Sunday, December 31, 2006

Coke Placing Bets on Zero

Coca-Cola is reportedly going to put more money behind Coke Zero in 2007. In fact, it will be spending an estimated $13 million on advertising. Coca-Cola will be changing packaging design to improve shelp impact. In addition, its 2007 media schedule for Coke Zero will include national TV and digital support including the NCAA, national print around football and sponsorship of Notre Dame. Ads will also be placed on AOL, Grey's Anatomy, 24, MTV and late-night talk shows with radio ads in 20 markets.

Coke is attempting reposition Zero around its "Coke-ness" theme. The "Coke-ness" theme illustrates how Coke Zero tastes more like regular Coke. Coke Zero was originally positioned as a carbonated beverage for males. Despite widespread skepticism since its June 2005 launch, Coke Zero has logged five months of growth since July, steadily climbing to a 1% share. (By comparison, the country's No. 10-selling brand, Diet Mountain Dew, holds 1.4%.) Sales volume for Coke Zero increased 154% in mass channels excluding Wal-Mart in the first nine months of last year, according to Beverage Digest, making it one of the best performers in the company's fizzy-drink portfolio.

An interesting note: Pepsi ranked No. 1 in Customer Satisfaction Despite New Products, Quarterly Surveys Shows Coke Lagging.

Coke Zero Website

Source: Adage

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