How Coca-Cola used marketing research to solve diet cherry coke declining sales issue.




Marketing research is one of the most important attributes that every marketer should master. Despite in Egypt, few only knows a little about marketing research. Marketing research are classified to either problem-identification research or problem solving research. when companies gets to define a problem or develop an approach, the marketers has some tasks involved in this process that include discussion with decision makers and industry experts to understand more about the problem origin and nature. Moreover, analyzing secondary data analysis which are other data collected for some purpose other than the problem in hand. let's get to demonstrate this knowledge.

As of 2006, Coca-Cola is still the world’s leading manufacturer, marketer and distributor of nonalcoholic beverages to over 200 countries, with over 400 beverage brands.  Sales of Diet Cherry coke had been languishing however, down from more than 8 million cases sold in the peak years. Coke system bottlers had begun to cut back distribution of Diet Cherry Coke.

Faced with this issue, Coca-Cola had to determine the cause of such a decline in sales. When industry experts were consulted, the real problem was identified: Diet Cherry Coke was not positioned correctly. These experts emphasized that brand image was a key factor influencing soft drink sales and Diet Cherry Coke was perceived as conventional and old-fashioned, an image inconsistent with that of Cherry Coke. Hence, the marketing research problem was identified as measuring the image and positioning of Diet Cherry Coke. 

The research undertaken confirmed the diagnosis of the industry experts and provided several useful insights.
Based on the research results, the product was re-positioned to align it more closely to the image of Cherry Coke. The aim was to target younger drinkers. The packaging was remade to also be more consistent with the Cherry Coke packaging. Bolder, edgy graphics were used to appeal to the youth segment. 

Finally, Diet Cherry Coke was placed with Cherry Coke in a teen-targeted promotional giveaway. Positioning Diet Cherry Coke as a youthful soft drink and targeting the teenage segment led to a turnaround and increased sales 2005. Sales have shown an upward trajectory since, thanks to the industry experts who helped identify the real problem.


The Diet Cherry Coke example points to the key role of industry experts. However, information obtained from the decision makers and the industry experts should be supplemented with the available second data. 

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1 comments:

  1. Wow, I didn't know this existed! I'm suprised a big company like this aren't advertising a new product like this more... thanks for bringing it to my attention!

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