Marketing Strategies / Strategic Marketing Case Study

Coca-Cola: Would its 'Three-Cola' Strategy Work?

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Abstract:
Coca-Cola Company, a global leader in the carbonated soft drink segment held 47% of the global market. Coke had three brand extensions to its Coke brand - Classic Coke, Diet Coke, and Coke Zero; each targeting three different customer segments - mass, male and female respectively. With the trend of diet drinks overlapping the trend for carbonated soda drinks, Coke Zero gained popularity. But, Coke started facing product cannibalisation among its three brands and promotions were just driving shifts among Cola customers. To solve this problem, Coke devised a 'three cola' strategy in 2006. However, analysts were apprehensive whether this strategy would eventually work for the Cola giant, and clear the brand confusion.

Pedagogical Objectives:

• To concept of 'brand differentiation'.
• To evolution of Coca Cola's brand portfolio.
• To brand cannibalisation problem.
• To Coca Cola's 'three cola' strategy.

Keywords :  Coca Cola, Carbonated soft drink, Classic Coke, Diet Coke, Coke Zero, Product cannibalisation, Three cola strategy, US beverage industry, Vanilla Coke, PepsiCo, Brand confusion, Brand differentiation, Segmenting, Targeting, Positioning