Coca-Cola and Pepsi

Coca-Cola is currently positioning C2 as "lower calorie," and is emphasizing the carbohydrate count in promoting and the premium taste (Cioletti, p. 8). It is not clear regardless of whether customers are sufficiently concerned about the carbohydrate count in their soft drinks to move to a solution including C2 simply because it is lower in carbohydrates. Buyers who are committed to dieting are more most likely to take a zero-calorie, zero-carbohydrate, zero-sugar product the company's diet product rather than C2. Casual dieters may possibly discover C2 an attractive option, however. The company could be much more successful by promoting C2 like a premium cola with much better nutrition than conventional colas, assuming how the merchandise does, in fact, have the exact same taste as the premium cola.

New items are especially difficult to bring to market because firms must create new branding strategies. This can be made far more hard after 2 merchandise from leading companies are introduced at the same time, or as soon as the marketplace assigns a label?such as mid-calorie?to the item class before the businesses can define the product. Coca-Cola needs to define C2's branding strategy and use its considerable advertising and marketing expertise to reinforce that merchandise image regardless of that the market or Pepsi attempts to define C2's image.

PCNA spokesman Dave DeCecco says Pepsi Edge will have the most of both worlds. "We believe there's an opportunity to attract those who drink both regular and diet soft drinks," DeCecco explains. "That's a large and growing customer segment."

"We're using 'lower-calorie,'" admits Martin. Meanwhile, PCNA prefers to call Pepsi Edge a "full-flavored cola" with half the sugar, carbohydrates and calories of normal colas--with a greater emphasis on a reduced carbs and sugar.

Speculation continues on from which segment these beverages will draw their drinkers. "In terms of cannibalizing, some of our volume will source from other CSDs or colas, and that is certainly outside on the Coke portfolio as well," predicts Martin. "The essential factor is how the total trademark will probably be gaining incremental volume."

Premium soda player Jones Soda beat both Coke and Pepsi towards the punch earlier this year--albeit on a significantly tiny scale from the launch of its individual mid-calorie watermelon-flavored soft drink.

C2, based on Martin, has been inside works for about a year--more than ample time for marketplace rumor mills to catch wind on the impending arrival and start buzzing months just before Coke reps abandoned the "neither confirm nor deny" party line.

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