Question

Assuming you were the CEO of the Coke-Cola Company (TCCC) in 2013, formulate the
justification for the decision to launch Coca-Cola Life (aka. Coke Life).
NOTE. In your justification, elaborate on the internal and external factors that may have led to
this decision. You may refer to other information about the business situation faced by TCCC
in 2013 to support your argument (proper referencing required).

Answer 1

Answer:

Introduction:

In 2013, The Coca-Cola Company (TCCC) started Coke Life, a naturally sweetened but sugar reduced carbonated soft drink.

Coke Life comprised 35% and replaced a portion of the sugar part with stevia leaf extract less sugar than Coca-Cola Classic. TCCC promised that “Coke Life is for adults looking for an excellent tasting Coke but (one with) fewer kilojoules and (that’s) sweetened from natural sources”.

Justification for the decision to launch – Coke Life

The following internal as well as external factors discussed below, collectively led to the decision to launch Coke Life which are as follows:

External Factors:

The external factors which led to the decision to launch Coca-Cola Life are as follows:

1. Emergence of stevia extract: Idea of utilizing the stevia extract which works as a sweetener ingredient for soft drinks is also one of the reasons behind taking this decision.

2. Health concerns towards obesity fuelled by sugar and carbonated drinks: Health concerns were rising globally due to the consumption of sugar and carbonated drinks, people were gaining a lot of weight. So, to curb this situation to provide a healthy sweetened soft drink to the people this decision was taken to launch Coke Life.

Internal factors:

The internal factors which led to the decision to launch Coca-Cola Life are as follows:

1. Decrease in Diet Coke Sales: As the diet coke sales was decreasing in market, Coca Cola wanted to come up with a new product with the enhanced ingredients focusing the market requirements of that time.

2. Consumption of full-calorie soft drinks has declined by about 20% the past twenty years: Due to the awareness of health consciousness among people the consumption of full calories soft drinks were already declined in the market, which led Coca-Cola to come up with a new plan of making a soft drink with health conscious ingredients.

3. Competitive products and pricing policy pressures and ability to earn or maintain share of sales in worldwide market: these pressures encouraged Coca-Cola to launch a new product with a new idea to stand out in the soft drink market and earn profits.

Business situation faced by TCCC in 2013, for making the decision to launch Coke Lite

Decline in sales of original Coca-Cola led to idea of launching Coke Life, because people in the market were turning health conscious and due to increase in weight through drinking soft drinks the customers started avoiding soft drinks.

The sugar content in the soft drinks was too high and was harmful for diabetic people. So, to fight with these challenges Coca Cola – TCCC came up with Coke Life in the global market in 2013. It was distributed in various countries like: UK, Australia, Canada, United States, Switzerland etc.

Coke Life drink contained stevia leaf extract and had less sugar than traditional Coca-Cola.

Decline and Discontinued Sales of Coke Life

In 2017, it was announced that due to decrease in its sales and increase in sales of Coca-Cola Zero Sugar, Coke Life would no longer be sold and it was discontinued in 2017.