Marketing Management

Marketing Management CASE STUDY (20 Marks) Coca-Cola Company was universally recognized as a market leader in soft drinks with worldwide revenue of $23.1 billion and presence in over 200 countries (2006). The Company manufactured beverage concentrates and syrups. The Coca-Cola Company owned four of the world’s top five soft-drink brands, which included Coca-Cola, Diet Coke, Fanta and Sprite. In America, sales of carbonated drinks declined a little in 2005 as government campaigns and media coverage raised concerns over obesity. Bottled teas and nutrition- enhancers were big opportunities for Coca-Cola. Sales of bottled teas were growing steadily and nutrient drinks had a market of about $1 billion by 2006.

According to a study conducted by the National Center for Health Statistics, Americans opted for a healthy alternative to their daily dose of energy instead of carbonated drinks. The study prompted Coca-Cola to go in for the calorie burning Enviga. On 6th November, 2006, Coca-Cola along with Nestlé launched Enviga, a Nestea carbonated canned green tea drink. Enviga burnt 60 to 100 calories per three 12-ounce cans in healthy adults aged between years. For overweight Americans, the release of Enviga was meant to bring good news. According to Coca-Cola, Enviga helped in reducing obesity. But according to doctors green tea was unlikely to make anyone shrink, so the Center for Science in the Public Interest, an organization that focuses on health and nutrition issues in US sued Coca-Cola and Nestle for their ad campaign of Enviga but the company had no plans to change its claims.

In the recent past Coca-Cola had already faced two soft-drink flops out of their four releases in the form of Coca-Cola C2 and Vanilla Coke. What would Coca- Cola's strategy be with the new drink? Would it be able to make it a success despite the initial controversy that surrounded it? Would consumers take to Enviga?

Answer the following question. Q1. Discuss the trouble faced by Coca-Cola in Q2. Debate Coca-Cola’s marketing strategies for Enviga and discuss whether Colca -Cola will succeed in its new product.