Kwun Yee Man, Antonia 09634664G The Hong Kong Polytechnic University

Department of Management and Marketing

Lam Ho Ting, Jimmy 09634812G MSc in Marketing Management

Poon Ho Lam, Vien 09641225G

Marketing Management in China

Coca-Cola Zero Case Study

Objective

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Agenda

1 Key challenges faced by Coke Zero

2 Environmental analysis + Industry analysis

3 Consumer analysis + Competitor analysis

4 Brand analysis + Distribution Channel analysis

5 Evaluation on Coke Zero Communication Strategy

6 Recommendation
Key Challenge

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Consumer analysis
 Target customers
 young male aged between 18 – 34; and
 Calorie-conscious; and
 Demand for real taste of Coca Cola
 The youth Chinese are open to new products and ideas,
especially the Western culture
 The decision maker / user of the consumption: the
young Chinese (roles of the consumption)
 Life style: Trendy and Hip
 The need of expression and self-actualization
Consumer analysis
 Figure, Internet Habits of the Chinese
 Figure
 Frequent use of internet and mobile internet services for the
purpose of entertainment, information searching, shopping and
communications with friends.
 In 2006, Chinese spent nearly two billion hours online every
week
 Widespread sub-culture of heroism
 The importance of the reference groups, e.g. celebrity,
family and friends, e.g. purchase of salt
 More educated and health conscious
Consumer analysis
 Marketing Insight:
 Competitor analysis
Coke Zero Pepsi Max Wahaha Huiyuan
Product Beverage: Beverage: Beverage: Beverage:
category Carbonated Carbonated Carbonated Carbonated
Soft Drink Soft Drink Soft Drink Soft Drink

Date of launch 2008 2009

Positioning
Target Young male
customers aged 18-34

Characteristics Calorie-
of target conscious;
customers demand real
taste
SWOT analysis
 Strength
 Strong brand equity
 The vision of product localization
 Backward integration along the supply chain, e.g. Joint Venture
with the bottlers
 High budget for Integrated Marketing Communication (IMC)
 Weakness
 Confused positioning between Coke Zero and Coke Light
 High advertising and promotion expenditures
 More expensive
SWOT analysis
 Opportunity
 Huge growth potential, 12.8% annual growth rate in China’s
softdrink market, higher growth rate in rural ciites
 Frequent use of internet and mobile internet applications, such
as internet games, social networking services, online shopping
 30% of urban families spending goes to the children
 More international events will be held in China
 Threat
 The complexity and inconsistency of laws and regulations in
China
 Market development is easily influenced by the central
government’s policies
 New products and ideas would be imitated by local competitors
 Rise of local drink brands, such as Huiyuan, Wong Lo Kat etc
 Chinese consumers are getting more health-conscious
SWOT analysis
 Marketing Insight:
Thank You
References:

 http://www.huiyuan.com.cn/
 Market Orientation, Customer Value, and Superior Performance, Stanley F. Stater and John C. Narver, Business Horizons, March – April

2004
 http://www.coca-cola.com.cn/
 http://www.icoke.hk
 Hartley, (2006) Marketing mistakes and successes, Wiley, 10
th
ed
 Cravens & Piercy; (2009) Strategic Marketing, McGraw Hill, 9th ed