Ask Microeconomics Expert

Problem: Coca-Cola may have just hit on its worst marketing idea since New Coke Dieters, diabetics, calorie counters, caffeine avoiders: Beware.

Coca-Cola is launching a new soft drink packaging that essentially obscures the difference between various kinds of Coke. In this new branding scheme, unveiled at an event in Mexico City yesterday (April 19), a Diet Coke can appears predominantly red, as do cans of Coke Zero and Coke Life-with just a sliver of their original colors peeking through one side.

Coke claims that this will make their products easier to distinguish. "We are taking the next step towards full adoption of the "One Brand" strategy, uniting the Coca-Cola family under one visual identity and making it even easier for consumers to choose their Coca-Cola with or without calories, with or without caffeine," said chief marketing officer Marcos de Quinto in a press release.

Coke's in-house design team spent 18 months tweaking and testing their package designs in 14 market tests to come up with the new look. Their design solutions echo Coke's new "One Brand" marketing strategy, where the 130-year-old company plans to stamp all their design assets with the colors, design motifs and nostalgic themes of the bestselling classic Coke.

The new packaging, like their new ads, herald the rise of the "Red Disc"-essentially a flat, red circle paired with the white Coca-Cola Spencerian Script logo-as the brand's singular unifying graphic element. A Coca-Cola spokesperson tells Quartz that the disc is meant to emphasize the fact that Coke is, well, Coke: "By extending the Red Disc across the variants, we are further uniting the trademark products as one Coca-Cola family."

8oz_Glass_(One_Brand)_line_up_colorcorrected

Coke's VP of global design James Sommerville explains in the press release that the Red Disc-which appears like a rising sun in bottle labels-will be applied across "packaging, retail, equipment and experiential [marketing]."

This is a head scratcher. The company's marketing team is at pains to explain that clarity is the motivating principle of their new strategy. But how can the same color label help busy, inattentive consumers snag the right kind of Coke?

The craft of food packaging and label design began flourishing in the US in the late 1800's, when consumers started shopping by going to grocery aisles instead of asking for goods over the counter in general stores. Since then, the goal of package design has been to distinguish products with the strategic use of colors, typography, shapes and other design special effects.

Coke, more than any company, knew about the value of a unique package when it invested in its iconic 1915 contour bottle to deter copycats. But with the "One Brand" strategy, Coke is essentially repackaging its products in the generic Pantone "Coke Red."

It's a surprise move for a company with a rich history of delightful and profitable branding variations on cans and bottles, from personalized names in their "Share a Coke" campaign to special edition tie-ins with movies and events. This new design twist risks undermining the great work that went into establishing Coke's distinctive color assignments-including the iconic silver can of Diet Coke.

Coke's One Brand packaging will be deployed in Mexico by the first week in May and will trickle to markets worldwide by 2017.

Is Coke potentially making its dumbest move since New Coke? Read this article and answer these questions:

1. What led Coke to make this packaging/branding move?

2. What role does it appear the customer played in the process? (Hint: This may be a trick question!)

3. As a marketer, what do you think of this move?

4. As a consumer?

5. Share any additional thoughts you like.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92607957

Have any Question?


Related Questions in Microeconomics

Question show the market for cigarettes in equilibrium

Question: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the mode ...

Question recycling is a relatively inexpensive solution to

Question: Recycling is a relatively inexpensive solution to much of the environmental contamination from plastics, glass, and other waste materials. Is it a sound policy to make it mandatory for everybody to recycle? The ...

Question consider two ways of protecting elephants from

Question: Consider two ways of protecting elephants from poachers in African countries. In one approach, the government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all ...

Question suppose you want to put a dollar value on the

Question: Suppose you want to put a dollar value on the external costs of carbon emissions from a power plant. What information or data would you obtain to measure the external [not social] cost? The response must be typ ...

Question in the tradeoff between economic output and

Question: In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent? The response must be typed, single spaced, must be in times new roma ...

Question consider the case of global environmental problems

Question: Consider the case of global environmental problems that spill across international borders as a prisoner's dilemma of the sort studied in Monopolistic Competition and Oligopoly. Say that there are two countries ...

Question consider two approaches to reducing emissions of

Question: Consider two approaches to reducing emissions of CO2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermin ...

Question the state of colorado requires oil and gas

Question: The state of Colorado requires oil and gas companies who use fracking techniques to return the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefit ...

Question suppose a city releases 16 million gallons of raw

Question: Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits in ...

Question four firms called elm maple oak and cherry produce

Question: Four firms called Elm, Maple, Oak, and Cherry, produce wooden chairs. However, they also produce a great deal of garbage (a mixture of glue, varnish, sandpaper, and wood scraps). The first row of Table 12.6 sho ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As