Branding Strategy of Coca Cola's Premium Brand Coke Zero
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This paper evaluates the branding strategy of Coca Cola's premium brand Coke Zero, focusing on its brand identity, image, and brand identity prism. It also analyzes conceptual models of brand strategy related to Coke Zero.
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Running head: BUSINESS MANAGEMENT BUSINESS MANAGEMENT Name of the Student: Name of the University: Author note:
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1BUSINESS MANAGEMENT Executive Summary Building a brand primarily stimulated by culture has been identified as a vital commitment to the perception and likings of consumers in addition to company’s marketing strategies and perseverance that produceselusiveoutputswhichconsistofsuperiorcustomersatisfaction,concentratedprice understanding, fewer customer defections along with an increased percentage of business. Consumers in recent times have value their relationships with their branded assets along with promotion agents and which own and deal with the brand. Thus brand identity primarily needs to emphasize on factors related to differentiation that offer sustainable competitive advantage to the company. As brand emerges as a vital relationship between the brand and its buyers, strong brand has become invaluable as the struggle for customers which eventually have been intensifying. The paper has offered has offered inclusive insights of the branding strategy of Coca Cola’s premium brand Coke Zero and has focused on its brand identity, image as well as brand identity prism. Additionally the paper has analysed conceptual models of brand strategy related to Coke Zero.
3BUSINESS MANAGEMENT Introduction Branding has been identified as one of the vital aspects of any business being large or small retail or business to business. It is highly imperative for companies to spend time in researching, defining and establishing brand in the market they operate. Liu and Lopez (2016) have stated that effective brand strategy offers companies with major edge in expanding competitive markets. Brand appears as a relationship between a product and its customer. The Coca-Cola Company has emerged as the world's largest beverage company, largest producer as well as serving as leading distributor and dealer of non- alcoholic beverage concentrates along with syrups in the world. In the United Kingdom Coca Cola has been identified as one of the largest corporations. The company has primarily gained reputation because of its flagship product Coca-Cola. In addition to the company’s namesake brand, Coca-Cola beverage, Coca- Cola in recent times has been offering approximately 400 brands in more than 200 countries and further serves over 1.5 billion servings each day (Wang and Finn 2014). According to authors, Coca Cola being a highly valuable brand with a strong global reach has been well –positioned in order to continue its expansion even during turbulent economic times. The company’s long term targets primarily include around 4-5% volume growth with over 7-9% operating income growth along with 8-10% revenue per share growth which has been considered to be easily achievable. Blair and Chiou (2014) have anticipated that Coca-Cola’s expanded distribution of Energy Brand's vitamin water as well as smart water, in addition to its renowned brand Coke Zero has been expected to maintain its growth resulting to gain competitive advantages in comparison to its competitors. The following paper will evaluate the branding strategy of Coca Cola’s premium brand Coke Zero by focusing on its brand identity, image as well as brand identity prism. Additionally the paper will analyse conceptual models of brand strategy related to Coke Zero.
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4BUSINESS MANAGEMENT Discussion Brand Elements Following to a series of branding failures in addition to a shift by customers advanced to bottled water, health juices in addition to other newly introduced beverages, Coca Cola corporation has been receiving considerable success with the launch of Coca-Cola Zero which a Zero calorie soda prepared from the classified Coke formula along with a combination of synthetic sweeteners which enhances its tastes and makes its flavour less astringent in comparison to Diet Coke. Reports of Wang and Finn (2014) have noted that after the launch of Coke Zero since 2005, the brand has successfully sold over 100 million piece cases with an business standard of quantity primarily containing around 25 eight-ounce bottles. While that has been accounted as a small part of the revenue rate of Diet Coke or Coca-Cola Classic, Coke Zero has emerged as Atlanta-based beverage giant's "most successful market launch (Coca-Cola zero sugar 2019). Reports of Urde and Koch (2014) have stated that Coke Zero's success pursued with a launch of another soft drink product know as C2 containing around about half the carbohydrates as well as calories of Coca-Cola Classic and has been primarily targeted young health conscious consumers who do not prefer the taste of Diet Coke and have been seeking unique taste of new beverage. However, with the decline of C2 from several outlets in 2004, Coke's scientists efficiently invented a new and unique combination of sweeteners which turns ice-cold Coke Zero drink almost identical from the authentic product. Brand Strategy Conceptual Model in Establishing Brand of Coca Cola Zero According to Kapferer (2012), brand recognition along with other responses have been primarily formed by the gathering of experiences with the particular product or service, either through direct usage
5BUSINESS MANAGEMENT or through the power of promotion, design in addition to media interpretation. Furthermore, a brand currently has been considered as a medium for stakeholders by the means of which they can interact to each other. Although several conceptual brands have been identified for brand building, authors have created a brand uniqueness planning model essentially consisting three vital stages namely, strategic brand analysis, and brand identity system along with brand identity implementation system. Brand analysis-White, Oliffe and Bottorff (2014 have supposed the primary targeted consumer segment for Coke Zero 375ml cans depends on fitness enthusiasts and health conscious 22-27-year-old health drink consumers who identify themselves with health and fitness within the development stage. Delogu et al. (2016) have revealed that considering the recent stage of the Coca Cola’s merchandise life cycle and that Coke Zero 375ml cans have been positioned within current submarket of diet cola drink, it is necessary that the brand being accessible is specifically personalized to a highly advanced market segment thus being attained through the Coca Cola’s customer segment. Competitors Analysis-According to Egol, Peterson and Stroh (2014), brand positioning fundamentally refers to where a brand has been positioned in assessment to its competition and the way this positioning by a product’s target market segments. Coke Zero has utilized target as well as positioning to appeal to its target market segments of health conscious adults who show immense inclination towards health drinks. Thus in order to establish a brand position of 375ml can of Coke Zero, estimation has been required to be conducted to its major competitors such as can of Pepsi Max.Ubeja and Patel (2014) have noted that both these health drink brands show resemblance with their similar taste and percentage of sugar content along with similar consumer base. Even though Coke Zero comprises several indirect competitors ranging from home brand health beverages, this brand under the Coca Cola trademark products aims to chase diverse markets in order to strengthen its positioning (Kapferer 2012).
6BUSINESS MANAGEMENT Coke Zero Brand Identity The Coca Cola Zero Brand has been identified as a highly inextricable element of the Brand’s equity and significantly influences the way consumers experience it. Wide ranging executions which use Coca-Cola Zero have been identified as vital part of the Brand Identity as they focus on customers view and connect with Coca-Cola Zero.Kapferer (2012) has stated system centric uniqueness and propose standards as established element of the company’s inheritance and fundamental in structure strong international brands. These standards sanction markets to emerge from universal rules as well as principled in order to experience Brand Identity of Coke Zero across the world on a regular basis and protected across at every touch point. Blair and Chiou (2014) have stated that the brand standards of Coke Zero should be applied by Coca Cola as well as the bottling system along with associates engaged in any Coca-Cola touch point.Additionally, Coca Cola must efficiently address local guideline for: Compliance as well as local legal rules and regulations Limited authorized support of all materials before introducing in the market Proper arrangement of communication objectives for Coke Zero
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7BUSINESS MANAGEMENT Coke Zero Brand Identity Source: (Coca-Cola zero sugar 2019) Coke Zero Brand Identity and Design Standards The Coke Zero Brand has been positioned in to target 20-27 years populace who have been inclined towards an unprecedented perception whereby they can attain and further stimulated by high level impatience of the status quo. Reports of Gurumoorthy and Knight (2015) have found that the primary aim of Coke Zero brand relies on communicating with the young individuals to increase their inclination towards healthy lifestyle and eliminate excess sugar consumption.
8BUSINESS MANAGEMENT Coke Zero Brand Identity Source: (Coca-Cola zero sugar 2019) Design Principles The Coca Cola Zero Design Standards has been primarily outlined in order to focus and clarify what the brand signifies-Coca Cola Zero. These principles primarily manoeuvre the design strategies of all touch points for the Coca Cola Zero brand. The Coke Zero Brand Design Principles Bold Simplicity-Coke Zero focuses on an efficient return to clarify along with the elimination of all types of complexities and inactive performances concerning the brand (Strebinger 2014).
9BUSINESS MANAGEMENT Innovative and Genuine- The Company primarily steered by self-determination, characterizesan exceptional strategyin order to distinguish its unique branding strategy in order to achieve greater destiny. Own Black- At every touch point, Coca Cola primarily influence the bold and positive energy of Coca Cola Zero Black across various countries of the world. In addition to this, Coca Cola will continue to incorporate the thread of Red in all their branding strategies (Kapferer 2012). Bold and Unexpected-Sunder, Kumar and Zhao (2016) have stated that Coke Zero proficiently displays its individualist character in a volatile marketing journey of discovery. Reports of authors have revealed about the possession of authorization by Coca Cola in order to explore newly developed branding strategies and further expand potential growth. Coca Cola Zero Logo Reports of Su, Zhu and Gong (2017) have noted that Coke Zero Logo has been regarded as a primary benefit has been purposed for Coca Cola Zero Brand moreover has been distinguished as a preferred Logo to successfully represent its Brand. Spenciarian Script has been efficiently controlled over the Coca Cola Brand which has been visually associated with the ‘Zero’ logo’ that has been planned to signify the vibrant appearance and masculinity of the brand. Baah and Bohaker (2015) have mentioned that such a design layout has formed a holistic image of the Coca Cola Zero Brand thus reflecting a representation of the original Coca Cola Trademark. However, the company must take into account that the Spenciarian Script which has been used for the company Coca Cola Trademark must not be implemented for other branding strategies apart from trademarks involving “Coca Cola’ and ‘Coke’ along with the trade identities of the Coca Cola Company, its suppliers as well as its bottlers. Coca Company has been highly committed in applying the Coca Coca Cola Zero logo in its most authentic form. The company can efficiently form proficient executions which
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10BUSINESS MANAGEMENT preserve its original and unique essence and significantly fashions a constant and exceptional approach for the Coke Zero Brand. Coca Cola Zero Logo Source: (Coca-Cola zero sugar 2019) Colour implementation of the Coca-Cola Zero Logo primarily consists of the standard Logo on a white backdrop in addition to the inverted Logo in Coke Red plus white on a black setting. However, according of Gurumoorthy and Knight (2015), the Coca-Cola Zero Logo must be careful of not been revealed in other colours even positioned within the brand colour palette. Furthermore, the Coca-Cola Zero Logo must never be publicized on backgrounds (Kapferer 2012). Exceptions Reports of Urde and Koch (2014) have revealed that for media in which colouris not an alternative for example, a black- and-white print advertisement, application of either the limited implementation of Coca-Cola Zero Logo or the limited use invalidate Coca-Cola Zero Logo. However, for premiums, architectural particulars or other relevance in which Coca-Cola Zero Logo has been imprinted, stamped, sandblasted or spot varnished, the colour tends to appear as the substrate of the objects used.
11BUSINESS MANAGEMENT Coca Cola Zero Logo Source: (Coca-Cola zero sugar 2019) Value Proposition The features of Coke Zero 375ml cans have been primarily designed for successful attainment of target market and further been strengthened by value proposition theory. White, Oliffe and Bottorff (2014) have stated that considering various types of Coke Zero, the major factor of the brand draws its disparity from its predecessor brand Diet Coke. Coke Zero as a thriving brand has no sugar content with preserving same flavour, fizz and taste like Coca Cola’s first and original product Coke. Thus, according to Delogu et al. (2016) Coca Cola to successfully maximise its value has been strategically investing on its labelling and packaging. Furthermore, designing principles of the product consists of the standard black can with the red trade name Coca-Cola logo along with the text ‘Zero’ as mentioned in the aforementioned sections has successfully offered the theme and appearance which increasing health conscious consumers have desired.
12BUSINESS MANAGEMENT At this juncture, considering the pricing tactics for Coke Zero 375ml cans factors related to pricing objectives, the environment as well as demand will create a part of generally pricing representation of the brand. As pricing objectives primarily explain organizations’ aim to attain by strategizing a price, the price range of Coca-Cola’s series of products has been disregarded by its major rivalry PepsiCo. Such lack of notice by Pepsi Co has expanded to such an extent that distinct models can be strategized to develop a linear relationship with customer base (Kapferer 2012). Although, Kadyan and Aswal (2014) have noted that Coca Cola does not necessarily depend on business through competitive pricing or continuing penetration pricing. Furthermore, reports of Egol, Peterson and Stroh (2014) have claimed that Coca-Cola has shown immense inclination towards its customer contentment objectives strategically establishing an adequate price for Coke Zero in order to maintain its reliable buyer base further relying on its other marketing fundamentals to put up reliability and increase competitive advantages in the F&B sector. Brand Identity Implementation Lock-up Specifications-The Lock-up of the Dynamic Ribbon along with Coca Cola Zero Logo primarily has created a well-balanced apprehension between brand icons which have represented factors related to modernity and heritage. Space Ratio between the Coca-Cola Zero Logo and Ribbon- While by means of the Coca-Cola Zero Logo with the Dynamic Ribbon, designers have kept the space between the two as “hyphen height”which has been equivalent to the height of the hyphen involving the trade name ‘Coca Cola’. The brand has been essentially centred over the middle of the Dynamic Ribbon (Blair and Chiou 2014). Marketing Communication Coca Cola has been investing substantial marketing strategies which primarily have purposed to include social media, television retail advertising in addition to sampling marketing campaigns. The development of Coke Zero marketing campaign has helped the company to increase its sales growth by
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13BUSINESS MANAGEMENT over 5.5% in comparison to its sales growth in 2015. However, as per reports of Liu and Lopez (2016), the primary goal is to represent variations and options for health conscious drinkers who prefer zero sugar consumptions. Furthermore, the cohesive red look will enable customers to remain integrated in the Coca- Cola franchise, thus resulting to lesser degree of shifting choices among various brands. Conclusion Therefore, the above discussion it can be concluded that Coca-Cola Company has efficiently utilized its strategy of market penetration in the form of core marketing strategy in order to sell its renowned product 375ml cans of Coke through vending machines. It has been noted that with the elevating rate of revenues have indicated that the brand has attain greater level of success thus advancing towards the development stage of the product life cycle. Furthermore, Coca-Cola has been applying loyalty and expediency in order to augment level of market access for its target segment that is health conscious young adults of age 18-27 years in the UK. Meanwhile, allegiance has been increased in the company though eye-catching packaging, customer liking which have been attained by economical pricing,company representation in addition to relationship management with extensive clientele. Additionally,conveniencehasbeenamplifiedthoughelevatedformeffectivenessofpackaging, convenient sizing along with position service through vending machine distribution. These factors mentioned in the report has been aiding the company to productively position Coke Zero ahead ofits competitors in the UK F&B industry. Recommendations As perception typically results to the brand identity and loyalty,Coke must seriously take into account that its customers primarily perceive greater degree of value from the brand which can
14BUSINESS MANAGEMENT develop through guarantee regarding product quality in addition to factors such as best price, paramount value, wide range availability and trend. The supposed importance of Coke Zero must be amplified by proper dissemination of brand knowledgeandawarenessdevoidofanycrucialdiscrepantinformation.Suchefficient dissemination results in developing greater value, reliability and awareness regarding Coke Zero. Thus Coca Cola can strategically emphasize on enhancing the brand reputation through high level of responsiveness or promotion tactics in order to enhance the brand image and constancy. As Coca Cola has less popularity among aged population, Coca Cola Zero must efficiently focus on the target market comprising of elder consumers.
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