Failure of Coke Vanilla in India

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Reasons Of Failure Of Coke Vanilla in India

After few months of the launching of Coke Vanilla the market scenario was somewhat like this:- –Retailers reported slow sales of the product.
–Rapidly dropping sales in metros.
–Sales dropped from retailer average of 48 bottles/day to 24 in 3 months. –In eight months, it was down to 4-5 bottles/day.
– The Company then was forced to pulled out the Product from the market within the time span of 10 months. –One of the most expensive advertising failure in Indian marketing history.

The reasons for the same can be considered as below which indeed were the primary driving force to pull of the product from the market. The Internal as well as the External Factors responsible for the same can be mentioned as below:-

Internal Reasons for Failure:-

–Clutter-breaking TVC, but contradicts itself
–Targeting youth with a retro theme
–Lack of connect with slice-of-life Coke commercials
–Curiosity generated, but low support from the product
–Instant comparisons with original Coke
–‘Kids’ product because of the flavor
–Taste similar to existing products like ice-cream floats
–Lack of distributor push
–Margins on VC lower at 25 ps. than Coke at 40 ps.

External Reasons for Failure:-

–Cola market slowing down
–Impact of pesticide and groundwater controversies
–Growth of the health drink and bottled water segment
–Competition from Pepsi and its other brands
–Low acceptance as a mixing agent with alcoholic beverages

Other Reasons which may have also caused the failure to the Product:- 1. The product may have been bad. The Targeted Group may not have liked the taste. Although Coke has test marketed this product, there is always a chance that the customers may have disliked the taste.

2. The campaign was not targeted at the right segment. This campaign had its fair share of critics also. People of old age could easily relate themselves with old stars and the lamby etc and could easily relate the old...
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