans on items have also failed. “The fact is that people who love soda are going to continue drinking soda” (20 Cook). That is a good point, in 1920 alcohol was banned in America. People then went on to create moonshine (their own alcohol) and crime started to shoot up. If people want something they will find some way to get it. But, what most don’t realize is that sugary drinks are a different case. If you ban...
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...COCA-COLA CASE STUDY Presentation Identifier Goes Here 1 STATISTICS AND FACTS ON LIQUID REFRESHMENT BEVERAGE BRANDS The liquid refreshment beverage (LRB) market encompasses CSDs, bottled water, ready-to-drink (RTD) coffee and tea, fruit beverages, energy drinks and sports beverages. Based on sales, Coca-Cola, Pepsi, Mountain Dew, Dr Pepper and Gatorade were the leading liquid refreshment beverage (LRB) brands in the United States in 2013. All five brands combined, held a market share of over 42 percent in the U.S. in 2013. Especially to be emphasized is the performance of the carbonated soft drink CocaCola, which accounted for a U.S. market share of 18.1 percent alone. Coca-Cola is owned by The Coca-Cola Company, which is headquartered in Atlanta, GA. The brands’ outstanding performance is more than present among all regions and channels. Coca-Cola is not only listed as the leading LRB in the U.S., it also topped the list of soft drinks brands worldwide in 2014, based on brand value. Additionally, the soft drink brand had the second highest number of fans on its Facebook site. A big competitor of the Coca-Cola Company in the liquid refreshment beverage business is undoubtedly PepsiCo, Inc., which is based in Purchase, NY. The company owns, among others, the soft drink brands Pepsi and Mountain Dew and the sports drink Gatorade, which were ranked second, third and fifth in the market share ranking of LRB. SoftSrinks Off-Trade RTD Volume 534.8 Billion...
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...Coca cola case study In 2007, Coca-Cola began working in partnership with the Carbon Trust to calculate the carbon footprint of some of its most popular products in Great Britain. As part of this work, Coca-Cola Enterprises (CCE) piloted the Carbon Trust's product carbon foot printing methodology (PAS 2050). In March 2009, the carbon footprint of four brands (Coca-Cola, Diet Coke, Coke Zero and Oasis Summer Fruits) was published .The work that the Carbon Trust has undertaken with Coca-Cola in Great Britain is now being applied to a wider range of products and across European markets. The Carbon Trust has now licensed its Footprint Expert tool to Coca-Cola. During 2011 Coca-Cola will use the tool to repeat the carbon foot printing of the 14 products originally selected, as well as extending it to a further 36 products. Coca-Cola has launched Trace Your Coke, a new online tool to help consumers understand the journey and carbon footprint of some of its most popular products.In the distribution channels, the company has installed 2000 EMS-55 energy management devices in vending machines. These devices activate lights and adjust cooling based on use, leading to improved energy efficiency by up to 35 percent. In addition, the company installed 1,400 climate-friendly coolers at the 2010 Olympic Games to reduce greenhouse gas emissions by approximately 5,600 metric tons, the equivalent of taking about 1,200 cars off the road for an entire year. Finally...
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...Coca-Cola, the real thing. I have been a fan of Coke since I was a kid, when everyone else was drinking Pepsi, I wanted Coke. This may not seem like a big deal in more populated areas of the United States east of the Mississippi, however in rural Montana, Pepsi is everywhere. I cannot tell you why I am obsessed with Coke, perhaps it’s the iconic red can, the bottle shape, or even the Coca-Cola bears, but I can tell you that if I am in a restaurant that only has Pepsi, I will just have water. Coca-Cola is the original cola and was developed in 1886 by Atlanta pharmacist, Dr. John Pemberton and was one of several carbonated drinks, Dr. Pepper, for instance, that were created during that time. What set Coca-Cola apart from others, was the vision of Asa Chandler, who run the company from 1888 to 1918, to take the company national. The reasons I like Coca Cola are simple; I like the taste, the packaging and the idea behind sharing a coke. First is taste; I simply think that Coke tastes better than Pepsi or Dr. Pepper. I am particularly fond of Coke Zero because it does not have that diet pop aftertaste that you find in other diet sodas. Second, the packaging, from the classic bottle shape to the distinctive logo, they both are visually appealing to me. I also love to collect Coca-Cola memorabilia. The Coca-Cola Polar Bears are synonymous with the holidays that are my favorite time of the year. Finally, the image, my earliest memories of Coke are the classic TV commercials of the 1970’s...
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...The Ajegroup has been very successful since it was founded in 1988 by Eduardo and Mirtha Ananos by taking a $30,000US second mortgage on their home. The company has grown into a multinational enterprise currently represented in 20 countries worldwide with its holding company in Spain. In order to strengthen bonds within all its market sectors, the company has gained ownership of 22 factories and 120 fulfillment centers employing over 20,000 people. Its infrastructure reaches out to more than 1,000,000 retail outlets worldwide enabling Ajegroup to sell over 3 billion liters of beverages including beer, sports drinks, energetic and isotonic drinks, water, various juices and tea (1). According to the course case study, Ajegroup has expanded to several countries outside of Peru. The international company growth includes Venezuela, Ecuador, Mexico and Costa Rica. Ajegroup has been successful in each of these markets as well. As the company considers expansion in Chile, Brazil, and the U.S. (via Mexico), it is important to understand how and why it has been successful and if the same strategies will be applicable in these new emerging markets. The following strategies were instrumental in leading Ajegroup to its success: 1. In order to penetrate the local Peru soft drink market, Ajegroup packed Kola Real in old 620 ml beer bottles. 2. Instead of taking loans from banks, Ajegroup financed the growth of Kola Real with funds generated from its operations. 3. Counted on suppliers...
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