<ul><li>In April 2004, Coca Cola India (Coke) had launched Vanilla Coke, Coke's first flavor extension in India. </li></ul><ul><li>The concept of ice-cream floats in cola was quite common in urban restaurants in India. </li></ul><ul><li>Vanilla Coke targeted urban teens and young adults (12 to 29 age group) in the high and middle income groups </li></ul><ul><li>The response to the product was good in south east Asian market like Bangkok & Hongkok which encouraged the co. to think that it would kick off in India too. </li></ul>
<ul><li>Blind tests done before launching Vanilla Coke revealed that consumers will like the taste </li></ul><ul><li>It carried the tag line Ice Creamy Thanda. </li></ul><ul><li>The India campaign took a cue from the "hip-hop" commercial used in Hong Kong, where it had been successfully launched earlier. </li></ul><ul><li>The 60-second ad was played on youth-centric channels like MTV, Channel [V], HBO and AXN and even regional channels like Sun TV. With a retro-Bollywood theme, the ad urged consumers to "try something new and different", in classic 1970s style. </li></ul>
<ul><li>Consumers also did not like the taste of Vanilla Coke. </li></ul><ul><li>The campaign was not targeted at the right segment. For teenagers , as they not seen the old stars so could not easily relate the old characters and the concept. The brand may have lost out in that respect. </li></ul><ul><li>The brand was priced at a premium over the ordinary coke. </li></ul><ul><li>'Irrelevant' advertising was cited as one of the reasons for Vanilla Coke's failure </li></ul><ul><li>Wrong positioning & mismatch of target group and communication. </li></ul><ul><li>Commercial itself was out of context and had no connection with Coke as a brand. </li></ul>
<ul><li>Vanilla Coke comes under DOG. </li></ul><ul><li>A product that has not worked good or a product which has been a source of loss. </li></ul><ul><li>Vanilla coke is one product that was not a big hit. </li></ul><ul><li>Even its not a long period which Vanilla coke has consumed but still there are signs that </li></ul><ul><li>it wont be a success. So its better for the company to get rid of it. </li></ul><ul><li> </li></ul>BCG Matrix
Suggestions to improve sales of Vanilla Coke <ul><li>Company may have gone for Alpha testing (i.e. testing within the firm to see how it Performs) & beta testing (i.e. enlisting a group of customers to use the prototype & Give feed back) </li></ul><ul><li>Perform a detailed demand survey at regular intervals to know about the unique needs & requirements of the customer. </li></ul><ul><li>The company should make hindrance free arrangement for its customers/retailers to Make any feedback or suggestions as & when they feel & try to solve it without delay to establish its own good credibility. </li></ul><ul><li>should have planned the Ad campaign by taking in a celebrity inits ad campaigns. </li></ul>
<ul><li>The Ad campaign should have been associated to Coke </li></ul><ul><li>The pricing strategy should have been penetration i.e.. should have entered the market with low pricing as they were launching a new concept in the soft drink market. </li></ul><ul><li>The Target audience should have been children in the age group of 12-20 & ladies as it was more of a light flavors & for higher group they had coke. </li></ul><ul><li>They should have also made this product more attractive for retailers by offering them some discounts on these vanilla cokes as they play a major role in boosting up of sale of soft drinks. </li></ul>Suggestions Contd…
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