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Has Coke lost the plot?
Abandoning its One Brand strategy could mean that Coca-Cola is on a very slippery slope.
Nearly 33 per cent of the Coca-Cola Company’s total corporate worth can be attributed to the brand value of its number one product, Coke.
But with sales on the slide and promotional activity the only way to support Coke’s continued volumes, the company looks vulnerable. The one-trick pony (with Coke as the mainstay) seems to be losing its shine as the Diet Coke re-launch in the US this month raises some tricky questions.
By targeting the Millennial, Coke is opening itself up to widening chinks. Reams have been written about why Millennials fail almost every test of market segmentation. The marketing team at Coke has done very well till now following the One Brand Strategy.
But with the launch of the new Diet Coke, it is back to pushing a very separate sub-brand with its very distinct and significantly more expensive promotional activity. The only result of this will be a hit on profits. And the marketers at Coke will have a tough time to manage the challenge.