On Rohit Bhargava’s Influential Marketing Blog, Rohit speaks about Coke’s efforts to raise awareness for obesity. When first thought about this concept, I felt it was quite strange: Why was Coca-Cola spending money to undermine itself? I then realized, Corporations spend money with a purpose- and Rohit makes an excellent point in his blog with what I believe is the main driving factor: “Focusing on health can make competitors look unfeeling or out of touch.”
Coca-Cola of course understands that it plays a central role in obesity with its unhealthy drink offerings, however, it also understands that consumer preferences could change. We see increased awareness for obesity and unhealthy ‘junk’ foods, and if this trend continues, Coca-Cola could be threatened with its unhealthy offerings. In the past decade, we can see Coca-Cola adding both increased breadth and depth in its product lines as focusing on healthier alternatives. Specific examples would be the acquisition of Vitamin Water for increased breadth, while Coke Zero would be an increase of depth along with a brand extension of the brand ‘Coke”.
In the video that Coca-Cola has created, it outlines the specific actions it has taken to reduce caloric intake. As a consumer, I am skeptical of such videos, however, I believe Coca-Cola has done at least enough to raise awareness of its different brands/different size offerings. As well, I agree with Rohit in the sense that by taking the initiative to admit that there is a problem, it makes its main competitor Pepsi, look out of touch and uncaring. With continued efforts, Coca-Cola could potentially build brand equity via the association that Coca-Cola products are healthier, eventually creating loyal consumers. As both giants are in the convenience good market, this loyalty is an amazing advantage.
