Article (Marketing Management)

Coca-colder: Coke debuts its first frozen beverage pouch in Japan

By Lester Wan

Coca-Cola Japan has launched its first ready-to-drink (RTD) frozen beverage in a re-sealable pouch, which the company says is the first such innovation around the world.

Coca-Cola Frozen Lemon is said to have a refreshing sherbet-like feel and consumers are encouraged to leave it at room temperature for about 15 minutes and give the pouch a 'massage' to get the right texture for the frozen drink. Jorge Garduo, president of Coca-Cola's Japan business unit, said: "We're always looking for new ways to reach and please consumers, and a big part of that is introducing them to new products that we think they will love."

Coca-Cola Frozen Lemon is a drink product eight years in the making. Coca-Cola Japan spent years researching, developing and testing ingredients to perfect the recipe and the chilling technology. The company said there had been about 100 prototypes. This is the first time the company has come up with a frozen product, and it admitted that there were various challenges. Apart from producing the right texture, the company said it was necessary to "protect the unique taste of Coca-Cola" in the production process.

However, in order to freeze the drink, it was necessary to add new ingredients, which affected the balance of the taste. Coca-Cola Japan said it "discovered the perfect ingredients and exquisite combinations by constant challenge". The company has also launched Fanta Frozen Orange and Fanta Frozen Grape around the same time. All of the beverages are priced at 130 yen (about US$1.20) for a 120g pouch. The frozen drink products will be sold both frozen and unfrozen, for those who want to pop it in their freezers at home.

Coca-Cola Japan's innovations

Coca-Cola Japan is renowned for its innovation, having launched various novel drink products. Around a year ago it introduced Coca-Cola Plus, a no-calorie beverage with indigestible dextrin a source of dietary fibre which claimed to help suppress fat absorption and moderate the levels of triglycerides in the blood after eating. Some drinkers claim it has a mildly laxative effect.

From January to March, it launched a limited-edition Coca-Cola Peach, as well as a Coca-Cola Slim Bottle Cherry Blossom for spring. The company also announced recently that it is exploring the potential of an alcoholic drink, Chu-Hi. "In the sparkling category, we're introducing THE TANSAN, which features the strongest carbonation ever in our products in this country, to reach health- conscious adult sparkling lovers," said Garduo. Pepsi has also been trying to compete with Coca-Cola, having recently launched a new J-Cola for Japan, infused with Japanese spice and citrus.

Answer ALL questions based on Article

1. Why is it important for the Senior Management team of Coca-Cola Japan need to perform marketing audit prior to launching this new product?

2. Coca-Cola Malaysia plans to bring this new product to Malaysia. Based on Maslow Hierarchy of Needs, describe how will the company create "value" with this new product to fulfil target market's "Social Needs". (You may apply marketing mix tools in your description).

3. Briefly explain business environment factors that will affect to Coca-Cola Malaysia in marketing activities of this new product, resulting;

a. TWO (2) Opportunities

b. TWO (2) Strengths

4. Elaborate the purchase decision making process that a potential customer has to take and discuss the factors that will influence him/her in each step. Purchase of this beverage is to fulflll his/her social needs.