Examination of Diet Coke Marketing Mix in Australia - Case Study Example

Student: Tutor: Course: Institutional affiliation: Semester: Date: Table of Contents Examination of Diet Coke Marketing Mix in Australia 1 Introduction This paper analyses the marketing mix of Diet coke in the Australian market. The intention of the paper is to shed light on the segmentation and composition of diet coke in the Australian market. The paper will also seek to understand how each component of the marketing mix (product, place, price, promotion) has been utilized in positioning the product to meet clients’ needs and compete with rivals in the market. Diet coke is a sugar-free soft drink which was first produced in 1982 by the Coca-Cola Company; a multinational headquartered in Atlanta Georgia with operations all over the world. Since then the brand spread quickly all over the world and can be found in various countries across the world (Sandison, 2007). Coca-Cola has been in operations for over 120 years with more than 500 beverages under its offering (Pendergrast, 2013). 2 Target market Diet coke was introduced into the Australian market in 1983 with the intention of serving health conscious Coca-Cola consumers (CCA Coca-Cola Amantil, 2013). The product contains less calorie content of calorie which is preferred option of many people who don’t want to lose wait but still enjoy a carbonated soft drink from Coca-Cola (CCA Coca-Cola Amantil, 2013). The characteristics of the target market are as highlighted below. 2.1 Demographic characteristics: Gender: diet coke is intended for consumption by members of both genders. However over time the product has become very popular with women as they are the most sensitive consumers when it comes to high calorie content foods and beverages. The name “diet coke” to some extent has been associated with women in most markets including Australia and so the product is mostly targeted for health conscious women but health conscious men have not been out-ruled in the target market segment (Sandison, 2007). Age: diet coke can be taken by people within the ages of 3 years and above as it’s a nonalcoholic soft drink with additional health benefits of containing low calories. Adults above 16 are the main target market though since health and weight issues are very important to them from this age onwards. 2.2 Behavioral characteristics: Health benefits expectations: the main target market which comprises of health conscious Australians expect to enjoy the same great taste of their coke drink but gain less weight or have fewer complications associated with high calorie intake as promised by the brand. 2.3 Geographic characteristics: Coca-Cola Company produces and distributes diet coke concentrates all over the world including Australia where Coca-Cola Australia is the Australian subsidiary of the parent company (Bodden, 2008). It means diet coke is an international brand targeting health conscious consumers of Coca-Cola branded beverages in all markets. 2.4 Psychographic characteristics: Lifestyle: diet coke is product that was developed by Coca-Cola to appeal and sell to the health conscious consumers as awareness on dangers of high calorie foods started affecting consumer trends mainly in developed countries. The consumers of the brand therefore are people more keen on maintaining a healthy lifestyle than enjoying foods and drinks (Sandison, 2007). 3 Marketing mix 3.1 Product Diet coke is basically a sugar-free soft drink sweetened with aspartame instead (Coca-Cola Journey, 2013). The core product is a soft drink but packaged differently to appeal to health conscious consumers. It comes in different flavors, packaging and sizes. There is an option of canned soda or bottled soda in both plastic bottles. The sizes range from 250 ml to 500 ml. since its introduction in the early eighties, diet coke has several flavors but the flavors available in the Australian market are; diet coke original version of sugar-free Coca-Cola, diet coke caffeine-free, diet coke vanilla (CCA Coca-Cola Amantil, 2013). Diet Coca-Cola can, source: The Coca-Cola company website. Diet coke contains carbonated purified water, permitted flavor, colour, food acids, sweeteners, preservative and caffeine. Most importantly the 375 ml diet coke drink contains 1 calorie which is an essential consideration for the target market (Coca-Cola Journey, 2013). The product is able to meet the target market’s concern on healthy living which is the consumer need coupled with the need to quench their thirst with a refreshing carbonated soft drink. The packaging type in cans and plastic bottles is convenient for people since its lighter than glass bottle. The 250 ml can fit inside a pocket and is actually marketed by the company as “pocket-size” bottle (Coca-Cola Journey, 2013). The product is at maturity stage of the life cycle with so many the product offering what its offering and thus the company has had to engage in rigorous promotional campaigns and product rebranding to remain relevant in the market. 3.2 Promotion Coca-Cola uses a range of adverts and promotional strategies to promote its brands including coke. Much of the success of coca cola in the international market can be credit to its sustained advertising campaigns and promotional strategies. Diet coke has been positioned as drink for health conscious women through the various TV ads adopted by the company. Some TV adverts in the series of the “diet coke man” such as “diet coke break” “the gardener” depict a male hunk enjoying a refreshing diet coke drink with the ladies being sexually attracted to the man. The advert seems to suggest that handsome men love diet coke and so should the women (Sandison, 2007). “Diet Coke” VIP rewards promotion logo. Source: Coca-Cola website. Currently Coca-Cola is running the “Diet coke” VIP promotion where consumers enter one “Diet coke” code per calendar month to enter draw into a “Diet coke” VIP rewards such as monthly Cleo magazine supply for six months, home theatres and mobile phones (Coca-Cola, 2013). Diet coke Australia also utilizes social media to communicate about upcoming events, run promotions and increase brand awareness with its facebook page (“Diet coke” Australia) ("Diet Coke" Australia/Facebook, 2013). The promotion effort really fits with the product’s life cycle since the main effort is to sustain brand loyalty at maturity stage. 3.3 Place Coca-Cola does not engage in mass production of its products directly but does it through bottlers across the world. All the company does is to produce the concentrates, sell them to bottlers who are in charge of adding carbonated water, sweetening and bottling according to the company’s requirement. The bottlers then distribute the drinks to retailers and restaurants within their mandated areas (Pendergrast, 2013). CCA Coca-Cola Amantil is the official Australian bottler of Coca-Cola brands and distributes the diet coke brand in the market (CCA Coca-Cola Amantil, 2013). The strategy according to Waters (2003) is very effective for the Coca-Cola Company since it does not have to incur production costs or engage in management of a complex manufacturing and distribution chain and the bottlers can also raise expansion capital for themselves. This means the product reaches the consumers on time and at affordable prices. Diet coke is available at almost all retailers in Australia such as Woolworths, Coles, in restaurants and fast food joints such as Hungry Jack’s. 3.4 Price The pricing of diet coke is relatively affordable in the Australian market as a consumer commodity this is perhaps an attempt to compete with rivals in the industry offering carbonated drinks such as Pepsi next. At Coles supermarket, diet coke is going for $17.00 for 24 x 375 ml Cans ($1.89 per 1L). At the same supermarket Pepsi Next is going for $13.00 for 24 x 375 ml Cans ($1.44 per 1L) (Coles, 2013). At Woolworths, Pepsi next is for $19.34 for 24 x 375 ml Cans ($2.15 per 1L) at the same supermarket diet coke is going for $18.00 for 24 x 375 ml Cans ($2.00 per 1L) (Woolworths, 2013). As can be seen the competition between the two products is stiff and as such determines the competitive pricing strategy which has been termed as unhealthy for the industry by CCA Coca-Cola Amantil (Williams, 2013). Despite the different package sizes, the average price per litre is relatively the same for the brand. The price is consistent with the maturity stage of the brand since it has to struggle to survive in a competitive market with changing consumer preferences after several years of being accustomed to it. 4 Competitive advantage Diet coke as brand offers value to its target market by providing a product that has low calorie content and thus appealing to health conscious consumer especially dieting women who are its prime target market. The brand has been positioned as a refreshing drink associated with coolness through its promotions and advertising. The brand is also distributed through retailers and restaurants in Australia meaning it reaches consumers in time and at affordable prices. The quality of the drink and the attributes all rolled up in a globally competitive brand constitute diet coke competitive advantage over other drinks in the market. 5 Success of the firm Diet coke as a brand has been able to satisfy the needs of its target market by providing a healthy option which the consumers enjoy without the fear of adverse healthy effects associated with high calorie intake. The product has been distributed effectively in the Australian market to reach consumers in time and at convenience places at affordable prices. The advertising and promotion campaigns have also made the brand globally recognized and successful even in Australia. Perhaps the only problem ha been that the product has been largely associated with women due to its adverts and thus the target market has slowly narrowed down to women conscious of their health. This led to the introduction of coke zero which targets mainly male consumers who are not attracted to diet coke due to its association with women (Howard, 2007). References "Diet Coke" Australia/Facebook. (2013). www.facebook.com/DietCokeAustralia. Retrieved September 6, 2013, from www.facebook.com/DietCokeAustralia: https://www.google.co.ke/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CC0QFjAA&url=https%3A%2F%2Fwww.facebook.com%2FDietCokeAustralia&ei=M6spUsyLIouLkgXu_oD4BA&usg=AFQjCNFBMqQ5Oc_Ou38DZ1HtBXs_BO1OAQ&sig2=uBvK4MLLvs_vgCD5hfYnrQ&bvm=bv.51773540,d.dGI Bodden, V. (2008). The Story of Coca-Cola. The Creative Company. CCA Coca-Cola Amantil. (2013). Our brands:CCA Amantil. Retrieved September 6, 2013, from CCA Amantil Website: http://ccamatil.com/OurBrands/Pages/Australia.aspx Coca-Cola. (2013). 'Diet Coke' VIP - Coke Rewards. Retrieved September 6, 2013, from Cokerewards/Australia website: https://www.cokerewards.com.au/vip/diet-coke Coca-Cola Journey. (2013). 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(2007, August 1). Diet Coke Plus to target health-conscious consumers. Retrieved September 6, 2013, from Brand Republic website: http://www.brandrepublic.com/bulletin/brandrepublicnewsbulletin/article/674348/Diet-Coke-Plus-target-health-conscious-consumers/ Waters, D. (2003). Global Logistics and Distribution Planning: Strategies for Management. Kogan Page Publishers. Williams. K, (2013, May 7) Coca-Cola Amantil hit by Pepsi price war. The Sydney Morning Herald. Retrieved from: HYPERLINK "http://news.smh.com.au/breaking-news-business/cocacola-amatil-hit-by-pepsi-price-war-20130507-2j4ra.html" http://news.smh.com.au/breaking-news-business/cocacola-amatil-hit-by-pepsi-price-war-20130507-2j4ra.html Woolworths. (2013). diet coke - woolworths.com.au. Retrieved September 6, 2013, from Woolworths online shopping website: http://www2.woolworthsonline.com.au/Shop/ProductDetails?stockcode=732394#url=/Shop/SearchProducts%3Fsearch%3Ddiet%2Bcoke Woolworths. (2013). Pepsi Next Cans 24x375ml - buy pepsi next cans 24x375ml online at woolworths.com.au. Retrieved September 6, 2013, from Woolworths onlin shopping website: http://www2.woolworthsonline.com.au/Shop/ProductDetails?stockcode=732394 Read More