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Product differentiation is a marketing strategy that creates differences from other competing products by focusing on their unique characteristics and features. Organizations target one market segment or the entire market by using this strategy (Cravens, p.110). The Coca-Cola Company introduced Coke Zero as a new product and focused on making it different from other products, specifically to compete with Pepsi Max. It has become one of the most successful products in the history of the company.
The introduction of Coke Zero was a defensive move by Coca-Cola to prevent customers from switching to other products (Alarcon, 2008).
The company targeted young men by offering “zero calories, real taste” to differentiate their product. The word "diet" is associated with women, so men are not as willing to buy Diet Coke. Therefore, the company developed a strategy to differentiate Coke Zero from Diet Coke to target young men. In short, the product differentiation of “Coke Zero” is as follows: The company offers “zero calories, real taste,” creating a flavor category within the target market.
Young men have become more health-conscious, and they love the taste of Coke without sugar, but they do not like the word "diet." Therefore, the company customized the product for its specific customers.
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The company changed the design and shape of the packaging and introduced new black packaging to boost shelf impact (ccamatil). The marketers used various marketing strategies to increase brand image and awareness among consumers.
They introduced a number of flavors, including Vanilla Coke Zero and Cherry Coke Zero, in different countries (ccamatil).
However, some researchers (Coca Cola Sales Promotion Company) argued that Coke Zero has a negative impact on Diet Coke and has cannibalized its sales. Nevertheless, it is apparent that this strategy of Coke Zero is successful. The company made the product more attractive to a specific market by using practical and realistic product differentiation strategies.
Product Differentiation in Coca Cola Company. (2020, Jun 02). Retrieved from https://studymoose.com/product-differentiation-in-coca-cola-company-essay
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