AMENA MOHAMMADI 0916859OLGA SULCOVA 0421866PROVIDENTIAL OSIGWE 0916850THU WIN 0916313ALAO BABATUNDE 0913448ADEBANJO ADEJUWON 0914485

Coca Cola ZEROMARKETING PLAN AND STRATEGY

Prepared By

AMENA MOHAMMADI 0916859OLGA SULCOVA 0421866PROVIDENTIAL OSIGWE 0916850THU WIN 0916313ALAO BABATUNDE 0913448ADEBANJO ADEJUWON 0914485

Coca Cola ZEROMARKETING PLAN AND STRATEGY

Prepared By

The Company

The Coca- cola company was founded in 1886. Coca- cola is the most widely known brand in the

world. The company operates in over 200 countries and

has over 49,000 employees world wide. The company is responsible for developing and

marketing of over 21 brands consisting of over 100 products in Great Britain alone.

Coke Zero : THE PRODUCT

Coca-cola zero is one of the many products of coca-cola Inc.

The product was developed to cater for an increasing health conscious demography in the society.

Coca-cola zero has zero sugar and low calorie therefore making it a consumer friendly product.

PRODUCT HISTORY(Coca Cola ZERO)

Was launched in the UK in 2006. Was marked ZERO because of the zero sugar content. Outsold the coca cola classic in 2006 in UK for the first time in 22 years. It was street named “BLOKE COKE”. Research confirmed that the introduction of coke zero brand boosted the sales of coca cola products world wide.

Available in over 107 different markets.

OBJECTIVES• Re-launching the product into the UK market

• Boosting sales & revenue to increase the market share of the

product ( Zero)

• To make coke zero an independent product i.e. a product not existing in the shadow of coke classic

• To emphasis the health advantages of taking cc zero as compared to other fizzy drinks consumed in the UK

• Exploring the opportunities of launching zero in new markets

• Generate increased brand awareness qualified by feedback of customers at trade shows.

RANGE OF COCA COLA ZERO PRODUCTS

INGREDIENTS OF COKE ZERO

Carbonated Water, Colour (Caramel E150d), Phosphoric Acid, Sweeteners (Aspartame, Acesulfame K), Flavourings (including Caffeine), Acidity Regulator (E331), Contains a source of Phenylalanine

UK MARKET SHARE DISTRIBUTION

Fruit-flavoured carbonates

Cola diet Cola Standard Mixers Other 0%

5%

10%

15%

20%

25%

30%

35%

Column132.90 %

24.40 %23.30 %

03.60 %

15.90 %

Source: Datamonitor (2008)

Situational Analysis (SWOT)

Strengths

• Coca cola Zero offers the same great taste as the original without sugar and low calories.

• Coca cola Zero penetration and consumption will make the coca cola company to continue to grow.

Weaknesses

• Consumers feel Coke Zero still contains sugar.

• The recent negative impression created by the company in the United Kingdom .

• The product brand name is not very strong outside the UK.

Situational Analysis (SWOT)

Opportunities

• The ability to increase the market share of the company through the communications campaign for coke zero.

• The increase in consumption as a result of mass advertising in the United Kingdom

Threads

• United Kingdom Agency – Manufacturers and the government’s food standard agency. The product contains sweetener and Aspartame.

• Competition from Pepsi is so close. Pepsi also came up with Pepsi Max with no sugar content and also low calories.

Coca Cola Zero Pricing Coca Cola Zero is using a differentiated pricing strategy, in particular

channel pricing.

Competitive pricing

Global company, Local approach

Price promotions

Coke Zone loyalty rewards e.g. 2 for 1 deals to attractions such as Legoland

and Alton Towers.

Price Fluctuations Depends on

Demand & Supply

CompetitionMarket

Conditions

Source: Kotler et al(2009); Coca Cola website (2009)

Price Comparison COCA COLA Zero Product line ASDA SAINSBURY15 cans pack X 330 ml £ 5.50

11.1 pence per 100mlNot available

500 ml plastic bottle£1.0020 pence per 100ml

£ 0.97 19 pence per 100ml2 for £ 1.60 PROMOTION Valid until 30/03/2010

4 plastic bottle pack X 500 ml £3.0015 pence per 100ml

£ 2.9214.6 pence per 100 ml

2 litres plastic bottle £1.56 7.8 pence per 100ml3 for £ 4 PROMOTION Valid until19/09/2010

£1.56 7.8 pence per 100ml2 for £ 2.50 PROMOTION Valid until 19/01/2010

8 cans pack X 330 ml £ 3.2812.4 pence per 100 ml2 for £ 4 PROMOTION Valid until 19/01/2010

Not available

10 cans pack X 330 mlNot available

£3.6511 pence per 100 ml

6 cans pack X 330 mlNot available

£ 2.6914 pence per 100m2 for £ 4 PROMOTION Valid until 26/01/2010

CUSTOMER Coke Zero has been introduced to an specific section of the society, customers with healthy life style.

Research shows that male population aged 20 to 35 buy Coca Cola Zero because they found Diet terminology too feminine.

Coke Zero so far could recapture customers who had skipped Coca cola because of its sugar and calories.

The product has also attracted new customers. People who either did not drink Coca cola before or they switched to Coca Cola Zero from other competitors product like Pepsi Max.

Sales Chart for ZERO

H Wife aged under 34 Male 34 and under0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Coca-Cola ZERODiet CokePepsi Max

Source: TNS World panel and Food on the Go

TARGET MARKETING and SEGMENTATION (COCA COLA ZERO)

The segment was identified based on effective market research.

The customer segmentation for Coca Cola Zero consist of the customers who want to have Original Coke taste but do not want the sugar and calories.

The product performance varies by country.

Launching Coca cola Zero reduced share of Diet coke and regular Coca cola but boosted the company's share in the market

Marketing Mix: Place

An important element in the marketing mix

Involves determining the manner in which goods and services are distributed to the customers.

Distribution

Means

available

Intensive Distribution

Exclusive Distribution

Selective Distribution

Place Intensive Distribution

Used to distribute impulse products

Makes the product widely available.

Appropriate to be used to market Coke Zero.

Favorable Venues‘Brick and mortar’ convenient stores‘Hot shelves’ in supermarkets Placing of vending machines in public

places

Place Exclusive Distribution

Used to distribute the product/service at a single outlet

Tends to be expensive

Examples include in-store items (such as Tesco biscuits, etc) and sale of vehicles in dealers

Not a favorable means for Coke Zero

Requires public awareness and wide availability Low cost of stocking inventory

Place Selective Distribution

A few retail outlets are chosen to distribute the product/service

Used for products for which:

Not favorable for Coke Zero

Customers are willing to travel long distances

Availability crucial for successful selling

Is one of the impulse products which customers won’t be bothered to travel long distances

Further Considerations for Distribution

PROMOTION & STRATEGIES

TV commercials: sometimes making use of recent movies i.e Avatar, Quantum of Solace

Partnering with giants in different industries i.e Playstation, McDonalds, Domino’s etc

Promotion gifts and Benefits: cash prizes, sports EA active, Nintendo Wii, Vouchers

Sponsorship program: Olympic, Football League Competitions, Intrawest group, PGA golf

Online Promotion on popular sites e.g Face book, Yahoo, Google, YouTube

Print media: Health Magazines, News Papers, Magazines, Billboards, etc

Celebrity Endorsement

Rooo…….coke Zero Ambassador…

PROMOTIONAL CALENDER AND STRATEGYDATE ACTIVITIES DESCRIPTION

April/may Re-

packaging

Repackaging product into 1 ltr tetrapak and 200ml pack for kids, powder cc zero packed into sachets which can be taken hot or cold.

June/ JulyIntroduction of diverse zero products

Different flavours, cc zero with up to 5% alchl.

AugustOpening up of new market area

New areas should be explored and opportunities developed, strategic planned formed etc .

September Promotions

The product should look to sponsor popular events emphasis being placed on ZERO as an independent products, gifts, cash prizes etc should be given out. TV, print media, celebrity endorsement

October Aggressive marketing, promotion and selling

New market should be moved into, plans executed, free sample, prizes, competitions sponsoring etc.

Coca Cola ZERO Forecast• Expansion into new markets (currently in 107)

• Full market coverage strategy

• Growing soft beverage market expected 6% pa growth for the next

12 years.

• Higher affluence of population

• Increasing demand for low sugar drinks

• Introduction of new product brand extensions such as Coca Cola Zero

Cherry, Vanilla or Lemon flavours into to the UK market

• Launch of new offerings (e.g. tetra pack; powder)

• Increase awareness due to aggressive advertising.

Source: Datamonitor (2009); Independent (2008)

Conclusion

In this presentation the group has tried to re- launch and promote the product Coca cola Zero by suggesting new ideas that can be helpful in boosting the sale of the product. Considering the previous strategies adopted by the company and the new ones suggested by the group, a proper forecast has been conducted which will assist in predicting the product performance over the next financial year.

References

http://www.bookrags.com/essay-2003/6/14/53228/5227

http://www.megaessays.com/essay_search/advertising_strategy_coca-cola.html

http://www.megaessays.com/viewpaper/60282.html

http://www.megaessays.com/viewpaper/60282.html

Kotler et all. (2009), Marketing management.

http://www.sainsburys.co.uk/groceries/index.jsp?bmUID=1262908022645

http://naturalhealthnews.blogspot.com/2009/06/coke-zero-banned-as-health-threat-by.html

Cook.L et all 'Coca-Cola' Zero – a new product launch without the downside’, Agency: Vallance Carruthers Coleman Priest/Vizeum UK, link