Product composition was the main change, a new flavour, 1/2 litre can and text that pokes fun at how rubbish Mother #1 was, but the $3 million advertising campaign was the real driving force. When Coke pulled Mother #1, they were left with a brand awareness that most marketers dream of. A massive 84% of 16 - 29 year old's knew what mother was, but less than 50% that had tried it had made a repurchase. Negative brand equity can be an enormous problem, luckily Coke pulled the pin on product #1 early and the TVC's and print advertising has been distancing themselves from it as much as possible.
The result of the marketing strategy has been sensational (in contrast to 2007). 42% of the target market have trialed new Mother and of that number, 70% have purchased again. The overall result of which has seen them gain somewhere between 12 - 20% market share. Coke executives are estimating turn over will be $696 Million for 2008, up 13% from 2007. The figures do sound excessively high and I'm sure there will be plenty of fluctuation, but don't forget that Coke has enormous channel power in almost every drink vendor in the country!
Josh Strawczynski's Opinion:
I personally don't like the new mother, but from a marketing perspective, you have to hand it to them. Their 4th attempt in 6 years may have finally hit the nail on the head! I do feel that those market figures are a bit too fluffy to be true, but I know from simple observation that there are a lot of people buying them. It will be interesting to see how the market leaders respond to this threat, how do you compete with Coke?
Sam Berringer's Opinion:
I like the new taste, but 1/2 a litre is a bit excessive and the 2 for $5 deal is ridiculous...no one is going to purchase 1litre of energy drink. I think there are some bugs in their promotional side, but apart from that, they look to be on a winner. I will be watching how they roll out into bars and clubs with great interest.
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4 comments:
I have tried the new Mother and repurchased – purely because I followed the discussion that Wags had on the Marketing Today Podcast. I think it tastes pretty similar to Red Bull actually but then I don’t have much of a sweet tooth.
@ Sam - I am not sure I agree (but am stopping short here of outright disagreement :) that people won't purchase a litre of energy drink.
I work in an office where there are two young girls (18 or 19) who buy bulk Red Bull or V and stock it in the fridge in the office for the week. They buy 4-8 cans at a time and have a couple a day.
I also suspect, and it is completely unfounded apart from my personal experience, that the Red Bull and V cans are too small. This is a young market and one that is image conscious and think it is “cool” to be drinking energy drinks. I think there may be some value in having a bigger can that lasts longer.
I know I always feel a little off when I buy an expensive Red Bull or V and have this puny can in my hand – something doesn’t connect on the value for money front there for me.
I to will now be watching with interest as to how they roll out into bars and clubs with great interest (as I hadn’t previously) considered that aspect.
Thanks Daniel, I think you have a very valid point there. There is definatley a product 'value' that comes fromt he composition therein.
It would be an interesting study to break down the consumer preference rating to see if image or value is more important and how big the respective segments are.
Stop Press: The young girls in the office reckon Red Bull do make a 500ml can ... haven't seen it myself. Maybe they have had too many Red Bulls.
Red Bull do a standard 250ml can and a larger 355ml can. I have both in my hand right now and the 355 seem huge in comparison.
About 20% of retailers are now stocking the larger can.
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