The parameters of launching a product or service are extensive and there is no right or wrong strategy to launch a product. A product launched by Apple will have a different launch mechanism due to its global foot print as opposed to a product launched by a mid tier tech local company.
The success and failure primarily depend on the most important aspect i.e. the product or service satisfying the needs and wants of the consumers in an effective manner.
Coke is a global giant with a brand portfolio full of successful products and hence, the product that the author will discuss that is facing difficulty in terms of acceptance is Coke Life launched in 2014 as a lower calorie & low sugar product to cater to a more health conscious consumer segment.
Coke Life had all the characteristics to be a success, however, the genre of health and low calorie represents a 360° change for the group’s brand portfolio.
The strategy from Coke as a group was a smart one, since all the negative publicity with regards to the usage of sugar in coke or soda drinks have created a disconnect with the consumers and with an array of health juices, sports drinks, green tea, coffees on offer the beverage segment is getting fierce and intense.
In spite of being promoted and launched with huge marketing budget it was not able to shift consumption patterns, as drinking soft drinks everyday seems unhealthy in itself in current times and the sales declined last year (Shona Ghosh, 2016).
Coke Life needed to activate the brand in a creative manner, by targeting a niche, in terms of a group that can be influenced. By connecting with consumers by activating the brand in different venues through brand activation i.e. health clubs, massage parlors, malls, sport centers, universities etc. the product would have been able to connect with the youth and young professionals by creating a digital activation with rewards to keep in touch and create a subliminal brand influence in the minds of the consumers.
One of the reasons for Coke Life’s failure that can also be attributed to the societal and cultural norms is the popular choice of cafes.
In view of the current trends and dynamic changes in the beverage industry, one feels that Coke Life was a project to fail, with all the hype and technical support in terms of research and testing, one cannot gauge the end result.
The brand name Coke has a history with its consumer segments and it is not easy to jump over and create a new segment simply on the good will and brand loyalty created over the years.
This above mentioned is the primary factor that led to Coke’s life failure, and in spite of the companies assurance to come back with a better product (less sugar), the writing is on the wall.
In this globalized era of cutthroat competition it is important to sell the functional benefits in a manner that resonates with the current set of consumers, and create a brand story that is consistent and creative enough to win the market place.
References
Jason Murphy (2015, Oct 12). Spork Life: Dysfunction at the heart of Coca-Cola. News.com.au. Retrieved from http://www.news.com.au/finance/business/other-industries/spork-life-dysfunction-at-the-heart-of-cocacola/news-story/e02d21493c23b58c4ff48bb96cbb3de7
Shona Ghosh (2016, Jan 21). Coke Life faces 'difficult' second year as UK sales flatline. Marketing Magazine. Retrieved from http://www.marketingmagazine.co.uk/article/1380170/coke-life-faces-difficult-second-year-uk-sales-flatline
