Coke Zero

I. Introduction

Nowadays a trend of shape concerned is very popular globally. Consumer tends to prefer and buying more of healthy product and also low/non calories products. Lifestyle of people changing from eating junk foods to low/non calories products even become a vegetarian. Not only shape concerned but some of a dangerous disease also cause from consuming sweet and high fat foods. Therefore marketers see this opportunity in the market and try to invent any goods that can fulfill the demand of consumers in the market.

Carbonated drink is also one of a product that is really popular not only among teenagers but for everyone who would like to have a refreshment and enjoy a taste of sparkling soda. But some people try not to consume it as they are afraid of a quantity of sugar contained in a carbonated drink. Moreover total sales of cola flavor carbonated drink seem to be decreased due to the popularity of health concerned trend so most of consumers switch to consume green tea and fruit juice instead of cola carbonated drink. Therefore Carbonated drink manufacturers aware of this matter so they introduced some of the new product line which is 0% calories carbonated drink to the market in order to fulfill the needs of consumers.

• Coca Cola Company

Coca Cola Company has been established since 1886 in USA. The company is one of the world biggest nonalcoholic sparkling beverage manufacturers. They own 4 of the world’s top5 nonalcoholic sparkling beverage. Over 12 decades, Coca Cola has expanded their company worldwide until nowadays the company reaches the total no. of 71,000 associations in 200 countries with more than 2,600 products on their portfolio.

In Thailand, Coca Cola has started their corporation with the name of Thai Namthip Co.,Ltd. and become one of the two major nonalcoholic sparkling beverage manufacturer. With the continuously increasing in their sales and market share, the company has been striking to own more than 50% of the total market share of carbonated drink in Thailand. From the year 1991, Thai Namthip has launched a new low calories cola flavor which is called Diet Coke but unfortunately at that time Thai consumers were not ready and a health conscious trend was not popular therefore Diet coke was not success at that time.

Year 2002, Thai Namthip re-launched its diet coke again in the market but has changed the name to be “Coke Light” as the company faced a problem from some of male teenager consumers would like to try this Diet coke but they refused to do so as they were afraid of the word “diet” as there perception for the word “diet” is only for women. But Coke light was not so successful as its taste is lighter than coke classic therefore it can’t satisfy consumers who would like to drink low calories cola flavor but the similar taste to coke classic therefore coke light has a market share only with a consumer who prefer a lighter taste than a classic coke with 0% calories .

Meanwhile Pepsi (Serm Suk Public Co.,Ltd.) are another major players in Thailand’s nonalcoholic sparkling beverage manufacturer. The company launched Pepsi max which is a 0% calories cola flavor carbonated drink into the market. Pepsi max had succeed in low/non calories drink and gain more than 50% of a low/non calories cola flavor carbonated drink.

Therefore Thai Namthip was thinking that they should really do something with this market and seeing the opportunity in this 0% calorie cola flavor carbonated drink market therefore the company introduced the new “COKE ZERO” with 0% calories and a new taste which is similar to coke classic. This new launch of Coke Zero has a positive impact on Coke’s market share moreover the product becomes really popular in the market. Even the overall market capital of this product segment in year2006 is only 2% in from the overall cola flavor carbonated drink but since the 1st launch of Coke Zero;the product made this market to be expanded to 4%.

Since its first launched on May2007 till September 2007 ; Coke Zero gain more than 41% of the total market share of 0% calories cola flavor carbonated drink and make the overall market sale of this 0% calorie cola flavor carbonated drink to become bigger than before.

At the end of year 2007; surprisingly Coke has been really succeeded in this market category as it gains more market share from 41% to be 54% therefore Coke Zero has strived to be the market leader in this product category. Moreover if we combine a market share of Coke Zero with Coke light therefore the overall market share Coca Cola got in this 0% calories cola flavor is 65%.

This new product launched is Coca-Cola’s biggest brand launch in over two decades since the launch of diet Coke in the 1980s. The brand has been launched to respond to changing consumption needs, particularly men aged 18-34 years who are either drinking less or lapsing out of regular Coke because of sugar concerns becoming more prevalent in their late teens and twenties. Whilst diet Coke provides a viable alternative for many, these consumers are typically seeking a product much closer in taste to regular Coke whilst also being less open to Diet Coke’s traditional female positioning.

• Management problem

The launched of Coca Cola Zero has a big impact on Pepsi Max, the leading brand of 0% calories Cola Flavor carbonated drink in Thailand. The sales of pepsi max have dropped therefore Serm Suk Public company (Pepsi) was thinking to do something in order to gain back their market share in this market segment. Therefore Pepsi Max came up with a new strategy of repackaging their product by using three new can designs in a black color with the new theme of “Max in all senses” which use the same black color as COKE ZERO (me too strategy). Therefore it caused a series of problem to Coca Cola;

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- Direct competitor; Pepsi Max- just launch a new product with same description, target market, and benefits

- Economic