REQUIREMENTS FOR EFFECTIVE SEGMENTATION 135In 2006, the Northern European market for carbonated soft drinks was in worrying decline, but the sub-sector of
light soft drinks was still growing, especially within the cola category. Perceived as a feminine brand, Coca-Cola
Light was experiencing fierce competition as men increasingly turned to competing brands with more masculine
overtones. Coca-Cola needed to create a macho brand in order to maintain and grow its share of light colas and to
avoid losing the young male sector. Coca-Cola Zero was the answer. The key concept was ‘Life as it should be’ –
unlimited enjoyment with zero compromise and no negative consequences, aimed at 18–29 year old men concerned
for their health, image, masculinity and waistlines. They dream of a better life – being richer, having hotter girlfriends
and succeeding in fulfilling their childhood dreams.
Initially, the drink was marketed with a tagline of ‘everybody chill’ – a nice but vague emotional message. It did
not work. Consumers were confused about what the brand stood for, what was meant by ‘Zero’. The company came
back to Coke Zero’s intrinsic value with the message ‘real Coke taste, zero calories’. Five years on, the marketing
story remains the same. Coke Zero’s packaging was initially white. But there was a problem as the colour connoted
diet drinks, and among the coveted young male demographic, diet connoted ‘female’. The company quickly borrowed
the idea from its Australian division to have the packaging in black. Its packaging needed to evoke a subconscious
masculinity: Black – good; white – bad. Within six months, the new marketing and packaging were in place, and the
brand took off.^46
Thanks to a communications strategy based on three key principles (to quickly generate attention, build awareness
and encourage frequency of use), Coca-Cola Zero grew to double the target set for it in Germany and exceeded the
target by 38% in Denmark, while unit sales in Germany and Denmark, and Coca-Cola share overall, grew significantly.^47
One year after the launch ( July 2006) of ‘Coca-Cola Zero’ in the UK the sales of Coca-Cola’s sugar-free cola were
on the cusp of overtaking those of regular Coke for the first time ever, which, if achieved, would make the UK the
first Coca-Cola market worldwide to achieve this landmark. Total sales for the first full 12 months of ‘Coke Zero’
reached 68 million litres, helping the company’s sugar-free sales grow 4.4% year on year. Over 49% of Coke Zero’s
sales were new or additional purchases of the Coke brands, a testimony to the growing role of diet sparkling drinks
in people’s diets. Coca-Cola Zero was launched in the UK with a major, men-oriented marketing plan: ‘Buy-A-Player’
football promotion, the Wayne Rooney TV spot and iTunes promotion. A year later the campaign was extended
with the ‘Win a Real Saturday’ promotion, providing a million tickets to watch English Football League and Scottish
Premier League matches. The success of the Coke Zero launch has been widely recognised throughout the industry.
Coca-Cola’s biggest launch in over 20 years became the most successful food and beverage launch in recent history,
and picked up the coveted ‘Star Product of the Year Award’ at the annual Gold Awards by leading industry magazine
The Grocer.^48 In 2008, two years after its launch in the UK, Coca-Cola Zero was hailed as the biggest new product
development launch in three years by AC Nielsen. Having grown by 49% since launch, the brand was at that time
worth £60 million.^49 And the success continues. Coke Zero’s sales increased in 2010 with 17 straight quarters of
double-digit growth. It is sold in 130 countries, including big markets like Brazil and Mexico. It is surely the most
successful new soft drink of the last decade, a billion-dollar brand mentioned in the same breath as Coca-Cola, Diet
Coke, Sprite and Fanta. In the USA, its sales are about six times larger than Pepsi Max, introduced in 1993 in inter-
national markets and in the USA in 2007. In 2009, when the overall soda market shrank by about 2%, Coke Zero
sales jumped 20% in the USA. Coke Zero was listed in 12th place in the carbonated soft drinks market in the USA.
Marketing can take a brand far, but the product itself has to deliver on the promise. Taste is often tricky with
diet soft drinks, but in this case the taste was right. Fans say Coke Zero tastes much like Coca-Cola Classic, albeit
perhaps a little sweeter. The future looks bright. Based on the expanding popularity of diet and ‘light’ drinks, Coke
Zero is expecting further growth. In 1982, the year of the launch of Diet Coke, diet drinks made up only 1% of sales
at the Coca-Cola Company. Today, that share has increased to 42% and the company expects it to hit 50% by- On top of this, the brand’s sales are especially strong among Hispanics and African-Americans, two growing
demographics.^50
BUSINESS INSIGHT
Coca-Cola Zero aiming at menM04_PELS3221_05_SE_C04.indd 135M04_PELS3221_05_SE_C04.indd 135 6/5/13 3:00 PM6/5/13 3:00 PM