Coca-Cola Health Promotion - Essay Example

Coca-Cola Company is one of the largest soft beverage producers in the world. The company which has its headquarters in Atlanta, Georgia was incorporated in Wilmington. The company is best known for its flagship product Coca-Cola which was invented by a pharmacist in the year 1886. The Coca-Cola Company produces syrup in its subsidiaries and sells this syrup to franchises throughout the world. The products of the company although being popular among the consumers have received a backlash on their effects on the health of individuals. For years now, the company has been under fire from human health activists for producing products that are unhealthy. The claims are that the products fuel diabetes and obesity epidemic because of the high caloric and sugar contents in the drinks (Kate, 2016). In addition, other chemical additives and food dyes in the products are also considered harmful to the body. It is for these reasons that Coca-Cola has invested in health promotions so as to ensure the products remain relevant in the market, and also to make sure that their revenues are not affected.

There have been problems with the amount of sugar in the Coca-Cola products. This issue has seen its consumers bypassing the sugary drinks for other healthier drinks from their competitors. After identifying this problem and its effect on company sales and brand, the company streamlined its marketing strategies by adopting messages that ensure the company remains a beverage powerhouse. While the companys main competitor PepsiCo diversified its portfolio to incorporate food products like Quaker, Doritos, and Lay, Coca-Colas main focused remained on the soda which makes 70% value of the company (Christine, 2017). The company then realized that for it to break even into the market they had to introduce other products like water, tea, and juice that are growing at a faster rate, all of which are healthier products.

It is for the sole purpose of health promotion that the company in the year 2017 decided to reduce the sugar content in almost 500 of its products and investing on building awareness of the products no-sugar and low-sugar drinks (Christine, 2017). The company is also testing other products like the Coca-Cola Plus that has fiber added to it. This drink is being tested in Japan, and another soda with vitamin C- infusion is being tested in China. These inventions are from a research that shows consumers have interest in drinks that aid in digestion, as well as those with health benefits of Vitamin C. The company, is expected to launch health promotions just like it spent $4 billion on promoting its Diet Coke, Coke Zero, and Coca-Cola Life. The campaign was branded Taste the Feeling. Though having different brands for the same product was ineffective, the products were very successful in the market in terms of sales.

Taste the Feeling was a one brand strategy that saw Coca-Cola company combining the Co-Cola classic with Coke Zero, Diet Coke and Coke Life. Since Coco-Cola classic has been labeled as a drink with lots of sugar and calories, the introduction of the one brand strategy ensures that those who want to switch from the original coke to other brands like Coke Zero can do so without losing touch with Coca-Cola (Kate, 2016). The change will be the product variations if one wants to choose from sugar, caffeine or whatever their tastes allow them. In the past, the brand has always feared grouping other sodas with low and no-calorie with the classic Coca-Cola, as this inclusion would dilute the original brand. Now as the market changes and consumer preferences change from sugary to low sugar, no-calorie drinks, the new campaign anticipates the elevation of the brand through showcasing a variety of products with different nutritional needs. In simpler words, the aim of the One Brand strategy is to convince consumers that Coke does not have to be caloric, sugary or generally unhealthy.

Coca-Colas main competitor PepsiCo has made the industry extra competitive by penetrating the market with healthy foods. Just like Coca-Cola, the company has been involved in a number of health promotions. The company, PepsiCo is known to compete with Coca-Cola in almost all brand sub-segments. PepsiCo has heightened its health campaign by creating an emphasis on nutritious foods. This puts the company in a better position to grab market share especially in recent times when consumers are more health conscious. Slowly, the market share gains from PepsiCos focus on nutritious foods increases the probability for the companys Gatorade, Tropicana, and Quaker foods. This means that Coca-Cola ought to revamp their product lines and target this new market of nutritious foods other than focusing mostly on the soft drinks market.

In summary, health promotions are a must for Coca-Cola Company it wants to remain competitive in the soft drinks beverage. Innovations are also prudent as well as diversification. Just like PepsiCo, Coca-Cola should consider tapping the market for nutritious food products. Meeting customer preferences and satisfying them is important the growth of any brand. Since the consumers want healthy foods and drinks, Coca-Cola ought to strive to meet their needs for the long-term growth.

References

Christine, B. (2017). As Soda Loses Its Sparkle, Coca-Cola Is Transforming Into a Total Beverage Company. ADWEEK Article, Retrieved April 10, 2017, from http://www.adweek.com/brand-marketing/as-soda-consumption-declines-heres-how-coca-cola-is-reshaping-itself/

Kate, T. (2016). Inside Coke's 3-part master plan to save soda. Business Insider Article. Retrieved September 7, 2016, from http://www.businessinsider.com/cokes-plan-to-save-the-soda-industry-2016-9?IR=T