Coke No Sugar Marketing: Value Proposition, Positioning, and Marketing Mix

COKE NO SUGAR MARKETING 1
COKE NO SUGAR MARKETING
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COKE NO SUGAR MARKETING 2
Contents
Introduction..........................................................................................................................................................................3
Market segmentation.........................................................................................................................................................4
Product’s Value proposition and positioning in the market......................................................................................5
Product element of the marketing mix...........................................................................................................................6
Pricing element of the marketing mix............................................................................................................................7
Place element of the Marketing mix..............................................................................................................................8
Promotion element of the Marketing mix.....................................................................................................................8
Conclusion...........................................................................................................................................................................9
References..........................................................................................................................................................................10

COKE NO SUGAR MARKETING 3
Introduction
Coca-cola is a leading producer of soft drinks operating in all corners of the world.
Currently ranked as the best company in the soft drinks industry, the company has one of the
most impressive product offerings consisting of 3500 products and over 500 Brands. The
company has maintained its global position through the launch of new products as a way of
satisfying the changing needs of its consumers. Compared to other multinational companies,
Coca-Cola has the most distributed products with its products available in more than half of all
countries globally. In addition to its distribution network, the company also enjoys a 50% market
share, the biggest in the Industry. Coca-Cola operates in Australia through Coca-Cola Amatil,
one of its main bottlers. Apart from Australia, Coca-Cola Amatil also operates in Samoa, Fiji,
Papua New Guinea, Indonesia and New Zealand. Some of its competitors in the Australian
market include Nudie Foods Australia, PepsiCo and Australian supermarkets such as
Woolworths and Coles. Some of its newest entrants into its product portfolio include Coke Zero
launched in 2006 and coke No sugar in July 2017. The Australian market has been skeptical
about playing along with the new No sugar Product. The demand for Coke zero is quite high in
the Australian market based on its sweet taste and unique flavor. The announcement by the
company that it would be replacing Coke zero with Coke No sugar sparked outrage among its
consumers (Andrews and Shimp, 2017). In this report, my focus will be on the Marketing of
Coke no Sugar in Australia. The case study address concepts such as marketing mix, value
proposition and target market for Coke No Sugar in Australia.

COKE NO SUGAR MARKETING 4
Market segmentation
Market segmentation refers to the process through which organizations use market
characteristics to divide their potential markets into segments or groups. Through segmentation,
organizations place consumers sharing similar characteristics and attributes in similar segments.
Segments are defined by their location, needs, and interests (Sahaf, 2008). Consumer segments
are perceived to respond in the same way to marketing concepts. Market segmentation is
particularly important for marketers in that it provides an opportunity for marketers to
understand the specifics of what their consumers want for them to devise the appropriate
advertising and marketing strategies towards them. Marketers use either behavioral,
Psychographic, Demographic or Geographic segmentation to classify their consumers
(Anesbury, Winchester, and Kennedy, 2017). Through market segmentation organization are
able to effectively carry out their marketing campaign successfully with a minimal budget.
The launch of Coke zero was specifically launched for the males who had labeled the
previous Diet Coke as a drink for women. The primary target was the young Adult males. it
marketing campaign involved the use of calorie-free to distinguish it from the diet tag used on
diet coke associated with women. The new product Coca-Cola no Sugar has a taste close to that
of coca-cola classic but has lower calories just like Coke-Zero. The Consumer profile for the new
product can, therefore, be described as health-conscious males and females focused on the
reduction of sugar consumption (Benstead and Reif,2017). By maintaining the taste of coca-cola
classic Coke No sugar is intended to attract more fans who value the coke flavor and at the same
time focused on reducing their sugar consumption. The Australian coca cola market has in the
past experienced declining sales of soft drinks, attributed to the demand for healthier soft drinks
options in smaller portions. The entrance of the new product in the market is, therefore, part of