case study marketing
A
SE
A
S
SI
G
N
M
E
N
T: COKE ZERO
.
l
fen
D
r
i
n
k Diet
Coke?
a
cou
p
l
e of
ma
r
k
et
in
g mana
g
e
r
s
for Coca-Cola told attorney Elizabeth Finn Johnson that they wanted to sue their
Z
ero
c
oll
e
a
g
ues
for
“ta
ste
i
n
fr
i
nge
m
ent
,
”
she was baffled
.
She tried to talk them out of it
,
but they were determined.
T
h
ey a
rg
u
ed tha
t
Co
ca-Cola Cl
as
s
i
c
shoul
d be protected from the age discrimination it
w
ould suffer
w
ith the introduction
of
a n
e
w
e
r
, y
oun
g
e
r
so
ft
drink th
at tas
t
ed
e
x
actl
y
the same as the original
.
Frustrated
,
Finn Johnson held up the Coke can
s
h
o
u
ted
,
“
It’
s
no
t
a perso
n! T
it
le V
II
do
e
s
n’
t cover these things!
“
Wh
at
sh
e didn
‘
t
k
no
w
wa
s
th
at the
marketing managers were actors. Hidden cameras had been planted around
me
e
ti
ng roo
m
t
o capt
u
r
e the react
i
ons o
f several unsuspecting attorneys who had been asked to consider the case
,
inclu
d
i
n
g
an i
mm
ig
r
ati
on
l
a
w
y
e
r
w
ho
w
a
s
a
s
ke
d if he could get the Coke Zero marketing head deported back to Cana
d
a
.
T
h
e sh
ort vi
d
e
os
we
r
e st
r
a
te
gi
c
a
ll
y
p
l
aced on w
ebsites like YouTube.com to promote Coke Zero as the hip
,
new
a
lt
ernativ
e
t
o D
i
et Co
ke f
o
r me
n
.
T
he C
oc
a
–
Co
la Compa
n
y
k
now
s
i
t has
to be creative if it
‘
s going to
s
ell more soda after sales dropped two years
i
n
a row i
n
2
00
5 a
n
d
2
0
06
.
M
org
a
n
S
t
a
n
l
e
y
a
n
al
y
st Bill Pecoriello explains, “Consumers are becoming ever more health
–
nsc
io
us
,
an
d
the
imag
e o
f
re
g
ul
ar c
a
r
b
on
at
ed
so
f
t drinks is deteriorating rapidl
y
.
”
In an attempt to appeal to consumers
con
cer
ne
d
w
i
th
n
ut
ri
t
i
o
n,
C
o
k
e
i
n
tro
d
u
ced
D
i
et
C
oke Plus in 2007
,
a sweeter version of Diet Coke fortified with vitamins
an
d m
i
n
eral
s.
Bu
t wh
a
t
t
he
y rea
lly
needed
w
as a w
a
y
to reach young male consumer
s,
and Diet Coke Plus
,
marketed with
o
l
i
ne
s li
k
e
“
Y
our Bes
t F
r
i
e
nd J
u
s
t
Go
t
Fri
end
l
ier!” wasn’t going to do it
.
A f
e
w
n
ew
produ
c
t
s
ap
p
e
a
l
e
d
t
o cert
ai
n male demographics, such as Coca
–
Cola Blak
,
a cola with coffee essence
cr
eat
ed f
or
ol
der
,
mor
e s
op
hi
s
ti
c
at
e
d
c
on
s
u
m
e
r
s w
ho are willing to pay more
,
and Full Throttle Blue Demon
,
an energy
d
r
i
nk w
it
h a
n
aga
v
e azule
f
lavor
(
t
h
i
n
k
m
a
r
ga
r
i
ta
s
)
designed to appeal to Hispanic men
.
However
,
research showed that
i
e
r
e w
as
s
t
i
ll
a b
i
g de
m
og
r
a
ph
i
c
h
o
l
e
t
o
f
i
ll
a
s
y
oung men between the ages of 18 and 34 were abandoning the Coca
–
Col
a b
r
a
n
d alt
og
et
her
.
T
he
y
d
i
d
n
‘
t w
a
nt
a
l
l
t
h
e ca
lo
r
ies o
f
regular Coke, but they weren
‘
t w
i
lling to make the move to
D
i
et
Cok
e
,
eith
er
,
w
h
ich
has
t
rad
iti
ona
lly
been
m
ark
e
ted to women who want to lose weight
.
Kat
ie
Ba
y
n
e
,
c
h
i
e
f m
ar
k
e
tin
g
o
f
fi
cer f
or Co
ca-Cola North America
,
says that the men who weren
‘
t put offby the
=
f
emi
n
i
n
e s
t
igm
a
”
of D
i
et
Co
k
e
of
ten
re
j
e
ct
ed
i
t
an
yw
a
y
because of its aspartame
–
sweetened aftertaste.
“
What we were
see
i
ng
bef
ore
Zero launc
hed
w
a
s
tha
t
m
or
e a
n
d m
o
r
e
y
o
unger people were interested in no
–
calorie beverages but weren’t
goi
n
g
t
o
s
acr
i
f
ice
t
as
t
e
,”
Ba
y
ne
sa
i
d
.
“
S
o
wh
e
n th
ey g
ot
i
nterested in no-calorie, they were like, ‘Forget it, I
‘
m not going
l
l
D
i
e
t
Co
ke
.
“
s
t
ing sho
w
ed tha
t the na
m
e
“
C
ok
e
Z
er
o
”
w
o
uld be an effective way to sell a low
–
calorie cola to men without
. g
t
h
e w
ord
“
d
i
et
.
” A
nd ad
va
n
ce
s
i
n
a
r
t
i
f
ic
i
a
l
s
w
ee
teners made it possible for Coke to finally create a product that
t
a
s
t
ed
m
or
e
l
i
k
e
t
he
“
Real Th
i
n
g
.
”
S
o e
xpec
t
at
i
ons w
e
re
high when Coke Zero was i
n
troduced in 2005 with a big
mark
e
ti
ng
push
,
i
ncluding a com
merci
al
t
ha
t rem
ad
e t
h
e f
a
m
ous 1971 “Hilltop
l
I’d Like to Teach the World to Sing
”
ad
–
thi
s t
i
m
e
w
ith
rapper G
–
Love on a r
ooft
op sing
i
ng
that h
e’d like to teach the world to
“
chill.
”
Unfortunately
,
the
comm
erci
al
d
i
dn
‘
t catch on
,
and n
eith
e
r d
id the p
r
od
u
ct
i
t w
as selling.
Desp
i
te
disappointing sal
e
s in
the
U_
S
.
,
how
e
v
e
r
,
C
o
k
e Zero was a
n i
mmediate hit in Australia
,
selling more
th
an th
ree ti
mes th
e number of cases e
x
p
ect
ed d
u
rin
g
i
ts
f
i
r
s
t y
ear on the market
.
In the U.S
.,
the packagi
n
g was white
si
l
v
er
,
m
aki
ng it difficult for consume
rs
to s
e
e
th
e
d
i
ffe
re
n
c
e
b
et
w
een Coke Zero and Diet Coke
.
In Australia, the
es an
d ca
ns w
ere black, making the pr
od
u
c
t
s
t
an
d o
u
t on
t
he
s
he
lv
e
s
and look more like the “bloke’s Coke” it was
i
nten
ded t
o b
e
.
Th
e
U
.
S
.
marketing team took notice
and re
i
n
t
r
odu
c
ed
Coke Ze
ro
w
ith a black and silver label in 2007
.
Coca-
Co
l
a
i
s n
o
w
i
n
ve
sting more money in Coke Zer
o than a
ny
o
t
h
e
r bra
n
d i
t
s
s
i
z
e
,
ho
ping i
t
will someday be a megabrand for
th
e c
o
mp
a
n
y
al
ongside Coca
–
Cola Classic and D
i
e
t
C
o
k
e
.
C
h
i
e
f
Ma
r
k
e
ti
ng
O
f
f
i
c
e
r
Ba
y
ne
i
s enthusiastic about the impact
–
may h
av
e
o
n
t
he company.
“
We do see this a
s
po
t
e
n
t
ial
l
y
a b
i
t ofa
w
h
i
t
e knig
h
t
.
There’s huge opportunit
y
to gro
w
h
e
r
e.
“I
CASE:COKE
.
Describe the specific type of consumer that the Coca-Cola Company is targeting with each of the
following products
:
Diet Coke; Coke Zero; Diet Coke Plus; Coca-Cola Black
;
Full Throttle Demon
.
customers into the market rather than just creating variants on the old. They warn that products
like Coke Aero will cannibalize lost market share from other soft-drink categories instead of
increasing the number of consumer overall: Which Coke products are most likely to lose
customers to Coke Zero?
3. Why do
y
ou think that the hidden-camera videos used to promote Coke Zero were an effect
i
ve
way to reach its target market? Do you think a vial hidden-camera strategy on the Internet
would appeal to the target market of Diet Coke Plus?
4
.
Do you think Diet Coke could have been repositioned to change consumers
‘
perceptions of it
enough to be considered a drink equally appealing to men? Why or why no.
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