Marketing Audit Report for Diet Coke - Case Study Example

Running Head: МАRKЕTING АUDIT RЕРОRT - DIЕT СОKЕ Name Course Tutor Date Table of contents 1.1 Introduction…………………………………………………………………………….3 1.2 Target market for diet coke……………………………………………………………..4 1.3 Marketing mix…………………………………………………………………………..5 1.3.1 Product………………………………………………………………………………6 1.3.2 Promotion……………………………………………………………………………7 1.3.3 Place ………………………………………………………………………………....8 1.3.4 Pricing………………………………………………………………………………...9 1.3.5 Competitive advantage ………………………………………………………………10 1.3.6 Conclusion……………………………………………………..…………………….10 1.4 References………………………………………………………………..………………11 1.5 Appendices………………………………………………………………………………..12 1.1 Introduction In the past few years, companies making edibles have turned to making healthier products from their usual product lines. This has resulted from increasing consumer pressures driven by health urges from medical professionals. In developing nations, the rates of non communicable diseases such as cancer and heart diseases have increase dramatically. This has been blamed on sedentary lifestyles and more specifically the kind of diet that people have. Anther rampant issue is the consumption of high calorie foods that has led to a sharp increase in the rate of overweight and obese people (Guenther, Casavale, Ree, Kuczynski, & Kahle, 2013, p. 572). In this view, companies have taken advantage of this situation by making products that are healthier to consume. One of these companies is the Coca Cola Company which manufactures soft drinks worldwide. The company introduced diet coke in the market to keep up with this new trend 30 years ago. The move may have been seen as a way of keeping up with the health concerns but it was also a huge marketing and promotional opportunity given its already well known and established brand. This report will analyse the diet coke in the Australian market perspective. It will discuss the effectiveness of the marketing mix applied in the sale of diet coke and its effectiveness therein. 1.2 Target market for diet coke The coca cola brand has been around for over a century. It has survived all these years as a result of brand superiority and intense marketing strategies. As mentioned earlier, the introduction of the diet brand was meant to keep up with the trend of companies producing healthier commodities. It was also a great chance to tap into an emerging market that did not exist before. Competitors were already doing it and the idea to introduce the brand was already under debate. The Coca Cola brands were already targeted for all populations. However, most of the consumers were drawn from the ages of 15 to 45 with the ages of 20 to 40 having majority of the consumers. The new brand was therefore mainly targeted for this age group. Diet coke has a production line of three major brands. They are diet coca cola, diet Coca-Cola caffeine free and diet Coca Cola vanilla. In their policy statement, the Coca-Cola Company states that, “our commitment is to help address obesity”. The normal diet coke contains less calories and caffeine for the market segment that likes caffeine beverages but with low calorie intake. This was the main brand as it was a sister product to the normal coca cola though it has a far much calorie count. In developed countries like in Australia, the issue of caffeine addiction is rampant among many people. Caffeine has its side effects and health implications as well. To tackle this issue, the company introduced the diet coke with no caffeine for the market segment that preferred less or no caffeine. The diet coca coal vanilla a vanilla flavored for the market segment with a need for a different taste from the normal Coca-Cola brands. Generally, the diet coke brands were introduced to appeal to all consumers ( Journey Australia Staff, 2013). Most consumer needs in a diet drink are covered in all the three brands. This was a significant strategy to try and encompass all consumer needs in their brands. Consumers have several varieties of diet coke to choose from depending on their tastes and dietary specifications. 1.3 Marketing mix A marketing mix involves asset of promotional aspects applied in a marketing strategy to give a product a competitive edge over competing products. The success of a marketing mix strategy depends on how well the strategies are combined given the strength of each component. Every product has it own strong marketing attribute and when this is combined with other supporting aspects, the product can effectively and competitively sell. The diet coke marketing mix applied in Australia revolves around the product, its promotion, place of sale and pricing. The coca cola company is known for its aggressive marketing campaigns and sponsorship strategies through the Coca-Cola foundation (The Coca-Cola foundation, 2013). At some point, the diet coke brand was discontinued in Australia but a strong campaign to reintroduce through a strategic market mix saw it gain popularity again in Australia 1.3.1 Product The diet coke idea was derived from the old famous brand of coca cola. The product was generally intended for the diet and health conscious population in the country. The company has been under a lot of pressure from governments and health lobby groups to address the issue of obesity. As a result, the line of diet coke products was designed to handle this problem. The normal diet coke contains caffeine and phenylalanine. It is made using carbonated water, colour flavours, sweeteners, food acids and caffeine. In a 375 ml can it comes with an energy giving capacity of 5.6 Kj and 1.5 calories it also has a low concentration of fats and carbohydrates. The caffeine free diet coke contains phenylalanine. Its ingredients are just like the other brand though it lacks caffeine. The nutritional value is also similar to the other brand. The two brands are designed to capture two different markets of caffeine and non caffeine lovers. The vanilla flavored brand comes with similar ingredients and vanilla additive. It has slightly more energy output per serving due to the vanilla components .it has a total of 7 Kj in energy and 1.7 calories. It also contains caffeine. The product line has these three major brands that are targeted for different markets. Recently, the company introduced the coke zero product in the line of healthier drinks. The new coke zero was meant to supplement the line of health drinks that the company already had in production. It was as a result of further pressure to the multinational company to take responsibility in raising awareness in health dieting and obesity. Coke zero also contains caffeine and phenylalanine with an energy output of 5.3 Kj and 1.1 calories per 375 ml serving (Coca-Cola Australia, 2013). The name coca cola zero was derived from the product having zero sugars. The wide variety of Coca-Cola diet products is meant to be more encompassing and appealing to a larger population. These products are targeted to cover a wider population of people in Australia and the world at large. The main agenda is that when a consumer chooses a coke for a beverage, it does not have to be a bad dietary decision. It also gives loyal consumers the power to enjoy their favorite drink without affecting their health. The packaging comes in cans, plastic and glass bottles. The standard size is 375 ml for cans while the bottles range from 300ml to 2 liters. The packaging of the products is well designed with the health message and the trademark coca cola logos. 1.3.2 Promotion As mentioned earlier, the Coca-Cola Company is one of the most aggressive advertisers in the world. This is not only for the Coca-Cola brand but also for other products such as Fanta, sprite, lift, pump among others. The company has invested in all means possible to reach that extra consumer. In their promotion strategy the company has used the billboard advertising, neon lights, social media, TV advertisements and sponsorships throughout Australia (The Coca-Cola foundation, 2013). In one of the recent campaigns to promote diet coke, the company partnered with Tesco. This advertising campaign involves placing photo booths in Tesco stores where consumers of diet coke are given the opportunity to feature in the 30th anniversary of diet coke marketing campaign. The loyal drinkers of diet coke are being given the chance to be part of the marketing celebrations of the brands. In yet another promotional strategy, diet coke marketers link it with fashion and lifestyle. In its advertising, the promotion of diet coke is linked to healthier living lifestyles accompanied by appealing fashion from healthy living. The company admits that this was a three year strategy but it chose to extend it due to its impact on consumer numbers ad sales (Australa news, 2013). The company also designs limited edition bottles that are meant to urge consumers who have never tried it before to try it. In another promotional strategy, diet coke reintroduced the famous ‘Coke Hunk’ in its TV and billboard advertising. The strategy was successful in Britain and this is expected to be replicated in Australia. The promotion also includes a competition where diet coke consumers have chances of winning money prices. The company also runs its promotional campaigns through social media platforms, it has the diet coke Australia Facebook media which has over 40, 000 subscribers. Together with YouTube advertising, consumers earn coke diet Vip reward which can be claimed for free drinks or other prices. 1.1.3 Place One of the smartest strategies that Coca-Cola has applied in promoting diet coke in Australia is through its placement and distribution strategies. You can find a diet coke at almost every corner in Australia. The products can easily be found in retail store, shopping malls, fast food joints, hotels and restaurants, schools, hospitals and other public places. The presence of vending machines has also made it easier to access the products at any time. In partnership with stores like Woolworths, consumes can get extra bargains when they purchase diet coke in these selected stores. For instance, the Coca Cola Amatil Australia Company distributes the diet coke products all over the country to retail and other vendors ( Coca-Cola Amatil Limited,2013). All Coca-Cola outlets are strategically placed to ease accessibility. They also have promotional messages and information on promotions on rewards. The company has also taken advantage of online distribution where consumers can order diet coke in bulk and have it delivered to them. This distribution channel is aimed at reaching more consumers and further promoting the product line. The placement and distribution networks have enabled diet coke to compete with others in the industry. As it is widely gaining acceptance and popularity, it is prudent to have it everywhere possible to gain that extra consumer. 1.3.4 Pricing Pepsi has been one of the major rivals for coca cola fro along time. This is not only in Australia but in majority parts of the world. The competition between the two is so fierce that it has extended even to the dietary conscious brands. The price of a diet coke can ranges anywhere fro $1 to $3 depending on the point of purchase. The pricing also depend on the packaging whether it is in bottles or cans. The cokes also come in packages of 6, 15, 18, 24, and 30. These range from $7 to $30. Bulk buying can bring down the cost to as little as %) cents a can. The cost of buying in bulk is much lower than buying singe units. Lager amounts are also cheaper to purchase than smaller ones in a unit wise comparison. Some of the major competitors such as Pepsi also have diet Pepsi brands which compete with diet coke. The price range is similar and the marketing mix, consumer loyalty and promotional strategies make all the difference. 1.3.5 Competitive advantage Coca-Cola and Pepsi cover over 40% of soft drinks industry. They face competition from other beverages such as juices, coffee and tea. However, the marketing mix of die coke in Australia has proven to improve their market share. Though there as discontinuation of the product, demand from consumer, lobby groups and health professionals were finally met when it returned. Since its return, it overtook Pepsi as the second most favorite drink in sales. It took the number two slot after Coca-Cola. This only proves that the marketing mix has been fairly successful. It shows that consumers have accepted the brand as healthy option. The marketing mix is more consumer intensive and oriented. Consumers are rewarded for their loyalty through cash and other rewards. 1.3.6 Conclusion As a leading producer of soft drinks in Australia, the Coca-Cola Company has heavily influenced the beverage market with the diet coke brand. Its wide variety has also ensured that consumers have a wide variety to choose from. To further this course, an aggressive marketing campaign has been taking place to ensure that the brand gains meaningful popularity that will raise sales and profits. In celebrating the brand, the company has planned a worldwide anniversary with intensive promotional marketing. The company is always ahead in market strategizing and affecting peoples’ lives as they promote their products. The success of the product can be gauged from satisfaction as well as adoption of aggressive marketing mix 1.6 References Australa news,2013, Retrieved september 6, 2013, from Coca-Cola Australia,2013, Retrieved September 6, 2013, from Guenther M., Casavale O, Ree J., Kuczynski J, & Kahle L, 2013, ‘Update of the Healthy Eating Index: HEI-2010’,Journal of the Academy of Nutrition and Dietetics , vol 113 no 4, pp. 569-580. Coca-Cola Amatil Limited2013, , Dun and Bradstreet, Inc, Austin. Journey Australia Staff,2013, Retrieved September 6, 2013, Siegle, L. 2013, Observer magazine: ETHICAL LIVING: Lucy Siegle, London, UK. “The Coca-Cola Foundation; The Coca-Cola Foundation Gives $8.8 Million to Help Develop Sustainable Communities”, 2013, Health & Medicine Week, pp. 124. 1.6 Appendices Diet coke; Adopted from Coca-Cola Australia Diet Coca-Cola caffeine free- adopted from Coca-Cola Australia Diet coke vanilla: Adopted from Coca-Cola Australia Coke zero; adopted from Coca-Cola Australia Read More