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Marketing Analysis Of The Product Coca Cola Zero Marketing Essay

2756 words (11 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Coca- Cola Zero is one of the many well-known products belonging to the Coca-Cola Company. It was introduced into the USA market in the month of June of 2006. Coke Zero brought together the “Real Coke Taste” with Zero Sugar. Coke Zero has been identified as one of Coca-Cola’s biggest product to launch over the past 22 years.

The Coca-Cola Company is a beverage retailer and manufacture of non-alcoholic beverages [2] . It was established in 1886 when Pharmacist John Smith Pembertion was rewriting and renaming his headache remedy formula. With the combination of caramel coloured liquid, carbonated water and syrup came Coca-Cola. It was sampled to customers when it was agreed to it being “something special” [3] . Coca-Cola has developed from one product to more than 500 a century later; and from 9 glasses being sold a day to 1.2billion. [4] 

Coca-Cola Zero is specifically marketed at males between 18-29years who are conscious about their health. Coca-Cola Zero was introduced for men as a result of Diet Coke was leaving men thirsty they found the taste and image of the drink didn’t live up to the regular coke. Also as 60% of regular Coke was being consumed by men, it was then time for the Coca-Cola Company to notice their call for a healthier alternative. As young males was Coke Zero’s main focus, it was then designed to attract men with a classy packaging of black and red, to stress that there was nothing “girlie” about the beverage [5] . This then gave them the drink they had been waiting for.

Propose a marketing mix

Place

Place refers to the distribution of the product and way of distribution to the market. [6] As Coke Zero being a part of the Coca-Cola Company, this makes it easily available to all markets worldwide.

Distribution Process and reasons for intermediaries

The distribution process links the point of manufacturing to the final customer. There are multiple channels of distribution that businesses may use: producer to consumer, producer to retailer to consumer and producer to wholesaler to retailer to consumer. Coca-Cola works directly with its intermediaries to maximize sales. Without its intermediaries Coke Zero would not be easily accessible in corner shops, petrol stations and gyms as Coke are not always able to provide these small businesses with product and this is why intermediaries are used.

Channel Choice

Just as regular Coke, Coke Zero is global and can be found anywhere and everywhere due to increased rate of demand. Therefore making Coke Zero intensively distributed as the product is available at every possible outlet, which makes it cheap and affordable for all people. From service stations, corner shops, supermarkets and local corner shops Coke Zero is available. Until today Coke Zero is still growing and still becoming available in countries. Starting from the Middle East to Australia Coke Zero is available and easily accessible. Coke Zero is also available at take away and fast food stores such as McDonald’s and Oporto’s, this helps Coke Zero hold a great stand in the market.

Physical Distribution Process

Physical distribution is important in distributing Coke Zero to its consumers and for it to be available in the market. Coke zero uses a few resources to make this possible and to achieve better efficiency. These resources are transporting, and warehousing

Transporting

Transporting is one of the most important components of physical distribution for Coke Zero, as it helps to get the product to its consumer. The most common and beneficial use of transportation used by the Coca- Cola company to transport Coke Zero is Road transportation through the use of their own company trucks, were the product is moved around from storage to the market. Sometimes rail, air or water maybe an option of transportation, depending on the market is being transporting, making it more costly in comparison to road/truck transport.

Warehousing

Coke Zero is manufactured and produced in the Coca-Cola Company which is allocated in Westmead. Due to Coca-Cola’s advancing machinery and improvements made throughout their factories 800 bottles of Coke Zero are bottled per minute by using specialised “Air Veyor” belts to maximise efficiency, as well as 1700 cans per minute in a process which is more complex that meets the eye. [7] This type of warehousing has been made by advancing technology which makes it more efficient and less costly as workers and labours are replaced by these machines leaving only a few workers to monitor the machine. [8] Coke Zero uses the process of automatic “roll on roll off” conveyor belt technology to trucks this process helps Coke Zero increase profit as the driver can load and unload without assistance meaning decrease in wages. [9] 

Price

Price is a very important aspect of the marketing mix, as it can affect both the supply and demand of a product [10] . Price is one of the most important aspects in a consumer’s decision. Price determines the amount of sales and profit within a company, and for this reason coke zero has in forced a suitable price for all types of their customers. Pricing for Coke Zero varies from size and amount of the product.

Product Size

Average Price [11] 

Coca Cola Zero Can 375mlCoca Cola Zero Can 375ml

1.08

Coca Cola Zero Bottle 600mlCoca Cola Zero Bottle 600ml

3.67

Coca Cola Zero Bottle 1.25LCoca Cola Zero Bottle 1.25L

2.68

Coca Cola Zero Bottle 2L

Coca Cola Zero Bottle 2L

3.90

Coca Cola Zero Drink Can 15 Pack 15X375mlCoca Cola Zero Drink Can 15 Pack 15X375ml

17.33

Coca Cola Zero Can 24X375mlCoca Cola Zero Can 24X375ml

25.75

Coca Cola Zero Mini Cans 8X200ml

Coca Cola Zero Mini Cans 8X200ml

7.82

Pricing Method

Cost

Pricing methods used by Coke Zero have been based on the analysis of the target market, and the amount they are willing to pay for this product. Coke Zero has incorporated both advertising and transportation of their products into the price as they costly essentials needed to make their product available on the market and to promote it.

Competition Based

For the Coca-Cola Company Pepsi has always been a competition for their product. [12] Even though Pepsi Max has been in the market for a greater period than Coke Zero, Coke Zero has won its competition and is still on top. Pepsi and Coca-Cola Company have had this competition with all their products; but Coca-Cola brands have always been the dominant and stronger product.

Pricing policies

Due to an increase rate of demand on Coke Zero, Coco-Cola has imposed honest and readily prices which is accepted by all. Pricing strategies are important for coke zero as it determines the amount of sales and profits. This is why coke zero has set a price that is accepted by their target market and also provides a good level of profit. When coke zero was first introduced into the market loss leaders was one of their strategies used. Loss leaders were used to set a low price and encouraged customers to consider this product and buy it [13] . Once a customer loyalty has been established as seen with Coke Zero and other major brands within the Coca-Cola Company, it was then when the company began to slowly raise the price of this product.

Another price strategy used by Coke Zero is penetration pricing this was done to gain new market share, as their prices had been set lower then there strongest competitor [14] Pepsi Max. Another strategy used by Coke Zero is price point, as it is psychological and refers to cut-offs in the minds of customer. [15] Pricing points have been used by Coke Zero in the past and still is used in some markets as it can create an awareness of value for money of their product.

Product

Product in the marketing mix consists of two aspects which are the physical and core product which refers to the benefits the product offers to customers and the additional features such as positioning, branding and packaging.

Positioning

Branding

Branding is used to differentiate its product from its competitors. A brand is a logo, name symbol that identifies a particular product. Overtime the customer identified the product with the characteristics of the brand. Coke Zero’s original logo has the featured script of Coca-Cola’s logo in red on a black background, with ‘zero’ underneath in lower case writing. As coke zero operates under the coke zero company this helped give it a high standards and high quality, as customers will buy this product due to high standards and qualities from their pervious products.

Packaging

Packaging is both functional and has an important role in the marketing. Packaging is also an important aspect in product as it used to target its target market. Packaging informs and promotes the consumer about the product. As young males was Coke Zero’s main focus, it was then designed to attract men with a classy packaging of black and red, to stress that there was nothing “girlie” about the beverage [16] . Coke Zero offers a helpline and complaints service for which customers those are not happy or satisfied with this product or wish to give feedback on the product. [17] 

Coke Zero’s Packaging of their product varied in sizes to provide convince for each of their customers need. These varieties available for Coke Zero’s customers are:

Product Size [18] 

Coca Cola Zero Can 375mlCoca Cola Zero Can 375ml

Coca Cola Zero Bottle 600mlCoca Cola Zero Bottle 600ml

Coca Cola Zero Bottle 1.25LCoca Cola Zero Bottle 1.25L

Coca Cola Zero Bottle 2L

Coca Cola Zero Bottle 2L

Coca Cola Zero Drink Can 15 Pack 15X375mlCoca Cola Zero Drink Can 15 Pack 15X375ml

Coca Cola Zero Can 24X375mlCoca Cola Zero Can 24X375ml

Coca Cola Zero Mini Cans 8X200ml

Coca Cola Zero Mini Cans 8X200ml

Sodium cyclamate, a cheap artificial sweetener which have been used in Coke Zero, these products have been banned by the U.S. Food and Drug Administration since 1969 for it claiming to cause cancer. This is when controversy about the product and health issues came in and caused a decline in sales at the time for Coke Zero. Due to the decline of sales and consumer campaign this led to the removal from the drink in 2008 from the following countries United Kingdom, Ireland, Belgium, Australia or New Zealand among other countries. [19] 

Promotion

Promotion is designed to inform the market and target market about the product, how good the product is and where it is available. Promotion is also used to persuade customers into trying a new product, or buy more of an already existing product. Promotional mix the combination of personal selling, advertising, sales promotion and public relations that are used within coke zero. Although advertising is usually expensive it is the most effective way of reminding customers about the product. Promotion is the main tool within Coke Zero’s marketing mix as it helps increase demand and revenue.

Advertising/ Public Relations

Advertising is a communication process with the target market and is usually designed to be persuasive. In the past coke zero has used various types of media to advertise their product. These types of advertising include of television advertising, radio, internet, billboards and internet. These various forms of advertising are used to present Coke Zero in a positive way and to ensure it had a strong public image.

Personal Selling

Personal selling was also used in promoting Coke zero, this was done by getting representatives for their company to sell their products in retail and fast food outlets. An example of this is where in the past Oporto’s had always sold Pepsi products in their stores until Coke Zero came out and Oporto’s switched from Pepsi to Coca-Cola products.

Below the line

Below the line promotion is also another form of advertising which has been used in the past for Coke Zero. Below the line marketing was the main promotional stagey first used when coke zero first entered the market. Four million free samples were given out, within four weeks to promote this product, this helped Coca-Cola gain new customers and already existing customers to their new product. Although it was a costly way of informing and promoting their product it help gain customers and make them aware of this new product.

The packaging of Coke Zero product is another way Coca-Cola used to promote their new product. Through black packaging, with red and white colouring used for the Coca-Cola logo, these specific colours where used to be aimed at their target market. “the Real Coke Taste” has also been used to promote their product towards their target market (young men) as diet coke didn’t live up to the real coke taste and coke zero was used to target young males back to their product as diet coke didn’t live up to the real coke taste.

Coke zero has also used sponsorship and campaigns to promote their product. Sponsorship is a way of showing good will and promoting not only the product but also that company cares about the community. In the past Coke Zero has sponsored from local to national cricket, basketball, football and soccer teams. Reasons why Coke Zero specifically used these sports to advertise and promote their product were because of their target market being specially marketed at young males aged between 18-29 years who are conscious about their health.

Coke Zero’s latest form of advertising if through campaigns, these campaigns are:

Coke Unleashed – Win point, $20 Vodafone credit and points turn into money, name put into draw

Footy Package to your own home

Winn Webber BBQ – 3 to be won everyday

All these campaigns have been aimed towards men as being their target market. This makes the product more appealing to the men and helps Coke Zero gain a competitor advantage as well as more retained profits.

Coke Zero has also recently launched a game available on XBOX, Playstation and on the computer called Coke Zero Retro Electro Football. http://3.bp.blogspot.com/_dbStC2jXKqY/S4c-ee4kPcI/AAAAAAAAAtE/4FU3lP2rbZ0/s400/Coke-Zero-Retro-Electro-Football.gif

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