Coca Cola

ZERO
MARKETING PLAN AND STRATEGY

Prepared By
AMENA MOHAMMADI
0916859
OLGA SULCOVA 0421866
PROVIDENTIAL OSIGWE
0916850
THU WIN 0916313
ALAO BABATUNDE 0913448
 Coca Cola
ZERO
MARKETING PLAN AND STRATEGY

Prepared By
AMENA MOHAMMADI
0916859
OLGA SULCOVA 0421866
PROVIDENTIAL OSIGWE
0916850
THU WIN 0916313
ALAO BABATUNDE 0913448
 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
Column1
35%
32.90 % Source: Datamonitor (2008)
30%
25%
20% 24.40 %
23.30 %
15%
10%
5% 15.90 %
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Situational Analysis (SWOT)

Strength ●

●
Coca cola Zero offers the same great taste as the
original without sugar and low calories.
Coca cola Zero penetration and consumption will

s make the coca cola company to continue to grow.

Weaknes ●

●
Consumers feel Coke Zero still contains sugar.
The recent negative impression created by the company in
the United Kingdom .

ses
●
The product brand name is not very strong outside the UK.
Situational Analysis (SWOT)

Opportu ●
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

nities advertising in the United Kingdom

●
United Kingdom Agency – Manufacturers and the
government’s food standard agency. The product contains
Threads ●
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 & Market

Competition Conditions
Supply

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

 Price Comparison
COCA COLA Zero Product line
15 cans pack X 330 ml
500 ml plastic bottle
4 plastic bottle pack X 500 ml
2 litres plastic bottle
8 cans pack X 330 ml
10 cans pack X 330 ml
6 cans pack X 330 ml
ASDA SAINSBURY
£ 5.50 Not available
11.1 pence per 100ml
£ 0.97
£1.00 19 pence per 100ml
20 pence per 100ml 2 for £ 1.60 PROMOTION
Valid until 30/03/2010
£3.00 £ 2.92
15 pence per 100ml 14.6 pence per 100 ml
£1.56
7.8 pence per 100ml £1.56
3 for £ 4 PROMOTION 7.8 pence per 100ml
Valid until 2 for £ 2.50 PROMOTION
19/09/2010 Valid until 19/01/2010
£ 3.28
12.4 pence per 100 ml
2 for £ 4 PROMOTION Not available
Valid until 19/01/2010
£3.65
Not available 11 pence per 100 ml
£ 2.69
Not available 14 pence per 100m
2 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
45%
Source: TNS World panel and Food on the Go
Coca-Cola
40% ZERO
Diet Coke
35% Pepsi Max

30%

25%

20%

15%

10%

5%

0%
H Wife aged under 34 Male 34 and under
 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.

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

 The product performance varies by country.

 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 Intensive Distribution

Means Exclusive Distribution

available 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:
 Customers are willing to travel long distances

 Not favorable for Coke Zero

 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 STRATEGY
DATE ACTIVITIES DESCRIPTION
Repackaging product into 1 ltr tetrapak and 200ml
April/may pack for kids, powder cc zero packed into sachets
Re-
which can be taken hot or cold.

packaging
Introduction
June/ July of diverse
Different flavours, cc zero with up to 5% alchl.
zero products
Opening up New areas should be explored and opportunities
August of new developed, strategic planned formed etc .
market area
The product should look to sponsor popular events
September emphasis being placed on ZERO as an independent
Promotions
products, gifts, cash prizes etc should be given out.
TV, print media, celebrity endorsement
Aggressive
October marketing, New market should be moved into, plans executed,
promotion 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-hea
lth-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