coca cola zero - brand extension analysis
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World’s Leading Nonalcoholic Beverage Company
Winning the marketplace!
Coca Cola Holds Leadership Positions Across Key Categories
… and geographies
Coca Cola’s Sustainability
Initiatives
COCA-COLA ON SOCIAL
How Coke Zero Became a Hero
25+ Semi - Athletic Male
Those who are a bit aware of calorie consumption
Who want to be the game changer
And… Likes to push the limit and have fun
The Target Group
During the Past Two Years, the Topline Growth has Decelerated for Coca Cola
Industry deceleration driven by emerging markets
Coca-Cola Zero’s key markets:
Brazil (US$864 million rsp)
Argentina (US$131 million)
Other markets recorded sales between S$10 to US$40 million.
This is very alarmingly.
Forecast of Carbonates sales in India (in mn litres)
2,555.5
Carbonates sales in 2014 in India: 2555.5 mn litres
Market share of Coca Cola in Carbonates
Major competitor is PepsiCo Inc with a market share of 33.8% in 2014
Product
To satisfy demands for more choice from today’s globally networked consumers
Price
Aggressive pricing policy
Competitive pricing strategies
Same as the rest of the drinks of that categories
Psychological pricing Penetration pricing
300 ml can for INR 30 600 ml PET for INR 35 INR 10 glass bottles
Endorsed by Farhan Akhtar
'Great Coke Taste, with Zero sugar'
Promotion
The brand made a big splash on the big screen and online!
Coca-Cola New Zealand pioneered the black packaging Coke Zero is known for!
Coke Zero debuted in the U.S. in white packaging
Some of the first bottles of Coke Zero were sold on eBay in April 2005
A giant “drinkable” billboard at the 2015 NCAA Final Four
Strong network of over 2.2 million retail outlets; 100 towns
Place
Bottling plant in various major cities of India
Own Transportation fleet to support the nooks & corners of India
Trained retailer, distributor through direct orindirect training programs
HUB AND SPOKE DISTRIBUTION strategy
Positioning
Perfect symbol of the new Indian
Young, global, aspirational and at the same time classic at the core
(Demographic, Psychographics segmentation)
Same Classic Coke and taste but no sugar added
Farhan Akhtar represents the new global Indian, a well
travelled yet rooted individual who is confident of his choices
Company is focused on initiatives that support active, healthy living
Coca-Cola Zero is aimed at building Coca-Cola’s brand
Competitors
Other diet sparkling drinks and health drinks
Coca-Cola’s marketing strategy has always been to associate happiness
Coca Cola Zero helps to add customer based brand equity
Brand Resonance Model for Coca Cola
Brand Resonance Model for Pepsi
Coca Cola Zero sweetened with a blend of low-calorie sweeteners while Diet Coke is sweetened with aspartamePepsi Max contains more caffeine than Coca Cola Zero
Coca Cola and Pepsi: Brand Mantra, POP and POD
The most repeted and relevant words for Coca Cola are :-Sharing-Happiness-Tasty
For Pepsi it was :-Young-Celebrities-Fresh-Sport
While Juice brands will be considered more healthyPeople are gradually moving to health drinks
Perceptual Map
Fun
Serious
Ver
y sw
eet
No
t so
sw
eet
By plotting the perceptual map, we can see that coca cola zero has a right balance.Pepsi max with a right positioning serves as a competitor of Coca Cola Zero
Perceptual Map
Strong Caffeine
No Caffeine
No
t so
sw
eet
Ver
y sw
eet
Caffeine vs sugar content
Perceptual Map
Low engagement
High engagement
Hig
h B
ran
d A
sso
ciat
ion
Low
Bra
nd
ass
oci
atio
n
As an organisation
Let’s Recap!
Used innovative brand promotions for Coca Cola Zero
- strong brand recall and brand association
Coca Cola is an established brand name that people love
Introduced Coca Cola Zero, which though didn’t help in increasing the profits directly much, but
increased the brand equity
• http://www.coca-colaindia.com/
• http://www.coca-colaindia.com/coke-zero-became-hero-10-facts-know/
• http://assets.coca-colacompany.com/00/d9/fde578f54667aa7633361e030628/deutsche-bank-2015-presentation.pdf
• Euromonitor International: Soft Drinks in 2014: Products, Performance, Prospects
• Coca-Cola’s Coke Zero Faces Challenges in India
• Coca-Cola Co, The in Soft Drinks (World)
• http://www.portal.euromonitor.com/portal/analysis/tab
• http://www.portal.euromonitor.com/portal/statistics/rankcountries
• http://www.coca-colacompany.com/stories/5by20
• http://www.coca-colacompany.com/sustainability/
• http://www.coca-colacompany.com/press-center/image-library/
• https://www.linkedin.com/in/sameermathur
• http://www.coca-colaindia.com/coca-cola-zerotaste-believe/
• http://www.bestmediainfo.com/2014/11/coca-cola-zero-assures-zero-change-in-taste/
• http://www.dailymail.co.uk/indiahome/indianews/article-2762975/Farhan-Akhtar-launches-Coke-Zero-New-Delhi.html
• http://www.thehindu.com/business/Industry/cocacola-brings-zero-to-india/article6427274.ece
• http://elbaz-coca-cola.blogspot.in/2011/11/ch-8-segmenting-and-targeting-markets.html
• https://cokevspepsibm2013.wordpress.com/2013/12/06/coca-cola-and-pepsi-brand-mantra/
• https://cokevspepsibm2013.wordpress.com/2013/12/07/how-pepsi-and-coke-are-perceived-by-consumers/
• http://www.perceptualmaps.com/map-format/
Prof. Sameer Mathur
Indian Institute of Management, LucknowMarketing Professor: August 2013 – Present
McGill University
Marketing Professor: July 2009 – July 2013
Carnegie Mellon University
Ph.D. in Marketing : August 2003 – June 2009
Poem Kabra
Indian Institute of Management, LucknowMBA Student