Coca-Cola Company is one of the widely known soft drink company in the world and ranks among the largest corporations in the US. It is the largest beverage company, largest manufacturer, distributor, and marketer of non-alcoholic drinks in the world. Currently, there are about 400 different brands offered by Coca-Cola in more than 200 nations around the world (Chu, 2020). In recent years, one of the Coca-Cola brands, Coke Zero, was introduced into the market to target its health-conscious consumers. As a sugar-free version of Coca-Cola that has an identical taste with the normal brand, Coke Zero targets consumers who would wish to enjoy the sweet taste of the soft drink while checking their calorie intake. The product targets 18-24-year-old males who are concerned about their health and weight and do not want to take products that are linked to dieting (Sarich et al., 2015). The introduction of a product with the Coca-Cola taste and zero calories aimed to mend the perception that Coca-Cola drinks are unhealthy.
Coca-Cola Zero is branded as a healthy alternative to Coca-Cola Classic that is not linked to dieting. The product is categorized into carbonated soft drinks with low and no calories. Therefore, the product is positioned to target young males who are motivated by a belief in what they can achieve and are driven by an impatience with the status quo (Sarich et al., 2015). In other words, Coke Zero offers these young males the opportunity to be guys, allowing them to freely enjoy everything. Therefore, unlike Diet Coke, which is associated with dieting, Coke Zero is positioned as a product that refreshes, quenches, and brings joy despite being a healthier drink. The positioning of the brand is to associate it with having fun with close friends and families and enjoying everyday life despite having zero calories. Unlike other healthy soft drinks that have unappealing flavor, Coke Zero has the real Coca-Cola taste, which goes against the idea that healthy soft drinks cannot be sweet. The introduction of Coke Zero in the low and no calorie drink category has therefore proved that healthy soft drinks could be enjoyed by everybody.
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Coke Zero faces both internal and external competition. Internally, Coke Zero faces stiff competition from Diet Coke (Mayureshnikam, n.d.). Just like Coke Zero, Diet Coke is a healthy soft drink that primarily focused on people who are dieting. Consumers who were more interested in dieting tend to prefer Diet Coke since they were already accustomed to its taste. Therefore, when this group of consumers tries the relatively new Coke Zero brand, it does not appeal to their senses. Elsewhere, Pepsi, which is the primary Coca-Cola company competitor, has also produced various healthy soft drinks that fall in the category of low and no calorie soft drinks (Mayureshnikam, n.d.). Pepsi Max, a low-calorie, sugar-free soft drink that is marketed as an alternative to normal Pepsi drink, offers competition to Coke Zero. As a product that maximizes taste and minimizes sugar, it can be a substitute for Coke Zero. Pepsi also makes Diet Pepsi, a no-calorie cola soft drink with a light, crisp taste. Diet Pepsi penetrates the target market of health-conscious consumers. Aside from contemporary healthy soft drinks, Coke Zero also faces competition from various juice brands, such as Del Monte and Ceres (Mayureshnikam, n.d.). The natural fruits produced by these brands are preferred by a significant part of the population. Furthermore, the normal version of the low and no calorie drink categories, such as Coca-Cola Classic and Pepsi, offers stiff competition, especially among the young population that is not entirely into healthy habits.
Coca-Cola company can adopt multiple marketing strategies to facilitate the success of the Coke Zero brand. Coca-Cola company has developed a strong brand that is recognized worldwide. As a result, the company’s brand is its biggest competitive advantage. Brand loyalty among its customers can help the company market the Coke Zero brand more successfully (Sarich et al., 2015). The organization should, therefore, opt for sustained marketing effort and innovative marketing techniques to help it popularized the Coke Zero brand. Elsewhere, according to the Ansoff Matrix, market penetration is the most appropriate market strategy, especially since Coke Zero has been in the market since 2006 (Sarich et al., 2015). The market penetration strategy can be used in various ways, including product appearance, pricing, promotional effort, and places where the brand can be purchased. The market penetration approach will help ensure continued growth by ensuring continued use of the product by current users, the acquisition of new customers, and increasing their purchase frequency (Sarich et al., 2015). To ensure the long-term success of the Coke Zero brand, Coca-Cola company must be consistent in conducting its marketing campaign, capitalizing on its strong brand.
In summary, Coke Zero is one of the more than 300 different Coca-Cola brands. The healthy soft drink, which is categorized into low and no calorie drinks, has recently acquired popularity, particularly among the healthy-conscious consumers. Unlike Diet Coke, Coke Zero maintains the real taste of Coca-Cola Classic and thus appeals to the male consumers who do not wish to associate with dieting. Despite the internal and external competition, the Coke Zero brand has achieved growth thanks to the mix of marketing strategy that combines a brand strategy and a market penetration approach. Coke Zero continues to record a growth in sales due to its consistent marketing campaign and the capitalization of its strong global brand.
References
Chu, B. (2020, November). Analysis on the Success of Coca-Cola Marketing Strategy. In 2020 2nd International Conference on Economic Management and Cultural Industry (ICEMCI2020) (pp. 96-100). Atlantis Press.
Mayureshnikam, V. V. P. (n.d.). Marketing Strategy of Coca Cola. IOSR Journal of Business and Management. e-ISSN: 2278-487X.
Sarich, R., Zaman, R., & Misra, C. (2015). Discussion and analysis of the marketing strategy of Coke Zero in the US market. MERICI , 45.
