Coca-Cola launched its new advertising campaign for Classic Coke on January 9. The theme of the new advertising campaign for its Classic Coke brand is “real”. The tagline however is nothing new and Coke is once again promoting its flagship product in an already saturated market. The soft drinks giant would do better to concentrate its advertising efforts on newer products with greater growth potential.
Coca-Cola has used the “real” slogan in several advertising campaigns since 1943. The new advertising will include television and print ads as well as sponsorship promotions.
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The company scrapped its “Life Tastes Good” advertising campaign in the US after September 11 as it was seen as unsuitable. Since then the company has used ads without a tagline, although “Life tastes good” is still used elsewhere in the world.
The “real” campaign will be launched first in the US and then released to overseas markets. Cola is the leading segment in the US carbonates market, with over 75% of the total market share. Coca-Cola’s mainstay brand and its variations, such as Diet Coke, Lemon Coke and Vanilla Coke, currently make up around 60% of total volume sales at the company. However, the carbonates sector as a whole has seen growth decline in recent years as a result of market maturity and saturation.
Non-carbonated drinks, specifically bottled water and new age beverages will increasingly provide the greatest competition to Coke, especially in the US. Indeed many market players have expanded their interests in the
non-carbonated drinks sector.
Coke Classic’s expensive new advertising programme may reduce the marketing budget for Coca-Cola’s non-carbonated drink brands such as Powerade sports drink, and Dasani bottled water. However, Coca-Cola should be focusing its marketing budget on product lines which are less saturated, newer to the public and show much stronger growth potential.
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By GlobalDataCoca-Cola’s “real” future lies in advertising its innovative new products, not in reminding us about the old ones with old lines that ring with familiarity.
Related research: Datamonitor: “Soft Drinks in the USA to 2006” (DMCM0237
