Iacobucci (2014) mentioned that as it is difficult for marketers to satisfy all their customers well, the better approach for ensuring the marketing success would be to target specific group of customers and serve them well. In this case, to select the proper market segment as the target market, and to develop the marketing strategy accordingly, would be necessary. Coca Cola Life, which is the new product that was launched in Australia last year, can be the good example of how proper STP strategy can help company to achieve better success.
It appears that as there is a strong demand for the low-calorie soft drink product, the low-calorie soft drink market could be one of the market segments in soft drink market. According to Piernas et al. (2014), since the high level of the sugar consumption could lead to make diseases such as heart disease and the diabetes, more and more customers start to adopt the health life style, and therefore, they demand less sugar consumption. In this case, the popularity for the low-calorie soft drink products becomes higher and higher. As Coca Cola is one of the world leading companies in soft drink industry, to well consider such trend in the customer’s preference, and to develop the product that target low-calorie soft drink market segment would be necessary.
During the past, Coca Cola has launched the low-calorie soft drink products such as the Coke Zero and Diet Coke. In this case, Coca Cola uses the Coke Zero and Diet Coke to serve the customers in low-calorie soft drink market segment, while using its original products to serve the customers in normal soft drink market segment. However, it appears that the taste for such soft drink may not be accepted by all the customers. Therefore, Coca Cola has developed the new low-calorie soft drink product, the Coke Life. As Herbison (2015) described, Coke Life is the low-calorie soft drink product with the very similar taste for the original Coca Cola, but with 30% less sugar. Coca Cola developed this product as the result that it knows many of the customers may not like to give up the taste while want to achieve better health. Therefore, both the sugar free soft drink and the original soft drink may not be proper fit for the needs of such customers. In this case, Coca Cola want to develop a healthier soft drink product, with the good taste. The Coke Life could be a very good solution in this case. With the same formula that Coca Cola uses for its original version of the coke product, Coke Life has the nearly the same taste (Nasdaq 2014). However, it has 30% less sugar in it, so this means it also be healthier.
Iacobucci (2014) mentioned that marketers need to find the position of their products in the market, so that it could best serve the needs of its customers, while gain better competitiveness. In this case, as the diagram above shows, the Coke Life positions itself as the good taste soft drink with low calorie. Therefore, it could compete with the normal soft drink product on the health while competing those sugar free soft drink on the taste. The perfect balance between the taste and the health could let the company well serve the customers who want both taste and health. Therefore, this could be the very good example about how effective marketing positioning strategy could help the company to achieve better success.
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Herbison, M 2015, ‘Pepsi got in first, but Coca-Cola Life’s launch marks declaration of the Green Cola Wars’, Marketing Mag (March 31), viewed on 22th March, 2016, from https://www.marketingmag.com.au/news-c/pepsi-next-coca-cola-life-green-cola-wars/.
Iacobucci, D 2014, Marketing Management (MM4), South-Western, Cengage Learning, Mason.
Nasdaq 2014, New Coca-Cola Life Targets Health-Conscious Crowd, viewed on 22th March, 2016, from http://www.nasdaq.com/article/new-coca-cola-life-to-target-more-health-conscious-crowd-cm363756.
Piernas, C, Mendez, MA, Ng, SW, Gordon-Larsen, P and Popkin, BM 2014, ‘Low-calorie-and calorie-sweetened beverages: diet quality, food intake, and purchase patterns of US household consumers’, The American journal of clinical nutrition, vol.99, no.3, pp.567-577.