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Product differentiation is a marketing strategy that creates differences from other competiting products by focusing on its unique characteristics and features. The organizations target one market segment or the entire market by using this strategy. (Cravens, p110) The coca cola company has introduced Coke Zero as new product and focused to make it different from other products. The company has introduced Coke Zero to compete Pepsi Max and has become the most successful product in the history of the company.
The introduction of Coke Zero is a defensive move for coca cola to stop customer from going to other products (Alarcon 2008).
The company targets young men and offers “zero calories, real taste” for differentiating their product. The word diet is associated with women so men are not willing to buy Diet Coke. Therefore, the company has built their strategy different from Diet Coke to target young men. In short, the product differentiation of “Coke Zero” is as below: The company offers “zero calories, real taste” that creates flavor category within the target market.
Young men has become more health conscious and they love coke taste without sugar but they did not like word Diet, so the company marketers customized product for their specific customers The company has changed the design and shape of packaging. The marketers have introduced the new black packaging to boost the shelf impact. (ccamatil) The company has used various marketing strategy to increase brand image and to create the brand awareness among consumers.
They introduced a number of flavor including Vanilla Coke Zero and Cherry Coke Zero in different countries.
(ccamatil) In contrast, some researchers (Coca Cola Sales Promotion Company) argued that Coke Zero has a negative impact on Diet Coke and it has cannibalized the sale of diet coke. However, it is apparent that this strategy of Coke Zero is successful. The company has made product more attractive for a specific market by using practical and realistic product differentiation strategies.
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