Marketing Assignment - Coca Cola (Coke Life)

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Marketing Assignment

Answer-1 The Coca-Cola Company (TCCC) began a two-year initiative in the


month of June in 2013 related to the launching of Coke Life, a naturally sweet yet
carbonated soft drink having reduced level of sugar in it. Cola Life complemented
TCCC’s established product line having Coca-Cola, Diet Coke, and Coke Zero.
Talking about Cola Life so it substituted a portion of the sugar component with
stevia leaf extract and contained around 35 per cent less sugar than Coca-Cola
Classic. TCCC claimed that “Coke life is for the adult class who are looking for a
great taste in Coke but one that has fewer kilojoules and is having natural
sweetness in it.” When TCCC launched Coke Life, the market for the carbonated
soft drinks was very competitive and shrinking further; TCCC had its top brands
already being at a position in the market.

Internal factors leading to the decision were as follows:-

 Downfall in the company’s overall revenues and earnings before interest


and taxes had initially leaded to the launch of coke life.
 Need for revolution into the market sphere lead to the launch of coke life
as a product.
 To attract the adult section of the market who were especially looking for
drinks with natural sugar in it.

External factors leading to the decision were as follows:-

 Increasing health related problems such as obesity, tooth decay and


diabetes due to the consumption of sugary carbonated drinks.
 Other factors affecting the decision including political, social and economic
factors specifically.

Answer-2 As a product Coke Life was basically produced and launched into the
market with a viewpoint to target adults who were looking for a great-tasting
Coke but with a natural sweetened taste having lesser kilojoules. It claimed
around 35 per cent less sugar than the original Cola Classic. Cola Life was the first
branded coke product to use stevia leaf extracts into their drink. For concluding
the first part we can say that the Coca-Cola Life, The Coca-Cola family now after
the launch of Cola Life has something for every taste and variety.

Targeted Customer Segment- Adults preferring coke with natural sweetening


extracts in it. People who gave more emphasis to their sweet taste as far as the
individual health is being concerned. The main highlighting feature of Cola Life
was the addition of stevia leaf extracts into it. This particular point not only made
the drink safe alternative for sugary coke drinks but also one doesn’t need to
compromise with their health just for the sake of its taste. A health and customer
oriented drink targeted not only the naturally sweetened taste factor but also the
respective customers health concerns.

Answer-3 Talking about the value proposition part of the Coke Life consumers
who would enjoy the consumption of such a soft-drink which would be naturally
sweet and also was able to get it positioned as a healthier version of a normal
basic Coca Cola Classic drink available in the market. The basic point to be
highlighted here is the value creation for customers who would prefer taking less
sugar besides the basic taste of coke. Coke Life claimed to have nearly 35 per
cent less sugar content than classic coke variant. The main color chosen for Coke
Life is green with a small leaf representing the no calorie stevia leaf. Not only has
this TCCC also created eco-friendly bottles with recycling benefit attached with
them. Also, they had launched an Ad campaign for coke life. The ultimate aim or
tagline for coke life would be adding of nutritional value to taste but naturally.

Answer- 4 TCCC launched their products worldwide starting from United Kingdom
in August 2013 to Argentina in November 2013. In addition to the aforesaid
countries they also launched their products in other giant developed counties of
the world like Japan, Switzerland, Australia and New Zealand lastly.

 Marketing point of view – Launching of multimillion-dollar communication


campaign across multiple channels through the medium of television,
cinema, print, digital, public relations and sampling techniques. For
example during its launch in Austria the brand literally used a local saying
like “Let life surprise you” to get more customer engagement. TCCC made
full efforts to make the availability to all of its customers so far. As a part
under communication campaign.
 Pricing point of view- Pricing strategy followed by them varied accordingly
from one country to another. Specifically in Australia coke life was able to
maintain its monotonous pricing strategy in comparison to other TCCC
products. Whereas in UK Coke Life started at a lower price in comparison to
the diet coke sector and eventually was set on a higher price level than diet
coke.33
 Distribution point of view- TCCC basically used its indirect channels that
were bottler to distributor, distributor to merchant, and merchant to
consumer to make the distribution channel organized the distribution of
coke life, through main routes of being a supermarket and general
merchandisers.

Answer-5 In the year 2013, when Coke Life got introduced into the market, the
sales of TCCC had dropped from about 2.4 per cent rate in comparison to that
percent in the previous year of 2012. Talking about the reasons for this
downfall would be, first Coca Cola had increased the price of Cola Life by
around 25 percent which proved to make the drink quite expensive and not
easily affordable to the middle section of the society. Also, gradually public as
customers got to know about some unseen facts that how this drink isn’t
healthy as much as the company claims it to be. The sales also started
declining majorly due to the criticism faced over some individual quarters for
its positioning as a healthy less sugary coke drink.

Talking about the ethical point of view-

 The color of the packaging was done in green color showing the
natural extracting part of the product.
 The curve of Coke Life was much flattened in comparison to that of
Coke Diet or Coke Zero drinks.
 The stevia leaf background in the UK.

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