Coke Zero Market Analysis

1.The Problem

The primary problem of the company is the fact that the market value of shares is 3,3% , while the board of directors dictate that it must reach the point of 12% by the end of the 2013 fiscal year.

2. Market Objectives

The board of directors has specified that the primary goal of the entire communicational campaigns is to increase the value of shares from currently held at 3,3 % to the expected 12% by the end of  2013 accounting year.  It is widely considered among the managers that several strategies can be effective tools to achieve this goal. Both instruments of financial and purely technological natures are to be applied, although this financial approach does seem more efficient, less energy- and cost- consuming. Assuming the fact that the shortest way to increase the value of shares is to reduce the nominal value of the commodities (Kotler, 2012), the prices must be reduced accordingly. Although this mechanism may happen to be detrimental to the revenues of the company, technically the demand for the production of the company will definitely grow. With the growth in the consumption of the firms’ commodities it is logical to assume that the demand for the shares will gradually rise. In its turn, this strategy will result in the increase of their nominal value (Martin, 2003). The calculations indicate that the price shall be diminished by 11 % in order to attain 12 % growth in the shares by the end of the 2013 accounting year.                      

With regard to the available technical remedies that may hypothetically lead to the growth in demand of the Zero Coke output, the shortest strategy is to minimize the sugar rate in the coke and to reduce the amount of the calories.  Naturally, these innovations must be accompanied by the saturated advertising campaign. Moreover, if this method is combined with the financial strategy, it is highly possible that the desired 12% will be achieved within the specified timeframes.

3. Communicational Objectives

Assuming the fact that 100 000 buyers purchase the cola-based products, 88% of these people must be attracted by the advertising tools of the company.  The advertising campaign must accentuate two points. First and foremost, it must be highlighted that the coke produced by our company is zero calorie and thirst quenching beverage. The major part of all published and broadcasted advertisements must focus on this issue. The second factor that must be emphasized is the fact that, although the rate of sugar is low and the beverage contains low amount of calories, the drink still does not retain fresh taste of a conventional coke and specific ardors nor the scent can be sensed by a purchaser (Kotler, 2012).  Combined with financial advantages of our product, (i.e. the fact that the price is lower than the price of our nearest competitors) these factors may effectively facilitate in attaining the specified goals (Martin, 2003).                                                                                              

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Besides, it seems to be an effective tool to star prominent athletes  in our advertising campaign. Understating that the beverage is highly recommended by those, for whom health is the guarantee of their well-being, the customer is likely to realize that the beverages in question are both healthy and hip.                                                                                                    

To summarize this argument, it is worth highlighting that the ultimate consumers must associate our product with the beverages that are regularly consumed and recommended by the leading sports stars.

4.1.Category Need

While the majority of the competitors of Zero Coke focused their attention on the attracting every layer of the society, the part of our firm’s branding strategy must become the association of the drink for males in the age category of 18-35 years, who keep healthy lifestyle.  The word ‘diet’ must be deliberately omitted because males of the above stated age category usually unconsciously associate this word with females and may opt for the production of our competitors (Kotler, 2012).                                                                       

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It must be communicated to this category of the consumers that the low calorie rate is among the key factors of being physically fit. Consuming fewer calories, the one is less likely to suffer from obesity and related diseases. 

4.2. Brand Awareness

In contrast to the advertising campaigns of the competitors it seems to be reasonable to refer to the strategy of minimalism. Experts in the field of advertising are strongly persuaded that while black color is traditionally viewed as male oriented color, the combination of these colors with more vivid and action-provoking colorful schemes like with red or orange may bring excessively positive results. Besides, a concise but informative slogan must be invented, like “Be sportive. Be healthy. Drink Coke Zero “. Vivid colors must indicate the idea that there is a huge deal of new, undiscovered opportunities that are luring the drinker to discover them (Martin, 2003).                                                                                           

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Another important element of the brand character is fresh drops of the coke. These elements of the ad are designed to remind the customer that he or she is always able to quench the thirst provided that she/he opts for Zero Coke. The main buyers of the Coke are men and women of the age between 18 and 35 who keep active lifestyles and who are particularly concerned about their physical form.  When they realize that it is possible to maintain a healthy lifestyle and drink coke at the same time, they will definitely opt for our product instead of the competitors’ one.                                                                                                The categories of the cautious buyers are those who purchase the products reluctantly or in order to have it tested.  The unique quality of the product must not frustrate their expectations and naturally they will gradually join the category of regular buyers.

5.3. Brand Attitude

The main message communicated by the advertising campaign of the firm is to make the audience believe that when they drink our coke they both quench their thirst savoring a traditional cola taste and maintain or even improve their physical capabilities without the necessity to keep a diet.  In other words, several ideas must be transmitted in a one single message.           

Potential customers must be affected and impelled to purchase Coke Zero on both emotional and empirical levels. Focusing on the fact that 100 ml of cola contains only 0, 5 kilocalories explicitly suggests the idea that the trend for healthier beverages became visible. The tactics that has already been employed by Coca Cola must be replicated and the results will undoubtedly be positive (Kotler, 2012).  Nowadays Zero Coke is welcomed by the targeted audience, although it is not purchased massively. About 20 % of the potential sales are reported nowadays. Therefore, more aggressive advertising campaign aimed at enhancing the perception must be waged. A good idea is to associate Coke with a cliff-hanger movie or a best-seller book. The combination of red, black and white colors is used to convey strength, low rates of calories, powers and authority. After the message is communicated to the target audience, the potential customers must comprehend that the production of the closest competitors must be viewed as outdated, while the goods produced by Coke Zero must be viewed as the best, sport-oriented drinks. Moreover, when the words ‘coke’ or ‘cola’ are pronounced, the customer must be expected to think about our products.

5.4. Brand Purchase

After the advertising campaign is launched, the best indicator of the efficiency is the increased volume of sales (Kotler, 2012). The shortest way to achieve this goal is to hire an independent research unit.  It is highly recommended that a three month period must be introduced in order to test the effectiveness and modify the campaign, if the modifications will be justified.                                                                                                                                

It is highly advisable to enter into the contract with an independent research agency which will be obliged to monitor the performance of the company, and which will be permanently inform the managers of the company about the marketing changes and about the modifications that may be introduced in order to raise the efficiency of the company(Kotler, 2012). Naturally, the criterion of such researches is how the communicational campaign is assessed by the ultimate purchasers (Kaplan, 2004).  Modern and healthy images will be the key features of the Coke advertising campaign.  No sexual associations must be present.  It shall be transmitted that Coke will be effectively incorporated into their lifestyles. 

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