4 Ways Coca-Cola Is Rethinking Its Product Lineup
By Steve Holtz on Apr. 11, 2017ATLANTA -- Coca-Cola Co. is undergoing a transformation. With consumers increasingly bypassing carbonated soft drinks (CSDs) in favor of healthier drinks, the megabrand’s incoming CEO James Quincey has mapped a new business strategy, according to a report in AdWeek, and the company has streamlined its marketing message by adopting a global template for advertising its flagship Coca-Cola products.
Here are four was Atlanta-based Coca-Cola is evolving its products and marketing to remain a beverage powerhouse ...
1. Beyond CSDs
In his “Coke's Way Forward” plan, Quincey said the company will expand offerings such as organic tea, coconut water, dairy, coffee, juices and water.
For instance, it’s scaling up production of the smartwater brand, which launched in the United Kingdom last year, to include other countries around the globe.
“We’re organizing the company to be the leader in every one of those categories,” Katie Bayne, senior vice president of global sparkling brands for Coca-Cola, told the magazine.
2. Cut the sugar
In 2017, the company will reduce sugar in more than 500 of its drinks, while investing more marketing dollars to build awareness of its low- and no-sugar beverages.
And since soda giants would rather consumers buy their products in small quantities instead of not buying them at all, it’s also expanding the availability of its smaller package sizes, the report said. Mini bottles and cans have been a hit for Coca-Cola so far, accounting for 15% of its sales in North America, with sales increasing at double-digit rates since they were first launched in 2007.
“Every market around the globe is growing their small sizes, because consumers want them,” Bayne said. “It’s a great way for people to come back to Coke or try it for the first time.”
3. New enhancements
Coca-Cola is also launching beverages with bells and whistles, such as Coca-Cola Plus, a soda with added fiber, which is being tested in Japan, and a vitamin C-infused soda in China. Both are based on research that shows Japanese consumers want drinks that aid in digestion and Chinese consumers have a growing interest in the health benefits of vitamin C.
4. Brand strategy
In 2016, Coca-Cola streamlined its advertising and marketing into a global "One Brand" strategy that unites its major brands under a single campaign. Moving forward, Coca-Cola ads—for original Coke, Coke Zero, Diet Coke and Coca-Cola Life—will be stripped down with simple stories and no dialogue, while using one unifying theme song.