Marketing 4th Edition by Dhruv Grewal,Michael Levy

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COCA-COLA
Back in 1886, an Atlanta pharmacist created a caramel-colored liquid and brought it down the street to Jacobs' Pharmacy, where it was mixed with carbonated water and sold for five cents a glass. The beverage caught on, and sales took offfrom the initial average of nine drinks a day, 39 to today's total of 1.7 billion Coke-owned beverages consumed daily. The success spawned bottling plants, six-pack cartons, international distribution... and imitators. For example, Pepsi followed in 1902 and today is a $29 billion conglomerate with vast holdings.
Both companies spent decades marketing a single brand, Coke or Pepsi. But over the course of the twentieth century, they both expanded their product lines by introducing drink alternatives such as Fanta, Sprite, TAB, Fresca, and Diet Coke (Coca-Cola), along with Diet Pepsi and Mountain Dew. The relatively simple segmentation that these offerings suggested has since grown increasingly complex and sophisticated, especially as the competitors have expanded their international sales into hundreds of diverse country markets. Although they face a number of smaller competitors, the primary focus in this mature market is to take customers away from its main rival, or else find a way to encourage existing customers to drink more cola-both challenging tasks. For Coca-Cola, the best solution is to pursue extensive product development for new and different market segments.
MARKET SEGMENTATION STRATEGY
In a tightening, competitive consumer market, Coke has developed unique products for various specific market segments. Because these unique products appeal to specific groups, Coke has been able to increase its sales without cannibalizing the sales of its other products. In addition to the products already mentioned, for example, the company launched caffeine-free versions of both Coke and Diet Coke to appeal to cola drinkers who wanted to cut back on their caffeine intake but preferred colas to lemon-lime- flavored drinks. By introducing these decaffeinated versions of traditional sodas, Coca-Cola increased the number of sodas it sold each day, without hurting sales, because the consumers targeted by these products already had been avoiding or minimizing cola consumption to reduce their caffeine intake.
DIETERS SEGMENT
As more Americans expressed concerns about their weight, Coca-Cola began by introducing Diet Coke, which became the number one selling diet soft drink in the United States within a year of hitting shelves. In 1986, Diet Cherry Coke joined the brand, followed by Diet Coke with Lemon. Diet Coke with Vanilla and Diet Coke with Lime followed quickly, along with Diet Black Cherry Vanilla Coke. Then new trends in the market led diet-conscious consumers to pay more attention to their overall health, not just calorie content. Thus the company introduced Diet Coke Plus-the familiar version of the beverage but with added vitamins and minerals.
"REAL MEN" SEGMENT
Women hoping to drop a dress size may turn to diet sodas, but "real men" don't want to be caught with a "girly" diet drink. Coca-Cola had a response for them too: the high-profile launch of Coke Zero, which consistently avoided the dreaded word "diet." The successful introduction instead has relied on advertising featuring such masculine images as James Bond to target men through its packaging, promotions, and image. By appealing to men between the ages of 18 to 34 years who wanted to drink a low-calorie cola but would prefer not be seen buying or sipping Diet Coke, Coca-Cola increased its sales of Coke-branded products by one-third.
THE DIY SEGMENT
Soda fountain sales have remained an important part of Coke's business since the company's inception. To boost its cola sales in restaurants, Coke combined the soda fountain concept with the "do it yourself" trend to offer customers up to 104 individualized flavor choices in a new machine. The Freestyle machine was created by the designers of Ferrari race cars. Size-controlled shots of concentrated flavors get released into carbonated water mid-stream, so the drink is mixed in the air; special technology keeps one consumer's beverage from picking up the flavors from the last drink poured. The Freestyle also allows moms to have a Diet Coke with Lime, while dads sip their Coke Zero with Lime and the kids select between a Caffeine-Free Vanilla Coke or a Caffeine-Free Diet Cherry Vanilla Coke.
MARKETING VALUE TO SEGMENTS
A successful new product introduction needs to combine an innovative product with a marketing campaign that communicates the value of that new product to the targeted segment. The Coke Zero launch provides a perfect illustration of this point. Coca-Cola designed a campaign supported by advertisements on television and radio, in print, on outdoor billboards, and online, as well as widespread sampling programs and opportunities. Television commercials for Coke Zero show male athletes like Pittsburg Steeler Troy Polamalu in a remake of the popular "Mean Joe Greene" commercial. Others play on jokes about gender roles and modern relationships by promising that Coke Zero is like enjoying the benefits of having a "girlfriend without the drama." The ongoing media strategy has been to expose as many men as possible to the new product, with a significant bulk of the media budget spent on outdoor advertising.
RESULTS OF COCA-COLA'S SEGMENTATION EFFORTS
By using gender to segment the diet cola market, Coca-Cola was able to customize the advertising for Coca-Cola Zero to appeal to men, whereas Diet Coke ads could concentrate on women. In turn, Coke gained closer connections for its different products with each product's targeted market segment, and Coke Zero became one of the most successful launches in the company's long history. The Freestyle dispenser began in only a few test markets, but in stores in which it was available, the machine bumped up beverage sales by 10 percent at a time when fountain sales on the whole were slipping. In response, several national restaurant chains, including Five Guys and Burger King, decided to roll out Freestyle machines in all their franchises.
Through its efforts to identify and target such specific market segments, Coca-Cola has grown its stable of consumer brands to more than 450 products. Coca-Cola remains the most valuable brand, but Diet Coke and Coca-Cola Zero are not weak siblings: They have joined it as billion-dollar products in their own right.
Are these types effective in this market Provide support for your answer.