FAILURES

Presented by: Saroj R - 12

In April 2004, Coca Cola India (Coke) had launched Vanilla Coke, Coke's first flavor extension in India.

The concept of ice-cream floats in cola was quite common in urban restaurants in India.

Vanilla Coke targeted urban teens and young adults (12 to 29 age group) in the high and middle income groups

The response to the product was good in south east Asian market like Bangkok & Hongkok which encouraged the co. to think that it would kick off in India too.

Blind tests done before launching Vanilla Coke revealed that consumers will like the taste

It carried the tag line Ice Creamy Thanda.

The India campaign took a cue from the "hip-hop" commercial used in Hong Kong, where it had been successfully launched earlier.

The 60-second ad was played on youth-centric channels like MTV, Channel [V], HBO and AXN and even regional channels like Sun TV. With a retro-Bollywood theme, the ad urged consumers to "try something new and different", in classic 1970s style.

Consumers also did not like the taste of Vanilla Coke.

The campaign was not targeted at the right segment. For teenagers , as they not seen the old stars so could not easily relate the old characters and the concept. The brand may have lost out in that respect.

The brand was priced at a premium over the ordinary coke.

'Irrelevant' advertising was cited as one of the reasons for Vanilla Coke's failure

Wrong positioning & mismatch of target group and communication.

Commercial itself was out of context and had no connection with Coke as a brand.

Vanilla Coke comes under DOG.A product that has not worked good or a product which has been a source of loss. Vanilla coke is one product that was not a big hit. Even its not a long period which Vanilla coke has consumed but still there are signs that it wont be a success. So its better for the company to get rid of it. 

BCG Matrix

Suggestions to improve sales of Vanilla CokeSuggestions to improve sales of Vanilla Coke

Company may have gone for Alpha testing (i.e. testing within the firm to see how it Performs) & beta testing (i.e. enlisting a group of customers to use the prototype & Give feed back)

Perform a detailed demand survey at regular intervals to know about the unique needs & requirements of the customer.

The company should make hindrance free arrangement for its customers/retailers to Make any feedback or suggestions as & when they feel & try to solve it without delay to establish its own good credibility.

should have planned the Ad campaign by taking in a celebrity inits ad campaigns.

The Ad campaign should have been associated to Coke

The pricing strategy should have been penetration i.e.. should have entered the market with low pricing as they were launching a new concept in the soft drink market.

The Target audience should have been children in the age group of 12-20 & ladies as it was more of a light flavors & for higher group they had coke.

They should have also made this product more attractive for retailers by offering them some discounts on these vanilla cokes as they play a major role in boosting up of sale of soft drinks.

Suggestions Contd…Suggestions Contd…