Annexure-V- Cover Page for Academic Tasks

Course Code: MKT 509 Course Title: Consumer Behavior

Course Instructor: Dr Shikha Goyal

Academic Task No.: 2 Academic Task Title: Assignment

Date of Allotment: 20th March 2020 Date of submission: 30th March 2020

Student’s Roll no: RQ5E65B37 Student’s Reg. no: 11915092

Evaluation Parameters:

Learning Outcomes: Help the student to apply the theoretical concepts to real life situations. Make them
understand the issues given in the respective cases and suggest solution/s. Good analytical and writing skills
will be developed.

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student’s
work or from any other source except where due acknowledgement is made explicitly in the text, nor
has any part been written for me by any other person.

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: Max. Marks: …………………
 COCA COLA GOES
GREEN: THE LAUNCH OF
COKE LIFE

SUMMARY OF THE CASE

The Coca-Cola Company (TCCL), has been an eminent player in the market under non-alcoholic
beverages. Its main business concentration has been the Coca-Cola classic, which is for the customers
who prefer taste over health, while it has launched several other products under the same product line as
Coke Diet for people who prefer taste and health both.
TCCL has emerged over the period, identifying the consumer behaviour and the shift in choices.it has
launched coke diet which has low calories compared to the Coca-Cola classic yet intakes the same
traditional trademark taste of Coca-Cola.
TCCL has kept its taste uniform and constant among its different offerings, because of the emotional
association and perception consumer have regarding Coca-Cola. It operates its business by the division of
the Brand portfolio into four categories. The categories are –

 Carbonated soft drinks (CSD)

 Non-alcoholic ready-to-drink soft drinks (NASDs)
 Bottled water and fruit juices.

Each of the categories carries 35%, 25% and 15% of the market share respectively.
The primary competitor of TCCL is PepsiCo, followed by modelled International, Kraft and others, which
compete with TCCL in offering similar products.
Since with time, the trends and political circumstances have changed, sugar consumption has posed a
great threat to the lives of the customers in which carbonated drinks faced great fall. Under such
circumstances, WTO along with other countries initiated tariff under government intervention act to
regulate or restrict the supply of sugary items in the country. Such changings posted great threat to the
business and sales margins of Coca-Cola in other similar countries.
To overcome the issue and to keep the grip of the market share tight, the company TCCL, launched its
first-ever drink, under the name Coca-life. The drink constituted 35% low natural sugar extracted from a
natural plant Stevia .Also, Coca-Cola, launched its billion-dollar advertisement to support the obesity
issue and raise awareness through the advertisement, the new coke-life attributed the same Coca-Cola
classic taste, with natural sugar and low calories, which targeted the health-oriented loyal consumers of
non-alcoholic soft drink. Besides, to make it fitter with the latest trend, the company changed the
packaging of the bottle and prepared it through 100% re-cycle plastic, to minimize the impact on the
environment. Hence catered the customer and the environment both.
Since after Coca-life launch, the company quickly initiated its distributions, in the US, UK, Argentina and
other countries, with different prices strategy, set according to the market forces and customer survey
analysis.

ANALYSIS OF THE CASE

To start with the analysis of the case first we will see the four members of the Coca-Cola family and their
specialty –

So we can clearly see that coca cola had product to cater every type of customer in the market i.e.

 Coca-Cola Classic: the original brand valued by consumers for its great, natural taste;
 Coke Zero: designed for young adults with zero sugar;
 Diet Coke: distinct taste with zero sugar and low kilojoules; valued by dedicated drinkers; and
 Coke Life: for adults looking for a great-tasting Coke that was naturally sweetened and had fewer
kilojoules.
 So what was the reason to launch Coca-Cola Life?

 To target the customers looking for a great-tasting Coke that was naturally sweetened and had fewer
kilojoules.
 The government intervention to reduce or limit the supply of Sugary product in the country. The
particular action may shrink the market share of coke classic, sprite and other sweet product so a new
product was needed.
 The rising trend of environmentally-friendly product.

Coca-Cola Life: Success or Failure?

In 2013, when Coke Life was introduced, TCCC sales dropped by 2.4 per cent compared to 2012 resulting in
occurrence of losses for TCCC.

Also, Professor Amanda Lee, former chair of Australia’s National Health and Medical Research Council’s
Dietary Guidelines Working Committee, criticized Coke Life’s marketing campaign, according to him the
marketing campaign was inefficient and old as it was like 30 years ago when manufacturers were making
healthy cigarettes. He was of the view that the company is trying to make a product that’s intrinsically
unhealthy, healthy.

These statements clearly showcase the failure of Coca-Cola life.

PROBLEMS IN THE CASE

 The "in-between" formulation failed to appeal to consumers, given the brand already had zero-sugar
and -calorie options (Coke Zero and Diet Coke) available as an alternative to standard Coca-Cola.
 Adopting a "middle-ground" approach is risky which adopted by the company clearly showed failed.
It failed to address a genuine consumer need that is a healthy coke as Coca life still had awful lot of
sugar. If you follow the growing recommendation to limit sugar to 5% of your total calorie intake each
day, it pretty much completes your ration in one go.
 Ineffective marketing by Coca cola as Soft drinks purchases are driven by brand familiarity, sensory
attributes, and health, yet Coca-Cola Life failed to resonate because it did not offer clear advantages
over Coke's existing line-up.
 SOLUTION

 Coca Cola should have come up with a formula of Coca Cola which had only the natural sugar
extracted from a natural plant Stevia and not the drink which constituted a mix of both sugar
extracted from a natural plant Stevia and basic sugar used in coke.
 When the company will come up with an all new totally natural Stevia based artificial sugar free
drink than there will be nothing like taking a middle ground as they will then have a totally new
product which is totally natural and artificial sugar free.
 Also an effective marketing strategy should be adopted by the company driven by brand familiarity,
sensory attributes, and health which the Coca Cola failed to do earlier and offer clear advantages over
Coke's existing line-up.

RECCOMENDATION

According to me I would recommend to launching a totally new product which will be Stevia based artificial
sugar free drink.

I agree that it might cost a company as they will be launching a totally new product so alot of new changes
and new starts will be needed.

But this new product very well efficiently caters the upcoming new demand of the majority consumer group
that is a tasty new beverage that is healthy and ecofriendly.

Also efficient marketing targeting a totally natural and ecofriendly product will be much more easy and precise
with this type of a product.

REFERENCES

https://www.businesswire.com/news/home/20170623005442/en/Failure-Case-Study-Coca-Cola-Life---
Targeting

https://www.marketingweek.com/coke-lifes-demise/

https://www.alva-group.com/blog/alternative-sweeteners-coke-life-case-reveal-consumer-perceptions/

https://www.news.com.au/finance/business/other-industries/spork-life-dysfunction-at-the-heart-of-
cocacola/news-story/e02d21493c23b58c4ff48bb96cbb3de7