Today, July 28, 2014, the Coca-Cola Company is proud to announce a new product line to benefit the hard working, parents, and employees of America who struggle daily to meet life’s demands and maintain optimum health. This new product will boost energy levels with natural, healthy, ingredients designed to assist with maintaining a healthy, body, weight. Coupled with “Melt-Away” (available in numerous flavors with varying ingredients for different needs) is a program available online to help consumers reach goals, stay on track, and make healthy living part of daily life, forever. America today is facing an obesity epidemic.
Changing work and life habits in recent years demand less physical activity for many working Americans while demanding more thought and hours of time. The changing workforce of today works on computers and telephones because of the global expansion of the Internet. Fast food has become increasingly popular, contributing to America’s weight gain. Plans to incorporate future food products are in the beginning stages. To meet the needs of changing life, Coca-Cola Company has researched, tested, and today announces Melt-Away, the first of a life changing product line. Company Overview
The Coca-Cola Company has been serving their product since May 8, 1886. They have over 3,500 products worldwide with a large range of options. Products range from water and orange juice to the soda drinks that made the company (“Coca-Cola Journey,” 2014). Out of the top 20 brands, 19 of them have low or no calorie options, or they are low or no calorie. Coca-Cola has approximately 250 bottling partners and nearly 900 plants worldwide. They have over 24 million retail customer outlets, which means they reach a lot of people. Coca-Cola is willing to invest in their company. They have invested over $50 billion in new facilities and distribution infrastructures, equipment, and retail customer activations (“Coca-Cola Journey,” 2014).
Coca-Cola maintains involvement in communities and cares about the environment. They support over 280 physical activities or nutrition programs worldwide. Approximately 68% of the water used in the finished product was replenished in 2013 through community water partnership projects in over 100 countries. It benefited over 1.8 million people. The Coca-Cola Company is willing to invest in their company and products. Not only are they willing to invest in the company, but in the communities that they do business from recycling to nutrition programs. The Product: Melt-Away
Ever wonder if there was a way to get energy while losing weight? If so, the new drink Melt-Away may be the drink for you. Melt-Away is a new drink that is being introduced by Coca-Cola. It is a combination of an energy drink and weight loss drink. This product will give people the boost of energy that they may need or want all the while losing weight. It will be like a combination of a Monster and Slim Fast. The product will contain caffeine along with vitamins that help aid with energy and weight loss. There will also be different flavors of Melt-Away available to appeal to a variety of customers. Along with the drink there will be an interactive website to support people in their weight loss. The website will have an area that has different exercises that can be done and tips on how to be more active. There would be a place for you to keep track of your activity and weight loss. There will be inspirational messages that pop up when you log in and congratulation messages whenever you record a weight loss. Everyone likes to be recognized for their accomplishments.
When trying to lose weight having support of other people going through the same issues is always a good thing to have. The website would have a place where people can communicate with other people about their process. They would be able to share their setbacks and their successes along with any tips that they have found that worked well. Along with having examples of exercises that can be done there would also be a weekly exercise video that people would be able to download to any of their devices. There will be three different levels to the exercise videos easy, intermediate, and aggressive. The different levels will help people to stay engaged at varying needs, depending on the lifestyle and needs of the individual consumer. SWOT and competitive analysis
Coca-Cola’s SWOT analysis for its energy weight loss drink consists on a list of the company’s strengths, weaknesses, opportunities, and threats. In addition, the firm must evaluate its competitive environment, which can be done using Porter’s five competitive forces. This analysis assumes there are five forces that determine a company’s power in a business situation (Investopedia, 2014). The strengths and weaknesses of Coca-Cola are very easy to determine. Coca-Cola is an already established firm with an international presence. It has one direct competition, which is Pepsi, and other smaller competitors. However, for the energy weight loss drink, its main competitors are RedBull, Monster, 5 Hour Energy, SlimFast, and Nutrisystem. Although there would be many competitors for this type of products, the uniqueness of the energy drink combined with losing weight, and the name-brand, Coca-Cola, can give the company a competitive advantage with this new line.
A weakness in its strategy could be that people usually look for specific brands, such as Red Bull, for energy drinks, and SlimFast for rapid weight loss, not thinking of both products together. Opportunities and threats emerge from an examination of customers, competition and the external market environment. Coca-Cola sees people with busy work schedules who don’t have time to exercise or follow a diet plan. Overweight, or unhealthy people with busy lives that tire half-way through the day is the market who needs Melt-Away. This market is the target market, people who desire energy and improved health. Their energy weight loss drink targets this type of people, who are tired and need more energy to keep up with their day, and also who are too busy to follow a diet or exercise routine. In addition, Coca-Cola must try to avoid threats. One of the main dangers the company faces with this new product is obtaining the Food and Drug Administration’s approval. They must ensure their product is safe and keep informed of any development or ingredient that has been recalled or disapproved. Furthermore, threats include other companies developing similar products.
For Melt-Away to begin, and remain a successful product, continuing research, and the introduction of different products will help maintain the product’s “one of a kind” status. Using the Five Forces competitive analysis, Coca-Cola can determine the power of the supplier and buyer, as well as any threat of substitution, or new product entry, which can be brought together to determine its competitive rivalry. The suppliers of the ingredients needed for an energy drink and weight loss product are limited. Giving Coca-Cola suppliers power which can lead to rising prices paid for those ingredients, in turn, raising the final price of the product. The buyers, on the other hand, don’t have much power because the companies that produce similar products work as an oligopoly. One threat Coca-Cola faces is product substitution designed by competitors. If a person only needs an energy drink, it is probable that they will buy a 5-Hour energy drink or a Red Bull energy drink, rather than Coca-Cola’s weight loss energy drink. One threat Coco-Cola may not have to fear is the entry of a new company. The time it takes to produce, test, and obtain the FDA’s approval can make entering the market very costly and difficult. Finally, analyzing rivals, Coca-Cola has tremendous strength because there aren’t many other companies with similar products, especially one that combines two in one.
Marketing segments and target market of Melt-Away
Melt-Away, the new energy weight loss drink for Coca-Cola, will begin with a target segment of young adults in their 20’s and 30’s. One segment of the target market would include full time computer and gaming employees whose positions require little physical activity. This energy weight loss drink can be found anywhere Coca-Cola products can be bought. Coca-Cola is in more than 200 countries throughout the world. Since 1900 Coca-Cola has been bottled local with partners. Coca-Cola has drinks that would target different age groups, ethnic groups, and sexes. This drink would also target both male and females. The income on this drink would be two segments on different income levels. There would be packaging for low income and high income, a common practice for Coca-Cola. For lower income consumers, the packaging will consist of recyclable plastic, while higher end products will be offered in a metal container that is re-usable and collectible, comparable to Coca-Cola tins of earlier decades.
There are many people who will only drink Coca-Cola products, as well as many who will only drink the competitor’s product. Because the Melt-Away product line is “one of a kind” consumers will not need to decide on the brand until competitors develop similar products. Coca-Cola invests heavily in advertisement to gain attention of consumers and get the message across for beverages sold. When walking into any grocery store or convenience store across America Coca-Cola products and advertisements are high profile and highly visible to consumers. High profile advertising and counter samples will promote the Melt-Away product line. Melt-Away will be sold to a diverse population around the world. In today’s market consumers want healthier lives and Coca-Cola produced this energy weight loss beverage to satisfy their consumers. More often than not consumers make purchases based family needs, social responsibility, and company ethics. Coca-Cola promotes a clean environment and has earned the trust of the public by promoting charitable events and clean energy programs.
The behavioral market will be used, by dividing consumers into groups; men, women, 18-25, 25-35, 36-45, etc. to determine the market that most uses Melt-Away with success. Consumers will need to know that Melt-Away is not an energy drink or weight loss miracle. Melt-Away has been designed for consumers who want to become healthy. Melt-Away would aim marketing at young children, or senior citizens, and would print warning labels for any health issue adversely affected by ingredients. Coca-Cola has designed Melt-Away to promote health not to contaminate the youth of America or make anyone sick by using the product. When this drink is released Coca-Cola’s description of the market will consist of the Average American from 18-45 with families, jobs, and social lives that demand time and energy that many cannot find because of a lack of physical activity and proper nutrition.
To find the most successful market, this drink will be advertised at clubs, gyms, grocery store, gas stations, on television, and on the Internet. While the products will initially be aimed at Americans, global expansion is hopeful for the future. People buy on emotion and rationalize with logic. For example, if an executive worked all day, went home to the family, which includes: soccer practice, a dance recital, homework, yard work, dinner to cook, baths to give, pets to feed, and bills to pay, the day might seem like an eternity. On the way home, the executive is tired and stops at the local gas station, instead of buying an energy drink for a temporary fix, the executive purchases Melt-Away. The healthy ingredients and slight energy boost will keep him or her going until the end of the day while providing vitamins and nutrients the body is deprived of in today’s fast paced world. It’s obvious that emotions play a huge part in what people purchase. The promise of a long healthy life and energy to make it through every busy day comes with the use of Melt-Away and the Melt-Away program. Emotions also play a big part on how humans operate; humans also have the capability to think and question products and if the program works into their lives or not. Positioning Statement
Whether a Pepsi drinker or Coca-Cola drinker, brand loyalty among consumers of these two competitors is common. The Coca-Cola customers will pay a premium for their favorite product because they crave that refreshing taste the competition just cannot deliver. According to Perreault, Cannon & McCarthy, “a well-recognized brand makes shopping easier.” Because Melt-Away is a product that Coca-Cola plans to build an entire product line from, in order for the brand name to become popular, positioning will be in line with current adult Coca-Cola customers with a price-point similar to current energy drink and weight loss products available in the combined market. Melt-Away is a completely new product, marketing with similar products in the beginning is the appropriate for the product to gain popularity and recognition. According to our research, Coca-Cola customers will invest in Coca-Cola Melt-Away rather than the multiple product offerings because Coca-Cola has always delivered a quality product. In order for customers to become familiar with Melt-Away, samples will be available at every sales counter where the product is sold for the first 90 days.
Depending on the vendor, samples will range in price from 49-99 cents each. Coca-Cola has proven the ability to “connect a product with the benefits a customer can expect” (Perreault, Cannon & McCarthy, 2014). The adult Coca-Cola customer base from 18-45 is vast, making it necessary for a variety of advertising methods. Marketing will encompass the young professional trying to stay ahead of the game, the mom who is struggling to lose that last bit of baby weight, and the younger parents struggling to maintain or maybe lose a little weight while balancing work, family, and social lives. At first glance, you may not see many similarities in these groups, but all of them are struggling to meet the demands of everyday life. Many people seem to have everything under control but what is underneath, might surprise others. Each of them struggles every day to manage their demanding work/life balance. Each has demands that far outweigh the amount of current time and energy available. How will they squeeze one more activity into their hectic day? How will they grab lunch on the go without gaining more weight or raising dangerous cholesterol levels even higher?
Melt-Away plans to begin with a drink to aid with energy and lack of nutrition but in time, plans for a food product line in the future will also be available for people to maintain a healthier lifestyle. The previously described, diverse customer base is in need of a product that will provide that desperately needed, healthy, boost of energy, lunch on the go without the dreaded five pounds (around the waste fast food is notorious for) from a name brand they have grown up with and trust. A name brand they can trust and rely on. What makes us different from our competition? Coca-Cola is a strong brand with a very loyal customer base. This strength has endured for over 100 years making Coca-Cola multi-generationally recognized (Coca-Cola, 2014). The weight loss and energy drink industry is viewed as a fad but with Americans growing by the day, the weight loss industry is here to stay. Several companies in the past have claimed to have an answer to energy drain, these companies also claimed products would melt away fat but failed to do so.
Customers spend their money on these fad products with little results and utter disappointment. Our customers know Coca-Cola as “The Real Thing.” We have established reliability and trust with our customer base. The claim made by Melt-Away is health. The Melt-Away product combined with its healthy program designed to accompany the product will gain notoriety together. Coca-Cola will not make an empty promise, and the product will not make consumers healthy alone. Melt-Away is a weight loss aid not a weight loss miracle and advertising will maintain an honest approach when advertising the product. Consumers take a gamble with the next new weight loss and energy drink every day, why not take that leap of faith with a company that has already earned the trust of the American consumer? Conclusion
Introducing yet another weight loss product into society is risky, but is a risk that this marketing team feels will lead to a new successful product line intended to direct Americans to a healthier way of life. Melt-Away is not the average energy shot. It is a nutritional supplement designed to help boost energy levels, as well as, aid in learning to live a healthier life. Dropping pounds fast, miracle diets, and magic pills produced by a multitude of companies have failed consumers. Not many weight loss products have proven successful because the impression given to consumers is not directed truthfully.
Weight loss is not something that happens overnight or without effort and Coca-Cola will not make that promise. Melt-Away may provide a nutritional meal supplement if its program is not followed but will not provide weight loss without the program. False promises will not do America any good while battling the obesity epidemic, only honesty with products that work when used as directed. If Melt-Away is received and used as test markets have shown, obesity will lose, and healthy consumers will win in the end.
Cannon, J., MacCathy, J. & Perreault, W. (2014). Basic Marketing. A Marketing Strategy Planning Approach. Retrieved from the University of Phoenix eBook collection Coca-Cola Journey. (2014).
Retrieved from http://www.coca-colacompany.com/our-company/infographic-coca-cola-at-a-glance. Retrieved from:
http://www.academia.edu/389600/The_Strategic_Positioning_of_Coca- Cola_in_their_Global_Marketing_Operation Investopedia (2014). Porter’s 5 Forces.
Retrieved from http://www.investopedia.com