Case Coke Cero free essay sample

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: Coke Zero. The brands U. S. sales have consistently increased as the soft drink category has shrunk. Coke Zero has proven that young men would rather spend their calories on fast food than soft drinks. The new product needed to taste a lot like regular Coke, and its packaging needed to evoke a subconscious masculinity. (Black good, white bad. And its marketing needed to be a little slapstick and irreverent. Coca-Cola Zero is a low-calorie (0. 75 calories per liter) variation of  Coca-Cola  specifically marketed to men, who were shown to associate diet drinks with women. The Coca-Cola Zero logo has generally featured the script Coca-Cola logo in red with white trim on a black background, with the word zero underneath in lower case in the geometric  typeface  Avenir  (or a customized version of it). We will write a custom essay sample on Case Coke Cero or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Some details have varied from country to country. The British logo, for example, originally had the o taking a spiral form. In the U. S. , the letters decline in  weight  over the course of the word. All versions of Coke Zero sold in various countries are based on the same flavoring formula, and all are carbonated and caffeinated (except caffeine free). 1 liter of Coke Zero contains 100 mg caffeine. However, the exact combination of  artificial sweetenersand preservatives used varies from market to market. Coke Zero was Coca-Colas biggest product launch in 22 years (it was launched in 2005). It is primarily marketed towards young adult males and has even been nicknamed Bloke Coke in the UK. In the US, advertising has been tailored to its targeted market by describing the drink as calorie-free rather than diet, since young adult males are said to associate diet drinks with women. U. S. marketing has also emphasized its similarity in taste to sugared Coca-Cola through a 2007 U. S. viral marketing  campaign that suggested the companys executives were so angry over the drinks similarities, they were considering  suing  their coworkers for taste infringement. In Australia, the product was originally promoted by a fake  front group; the campaign included outdoor  graffiti  and online  spamming that mentioned a  fake blog. Once exposed, consumer advocates assailed the campaign as misleading and established the Zero Coke Movement  to comment on the ethics of Cokes activities. Before launching the product, the research made showed that the name â€Å"Coke Zero† was likely to be a better way to sell a low calorie beverage, without including the word â€Å"Diet†, which doesn? t appeal young man because of the feminine stigma. The Coke Zero was developed with artificial sugar and flavors that made the product? s flavor more alike Coca Cola Classic, because one of the problems of the Diet Coke was that even though it was a low calorie beverage, the taste was not good enough for customers and most of them were not willing to purchase it even though it was better than the Coca Cola Classic in terms of nutrition and health. 2. Updating  : Coke Zero has not just grown, but notched 17 straight quarters of double-digit sales increases. It is now sold in 130 countries, including powerhouse markets such as Brazil and Mexico. It is perhaps the most successful new soft drink of the last decade, a billion-dollar brand mentioned in the same breath as Coca-Cola, Diet Coke, Sprite and Fanta. In the U. S. , its sales are about six times larger than PepsiCos counterpart drink, Pepsi Max, which is getting an infusion of marketing dollars and three Super Bowl commercials this winter. 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 didnt 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 hadnt clearly explained Coke Zeros reason for being in the market. The company sought to boil down Coke Zeros 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, according to trade journal Beverage Digest. Among big soft drinks, only Diet Mountain Dew, Diet Dr Pepper, Crush and Coke Zero posted gains. The brand claimed the #12 spot among carbonated soft drinks in the United States, up from #15 a year before. Its sales and market share have continued to grow this year. The soft drink market was receptive to Coke Zeros proposition: that you could trim calories without sacrificing taste. From the early days of the brand, Coca-Cola linked Coke Zero to some of its biggest marketing events: NASCAR races, the NCAA Mens Final Four and action and sci-fi movies such as Avatar, the James Bond vehicle Quantum of Solace and Tron: Legacy. Marketing can take a brand so far, but it has to deliver on the promise. Fans say Coke Zero tastes much like Coca-Cola Classic, albeit perhaps a little sweeter. But it drops the calorie count to zero with a sweetener blend of aspartame and acesulfame potassium, also known as Ace-K. Coca-Cola executives predict continued growth for Coke Zero, based on the expanding popularity of diet and light drinks. When Diet Coke launched in 1982, diet drinks made up only 1 percent of sales at Coca-Cola Co. Today, that number stands at 42 percent, and the company expects it to hit 50 percent by 2020. Plus, the brands sales are especially strong among Hispanics and African-Americans, two growing demographics. In the 16-24 age group, about 60 percent of Coke Zeros drinkers are male. But Zero also gets a lot of sales from men 35 or older, whose calorie-trimming ways might otherwise force them out of regular Coca-Cola. Coke Zero has managed to avoid the boom and bust cycle that can plague line extensions that Coca-Cola C2 and Vanilla Coke suffered. Coke Zero shows a well-conceived, well-marketed soft drink can grow in North America. Coke can legitimately claim that Coke Zero was a success story in a somehow dying category of soft drinks. Now, Coca-Cola is trying to get Coke Zero into more soda fountains and restaurants, which remain the largest opportunity for the brand in North America. The brand is in Outback Steakhouse, Chick-fil-A and some McDonalds and movie theaters, but the company is urging its retail customers to make the brand more widely available. As the total revenue, gross operating profit and total net income of the Coke Zero division since it was first introduced to the market in 2007 to 2010, the product has experienced an important growth of about the 100%, this means that it has doubled its total net income from $5. 9 billion in 2007 to $11. 9 billion in 2010. 2010 Total Revenue: $35. 2 billion Gross Operating Profit: $23. 9 billion Total Net Income: $11. 9 billion 2009[ Total Revenue: $30. 99 billion Gross Operating Profit: $21. 1 billion Total Net Income: $5. 8 billion 2008 Total Revenue: $31. 9 billion Gross Operating Profit: $21. 8 billion Total Net Income: $5. 8 billion 2007 Total Revenue: $28. 9 billion Gross Operating Profit: $19. 6 billion Total Net Income: $5. 9 billion 3. People Involved  : Elizabeth Finn Johnson, Senior Litigation amp; Employment Counsel for The Coca-Cola Company, joined Coca Cola’s Legal Division in 1990, and since approximately 1994, her practice has concentrated in employment discrimination litigation defense. She has defended Coca-Cola in a number of significant matters, including litigation surrounding Coca-Cola’s use of its polar bear in advertising and marketing, the race-based class action, and litigation under the Sarbanes-Oxley Act, among others, and since 2005 has been voted a Georgia Super Lawyer annually by her peers. In addition to her litigation expertise, Ms. Johnson also provides advice and counsel to the Company’s Supply Chain and Foodservice divisions in the areas of labor and employment. A graduate of Harvard University (cum laude 1982) and the University of Virginia Law School (1987) where she was Co-Executive Director of The Post-Conviction Assistance Project and a member of the Journal of Law and Politics, she serves on the Board of Directors of the Atlanta Bar Association Foundation, the charitable arm of the Atlanta Bar Association; on the Board of Directors of The Study Hall, a non-profit devoted to providing educational and enrichment opportunities to families and children in one of Atlanta’s poorest neighborhoods; on the Board of Directors of The Women’s Resource Center, a shelter for battered women and children, and on the Board of Directors of Street Law, Inc. an internationally known organization teaching about law and democracy around the world. She is a past-chair of The Coca-Cola Company Legal Division’s Pro Bono and Community Service Committee and is very active in pro bono activities. In the case presented in the chapter 8, Elizab eth Finn Jonson was one of the  victims of the fake sue that a couple of marketing managers, who were actualy actors, wanted to impose on Coke Zero? s developers claiming that the flavor of the new product was exactly the same as the Coca Cola Classic. Elizabeth Finn Jonson came to find out later that this was all part of an advertisement based on hidden camera videos that would be uploaded on he web. This way, consumers would get the message of Coke Zero having a flavor that was so much alike the Coca Cola Classic. Katie Bayne is President, North America Brands for  Coca-ColaNorth America. In this role, she is responsible for strategicmarketing, sparkling beverages, glaceau,  Minute Maid  juices, coffee, tea and  water,  diversity  business development and Latin Affairs in the United States. The Canada Business Unit also reports to Katie. Born in Perth, Australia, Katie joined the Company in August of 1989 in Atlanta as Assistant Brand Manager, Diet Colas. She progres sed through a series of brand management positions, including New  Products. In 1996, Katie relocated to Sydney, Australia to create a retail marketing arm for  Coca-Cola  South Pacific, and eventually was responsible for all customer/channel strategy in cold drink, foodservice and vending. She returned to the U. S. to lead North America  Marketing  for the McDonalds Group in 2000. In 2004, Katie rejoined the North America Operating Unit and has made significant contributions in a number of roles, including Senior Vice President Integrated  Marketing, Senior Vice President  Coca-Cola  Brands and Chief Marketing Officer for  Coca-Cola  North America, where she was responsible for strengthening the brands across the North America Brand portfolio. Each 8-ounce serving provides 15% of your RDI for niacin and vitamins B6 and B12, and 10% for zinc and magnesium. Coca-Cola found a huge problem into their company, because almost young men between the ages of 18 and 34 were abandoning the Coca-Cola brand altogether, because the principal reason was they didn? t want all the calories of regular Coke, because principal option for everyone was to lose weight. As we know there are many people fat in The United States, in every state in that country we can find this huge problem, because everyone prefer to eat like fast food every time, also they prefer drink a lot of soda in this case is a Coke, because the most important brand soda in The United Stated is The Coca-Cola Company. It company was looking for an excellent product for everyone, so it company thought â€Å"Coke Zero† would be an effective way to sell a low-calorie cola to men without using the word â€Å"diet†, after several time it made for Coke to finally create a product that tasted more like the real thing. Coke Zero was introduced in 2005 with a big marketing push, including an excellent commercial in the year 1971. Coke Zero was Coca-Colas biggest product launch in 22 years. It is primarily marketed towards young adult males and has even been nicknamed Bloke Coke in the UK. In the US, advertising has been tailored to its targeted market by describing the drink as calorie-free rather than diet, since young adult males are said to associate diet drinks with women. U. S. marketing has also emphasized its similarity in taste to sugared Coca-Cola through a 2007 U. S. iral marketing campaign that suggested the companys executives were so angry over the drinks similarities; they were considering suing their coworkers for taste infringement. Coke Zero was an immediate hit in Australia, selling more than three times the number of cases expected during its first year on the market. Actually Coca-Cola Company is investing more money in Coke Zero than any other brand its size. They think it kind of brand will someday be a megabrand for the company Coca-Cola Classic and Diet Coke. The Coca-Cola system is not a single entity from a legal or managerial perspective, and the Company does not own or control all of our bottling partners. While many view our Company as simply Coca-Cola, our system operates through multiple local channels. Our Company manufactures and sells concentrates, beverage bases and syrups to bottling operations, owns the brands and is responsible for consumer brand marketing initiatives. Our bottling partners manufacture, package, merchandise and distribute the final branded beverages to our customers and vending partners, who then sell our products to consumers. All bottling partners work closely with customers grocery stores, restaurants, street vendors, convenience stores, movie theaters and amusement parks, among many others to execute localized strategies developed in partnership with our Company. Customers then sell our products to consumers at a rate of 1. 7 billion servings a day. Coca Cola? s number one competitor is PepsiCo; their products can be found in nearly 200 countries around the globe. PepsiCo is a global food and beverage leader with a diverse product portfolio that includes 22 brands that each generates more than $1 billion each in annual retail sales. PepsiCo as we know is the competitor of The Coca-Cola Company at this time, because this company produces many products for the benefit of all consumers in the market today. Their products can be found in nearly 200 countries around the globe. PepsiCo is a global food and beverage leader with a diverse product portfolio that includes 22 brands that each generates more than $1 billion each in annual retail sales. PepsiCo as we know is the competitor of The Coca-Cola Company at this time, because this company produces many products for the benefit of all consumers in the market today. In the United States and Canada. Its U. S. brands include Pepsi, Mountain Dew, Sierra Mist, SoBe, AMP Energy, IZZE, Naked Juice, Propel, Mug, and Aquafina, among others. The company continues to innovate, creating new products, new flavors and new packages in varying shapes and sizes to meet the growing demand for convenience and healthier choices. Tropicana Products, Inc. , a division of PepsiCo, Inc. , is the leading producer and marketer of branded fruit juices Quaker brands have been around for over a century. They are symbols of quality, great taste, and nutrition. The researchers then took their findings into the lab, and scientifically formulated a new, precisely alanced carbohydrate-electrolyte beverage that would adequately replace the key components lost by Gator players through sweating and exercise. They called their concoction Gatorade. These companies more important that we as consumers have right now worldwide, each has excellent products to offer to all consumers in the market. In the market today, all companies have to keep innovating, creating new products to meet the needs of customers worldwide. And these companies are innovating every day to continue the business success they have today in the domestic and international market. 6. Strategies  : The Coca Cola Company is aware about the tendency of consumer becoming more health conscious and less willing to consume products with high quantities of sugar and fat. The company implemented a series of strategies in order to cope to the changing environment and be part of this worldwide tendency. The first strategy used by Coca Cola was introducing Diet Coke Plus, a sweeter version of the Diet Coke which is a soda low in sugar, with vitamins and minerals. for those who are health conscious, for those who are not looking for hipercaloric products, or for people who cannot consume sugar because of a certain medical condition. Even though the product was highly recognized, the company still needed to satisfy the needs of the young men market as their current products and promotion strategies were not appealing them. This way, the second strategy the company used was the instruction of the Coca Cola Black and the Full Throttle Blue Demon, which intended to appeal certain demographic groups among the men market. But there was still a segment that was abandoning the brand: Men between 18 and 34 wouldn? t start consuming Diet Coke as they had a feminine stigma about the product or because of its aftertaste. That is why the third strategy of the company consisted in introducing the Coke Zero, a still low calorie beverage with a better flavor that didn’t have a feminine stigma. The marketing push for this product was really strong, but it didn? t succeeded at the beginning. The final strategy implemented by the company consisted in the reintroduction of the Coke Zero in the U. S but this time with a black and silver label that would differentiate it from the Diet Coke. Even though the strategies mention finally worked when the company reintroduced a silver black label Coke Zero and it was able to create an important market share, an strategy that the company should have take in consideration is one that would attract different markets. For example, one of the reasons why many parents won? t let their children drink Coca Cola products is because of the high levels of caffeine and sugar it has, so in order to satisfy the children market the company should have developed a caffeine free product, besides from the low sugar and calorie existing ones. Another strategy could have been making campaign specifically directed to the young men. Because one of the characteristics of The Coca Cola Company is its ability to launch ads that people really get, but they didn’t seem to make use of this advantage in the young men market case. Questionnaire 1. Describe the specific type of consumer that the Coca Cola Company is targeting each of the following products: Diet Coke, Coke Zero, Diet Coke Plus, Coca Cola Blak, and Full Throttle Blue Demon. What type of demographic segmentation is each product? s marketing most likely to include? With the Diet Coke, the company is targeting those consumers who have developed a health concern. This low calorie and artificial flavor soft drink is directed to people who want to preserve their health, also for those who want to lose some weight, but it is mostly for women as the word â€Å"Diet† has some kind of feminine stigma. The type of demographic segmentation this product is most likely to include is age and gender. The Coke Zero is mainly directed to the segment of the market who at the time were not consuming any diet or low calorie soft drinks. As it doesn? t include the word â€Å"diet† it does not have a feminine or a wanting-to-lose-weight connotation. It is directed also to those who want a low calorie beverage but are not willing to sacrifice taste. The type of demographic segmentation this product is most likely to include is age and gender. The Coca Cola Blak target market are the older, more sophisticated consumers who enjoy caffeine and are willing to pay more for the product. The type of demographic segmentation this product is most likely to include is age, gender and income. The Full Throttle Blue Demon is targeted to a very specific demographic segment which is the Hispanic men, who enjoy energetic drinks and margaritas. The type of demographic segmentation this product is most likely to include is gender and ethnic. 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 such as Coke Zero will cannibalize lost market share from other soft drink categories instead of increasing the number of consumer overall. Which Coca Cola products are most likely to lose consumers to Coke Zero  ? What Coke Zero? s developers intended was to create a product with the exact same flavor (or at least a really similar one) of the Coca Cola Classic. The difference is only the amount of calories it has and the artificial sugar being used. In this order of ideas, what is most likely to happen is that as health concern is becoming or has already become a worldwide tendency, the Coca Cola Classic consumers would rather start consuming Coke Zero, if it? true that the flavor is almost exact. The other product likely to lose consumers to Coke Zero is the Diet Coke, as it also intends to satisfy a need of consuming beverages with no calories or no sugar, but Coke Zero has a plus and it is the flavor being more similar to the Coca Cola Classic than the D iet Coke. To sume up, Coke Zero satisfies the needs of both consumers of Diet Coke and Classic Coke. 3. Why do you think that the hidden-camera videos used to promote Coke Zero were an effective way to reach its target market? Do you think a similar strategy with a viral marketing campaign on the Internet would appeal to the target market for Diet Coke Plus? The hidden-camera videos used to promote Coke Zero were an effective way to reach its target market because what gives Coca Cola its value, that specific feature of the product that the customers care about is its unique flavor that can only be described as â€Å"Coke flavor† because it is unlike anything else. According to this, what might be the biggest concern of the company before launching the product was that maybe the target market would think about Coke Zero the same they thought about Diet Coke: that the flavor was not the same. That is why the hidden-camera videos were released in order to give the perception to the market that the flavor was so alike â€Å"the real thing† than there would even be sues about it. With the plus of Coke Zero having zero calories, and the advantage presented in this advertisings of the flavor being almost the same. A similar viral marketing campaign for the Diet Coke Plus would have been able to appeal the market as it made it worldwide through websites such as YouTube and others by creating some kind of advertisement that would let the audience know that the new Diet Coke Plus is not only a low calorie soft drink but it also preserves health. An idea would be making secret videos on hospitals were doctors would suggest their patients with diabetes or weight issues to drink Diet Coke Plus. 4) Do you think Diet Coke could have been repositioned to change consumer? s perceptions of it enough to be considered a drink equally appealing to men? Why or why not? Diet Coke is one of the most popular sugar-free soft drink in America. Its the original sparkling beverage for those who want great flavor without the calories a drink for those with great taste. An important step is Diet Coke have capitalized on the markets of people who require low sugar regimens, such as diabetics and people concerned with calorie intake. Anyways, most of the young men in the U. S do not like to consume Diet Coke because they associate the word â€Å"diet† with a feminine stigma. The goal is to make both genders feels the same satisfaction when drinking this Coke, and certain confidence when purchasing it, because it is a product that both male and female could and should consume. The word â€Å"diet† is focused for everybody whether male or female, but we have to look for the best alternative for men to see that it is a product in which anyone can drink that kind of soda as it is for the benefit for all customers worldwide. Is a product that is designed for worldwide use, and it is completely possible to change this stigma and perception by making campaigns that include the importance of consuming low calorie beverages, which would make men understand that it is not only a matter of wanting to lose weight, it goes beyond: it is preserving everybody? s health. It could also be made through advertisement. For example, by hiring worldwide known sports men or other male idols who might influence the young men about drinking Diet Coke, or also by making the brand a sponsor of