The Case of Coke Zero

Background
InJune2005,theCocaColaCompanylaunchedanewbrandcalledCokeZero.
Thedrinkwassweetenedpartlywithablendofaspartameandacesulfamepotassium.Aspartame
isakeyingredientinDietCoke,butbecauseoftheaddedsweetener,CokeZerowasmarketedas
tastingmorelikeoriginalCokethanitsdietderivative.14
EvenwiththemultiplevarietiesofCokeonthemarket,officialsatCocaColawerenotworried
aboutmarketconfusion.Theybelievedthatconsumerswerebecomingmoreinterestedinvariety
andthatthemultiplevariationsofCokecouldcoexist.
ThecompanylaunchedCokeZerousingauniquemarketingcampaign.CokeZerowastargeted
primarilytoyoungadultmales.ThisresultedindifferentpositioninginNorthAmericacompared
toEurope.Globally,CokeZerowasmarketedasadietdrinkwithzerosugar.However,inthe
UnitedStatesandCanada,itwasmarketedashavingzerocaloriessincetoyoungermenin
NorthAmerica,dietdrinksareviewedasbeingmeantonlyforolder,femaleconsumers.15
MarketingCokeZerointheUnitedStates
IntheUnitedStates,themarketingfocuswasonthesimilaritybetweenthetasteofCokeZero
andclassicCoke.TheadvertisingcampaignwasbasedonthepremisethatexecutivesatCoca
ColasellingtheCokeClassicbrandplannedtosuetheircolleaguessellingCokeZero.
Theadvertisementsusedreallawyerswhowereunawarethattheywerebeingrecorded.The
executivesinchargeoftheflagshipbrandpretendedthattheywantedtoinitiatealawsuitagainst
CokeZerofortasteinfringement.TheyclaimedthatCokeZerotaste(d)toomuchlikethe
ClassicCokesoftdrink.Theadvertisingcampaignprovedtobeasuccess.Onecommercial
showsalawyer(unawareofthejoke)tellingtwoactorsportrayingCokeClassicexecutives:Itll
bedismissed.Youllbehumiliated.
ThisadcampaignincludedvideoclipspostedonsocialnetworkingwebsitessuchasTwitterand
YouTube,aswellasadspostedonwebsitebanners.Inadditiontohelpingtopositionthenew
brandascontemporaryandyoung,thePunkdstyleadvertisingstrategyeffectivelyreachedthe
youngmaletargetgroup.
MarketingCokeZeroaroundtheworld
ThesuccessofthemarketingcampaignintheUnitedStatesledtoCocaColausingsimilar
strategiesaroundtheworld.Onecornerstoneofthecampaignwasthecreationofagroupcalled
TheZeroMovement.Thisgroupwaspromotedonablogonwhichayoungmanrantsaboutwhy
lifeissofullofstufftodoandhowitwouldbesomuchniceriftherewas,well,zerotodo.
Theblogconcludedwithseveralsupportivecomments,whichmadeitappeartobean
individualssiteratherthanapromotionaltool.

InAustraliathecampaigngeneratedalotofinterestinCokeZerountilconsumeradvocates
discoveredthatTheZeroMovementwaspartoftheCocaColamarketingcampaign.Acounter
blog,TheZeroCokeMovement,wasestablishedtoexposetheperceivedlackofethicsinthis
advertisingstrategy.Inaddition,otherblogssuchasTheZeroMovementSuckswerestarted.
Afterthiscontroversy,logosandotherCokeZerobrandingwereuploadedonthewebsite.This
madeitveryclearthatthewebsitewaslinkedtoCocaCola.Inspiteofthiscontroversy(or
perhapsbecauseofit)CokeZerosAustralianlaunchprovedaresoundingsuccess.
Question1
TheCocaColaCompanyutiliseddifferentstrategiesinEuropeandAustraliacomparedtoNorth
America.InEuropeCokeZerowaspositionedasadietdrinkandinNorthAmericaitwas
positionedasalowcaloriedrink.Doyoubelievethiswasanappropriatestrategy?CouldCoke
haveusedthesamepositioningstrategyinbothgeographicareas?
Ifso,whichshouldtheyhaveused?Ifnot,why?
HowisCokeZerobeingpositionedandpromotedinthePhilippines?Lookforspecificexamples
tosupportyourfindings.
Question2
SomeexpertssaythatPRcanlaunchanewproductorservicebetterthanadvertisingcan.Do
youagreeordisagree?Explainyouranswerandsupportitwithsubstantialexamplesonhow
CokeZerowaslaunched.CompareandcontrastitsadvertisingandPRcampaignsinorderto
drawaconclusion.
Question3
Thiscasediscussessomeaspectsthathavedrawncriticismfromsomeobservers.CokeZero
createdafakeblogtogenerateinterestinTheZeroMovement.Wasthisunethical?