1. Diet Coke Plus: What’s in your beverage? Rosemary Maloney Consumer Behavior Prof. Sandra Rothenberger Spring 2008 Rosemary Maloney Consumer Behavior Prof. Sandra Rothenberger Spring 2008 © Rosemary Maloney

2. Benefits of Diet Coke Plus Zero Calories, Zero Carbohydrates 15% of RDI of Niacin, Vitamins B6 and B12 10% of RDI of Zinc and Magnesium RDI is based on a 8 ounce serving, only sold in 20 ounce bottles or 12 ounce cans Zero Calories, Zero Carbohydrates 15% of RDI of Niacin, Vitamins B6 and B12 10% of RDI of Zinc and Magnesium RDI is based on a 8 ounce serving, only sold in 20 ounce bottles or 12 ounce cans © Rosemary Maloney

3. Current State of CSD Market © Rosemary Maloney Carbonated Soft DrinkMarket Share Change (2006) Diet Coke0.0% Diet Pepsi-1.0% Caffeine Free Diet Coke -9.0% Caffeine Free Diet Pepsi -7.0%

4. Current State of Energy Beverage Market Growth of Market –2004…70% increase –2005…54% increase –2006…36% increase New beverages enter market all the time 3 top beverages in 2006 (Red Bull, Monster, Rock Star) accounted for 68.7% of EB Market Growth of Market –2004…70% increase –2005…54% increase –2006…36% increase New beverages enter market all the time 3 top beverages in 2006 (Red Bull, Monster, Rock Star) accounted for 68.7% of EB Market © Rosemary Maloney

5. Demographics of Target Market Urban Professional Education Young Computer Literate Urban Professional Education Young Computer Literate © Rosemary Maloney

6. Why an Urban Professional? Busy –Everything is on the fly… –Meals at desk or in front of television Has the desire to be healthy, but cannot take the time to cook as opposed to suburban and rural counterparts Busy –Everything is on the fly… –Meals at desk or in front of television Has the desire to be healthy, but cannot take the time to cook as opposed to suburban and rural counterparts © Rosemary Maloney

7. Why Computer Literate? “The IT Guy” Often drinking caffeinated CSDs or Energy Beverages “The Alpha Mom” Balancing work and parenthood, “often has a blackberry in one hand and a child in the other” Who has time to get their vitamins when you got all that going on? “The IT Guy” Often drinking caffeinated CSDs or Energy Beverages “The Alpha Mom” Balancing work and parenthood, “often has a blackberry in one hand and a child in the other” Who has time to get their vitamins when you got all that going on? © Rosemary Maloney

8. Young or Young at Heart? Most energy drinks are focused at males 18-30 –Most aim younger (18-22) to get the high school children who want to be cool –Added bonus, males older than that target drink it for the same reason as High Schoolers… Diet Coke Plus will be targeted at the 26-30 year old segment Most energy drinks are focused at males 18-30 –Most aim younger (18-22) to get the high school children who want to be cool –Added bonus, males older than that target drink it for the same reason as High Schoolers… Diet Coke Plus will be targeted at the 26-30 year old segment © Rosemary Maloney

9. Are they leading a Healthy lifestyle? They probably aren’t… –2/3 of US Population is overweight or obese 1/3 of this group is classified as clinically obese –30% of school children are overweight or obese –Life expectancy decreasing, currently at 77.6 years, expected to decline another 2- 5 years in the next half century –Most are “trying” to lead a healthy lifestyle… They probably aren’t… –2/3 of US Population is overweight or obese 1/3 of this group is classified as clinically obese –30% of school children are overweight or obese –Life expectancy decreasing, currently at 77.6 years, expected to decline another 2- 5 years in the next half century –Most are “trying” to lead a healthy lifestyle… © Rosemary Maloney

10. Other Aspects of the Psychological Core Focusing on the IT professional - most companies don’t recognize the value of the IT Dept. Many feel undervalued and underappreciated, leading people to feel better by acquiring “stuff” Focusing on the IT professional - most companies don’t recognize the value of the IT Dept. Many feel undervalued and underappreciated, leading people to feel better by acquiring “stuff” © Rosemary Maloney

11. Preliminary Survey Results 74% response rate on the survey 66.7% of respondents drink caffeinated soft drinks or energy beverages More Diet Coke drinkers and Diet Pepsi 56.8% of respondents drink their CSD/Energy Beverage because of taste; 37.5% drink for the energy rush 74% response rate on the survey 66.7% of respondents drink caffeinated soft drinks or energy beverages More Diet Coke drinkers and Diet Pepsi 56.8% of respondents drink their CSD/Energy Beverage because of taste; 37.5% drink for the energy rush © Rosemary Maloney

12. Possible Tactics Viral Video Engaging online gaming Using Coca-Cola’s sponsorship of the 2008 Olympic Games to showcase the healthy benefits of the drink Rather than just having Rum and Diet Cola - why not make it a bit healthier? Viral Video Engaging online gaming Using Coca-Cola’s sponsorship of the 2008 Olympic Games to showcase the healthy benefits of the drink Rather than just having Rum and Diet Cola - why not make it a bit healthier? © Rosemary Maloney

13. So…What’s in Your Beverage? Any Questions? © Rosemary Maloney