Essay on Segmenting and Targeting Markets: Case Study: Coke Zero

1393 Words Apr 4th, 2015 6 Pages
Assignment #1 - Segmentation and Targeting

Please read the following Case Study and answer the questions at the 4 questions at the end.

Segmenting and Targeting Markets: Case Study: Coke Zero

When a couple of marketing managers for Coca-Cola told lawyer Elizabeth Finn Johnson that they wanted to sue their Coke Zero colleagues for “taste infringement,” she was baffled. She tried to talk them out of it, but they were determined. They argued that Coca-Cola Classic should be protected from the age discrimination it would suffer with the introduction of a newer, younger soft drink that tasted exactly the same as the original. Frustrated, Finn Johnson held up the Coke can and shouted, “It's not a person! Title VII doesn't cover these
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However, research showed that there was still a big demographic hole to fill as young men between the ages of 18 and 34 were abandoning the Coca-Cola brand altogether. They didn't want all the calories of regular Coke, but they weren't willing to make the move to Diet Coke, either, which has traditionally been marketed to women who want to lose weight.
Katie Bayne, chief marketing officer for Coca-Cola North America, says that the men who weren't put off by the “feminine stigma” of Diet Coke often rejected it anyway because of its aspartame-sweetened aftertaste. “What we were seeing before Zero launched was that more and more younger people were interested in no-calorie beverages but weren't going to sacrifice taste,” Bayne said. “So when they got interested in no-calorie, they were like ‘Forget it, I'm not going to Diet Coke.’”

Testing showed that the name “Coke Zero” would be an effective way to sell a low-calorie cola to men without using the word “diet.” And advances in artificial sweeteners made it possible for Coke to finally create a product that tasted more like the Real Thing. So expectations were high when Coke Zero was introduced in 2005 with a big marketing push, including a commercial that

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