Coke seeks strategy to lift Zero

(Marketing, 7 November).

Coca-Cola invested £10m in marketing the product to young men as
it sought to take on Pepsi Max, which has a similar masculine
positioning. At the time, Coca-Cola claimed that the brand would become
as big as Diet Coke within 10 years.

Although the brand is still in its infancy, Coke Zero has some way to go
if it is to achieve this goal. It has grown its share by only 2.8% to
5.3% for the year to 8 September, still trailing Pepsi Max's 7.9% share
of the cola market, according to Nielsen.

In the first 16 weeks following its launch, Coke Zero achieved UK sales
of £24.1m, although some put this down to heavy discounting and
the short-term novelty factor. Also, 62% of Coca-Cola Zero's volume
sales for its first 12 weeks on the market were cannibalised from its
sister variants, according to Nielsen, with 32% taken from Diet Coke and
30% from regular Coke.

Coca-Cola is now rethinking its global strategy for Coke Zero, shifting
its focus to the product's benefits. Coca-Cola says that Zero is aimed
at those who want the full Coke taste but with zero calories; experts
believe consumers are confused by the proposition.

'Both are sugar-free, but Max is closer to Pepsi in taste than Zero is
to regular Coke,' said one drinks expert.

Marc Lawn, head of marketing services at Britvic, claimed: 'Pepsi Max is
outperforming Coke Zero as it makes life easier for consumers to
understand what it is.'

Moreover, insiders suggested Zero's male-oriented advertising had not
gone down well with cola drinkers.

Coca-Cola Zero's launch TV campaign aroused the wrath of tall people and
women's groups with its 'Gigs without tall people' and 'Girlfriends
without a five-year plan' straplines. It was also forced to withdraw an
execution that used the strapline 'Blind dates without the psychos'
after complaints from mental health charities (Marketing, 26 July
2006).

While Pepsi Max has become Pepsi's lead brand, Coca-Cola Zero is far
from overtaking Diet Coke, which accounts for 34.2% of the cola
market.

Last summer, Britvic launched its biggest sampling drive for Pepsi Max
and a 'No substitute for Pepsi Max' press campaign in response to the
introduction of Coke Zero. Next year it will promote the variant through
integrated activity tied to music and football.

With Pepsi Max's 15-year heritage to compete with, Coca-Cola will have
to position Zero effectively to ensure it remains on supermarket
shelves.

'Observations of brands in similar situations suggest that the solution
is in driving clarity of brand proposition,' said Lawn.