1 Introduction

This report aim to create a copycat carbonated soft drink (CSD) product which will
become an exclusive brand, available only in Smart Buys. First of all, Diet Coke has
chosen to be a source brand. Then to develop the identification brands, the Diet
Coke will be analyse using the PRESTCOM, four building blocks framework and
customer based brand equity model. Finally, the image transfer model will be used to
transfer key associations from the Diet Coke to the new copycat product.

2 Coca Cola and Diet Coke Background

It was 1886, and the first Coca Cola was established, then almost 100 years later, it
was until the birth of the no-calorie alternative to Coca Cola, Diet Coke in 1982
(Coca-Cola, 2017). Within a year of its launch, Diet Coke had become the largest-
selling low-calorie soft drink in the world (Coca-Cola, 2017). It’s also be the one of
famous drinks in UK too, which has 6% shares in the retail soft drinks market (Mintel,
2017).

3 Coca Cola’s Market environment (PRESTCOM)

3.1 Political

Due to the BREXIT — UK Government’s decision to leave the EU, cause the value
of the Pound to drop dramatically (Mintel, 2017). Lead to many of impacts on
different soft drinks categories and brands. As an International Brand, Coca Cola has
a lot of ingredients to import effects the prices Coca Cola has to pay increasing due
to the Pound is weaker than before compared the Euro and the US Dollar (Mintel,
2017).

3.2 Regulatory

All CSDs are in controlled of the Public Health England (PHE) under the government
of UK even the Coca Cola. Changes in laws and regulations might impact Coca
Cola. According to the Soft Drinks Industry Levy in the UK, Tax on drinks with
contain 5 - 8g of sugar per 100ml will be levied at 18p per litre and it will rising to 24p
for those with 8g or more of sugar per 100ml (BBC, 2018, Mintel, 2017). This directly
affects the Coke, which contain 10.6g per 100ml (BBC, 2018) but not Diet Coke,
which are the product of low sugar. Consequently, the rising of Soft Drinks Industry
Levy will cause the rising of Coca Cola’s retail price (Mintel, 2017). The changes
laws and regulations can affect Coca Cola in this way.

3.3 Economic

Soft drink market also has the effect of consumer inflation (Mintel, 2017). People are
likely to spend to more expensive drinks such as smoothies than soft drinks. On the
other hand, money saving is on of the major reasons for cutting or reducing soft
drinks consumption by losing out from people drinking more tap water (Mintel, 2017).
3.4 Social

There are many of social factors impact to Coca Cola. First of all, the UK
population’s attitudes have changes towards the health, especial the increasing of
over sugar level concern in food and drink Due to the pushing by PHE. Moreover,
UK is a many cultured countries because of UK has many people from many
nationalities come to live. Coca Cola needs to respond to several kind of needs by
manufacturing the various of products. Both of the social factors cause the negative
side to Coca Cola such as the increasing of the cost, how to manage and distribution
the products.

However, there is an opportunity to Coca Cola, while Mintel’s Soft Drinks Review -

UK Report (2017) found that the total alcohol consumption is in decline and overall
growth in the sports and energy drinks category has slowed down. This can be
boosting soft drinks as an alternative to alcohol and energy drinks.

3.5 Technological

Coca Cola has high - technology in machinery and equipment to helped manufacture
products in better and higher quantities compare with the others (Coca-Cola, 2016).
In UK, Coca Cola has factories with efficient machinery to ensure fast delivery times
and quality product development (Coca-Cola, 2016). In addition, social media
technology also has the significant impact on Coca Cola such as the “Share A Coke
campaign” (Coca-Cola, 2018), where Coca Cola put the name on the coke bottles
(Appendix A). The consequent is It boosted consumer engagement by challenging
people to find their own names and the names of friends or loved ones, take their
picture with the coke’s bottles and share on the social media like Facebook,
Instagram. The result is the increasing of Coca Cola sales (Coca-cola, 2018).

3.6 Competitive

Competitively, Coca Cola is the biggest brand in soft drinks and continues to have a
big lead over the competitors that produces the same product (Appendix B) (Mintel,
2017). Moreover, Brand image is considered to be an important element of branding
theory and plays an important role in the brand building process. Coca Cola do have
great brand image and have maintained it over the years. As a result, Coca Cola do
occupy a prominent position in the customers’ minds, accompanied by a high level of
loyalty and enjoy a considerable trust among customers and channel members
(Appendix C).

3.7 Organisational

Due to upcoming implementation of the soft drinks sugar levy, with price rises likely
to drive consumers from sugary CSDs towards healthier choices. Coca Cola has
rebranding the Diet Coke by launching the new fruit flavours and a packaging of Diet
Coke in February 2018 that has lower sugar than legacy Coke (Illustrated in
Appendix D). This is an organisational strategy in order to reverse Diet Coke from
declining sales (Mintel, 2018).
3.8 Market

In UK, 74% of UK adults drink CSDs in 2017, showed the high overall usage in
CSDs market same as previous year 2016 (Mintel, 2017). However, Mintel’s
Carbonated Soft Drinks - UK (2017) stated that the usage of Bottled water and L/N/R
sugar CSDs tend to see strong growth with the estimated to strongest growth by
2021, due to the increasing of levy on sugar-containing soft drinks directly impact to
the retails price that pass by the manufacturer to customer and many people also
have more concern about over sugar CSDs that effect to their health.

4 Four Building Blocks Framework

The framework (Appendix E) shows the analysis of the brand article.

4.1 Intrinsic Attributes

4.1.1 Non – distinguishing Intrinsic Attributes

The common attributes across all CSD branded articles comprise Carbon dioxide
(CO2), colors, acids, flavorings, fruit or fruit Juice, intense sweeteners, preservatives,
sugar and water (British Soft Drink Association, 2018). As Diet Coke is one of CSD,
the ingredients in general are also similar (Appendix F). Therefore, Diet Coke has
similar intrinsic attributes as other CSD articles. However, if some ingredients are
missed, it can be no longer the same product.

4.1.2 Distinguishing Intrinsic Attributes

Distinguishing intrinsic attributes can be different among the other branded articles in
Carbonate Drink classification. These characteristics of the branded article are more
spectacular and differentiate it from other brands. There are some special attributes
added to make the product different from others. The main attributes consist of
Functional, Structural and Aesthetics (Riezebos, 2003, p.32).

Functional

Functional are “intrinsic attributes which provide the essential advantage of

consumption” (Riezebos, 2003, p.42).

As mentioned, the basic ingredients of CSD are carbonated water, caramel color,
phosphoric acid, aspartame, potassium benzoate, natural flavors, potassium citrate,
acesulfame potassium, caffeine. Diet Coke does not have two ingredients, which are
potassium citrate and acesulfame potassium. Acesulfame potassium is a calorie-free
sugar substitute and potassium citrate is a common additive in beverages
(Melmagazine, 2018). This enables Diet Coke to be made without sugar and fat, and
also contains only lest than 1kcal, while the flavor can be maintained. The absence
of some ingredients in Diet Coke make its distinguished from other carbonate drink
products (Appendix G).
Structural & Aesthetics

Structural attributes refer to “the way how functional attributes are formed together”
(Riezebos, 2003, p.42). Aesthetic attributes refer to the characteristics that make an
article visually attractive, where Wind refers to elements such as “design and
colours” used (Riezebos, 2003, p.42).

The structure starts as a fizzy liquid with caramel color is usually distinctive (Aubrey,
2018). Diet Coke both in can and in bottle have slim shape, which can be handled
easily by the hands of the consumers. Because Diet Coke is available in more than
150 markets around the world, the design and color are varied. However, the product
has been designed to easily to drink based on both structure and aesthetics as a
CSD product.

4.2 Extrinsic Attributes

4.2.1 Brand Name

The brand is a way of “distinguishing one product from other products” (Riezebos,
2003) Branding not only differentiate product, but also build up a set of associations
with the particular brand to consumers (Roper & Parker, 2006).

Diet Coke was launched in 1982 in US and arrived in the UK a year later (Coca-
Cola, 2018). The Trademark Coca-Cola has been used since 1886 in order to create
a trusted brand and a well-known brand. Brand Coca-Cola has a strong awareness
amongst UK and is also a market leader in Soft Drink market (Mintel, 2017). Diet
Coke also has high levels of brand awareness and commitment, which is 96 percent
and 85 percent respectively (Appendix C). Despite its feminine positioning, it has
been drunk by 70% of the men, which is only slightly behind the number of women
who drink it (74%). As can be seen, there are also no significant differences between
the genders in terms of frequent usage. Recently, Diet Coke has experience a major
rebranding both in the UK and the US and expanded new line of products which
added new fruity flavors to its portfolio by launching two new flavors – Feisty Cherry
and Exotic Mango in the UK because apparently, millennials (Mintel, 2017). The
packaging of the new Diet Coke still focused on silver and red with accents of bold
colors to represent the new flavors. These make the logo look more modern. The
brand name of Diet Coke represents the features of product directly. For example,
Diet means reduce in sugar, and calories. It can be suggested that the name was
created to support its positioning against its main competitors, Pepsi.

4.2.2 Packaging

New look of Diet Coke’s packaging is a taller, thinner can which look sleeker, and
still with the iconic silver color. The refreshed identity also features a larger Coca-
Cola logo, faded into the background and colored matching with the fruit in the drink,
in order to make more of a feature of the flavor on-pack (Mintel, 2017).
4.2.3 Price

According to Mintel (2017), the increase of sugar Levy may lead to the higher cost of
production for Coca Cola, while sugar free coke would have a lower price in such
case.

Normally, price can play a significant role in determining the purchasing behavior of
the soft drink consumers. A lower price tends to drive the more frequently purchasing
of this product category. Mintel (2017) further suggests that price compared with
sweetness taste, which containing sugar, is more likely to affect the possibility for
consumers to choose the drink, 52% compare with 40%.

5 Customer Based Brand Equity Model [CBBE] (Appendix H)

5.1 Brand Salience

Keller et al. (2012) argued that brand awareness contains “linking brand elements to
a product category” Nowadays they are many coca cola product categories in the UK
retail CSDs marketplace.

On behalf of Coke Diet, brand salience can be discovered to two aspects between
depth and breadth of awareness (Keller et al, 2012).

Mintel (2017) reported that Diet coke which is still continuing the leadership which
have 19% in year 2016/17 to dictate retail CSD in term of value and volume in the
Huang & Sarigöllü (2012) disputed that “advertising creates and increases brand
awareness by exposing brands to customers” Therefore, the depth of awareness in
Diet coke‘s extremely high which have 96% based on women who have age over 16
(Appendix I) Besides of the breadth of awareness Mintel (2017) recognize that 19 %
of consumes have drank Diet coke more than other CSDs in UK 2017, even though
both of this product have slightly decreased value from 15% to 14% as the brand
losing market. Nevertheless, they remained the largest CSD sales in the market. In
additional, Brand salience of Diet Coke is the leading brand share than its
competitive carbonate soft drinks among the marketplace and also the most
successful in the carbonate soft drink industry in the UK (Mintel, 2017) Hence,
recommend that purchasers don’t essentially buying the brand. Apart of this the level
of breadth is still relatively high meaning the brands link to the product category is
strongly meaningful (Appendix K).

5.2 Brand Performance

They are mentioned to the consumer’s judgement included long-lasting substantial

performance and the brand’s fault-free in order to restrained by the functional
performance to resolve product characteristics (Keller, 2001, Lassar et al, 1995).

This element can effect consumers experience and purchase intentions.

Coca Cola is the most well-known trademark in the worldwide which have 94%
global identification. Also, Diet Coke is the main brand in its own right. Thus, it is the
best-selling FMCG brand in UK. (Campaign, 2003). Product reliability: Quality of the
Diet Coke products being steady, Diet Coke have been coherent, consumers have
emphasized. This product ‘s high innovative communication, strong availability and
also this brand ‘s recognition in worldwide, distribute in various market channel/tools
in order to contribute consumer’s association regarding the brand 9 (Campaign,
2003, Keller, 2012). Thus, the performance is associated to high levels of awareness
more than based brand differentiation (Oliveria et al, 2008).

5.3 Brand Imagery

CSDs consumers related with people aged 35 and under, soft drinks have
penetration of more than 90%. Almost two in five users say they try to avoid CSDs
because they are unhealthy. However, more than half drink healthier, sugar-free
variants (Mintel, 2012). Thus, Diet Coke designed packaging to allow consumers to
connect the brand to these social needs.

5.4 Brand Judgments

In term of the judgment and particular opinions which are produced of imagery
associations and also brand performance (Keller, 2012). In UK, Diet Coke is the
Leader of carbonate soft drink in the highly strong to brand identification preference
consumer product, loyalty in the UK retail CSD market (Mintel, 2017) Furthermore,
Diet Coke reached a greater position in the market, form operating and powerful
relationship between those consumers. (Keller, 2012).

5.5 Brand Feelings

Diet Coke used transformational advertising, which is advertising that “changes

consumer’s perceptions” of using the product (Keller et al, 2012), build to have
positive feeling directly to brand by using “Taste the Feeling” that generate to life the
impression when they drank Diet Coke (Coke Journey, 2016). Accordingly, these
feeling has been attached to Diet Coke in consumers’ mind, thus creating the brand
feel “accessible” (Keller et al 2012,). Diet Coke recent advertising emphases on “the
sensorial experience of fragrance” (Bailey, 2015) and consequently offerings the
product in a way that makes the consumers feel “as though they are experiencing
something special” (Keller et al, 2012). Coca Cola purposes to refresh consumers
which non-alcoholic and ready-to-carbonated drink beverages

In 1982, Coca Cola launched Diet Coke, which is now the most popular diet soft
drink in the world (Coke Journey, 2016). Those feelings create a positive attitude
towards the brand

5.6 Brand Resonance

Brand resonance is characterized when a consumer is totally connected to the brand

which means loyalty, it is separated into four categories: behavioral loyalty,
attitudinal attachment, sense of community and active engagement (Keller, 2013)
(Appendix I).
According to Diet Coke launched the 30-second TV ad, In the TV ad the actor says
straightforwardly to the camera and speaks: “Look, here’s the thing about Diet Coke.
It’s delicious. So, it makes me feel good. Life is short. If you want to live in a yurt, yurt
it up.” (Molly Fleming, 2018)

Diet coke is involving to lifestyle and healthy consumers. “It fits around the Coke
lifestyle and around us really connecting with Diet Coke consumers’ attitude to life.
They are making very confident choices for themselves in an unapologetic way.”
(Molly Fleming, 2018)

6 Image Transfer Model

The report take Image Transfer Model to examine the source Brand; Diet Coke.
Brand-added value and Brand Image will be undertaken into accounts and the
associations valuable to consumers are carry over from the source brand to the
desired target brand (Riezebos, 2003).

6.1 The Source Brand

The Diet Coke is chosen to be a source brand.

6.1.1 Brand Added Value

Perceived performance: Diet Coke is perceived as one of the most popular Low
sugar CSD that currently hold 6% of the market share in UK soft drink retail market
(Mintel, 2017b) (Appendix B) and it’s perceived good value, trustable brand with in
the sub-brand of Coca Cola (Mintel, 2018) (See Appendix J). However, it can not
separate the key value from the others L/R/N sugar such as Pepsi Max. It’s can
argue that Diet Coke has moderate level of Perceived Performance Meaning.

Psychosocial meaning: Coca Cola’s personality dimensions seen as excitement

brand thru it’s spirited - with soda - and imaginative - with low sugar - personality to
customers. People who selected Diet Coke trend to active but also look after in their
health.

Brand-name awareness: Diet Coke as research by Mintel (2017) states that 96% of
consumers are aware of the brand and the product has been purchased in relatively
high frequency in the past year compare with the others L/R/N Sugar CSD, Diet
Coke has the first place (appendix C). This can suggest that brand awareness is
high so placing Diet Coke at Top-of-mind awareness.
6.1.2 Brand Image Analysis (Source)

The source brand (Diet Coke) analysis shows in the table below

Table 1: Content, Favourability and Strength Factors of Source Brands (Diet Coke)

Content Type Favourability Strength Justification

Low sugar CSD Manife Positive High Easy to pass on

st
trustable brand Latent Positive High Hard to pass on

No difference from Latent Negative Moderate Hard to pass on

others in term of key
value

Excitement personality Latent Positive Moderate Easy to pass on

Top-of-mind brand Latent Positive High Hard to pass on

awareness

The Brand name Manife Positive Moderate Easy to pass on

st
Packaging Manife Positive Moderate Easy to pass on
st
Overall Ingredients Latent Positive Moderate Easy to pass on

6.2 The Target Brand

Diet Colas (The copycat brand attribute)

6.2.1 Product Relatedness

Diet Colas should contain similar core and distinguishing functional ingredients as
Diet Coke. The target brand, similarly, will mimic the structural attributes of the
source brand by having a low sugar. As the result, Diet Colas will get the perceptual
of similarity in quality and association between Diet Colas and Diet Coke.

6.2.2 Target Group Similarities

The target group of Diet colas will be the same as Diet Coke, key target is all range
of all that focus on their heathy (Mintel, 2016, Mintel, 2017). According to the heathy
awareness in UK, it can be seen that, the target group transferring has low risk, lead
to the high success of copy-cat brand to share of their competitor’s consumers.

6.2.3 Family Resemblance

“Similar Visual Match” would be applied, Firstly, Diet Colas has very similar brand
name to Diet Coke. Secondly, the colour of the packaging would be shade of silver
with tall and slim shape. However, Diet Colas should be cheaper than Diet Coke
which follows a floor pricing strategy as it positioned as low priced product.

6.2.4 Brand Image Analysis (Target)

The table below shows the image transfer process which will be used to develop the
target brand.

Table 2: Content, Favourability and Strength Factors transfer to Target Brands (Diet
Colas)

Content Type Favourability Strength Justification

Low sugar CSD Manife Positive High Easy to pass on

st
trustable brand Latent Positive High Hard to pass on

Excitement personality Latent Positive Moderate Easy to pass on

The Brand name Manife Positive Moderate Easy to pass on

st
Packaging Manife Positive Moderate Easy to pass on
st
Overall Ingredients Latent Positive Moderate Easy to pass on

7 Conclusion

By using Diet Coke, in conclusion, as a source brand to be identified, the copycat

brand has established with many strong associations tied with the source brand. this
is beneficial for Bargain Buys as the copy-cat branded article would have attracted
high interests and hence, there is high chance of purchase intentions (Erik, 2012).
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9 Appendices

Appendix A: Coca Cola’s ‘Share A Coke’ campaign

Appendix B: Leading Brand’s share in UK retail market, by value, 2016/17

Appendix C: Key metrics for selected drinks brands, April 2017

Appendix D: Example of new Diet Coke fruit flavours

Appendix E: Four building Blocks

The Four Building Blocks of the Branded Article – Diet Coke

Intrinsic attributes Fundamental feature in product

Diet coke contains carbonated water, caramel color, phosphoric

Non-distinguishing
acid, aspartame, potassium benzoate, natural flavors, potassium
intrinsic- product
citrate, Acesulfame potassium, caffeine.
intrinsic:
These are general ingredients in carbonated drinks
Distinguishing
intrinsic attributes- States the functional, structural and aesthetic branded article.
product intrinsic
Diet Coke is a refreshing drink with a sense of healthy product.
Diet Coke product do not contain two ingredients, which are
• Function: potassium citrate and acesulfame potassium. This enables Diet
Coke to be made without sugar and fat, and also contains only lest
than 1kcal, while the flavor can be maintained.

Diet Coke both in can and in bottle have slim shape, which can be
• Structure:
handled easily by the hands of the consumers.
• Aesthetic: Diet Coke has fizzy liquid with caramel color.

External characteristics that help customer evaluate the branded

Extrinsic attributes
article

• Brand name Diet Coke has high levels of brand awareness and commitment.

taller, thinner, sleeker silver can with a larger Coca-Cola logo,

• Packaging: faded into the background and colored matching with the fruit in
the drink.

Cheaper than sugary drink. Pricing affects consumer purchasing

• Price:
behavior.

Appendix F: Diet Coke Ingredients

Appendix G: Diet Coke Nutrition Information

Appendix H: Customer Based Brand Equity Model

Appendix I: Slogans and Advertising by YouTube

Appendix J: Agreement with “A brand that I trust”, by overall usage, January
2015-January 2018

Appendix K:
Figure 1: Leading brands’ share in the UK retail CSDs market, by value, 2015/16 and
2016/17

Source: (Mintel, 2017)

Figure 2: Leading brands’ sale and share in the UK retail CSDs market, by value and
volume, 2015/16 and 2016/17

Source: (Mintel, 2017)