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Marketing Case Study for Coke Zero
Citation preview
5/9/2013
PRODUCT: COKE ZERO
GBMP 502
TABLE OF CONTENTS
I. INTRODUCTION……………………………………………………………… 2
II. MARKET ANALYSIS…………………………………………………………. 3
III. TARGET MARKET……………………………………………………………. 7
IV. MARKETING STRATEGIES……………………………………………….. 8
V. COMPETITIVE ANALYSIS …………………………………………………. 9
VI. POSITIONING…………………….……………………………………………. 11
VII. CONCLUSION…………………………………………………………………… 12
VIII. BIBLIOGRAPHY………………………..………………………………………. 12
Marketing Case Study 1 | P a g e
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I. INTRODUCTION
Most of the people from all over world consume Coca Cola products. Coca Cola is one of the
world’s biggest manufacturers and distributor of non alcoholic beverages. Coca Cola Company
aims at refreshing the mind, spirit and body of the consumers worldwide. It manufactures a
variety of soft drink products which includes carbonated beverages, coffee, juices and tea.
Coke Zero or Coca Cola Zero is one of the products of Coca Cola Company. This product is for
those customers who prefer diet drinks. Coke zero promotes happiness, optimism and health
awareness within the customers. The preservatives and sweeteners used in Coke zero differs
with the market. They even launched vanilla and cherry flavors of Coke Zero. Coke Zero is now
already a favorite product among the youth because it claims the taste of Coca Cola with very
less calories.
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In this case study we will be discussing about the market analysis, target market, competitive
analysis and positioning for Coke Zero.
II. MARKET ANALYSIS
The different macro-environmental factors that affect the industry include competitive,
regulatory, economic, socio-cultural, technological, natural environment and demographics
factors. The marketing strategy of the company changes along with these environmental
factors.
Competitive factors: Coke Zero is one of the largest and well known brands for carbonated
beverages. Its major competitors are Diet Pepsi, Diet RC, Tab and diet Mello Yello (cross word
nexus). In spite of having these rivals coke zero is still preferred by the customers since
everyone prefer zero calorie than a product claiming less calories. (Against the grain)
For example, Pepsi one couldn’t top Coke Zero. Brand image, product
quality and refreshing taste of Coke Zero helped it to keep its
competitors at the bay. Competition is not a problem for Coke Zero
when compared to others.
Marketing Case Study 3 | P a g e
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Regulatory factors: The political/regulatory factors can affect the price and the sales of the
product. The price of product varies in different regions depending upon taxes, trade
restrictions and other laws. For example, sales of Coke Zero are not allowed in North Korea and
there are several laws which restrict the sales of Coke products in China. (weebly)
Economic factors: Coca Cola Company is a multi national company and it’s operating in more
than 200 countries. Most of the Coca Cola companies get their raw materials locally; still the
company is affected by the change in economic factors like economic growth, exchange rates,
inflation, etc. For example if China’s economy falls then it will affect the Coca Cola Company,
because a major part of its operations are in China. (weebly)
Socio-cultural factors: Consumers choose their beverage based on several factors like income,
prices, promotions and preferences. A product chosen also depends up on age, race, education
and ethnicity. The social and cultural factors affect the consumers need, as well as the size and
nature of the market. The socio-cultural factor doesn’t affect the usage of Coke Zero because of
its quality. The product is popular among people from all over the world due to the product
quality and availability. Now most of the people consume food and drinks
from outside and most of the offices as well as educational
institutions have canteens or vending machines for getting Coke
Zero.
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Technological factors: Technological factors can affect the manufacturing, packaging and
distribution of products. Company relies heavily on the technology for the sales of its product,
especially:
Designing of cola bottles and cans.
Improvising product contents.
Manufacturing and transportation of products.
Recycle the cola bottles.
Natural environment factors: This includes the weather conditions and season which affects
the consumer’s consumption. For example it is not common to consume coke zero or any other
cool beverages during a cool climate.
Demographic factors: Consumers choice varies along with their region and the company knows
it very well. It offers different flavors and sizes of product as needed by the customers.
Facts & future sales trend for Coke Zero:
Coke zero is now widely used as a breakfast beverage. Future market share might slightly be
changed by the new research results which show that diet sodas are increasing diabetes in
consumers. But Coke zero will be declining the content of caffeine in it thus improving the
product. Within 4 to 5 years, Coke Zero will have the second position as the largest beverage
brand in the market. Coke Zero is expected to overtake Diet Coke soon. (Ad Age) Coke zero is
Marketing Case Study 5 | P a g e
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conducting several advertisements which support consumer’s choice and health; thus indirectly
winning the hearts of the consumers. For example one of the Coke Zero advertisements blames
the scheduling of basketball games and not the consumers who watches it. (the ads of the
world)
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The market is expected to show continuous growth as consumer interest in the future years are shifting
towards more trendier and healthy beverages.
III. TARGET MARKET
Marketing Case Study 7 | P a g e
Strength
Well known Brand
Loyal Consumers
Best marketing
Wide distribution channel
Weakness
Negative publicity of product
Dull maket performance in North America
High debt levels
OpportunitiesMore consumption of bottled water
Growing demand for beverages
Large revenue growth
ThreatsStrong competiton with rivals
Dependent on bottling partners
Scarcity of water
SWOT ANALYS
IS
GBMP 502
The main target market is athletic or energetic youth starting from age group of 20 to 35yrs.
Youth are the favorite consumers of Coke Zero. Its quality, trend, design and taste attract
people of all ages. New customers are gained from the existing ones. Most of the consumers
are attracted by the brand name and they are loyal. There is no need for the company to focus
on the demographic factors since the products are available according to consumer’s need. This
product is suitable for people of all ages. Over the past few decades the Company has been
focusing on the secondary target market based on psycho-graphic factors of consumers (i.e.
health consciousness). Consumers look for a change or innovative products. Media advertising
can thus greatly influence the target market. Especially through television broadcasts and
internet websites like YouTube, Facebook and Twitter. Coca-Cola Zero now uses athletes to act
for its new campaigns. This is really effective since the fans will love it and will successfully
reach out to the target market. (marketing )
Thus we can say that Coke Zero is focusing on the target market using the criteria’s like
Demographic factors, Behavioral factors, Psycho-graphic factors and
consumer preferences.
IV. MARKETING STRATEGIES
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According to the facts and trends which selects the target market the main marketing strategies
for the upcoming years are:
Use of more campaigns: Conduct more campaigns to keep the consumers engaged.
These activities include marathon, camping, hiking and other games. Some examples
are:
o Coke Zero Game.
o Hypnosis show. (duval guillaume modem)
o Free 'Skyfall' Tickets to the most James Bond like people at a train station.
o Cool mobile applications with chatting facilities and games.
o Coke Zero Short Film Competition 2012.
Online advertisements and promotions: These include attracting the consumers using
online advertisements and promotions in social networking sites.
More positive publicity: To provide more positive publicity by conducting several
outdoor exhibitions and activities.
Improvising the product: To improve the contents of the
product and to increase the flavors of the product.
Marketing Case Study 9 | P a g e
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V. COMPETITIVE ANALYSIS
The two major competitors of Coke Zero are Pepsi One and Diet Coke. The table below
shows the difference between the products. Sources: (coke info) (pepsi world)
COKE ZERO
It is a product of Coca Cola Company which has no calories in it.
PEPSI ONE
It is one of the
diet version of
pepsi. It is a
product of
Pepsico.
DIET COKE
It is a another
product of Coca Cola
Company which has
less calories.
Features:
0 calorie, 0g carbs & 0g
sugar.
28mg of Caffeine
Splenda sweetner
Features:
1 calorie, 0g carbs & 0g
sugar.
36mg of Caffeine.
Sweetner used is Splenda
Features:
0.4 calories, 0g carbs & 0g
sugar.
31mg of Caffeine
Aspartame Sweetner
Benefits:
Has real taste of coca-cola &
is a unique brand.
Benefits:
Physcological benefict of not
having the word “diet” on
the product.
Benefits:
Most Healthy beverage from
Coca-Cola Company.
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Source: (business insider)
SUSTAINABLE COMPETITIVE ADVANTAGE (SCA):
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Coke Zero has got taste
of Coca Cola and it has zero calories
Consumers are sometimes not comfortable with the term "diet" in their products. Pepsi
One is the right product for such consumers.
Diet Coke is a low calorie beverage with several flavors according to consumer's choice.
Market Share
CokeDiet CokePepsiDiet PepsiOthers
COKE ZERO
PEPSI ONE
DIET COKE
GBMP 502
VI. POSITIONING
Diet Coke, Coke Zero and Pepsi one has got low calories and high caffeine when compared to
Fanta and Sprite. We can also see that Coke and Pepsi have got high caffeine and high calories
when compared to Diet Mountain Dew.
PERCEPTUAL MAP:
Pepsi One Diet Mountain Dew
Diet Coke, Coke Zero
Coke Fanta
Pepsi Sprite
Source: (Blog Spot)
Marketing Case Study 12 | P a g e
Less Caffeine
High Calories
High Caffeine
Low Calories
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VII. CONCLUSION
It can be been seen that Coke Zero is widely used by consumers because it is
healthy, tasty and popular brand of beverage. Now people are giving more
importance to health rather than consuming high calorie food items and
beverages. Most of its consumers are loyal and Coke Zero over other diet
sodas. Several campaigns and activities launched by Coke Zero have also drawn attention of
several youth. Coke Zero is a successful product since it is used worldwide and its target market
is always stable.
VIII. BIBLIOGRAPHY
(n.d.). Retrieved from weebly: http://thecocacolacompany-sabrinayang.weebly.com/pest.html
Ad Age. (n.d.). Retrieved from http://adage.com/article/global-news/coke-position-leapfrog-coca-cola-light-europe/237751/
Against the grain. (n.d.). Retrieved from http://jonmichaeli.com/blog/2009/01/28/coke-zero-vs-pepsi-one-a-marketers-perspective/
Blog Spot. (n.d.). Retrieved from http://sindhuyoga.blogspot.ca/2009/06/positioning-strategy-of-coca-cola-zero.html
Marketing Case Study 13 | P a g e
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business insider. (n.d.). Retrieved from http://www.businessinsider.com/the-difference-between-coke-and-pepsi-2012-12
coca cola company. (n.d.). Retrieved from http://www.coca-colacompany.com/stories/economic-opportunity
coke info. (n.d.). Retrieved from http://www.coca-colacompany.com/
cola market share. (n.d.). Retrieved from http://www.statisticbrain.com/coca-cola-company-statistics/
cross word nexus. (n.d.). Retrieved from http://www.crosswordnexus.com/clue/coke-zero-competitor
duval guillaume modem. (n.d.). Retrieved from http://www.duvalguillaume.com/news/2013/coca-cola-explores-taste-under-hypnosis
marketing . (n.d.). Retrieved from http://www.marketingmag.ca/news/marketer-news/coca-cola-zero-turns-athletes-into-actors-in-new-campaign-77780
pepsi world. (n.d.). Retrieved from http://www.pepsiworld.com/
the ads of the world. (n.d.). Retrieved from http://adsoftheworld.com/media/tv/coke_zero_its_not_your_fault_schedules
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