Coca Cola Life , A Healthy Addition ? – Place ( Distribution )

The Coca-Cola Company is the world’s biggest drink organization, invigorating buyers with more than 500 shimmering and still brands. Driven by Coca-cola, one of the world’s most profitable and conspicuous brands, our Company’s portfolio includes 20 billion-dollar brands including, Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitamin water, powerade , Minute Maid, Georgia and Dasani. Together with their packaging accomplices, they rank among the world’s main 10 private superintendents with more than 700,000 framework partners.

From a place and distribution point of view the coca cola company has targeted markets all around the world with particular advertisements based on the culture , language and standard of living of that particular region.

Also , commenting on the latest addition to the coca cola family , the new coca cola life has emerged with more then a few criticisms based on its marketing strategy that is to target a health conscious audience. In terms of distribution , i personally do not feel that this product can make a mark on the already existing range of products that coca cola has to offer , like the Diet coke and the zero sugar coke. With the introduction of this product , coca cola has tried to draw a line between its already existing original Coke beverage and the Coke with zero sugar.

First look - Coca Cola Life

First look – Coca Cola Life

Moreover ,

Well being specialists have blamed Coca Cola for ‘health washing’ purchasers with the dispatch of its new ‘lower-calorie’ soda as despite everything it contains everything of a grown-ups prescribed every day stipend of sugar.The soda pop Goliath’s most recent item, Coke Life, is part of the way produced using an actually sweet plant called Stevia, in an offer to target well being cognizant soda pop sweethearts.At the same time, a 330ml jar of Coca Cola Life still has 22g of sugar, likeness six teaspoons and 89 calories.At the point when contrasted with a 330ml jar of general Coca Cola which has 35g of sugar, likeness just about 10 teaspoons of sugar and 139 calories, that is 35 for every penny less sugar.On the other hand, the World Health Organization (WHO) prescribes that grown-ups of typical body mass list just eat 25g (six teaspoons) of sugar altogether every day.

My question being , if it is seriously sweet , with still a fair amount of sugar , and a reasonably large amount of calories for a small can , what makes it any different from other such offerings? Here is a picture i found where in the senior lecturer at the University of Sydney has made remark about the coca cola life being a healthy addition

“10 teaspoons of Sugar” – Beneficial or Harmful ?

In a general sense, this is around an organization propelling a sugary item to urge more individuals to expend a substance that adds to a scope of dietary and well being related issues, including diabetes. Coca-Cola gives off an impression of being utilizing the front of the administration’s disparaged obligation arrangement to search praise for drawing out an item that still contains more than 4 teaspoons of sugar for each 330ml can, which likens to one-quarter of a kid’s every day prescribed intake of sugar. As indicated by The Australian, Coke’s worldwide deals are under weight, and aggregate soda utilization in the US has declined more than 20 for every penny since 1998. In April, Coca-Cola Amatil cautioned financial specialists the organization’s assets were required to fall 15 percent for every penny in the six months to June 31.

HOW MUCH SUGAR IS IN YOUR DRINK? 
DRINK SERVING SIZE GRAMS OF SUGAR (PER SERVE) TEASPOONS OF SUGAR
Coca Cola Regular 375ml 40g 10
Coca Cola Life 375ml 27g 6
Diet Coke 375ml 0 0
Sprite 600ml 61g 15
Fanta 375ml 42g 11
Solo 600ml 72.6g 18
V Energy Drink 500ml 53g 13
Red Bull 250ml 27g 7
Gatorade 600ml 36g 9
Powerade 600ml 34g 8.5
Lipton Ice Tea: Peach Flavor 500ml 34g 8.5
Vitamin Water 500ml 27g 7

As indicated in the chart above ,in the metaphorical sense coca cola life is like the equator on earth , my point being it has more than half sugar as compared to Diet coke and just a bit more than half when compared to Regular Coke.While numerous are astonished by The Coca-Cola Company’s prerogative far from its famous red naming, there may be a much more unpretentious purpose behind it than the decency of green. The new item is said to contain impressively less sugar than regular Coke (in light of the fact that its sweetened with a plant concentrate), however doesn’t contrast positively and the two current items in the organization’s line-up. A container of Coca-Cola Life contains about 27 grams of sugar – contrasted with 40 grams in regular Coke and none in the two “eating regimen” offerings.Diet Coke and Coke Zero are sweetened with a mix of acesulfame potassium, a without calorie sweetener that is 200 times sweeter than sugar, and aspartame, additionally calorie free and 200 times sweeter than sugar.

The coca Cola life promotions based on place vary in different regions. For example here is an image clicked on southern cross station in Melbourne , Australia which advertises this new product.

“Let life Surprise you” – small yet catchy

Interestingly , from a distribution perspective Coca Cola Life has all the presence of a shopper’s choice, not an organization impulse. In reasonableness to Coca Cola, while Coke Life resembles a strategic reaction to the natural issue, it is discreetly revealing the Plant container in nine unique nations. So it is not a joke. Likewise Coca-Cola Life is bundled in the organization’s Plant Bottle, which is the first recyclable container produced using petroleum-based materials and up to 30% plant-based materials. The trust is to make a 100% plant-based container later on.

Coca cola products have been one of the top competitors in the beverage industry in the past decades but the question to be answered here is weather the introduction of coca cola life would provide a boost or is it going to fail the aspirations of the company. In terms of targeting the market , success based on distribution of the product would also contrast the pricing of the product when compared to the already existing products. The stand out factor is what will determine the success of the coca cola life , unlikely of what region the product is expected to hit. Only time will tell !

“As we tried to instill in each of our subjects over and over, WICKED is good.”The subjects being the audience or the target market and the product being Coca Cola Life along with ‘WICKED’ being the debate.

References

http://www.theguardian.com/business/2014/jun/11/coca-cola-fewer-calories-less-sugar

https://www.business.tas.gov.au/growing-and-improving-your-business/marketing-your-business/doing-a-swot-analysis/checklist-marketing,-promotion-and-distribution-channels

http://www.findingdulcinea.com/news/on-this-day/March-April-08/On-this-Day–Coca-Cola-Company-Releases–New-Coke-.html

http://radiopaedia.org/articles/coca-cola-bottle-sign

Let’s fight: Anywhere, anytime, on any device. (Also, Kevin Spacey.)

Image

A bloody battle worthy of a Hollywood blockbuster has come to Australia.

HOC-Spacey THE PITCH The video on demand (VOD) market has ramped up in Australia over the past few months, with the arrival of international streaming superstar Netflix spurring a revamp of recently launched subscription based VOD services from the major local media players – Stan (Foxtel), Presto (Fairfax) and Bigpond Movies (Telstra) – as well as incumbents and new entrants at the smaller end of town iFlix, ezyFlix, Quickflix, and FetchTV (backed by iiNet who is also offering Netflix on the FetchTV service and download quota free).

Not to mention the existing heavyweights Apple (iTunes/AppleTV), Google (Play), Amazon (Instant Video) as well as a range of services from studios or gaming consoles (e.g. movie streaming propositions on XBox and PlayStation).

However, the local market has been ticking along in a bit of a vacuum for the past few years.

Foxtel had been happy to push its ‘ Foxtel Go’ proposition (an extension of their existing PayTV service across mobile devices), Stan and Presto have basically competed amongst themselves while they try and develop a decent customer value proposition, and the free to air ‘catch up TV’ services like iView and SBS On Demand have used streaming to extend the life of their respective programming, and provide monetisation opportunities (for SBS at least through pre-roll video advertising).

Netflix’s arrival on the scene has kicked things into a different gear.

The rise of Netflix, AU online streaming site visits 2015. (Source: News.com.au)

The rise of Netflix, AU online streaming site visits 2015. (Source: News.com.au)

HANG ON, WHAT’S CONTENT STREAMING?

It’s simply another way to consume video content (in this case entertainment); instead of going to the movies, whacking in a DVD to binge watch your favourite TV series, watching Foxtel (cable) or free to air TV (assuming people still do that!), you can watch content online either through a web browser or an application that runs on your device of choice (think ABC’s iView, SBS On Demand, TenPlay playing on your iPad or through your Smart TV).

Sometimes these are free services like ABC iView, others you pay for a device (e.g. Apple TV) that turns your TV into a online movie store (using iTunes) and you just pay for what you watch, and still others like Stan, Netflix and Presto are called subscription video on demand (SVOD) services and you pay a monthly fee (at the moment these SVOD service range from around $8.99 – $11.99).

The bottom line is that it gives viewers total control over what, when and how they watch movies and TV. And – like when Apple scared the pants off and basically broke the music industry pricing and distribution model with the iPod and $1.99 individual track downloads (and at the same time saving it from total destruction due to music piracy from peer to peer file sharing sites like Napster) – all this disruption has many of the the traditional content owners (think film studios) and media owners running scared (think network TV, Foxtel).

As Kevin Spacey – star and producer of Netflix’s wildly successful original program House of Cards – said in a recent speech:

The audience wants the control. They want the freedom. Through this new form of distribution…we have learned the lesson that the music industry didn’t learn: Give people what they want, when they want it, in the form they want it in, at a reasonable price, and they’ll more likely pay for it rather than steal it.

THE PLAYERS 

Now, let’s introduce the key players in this distribution drama.

We saw from an earlier post on the MPK732 blog by Shaun Beirne and Ashlee Yang that the traditional movie distribution model has evolved (using The Walt Disney Company as an example) to provide channels for studios to have direct engagement with consumers through online retailing of their products, cable TV networks and through the DVD market, and that studios (some more succesfully than others) have vertically integrated their channels for some formats (e.g. cable TV channels). In addition to that, things have also become exponentially more complex as content aggregators arrived, licensing and bundling up packages of online studio content and giving access to consumers through iOS/Android applications, web browsers, connected TVs, gaming consoles and other platforms for a monthly subscription fee.

This has made the world of online content distribution a very complicated place, with no clear winners and plenty of change to come. Just looking at the distribution landscape as it stands today shows the level of complexity that these companies are dealing with.

Market segment leaders that pioneered new technoloy applications. (Source: Ulin (2013), p. 319)

Market segment leaders that pioneered new technoloy applications. (Source: Ulin (2013), p. 319)

SO, WHO WINS? AND HOW?

Well, I suppose it depends on who you think has the power.

Is it the platform owners – Samsung, LG, Sony Bravia, XBox, PlayStation and other conected device manufacturers – who decide which apps they will host on their platforms? I doubt it – unless they vertically integrate to get closer to the consumer it’s likely that they will stay in the ‘hardware’ space when it comes to consuming entertainment content online.

Or maybe the channels: online video or retail heavyweights like YouTube and Amazon? Perhaps, but they’ll need to seriously start  producing quality content themselves not just serving it up or licensing it.

Apple. Well, they don’t currently offer a subscription VOD service, and they also haven’t ventured into content production either. Plus, they have Netflix and other services available on the Apple TV main (and you can download apps from Quickflix, Presto, Stan and Foxtel through the App Store), so they’re already getting a cut of the SVOD market through whatever revenue share deals they’ve done. See how it starts to get complicated…

Is it the Aussie media companies and telcos who have brought out their own subscription VOD services with thousands of hours of content? Why, when Stan has more content than Netflix (for now – see below) is it that they are getting passed over by customers? Could it be that it’s about quality, not quantity, and those with the original content or the deep pockets or global presence to fund global content licensing deals are in the driver’s seat?

AU SVOD catalogue hours available by service provider (Source: Gyde, April 2015)

AU SVOD catalogue hours available by service provider (Source: Gyde, April 2015)

Or will it be Netflix, with a strategy of creating exclusive original programming and serving it up to customers all at once to drive binge watching, combined with closing out the distribution windows for other platforms to give themselves a competitive advantage and a unique hook to promote their streaming service? After getting Australian audiences hooked on House of Cards Season 1 and 2 through Apple and Foxtel  over the past couple of years, Netflix launched their service in Australia with House of Cards Season 3 as their headline title. 

And in a move worthy of Kevin Spacey’s villainous president-elect Frank Underwood, you can only watch it on Netflix.

spacey smiling  

WHO DO YOU THINK WILL COME OUT ON TOP?

In case you hadn’t guessed, I’m backing Netflix. And Kevin Spacey.

REFERENCES

Ulin, J 2014, The Business of Media Distribution: Monetizing Film, TV and Video Content in an Online World, 2nd edn, Focal Press, London, UK.

http://www.news.com.au/technology/home-entertainment/new-numbers-show-netflix-followed-by-presto-leading-svod-battle/story-fn8tnfhb-1227350550043

http://www.businessspectator.com.au/article/2015/4/2/information-technology/epic-drama-quickflix-starring-stephen-langsford

http://mashable.com/2014/07/14/how-netflix-is-dominating-australia-from-abroad/

http://www.abc.net.au/news/2015-01-26/christensen-streaming-wars-the-battle-for-eyeballs-begins/6045874

http://www.nextgenerationconsulting.com/netflix-sees-the-future-disruption/

http://www.smh.com.au/digital-life/computers/gadgets-on-the-go/presto-and-stan-sweeten-their-deals-as-netflix-unleashes-the-dogs-of-war-20150304-13ustg.html