Marketing Case Study

PRODUCT: COKE ZERO

Submitted To: Prof. Suzzane Ross

SUBMITTED BY: JIJO FRANCIS (822-417-143)

5/9/2013
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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

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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.

In this case study we will be discussing about the market analysis, target

market, competitive analysis and positioning for Coke Zero.

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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.

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

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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.

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:

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 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

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

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the scheduling of basketball games and not the consumers who watches it. (the ads of the

world)

Strength Weakness

• Well known Brand • Negative publicity of product

• Loyal Consumers
• Dull maket performance in North
America
• Best marketing

• Wide distribution channel • High debt levels

SWOT
ANALYSIS

Opportunities Threats
• More consumption of bottled water • Strong competiton with rivals

• Growing demand for beverages • Dependent on bottling partners

• Large revenue growth • Scarcity of water

The market is expected to show continuous growth as consumer interest in the future years are shifting

towards more trendier and healthy beverages.

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III. TARGET MARKET

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.

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IV. MARKETING STRATEGIES

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.

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 Improvising the product: To improve the contents of the product and to increase the

flavors of the product.

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 PEPSI ONE DIET COKE

It is a product of It is one of the diet

Coca Cola It is a another product of
version of pepsi. It is
Company which Coca Cola Company
has no calories in a product of
it. which has less calories.
Pepsico.

Features: Features: Features:

0 calorie, 0g carbs & 0g sugar. 1 calorie, 0g carbs & 0g sugar. 0.4 calories, 0g carbs & 0g sugar.
28mg of Caffeine 36mg of Caffeine. 31mg of Caffeine
Splenda sweetner Sweetner used is Splenda Aspartame Sweetner

Benefits: Benefits: Benefits:

Has real taste of coca-cola & is a Physcological benefict of not Most Healthy beverage from Coca-
unique brand. having the word “diet” on the Cola Company.
product.

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Market Share

Coke
Diet Coke
Pepsi
Diet Pepsi
Others

Source: (business insider)

SUSTAINABLE COMPETITIVE ADVANTAGE (SCA):

COKE ZERO

Coke Zero
has got taste
of Coca Cola and
it has zero calories

PEPSI ONE
Consumers are sometimes not comfortable
with the term "diet" in their products. Pepsi
One is the right product for such consumers.

DIET COKE

Diet Coke is a low calorie beverage with several flavors according

to consumer's choice.

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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:

Low Calories

Pepsi One Diet Mountain Dew

Diet Coke, Coke Zero

High Caffeine Less Caffeine

Coke Fanta

Pepsi Sprite

High Calories

Source: (Blog Spot)

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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

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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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