PDA

View Full Version : Coke Zero sales up



drpep
10-29-2007, 08:05 PM
I don't have the article with me but USA Today's money section has an article about the success of Coke Zero after the redesigned label. It's a big hit with males who want the CLassic taste but not the calories.

Ram0n C0keah0lic
10-29-2007, 09:07 PM
And it was a good move to differentiate it well from Diet Coke... cause imagine if Coca-Cola Zero would keep its white label but with the new minimalist design, it would look the same as the Diet Coke packaging...

Android
10-29-2007, 10:06 PM
I'm not a fan (tastewise) of Coke or Coke Zero (although I do like Coke Zero Cherry!), but it's nice to see at least one new product from either Coke or Pepsi be a lasting hit. Honestly, when was the last time either company really scored more than a minor niche with a new product?

Anyway, I looked up the story, and here it is:

Coke finally scores another winner - USATODAY.com (http://www.usatoday.com/money/advertising/adtrack/2007-10-28-coke-zero_N.htm?csp=34)

By Theresa Howard, USA TODAY

NEW YORK — Coke Zero, apparently, is your father's diet drink. Women may be the core customers for no-cal drinks, but Coke Zero also is bringing in men — from college boys to soccer dads — with black packaging, a different sweetener and irreverent marketing that appeals to men.
Zero is Coca-Cola's (KO) first new product hit after a long list of attempts — from lime to vanilla flavors — that started strong and fizzled fast.

Zero, out two years, is still growing. Sales volume is up 34% in North America year-to-date vs. the same period in 2006.

Third-quarter results out this month show Zero with a nearly 1.3% share in carbonated beverages in North America — enough in the $90 billion beverage business to make a bottler bubble over. The company credits double-digit growth by Zero with driving a 4% worldwide volume jump in carbonated beverages — and Zero is sold so far in only 50 of the 200 countries where Coke does business.

Men are about 45% of Diet Coke drinkers but about 55% of Coke Zero buyers. It has a stronger, more Coke Classic-like flavor and seems to be holding onto male customers who've become more calorie-conscious with age but still want more flavor than most diet colas.

FIND MORE STORIES IN: TV ads | Coca-Cola | Coke | Chuck | Diet Coke | John Sicher | Durex | Yvonne Strahovski
"This product tastes like Coke," says Caren Pasquale Seckler, Coke's group director of diet cola brands in North America. "There's a broad group of young adult males who are looking for full flavor … and, oh, by the way, it has zero calories."

Seckler won't say exactly how the taste/calorie combination is achieved but notes the sweetener is a mix of aspartame and acesulfame potassium (known as Ace-K), which gives Zero a more sugarlike taste than aspartame alone.

"It's got a fairly sophisticated flavor system and complex ingredients to help replicate the taste of regular Coca-Cola," says beverage expert John Sicher, editor of industry tracker Beverage Digest. "There are many people who like the taste of Coke Classic but who did not transition to Diet Coke when they got older. Coke Zero is keeping them in the Coca-Cola franchise."

In the past year, since Seckler took over Zero's marketing, ads have been all about Classic-like taste. "Everything we're doing now is about communicating that message," she says.

Even a North American packaging change was based on flavor: A year ago, black cans and labels replaced white because of sales success for Zero with black packaging in Australia and the United Kingdom. "We learned from other countries that the dark color connoted a stronger, bolder flavor," she says.

The message wasn't always so focused. When Coke Zero launched, ads cast it as a "contemporary" offshoot of Classic with a message to "chill."

The first ad, by Miami agency Crispin Porter + Bogusky, updated Coke's famous 1971 "Hilltop" ad in which hundreds of diverse people hold hands on a mountain and sing about buying the world a Coke. The Coke Zero version, "Chilltop," was set on a Philadelphia roof where a white rapper led others in song. Nobody got it.

"When we first launched the brand, we probably didn't talk about the taste as much as we should have," Seckler says.

Today's TV ads also were created by Crispin, a hot Miami ad shop that helped revive Burger King for young male burger eaters with its weird King. Its new Coke Zero ads — shot to look like homemade videos — first were shown on the Zero website. Their popularity there led to a decision also to air them as TV ads.

In the Borat-style ads, two supposed "brand managers" for Coca-Cola Classic approach real-life lawyers and tell the incredulous attorneys that they want their help to sue Coke Zero for "taste infringement."

Coke Zero has gotten a healthy ad budget — $75 million in 2006 — and been given exposure in some of the company's big sponsorship deals. Zero ads ran in early-season episodes of American Idol last winter, and branded cups appeared on the judges' table for two weeks in May as the contest neared a winner. Coca-Cola has been an American Idol sponsor since the first season, and the high-profile product placement has been reserved mostly for the flagship Coke Classic.

Trying to sell a diet drink to men, however, also has pushed marketers to be innovative. Last week, for instance, the Coke Zero website introduced a Fantasy Football section. Visitors can design a championship ring, create a touchdown dance and upload their image to the grandstand of fans. They also can send "smack talk" taunts to fellow fantasy players.

Ads also ran in college basketball games and the NCAA tournament. Online promotion for the tournament included an interactive "Bracket-O-Matic" that automatically filled in tournament brackets. Players could choose such strategies as Dynasty vs. Cinderella or State vs. Private and Bracket-O-Matic would make the choices.

To bring Zero this far in the cola playoffs, Coca-Cola had to get past a slump in growth and let the brand marketers tweak the marketing message until it scored with guys.

"Coke showed they can take a product that maybe got a little lost at the beginning and turn it around," says John Faucher, JPMorgan beverage analyst. "They showed they are willing to stick with it."

popologist
10-30-2007, 12:16 PM
The key to Coke Zero's success is taste. Quite simply--it's the best-tasting sugar-free soda out there (and the cherry version is even better).

And, as the article noted, changing the packaging and re-directing the commercials played a big part in keeping Zero from going to the soda graveyard (like C2).

But... not to say "we told you so" but... me, Zabe, and many others on this site said... from the very beginning, that Zero would be a success, but that it needed black packaging AND better commercials that focus on the taste.

Coke listened, and Zero is a big success now (growing at over 30% when the rest of the soda market is in decline).

I wouldn't be surprised if Coke Zero passes Diet Pepsi a decade from now, though I doubt it will ever catch Diet Coke (if only because women drink the majority of diet soda).

Still, I take great pride in Coke Zero's success... because I've been a fan since the beginning, and am just GRATEFUL to have a diet soda that actually tastes GOOD. I probably drink two to three times the amount of Zero that I used to drink of diet Coke, just because it tastes so much better.

Mr Zabe
10-30-2007, 12:44 PM
Well said. :)
Coke Zero is all that good and more.
Like in real estate with "location",
Coke Zero is a Taste,Taste,Taste
no carb.no sugar sensation.

popologist
10-30-2007, 09:56 PM
We should also point out that if Zero maintains its 1.3% market share that it should qualify for a top ten bow on the best-selling sodas list this year. That's pretty impressive after only 2 years.

Ram0n C0keah0lic
10-31-2007, 12:30 AM
Talking about Coke Zero, look what I found at flickr... 55 oz. Coke Zero???... Have you seen this packaging before?

http://farm3.static.flickr.com/2334/1805989501_2458d8d85f_b.jpg

amyers
10-31-2007, 11:40 AM
Talking about Coke Zero, look what I found at flickr... 55 oz. Coke Zero???... Have you seen this packaging before?

http://farm3.static.flickr.com/2334/1805989501_2458d8d85f_b.jpg

Yes, this package isn't new, I've posted about it before. It was at Coca-Cola Consolidated package and it seems that it's gone now. It was only in Circle K and we had a fire sale a few weeks ago .50 cent bottles and then it was taken off the shelfs at all Circle K's and replaced back with 2L bottles.

I managed to get one of every kind.

amyers
10-31-2007, 11:43 AM
See....

http://i12.photobucket.com/albums/a217/AaronMyers/IMG00143.jpg
(2/$1 Sale at Piggly Wiggly)

http://i12.photobucket.com/albums/a217/AaronMyers/IMG00062.jpg
(Signage for the new/old product)

http://i12.photobucket.com/albums/a217/AaronMyers/IMG00390.jpg
(Display at Circle K)

popologist
10-31-2007, 11:48 AM
has anyone else noticed the new packaging for coke zero? here in NYC, i've seen some Zero packaging where the wave has a type of shadow on it... so it sort of looks mildly 3-D. it's very subtle, but it's definitely new.

Ram0n C0keah0lic
10-31-2007, 12:24 PM
Cool, amyers!... I didn't saw that pics before! thanks for posting them again!

amyers
10-31-2007, 03:52 PM
Cool, amyers!... I didn't saw that pics before! thanks for posting them again!

I think I'd posted it on another board, sorry.

popologist
11-03-2007, 05:33 AM
i'm just excited that coke zero might be in the top ten this year!!!

millionsofbillions
11-03-2007, 10:23 PM
i'm just excited that coke zero might be in the top ten this year!!!
Does the 1.3% share include cherry zero's sales .I wonder

popologist
11-04-2007, 05:06 AM
Does the 1.3% share include cherry zero's sales .I wonder

i believe so. i think someone pointed out that coke can lump them all together (like they do for fanta). so, clearly, zero is also benefiting from the flavor extensions as well.

personally, i probably drink as much cherry coke zero as regular. that is, when i can find cherry.

i believe that last year, to get into the top ten sodas list, a soda had to have 1.2% market share. if coke zero has a strong holiday season, then it may very well show up on the top ten this year.

Mana211
11-07-2007, 02:44 PM
I buy about the same amount of Coke Zero as I do Cherry Coke Zero and if they would just make Caffeine Free Coke Zero it'd be complete and I'd never have to buy a non Zero product again.

Of course if DR. Pepper ever wakes up and realizes that ace-k improves the taste of diet drinks I could reconsider my decision at that point but for now diet DR. Pepper just doesn't make the cut vs Coke Zero.

popologist
11-08-2007, 08:31 PM
yeah. i'm waiting on caffeine free coke zero as well. then the trifecta will be complete. i don't really count vanilla coke zero, because i don't like it. ;)