Write a Conclusion based on the Case Study above. Spork Life: Dysfunction at the

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Write a Conclusion based on the Case Study above. Spork Life: Dysfunction at the heart of Coca-Cola The new Coca-Cola beverage in the green packaging is a mashup between Coke and Diet Coke, with 35 per cent lower kilojoules. And like the spork (part spoon, part forkl) Coke Life is turning out to be one of those great inventions nobody really wanted Sales for the sort-of-healthy cola were reported at 7 million litres in five weeks, half as much as Vanilla Coke managed in the same period. Life represented just 2.5 per cent of total Coke sales in the month of June, after launching in April. Coca-Cola's Australian spokesperson claims they never meant Coke Life to be a big hit, that the "launch was very successful," and that the point of Coke Life is to introduce the plant sweetener Stevia to the local market For some reason though, Coca-Cola has been doing unusually heavy discounting of its whole product line in recent months to boost sales. In September Coke was briefly cheaper than Pepsi for the first time in years, according to a supermarket pricing survey Consumers seem mostly unimpressed by the new Coca Cola offering. For research purposes I went and bought a bottle of Coke Life at the milk bar. It actually tasted to me a lot like Coke, which is to say perfectly delicious. But people who like the taste are asking, is 35 per cent kilojoules cut enough? One Aussie even compared the slightly drab green of the new labels to the olive colour used on plain cigarette packaging so why did Coca-Cola the company that for so long had the best marketing in the entire history of the whole world launch such a fizzer? The answer is simple: Coca-Cola is not the golden child it once was. In America, sales of soft drinks have fallen for 10 straight years. While the company is stll seeing strong sales, a lot of growth is coming from the poorer parts of the world. The richest countries have Even school kids apparently prefer kale juice these days. become more health-conscious and moved on. The Coca-Cola Company is working very hard to cover for the decline of their once all- powerful beverage. This means experimenting. Remember when they launched those smaller cans priced at $2? That was part of the same strategy trying to find a format for Coke people would actually want to buy. The problem snuck up on them slowly, then all at once. While Coke had its eyes locked on fierce rival Pepsi, a funny thing happened in the beverage market. People started wanting drinks that did things. The rise of "functional beverages" is obvious if you stand in front of the drinks fridge. There are juices for health, Gatorade for sport, tea for calm, energy drinks for staying focused. Even iced coffee is sold on functionality now it picks you up, or stops you being so confused. Prepared by: Mdm. Zieyla

Explanation / Answer

Conclusion based on the case study

It is functional beverages that the consumers are demanding rather than aerated drinks like Coca Cola. The drinks in Coca-Cola's product line that get sold as functional beverages are Power Ade, Vitamin Water, Mount Franklin. Sales for Coca Cola are coming from emerging or underdeveloped economies. In developed economies such as US, functional beverages are adding to the sales revenue even if Coca Cola is offering discounts on a number of products on its product line.

Spork Life, a product meant to be somewhere between Coca Cola and diet coke, with artifical sweetener Stevia, did not really get revenue for the organization as would be expected for a new product - 2.5% of the organization's sales. The drink is lower in terms of calories by 35% from Coca Cola. This Stevia is being manufactured by Coca Cola. To conclude, Coca Cola works in developing economies while in developed economies it is the functional beverages. Diet Coke for the developed world and emerging economies and Coca Cola only for the emerging economies, that's what one can gauge from the case study.

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