As implied by its name and slogan, 

Coca-Cola Zero has no calories and it tastes like Coca-Cola.

Launched in June 2005 it is hailed by The Coca-Cola Company as its most successful product
introduction since Diet Coke.
Over the course of its development and launch, extensive research was conducted to evaluate and
validate this ground-breaking product. In one key initiative, Nielsen employed three different
analytics platforms in the U.S., to study the launch. The research findings are summarized as
follows
 Data from the Nielsen retail panel revealed that the launch was well executed. The brand’s
distribution was very strong, and it was heavily promoted within stores.
 Though sales were promising, they were driven primarily through trial purchases.
 Homescan, the Nielsen consumer panel, revealed that repeat purchases were relatively weak.
 Importantly, both custom research and consumer panel data indicated that the brand’s source
of growth was coming from Diet Coke.
The latter two factors, i.e., low repeat purchases and the cannibalization of Diet Coke, were a
source of concern.

Repeat purchasing is crucially important for the longevity of a FMCG product. Such a product
can succeed only if it develops a strong base of regular consumers.

Low repeat rates suggest that the people who tried the product did not like it. This occurs
typically due to two possible scenarios. Either the product has some shortcomings, or it is not
reaching its intended target segment.

To understand the danger signals one must appreciate that Coca-Cola Zero was launched in
response to consumers’ desire for healthier, low calorie drinks. Colas in general, are not
perceived as healthy. Consequently their share of throat has declined, and Coca-Cola has been
cannibalized by healthier beverages, including varieties that were launched by The Coca-Cola
Company.

The launch of Coca-Cola Zero was therefore intended to reclaim lapsed Coca-Cola drinkers as
well as stem any further erosion of the brand. It was not another diet cola — Diet Coke
consumers were not the target market.

Dieting is of greater interest to some consumers, particularly women. Many of these consumers
preferred Diet Coke and were accustomed to its taste. Not surprisingly, when they tried it, Coca-
Cola Zero did not appeal to their senses.

The consumers that The Coca-Cola Company was most interested in targeting through Coca-
Cola Zero included individuals who were concerned about their health and weight, and who did
not like products that were associated with dieting. They tended to be either current or lapsed
regular Coca-Cola drinkers. So to target them it was important to communicate the brand’s
proposition — real Coca-Cola taste and zero calories.

Coca-Cola Zero was initially launched in white cans and bottles.

Coca-Cola Zero black labels first debuted in New Zealand.

Promoted initially with the “Everybody Chill” tagline, custom research highlighted that Coca-
Cola Zero advertising was primarily reinforcing a cool trendy brand image. The “real taste” and
“zero calories” messages were not well communicated as can be gauged from the launch
advertisement.
   Summary of research findings and recommendation.

Moreover, the white cans and bottles that Coca-Cola Zero debuted in (see Exhibit 22.11), were
associated with feminine-leaning diet drinks. Coca-Cola Zero needed a more masculine look and
message.

The lack of clarity in communication led to purchases by non-targeted consumers, i.e. the Diet
Coke drinkers. On the other hand, the consumers that the company was most interested in
pursuing were not enticed to try the new product.

For the launch period in particular, Coca-Cola Zero needed a campaign that better targeted these
consumers.

Coca-Cola New Zealand pioneered the black packaging . It was a safe bet — the All Blacks,
New Zealand’s national rugby team, is legendary, and black is the nation’s favourite colour.

Soon after the launch in New Zealand, the U.S. and other markets switched labels from white to
black.
These revisions to the brand’s communication strategy clearly differentiated Coca-Cola Zero
from Coca-Cola and Diet Coke, and eventually cemented its success. A decade after its
introduction, the brand is sold in about 160 countries across the globe.

1. Discuss about the impact of low repeat purchase on a brands development?

2. What strategies do you suggest as best for coca cola?