This paper is a report regarding my third assignment for the ‘Principles of

Marketing Course at the International College of Management. It briefly

demonstrates my abilities to create a marketing project for the food and
beverage industry using applicable marketing theories and frameworks. In
addition, it also reviews the fundamental elements of a marketing plan.

1. Design Project Context

1.1. Overview of Coca Cola company and its product - Coke Zero

Coca-Cola is an American multinational corporation whose primary business

activities include: manufacturing, retailing, and marketing non-alcoholic beverage
products and syrups. Some of the company's popular brands include Coca-Cola,
Gold Peak Tea, Costa Coffee, Aquarius, Dasani, etc (Coca-Cola, 2022). The
company's products all have the common characteristics of cheap, stable, and
attractive taste with diverse beverage categories from soft drinks, tea, and coffee.
In the market, the direct competitors of Coca-Cola are included soft drink
producers, such as PepsiCo, Red Bull, Tetra Pak, Keurig Dr. Pepper, and Soylent. In
addition, it is also threatened by indirect opponents including beer and wine
companies (Opportimes, 2020). However, with a history of 100 years of
establishment and development, Coca-Cola has always affirmed its leading
position in the global beverage market, with billions of servings of drinks being
consumed every day in more than 200 countries (Coca-Cola, 2022). Currently,
Coca-Cola Amatil is one of the two largest players in the soft drink manufacturing
industry in Australia, accounting for 40% of the market share with 165 different
drinks of 25 brands (IBISWorld, 2020). In addition, the company's success also
comes from unique marketing campaigns, a closed production process that
ensures quality and high corporate social responsibility (CSR), etc.

Coke Zero is a product line that was first introduced in 2005 with a flavor
described as “the real taste of classic Coke”. However, what makes it special is the
fact that it contains no sugar or calories, which was created in response to current
scientific and healthy eating trends. Coca Cola Zero comes in different flavors like
cherry vanilla, orange vanilla and vanilla, etc with a caffeine-free option
(Shavonne, 2021). In addition, the brand has carried out various cross-platform
marketing campaigns to promote the product, with the latest activity
collaborating with agency Mercado McCann to create the “Best Coke Ever”
campaign with revenue is expected to reach 10.1 billion USD. The campaign is
backed online by TV, outdoor advertising, social media, and public relations and
will run through the end of December 2021. Coca-Cola South Pacific Marketing
Manager Kate Miller confirms the product has seen a boost has grown
significantly since its Australian launch in 2017 (Adnews, 2021). Additionally,
Coca-Cola CEO - Mr. James Quincey stated that Coca-Cola Zero Sugar is expected
to be the company's most important growth engine in 2021 and beyond (Amelia,
2021).

1.2. The Contemporary Marketing Issue

Ethical practices in marketing are the contemporary marketing issue discussed

and analyzed in this report. Ethical marketing (or marketing ethics) is a process in
which business focus not only on selling their products in order to maximize
profit, but also on providing actual advantages to customers and assisting society
and communities in developing sustainably (Laczniak & Murphy, 1991, p. 22). In
contrast, unethical marketing undermines customers and society in the long run,
as well as a company's reputation and efficacy (Kotler & Armstrong, 2018, p.617).

In the case of Coca-Cola, the Coke Zero product line can be seen as an example of
unethical promotion related to health concerns. In fact, promotion efforts of
Marketing have the direct affect to the connection between a company and its
customer's ethics (Kotler & Armstrong, 2018, p.619). Furthermore, according to
Wordstream research, 92 percent of Millennials worldwide prefer to buy
products/services from ethical enterprises (Wordstream, 2021).

Coke Zero is advertised as a diet soft drink that contains no sugar or calories,
demonstrating the company's great concern for the health of its consumers. This
makes it increasingly popular, especially among people who are struggling with
weight problems. However, scientific investigations have indicated that
Aspartame, a sugar substitute present in Coke Zero, is responsible for more than
75% of FDA-reported adverse responses to food additives. Many of these
reactions are extremely dangerous, resulting in seizures and even death. The
European Ramazzini Institute published a study in 2005 that revealed an
association between aspartame and cancer. Furthermore, the caffeine in Coke
Zero can cause a variety of health problems, including restlessness, irritation, and
difficulty sleeping, especially if eaten in large quantities (Cheri, 2019). In addition,
although it does not contain any sugar or fat, Coke Zero does not provide any
nutritional benefits to the user.

Contrary to that, Coca-Cola's advertisements do not warn or provide any proven

reports regarding harmful ingredients, but only promote refreshments, and great
taste when consumed. Coca-anti-obesity Cola's advertising erroneously stated
that Coke Zero was a therapy for obesity, according to one of Coke Zero's
allegedly unethical marketing methods (Marie, 2022). Furthermore, in 2015,
Coca-Cola was chastised for supporting studies that shifted the responsibility for
obesity from diet to insufficient physical exercise (Tony, 2015). Furthermore,
consumers were misled by the company's deceptive packaging, which labeled
drinks as "diet." Therefore, a lot of people have assumed that Coke Zero can be
substituted for other drinks such as milk and water, posing serious health risks.
This in the long run can affect customer loyalty, and brand repuation and reduce
the company's profits. However, because this is one of the main product lines
that bring huge profits for the brand, Coca-Cola is still having a hard time finding a
appropriate way to change its strategy.

2. Revised Marketing Offering

2.1. Recommendations

With the first change, Coke Zero should focus on changing the nature of the
product - the composition of Coke Zero. Instead of using sweeteners and
controversial ingredients, brands can research natural sweeteners such as honey,
dates, etc. This in a short time can increase production costs for Coca-Cola.
However, with the growing trend of balanced nutrition and healthy eating, the
replacement of chemical ingredients with ingredients derived from animals and
plants will create the foundation for Coke Zero in promoting promote a product
that is committed to harming human health. Overall, instead of just focusing on
emphasizing its taste, Coke Zero should change to promote itself as a conscious
drink.

Besides, for sustainable development, Coke Zero can replace the packaging with
plant-based ingredients or reuse used shell cans. Coke Zero can also deploy
Marketing campaigns at sales agents. In detail, customers can receive a discount
voucher for the bottles they return to the store, instead of throwing them in the
trash, as usual.

In addition to the challenges of product ingredients, Coke Zero's marketing

activities according to the general strategy of Coke Zero should have an extensive
understanding of customer taste and preferences of each locality to build more
effective marketing strategies, helping Connect brands with customers.

Besides, the word "Diet" in the brand's name helps women become Coke Zero's
main customers. To attract more men consumers, the brand can consider
changing the brand's name or creating marketing campaigns with The main target
audience being men. For example, Coke Zero can promote its products by
becoming sponsors for big events like Worldcup or for famous football teams. The
reputation of using Coke Zero will make a huge positive impact on man
consumers around the world.

Finally, Coke Zero can cooperate with restaurant chains such as McDonald's,
Dominos, and KFC to offer promotions such as any meal over $7 will get 1 free can
of Coke Zero.

2.2. Brand Product Positioning Statement

These changes will help Coke Zero create a competitive position in the soft drinks
market, targeting a broader target segment including the primary target is
younger customers aged 10-25 and the secondary market includes 25-40-year-
olds. These are people who care about health issues but still want to enjoy the
attractive taste of soft drinks - which after the change process Coke Zero will
completely satisfy. In addition, learning about the characteristics of each country
to create localized campaigns and switch to more environmentally friendly
packaging will create a positive brand image in the customer's eye. In addition, by
changing product packaging to be more environmentally friendly, the brand will
attract more consumers with active and green lifestyles.

2.3. Why will it work and be successful?

These recommendations do not completely change the marketing strategy of
Coke Zero in general and Coca-Cola in particular, but only for the purpose of
perfecting product quality and bringing sustainable marketing solutions to the
corporation. run. With strong financial and human resources, this change
investment will not affect the company's operations. On the contrary, it will help
increase brand awareness and reputation, and improve customer loyalty and
retention, thereby increasing revenue for the company. These changes should be
planned in detail and distributed across different phases, applying ad campaigns
across multiple mediums and channels, including TV, online ads, sponsorships,
etc.
References

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