Analysis Of Coke Zero

Price: Coke Zero is available in different sizes and shapes, so pricing varies according to individual desire (The Coca-Cola Company, 2018). Coca-Cola used price penetration in the early stages of its release to grasp new customers and draw them in, however, this could not be sustained long-term as it would cause overall sales to plummet. Instead Coca-Cola uses customer satisfaction objectives by setting an acceptable price for its Coke Zero products to retain loyal customers. It then relies on its other marketing elements to build loyalty and attract new customers. Hence, why majority of their products are priced at a similar cost to other soft drink beverages and not competitively (Coles, 2018) (see Figure 4.3).
Promotion: The promoting
As a result, Coke Zero also displays promotional advertisements on television that place masculine males at the centre of attention, highlighting how a sip of Coke Zero can make them invincible and ‘get the girl’.

Perceptual Map - Soft Drink
Perceptual Map
The above perceptual map (see figure 4.6) shows Coke Zero positioned on the left-hand side towards the ‘High Caffeine Level’ and ‘Low Calories’ section. Although the amount of caffeine in this soda is relatively small when compared to a cup of coffee, some individuals are sensitive to the effects of caffeine and can experience unpleasant side effects from it (Wolfenden, 2017). In order to improve the products positioning it would be best to reduce its caffeine levels. This would allow Coke Zero to expands its target market to the pre-teen/teen market as parents would prefer their children drinking a product that is low in caffeine. Sprite, Fanta and Creaming Soda (right side) are amongst the most popular choice of drinks with children, by aiming to position Coke Zero towards this section of the map could help it dominant other soft drink competition by expanding the age demographic of its target
The product has been around since 2006 and experienced great success in its early years, with many agreeing that it’s taste was far closer to the original than Diet Coke (The Coca-Cola Company, 2018). However, nowadays Coke Zero doesn’t fit the needs and wants of the health-conscious consumers. Although the product is advertised as containing zero sugar, many remain suspicious of its use of artificial ingredients and the long-term health problems it may pose (Marcus, 2013). Whilst Coke Zero is still available in Australia, Coca-Cola plans to phased out the drink and replace it a new drink called ‘Coca-Cola No Sugar’, stating this on their website: “Coca-Cola No Sugar tastes great and we think it is our best tasting no sugar Coca-Cola recipe ever. In fact, it tastes so good that we have decided that we will gradually phase out Coke Zero. Coca-Cola No Sugar will be an even better option for people who love the refreshing taste of Coke but are watching their sugar intake” (The Coca-Cola Company, 2018). This comes after ASX reported a 3.4 percent revenue drop in Coca-Cola beverages during 2015/2016 which resulted in a push from Coca-Cola to look at revamping their products in order to boost sales and maintain customer interest (ASX, 2018).
Key Competitors
Pepsi Max (see Figure 5.1) is a carbonated cola beverage that is sugar free, calorie free, carbohydrate free and one of Coke Zero’s