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When a financial analyst announces that he recognizes the impact of one of your recent product launches, but is concerned that it's not enough, your brand has a lot of work to do.

"While the current success of the brand (Coke Zero) in volume terms is beyond dispute, we do not believe it is enough to resolve the core issues Coca-Cola faces: to halt the slide in the carbonated soft drink category and improve Coca-Cola's category share."

Robert van Brugge-Bernstein

CSDs are in massive decline worldwide because people are seeking healthy alternatives.

Coca-Cola has been skirting around the edges without cracking the real problem; they are reducing calories and they are even adding vitamins. They are trying to make the product healthier, but they need to find a way to make a CSD with nothing artificial in it and a reduce the sugar content.

We've already reported on 7-UP's attempt to make this happen.

It makes sense to expand the portfolio into juices and waters, but people would drink CSDs if they were natural and available everywhere- people are already making them.

Some are very succesful.

How hard can it be for someone with the resources of Coca-Cola?
If you are a small player in a category dominated by a couple of strong brands, it’s easy to feel intimidated and look for any opportunity to punch beyond your weight.

There’s a desire to simply be heard and noticed when you are up against higher spending and noisier competitors. However, your size is a strength that should be exploited, you should be proud of your size and think of your self as a leader in a niche. You should be a brand with a human, friendly personality that doesn’t chest beat or embrace the tactics of your larger competitors.

Snapple is a homegrown brand that charmed consumers with its homespun wisdom. It presented itself as an alternative beverage, in its product formulation, but also in the way it marketed itself.

That’s why it’s strange to see Snapple resorting to big brand tactics to reinforce its brand positioning of “Best Stuff on Earth”.

This is from the a recent press release.

"Everybody knows that Snapple tastes out of this world," said Randy Gier, Chief Consumer Officer for Snapple. "We believe the first thing anyone from this new world will request is the Best Stuff on Earth. NASA should seriously consider our petition because Snapple Green, White and Red teas boost metabolism, offer light taste and contribute to a healthy immune system -- great benefits for any life form."
While the as yet unnamed planet is more than 20 light years away, Snapple is already preparing to make its first delivery to the cosmos. Obtaining distribution rights for the new planet will give Snapple a first-to-market advantage. If the request is granted, the one-of-a-kind ready-to-drink tea maker may change all SKUs so packaging will read "Best Stuff in the Universe" rather than "Best Stuff on Earth."

Obviously, jumping on the news bandwagon is classic opportunistic marketing from a brand with a limited budget. However, the brand ego is out of control, Snapple is no longer just the “Best Stuff on Earth”, it’s the “Best Stuff in the Universe”.

Be careful what you wish for. This ego driven effort really calls to attention Snapple’s brand ingredients. The positioning may have been great years ago, when Snapple was better than a can of soda, but now it’s up against different “stuff”, is it better than organic, is it better than Honest Tea?

Is this something you really want to draw attention to?





Yesterday, beverage giant Diageo, held an annual investors conference, where it into considerable detail about all aspects of its global business.

Marketing got a seat at the top table and considerable time and attention to explaining the company’s thinking about the new environment and how it’s responding to the challenges.

4 things emerged from the presentation.

1. The company clearly understands the new challenges of the marketplace.


2. It has a new marketing model.



3. It knows the implications.


4. It’s acting on it.

Diageo is be forging ahead of its competition with marketing innovations in viral, digital and experience based platforms. The work for Smirnoff Iced Tea received special recognition; according to Diageo’s data, the viral “Tea Party” film generated 3 million+ internet views and 48 million PR media impressions.




“There is evidence that the 25-29 year olds have grown up quicker than previous generations as a result of 9/11, terrorist threats and two wars. As a result they have adopted so-called ‘mature products,’ such as premium scotch whiskey, earlier than usual. Additionally, 25-29 year olds are switching from quantity to quality further fueling premiumization and further benefiting our brands.”

Diageo Investors Conference- April 26th-2007