THE BMZ ACADEMY
THE BMZ ACADEMY
The BMZ Academy@068 053 8213
BMZ ACADEMY 068 053 8213
, THE BMZ ACADEMY
Question 1 (25 Marks)
Discuss the impact of evolving consumer preferences on Coca-Cola's decision to
introduce Coca-Cola Spiced. In your answer, analyse how trends such as increasing
demand for spicier snacks and beverages influence product development and
marketing strategies. Use relevant marketing theories and examples to support your
analysis.
Theoretical framework
• Evolving Consumer Taste Palettes (Chaffey, 2023): Coca-Cola recognized that
consumers' taste palettes have evolved, with an increasing demand for
spiciness. This is evident in the "aisles" where the "amount of spiciness has
gone up".
• Trend of Spicier Snacks and Beverages (Durgee & Agopian, 2018): The
introduction of Coca-Cola Spiced follows a clear trend of America’s snacks
getting spicier, exemplified by products like Flamin’ Hot Cheetos and Sweet
Heat Starburst. This indicates a broader consumer shift towards bolder flavour
profiles beyond traditional sweetness.
• Coca-Cola's Opportunity (van Wyk & Venter, 2023): Coca-Cola identified this
evolution as a potential "opportunity" for them in the beverage market. They
saw a gap to cater to consumers seeking more interesting and unique tastes.
• Attracting the Next Generation: A key driver for Coca-Cola was the desire to get
younger drinkers excited about their signature cola. The spicier trend is
perceived as a way to appeal to this demographic and bring in the "next
generation of consumers".
• Leveraging Existing Formula (Ramsern & Govender, 2023): Coca-Cola Spiced
is not a completely radical departure. Instead, it involves dialling up something
"which is already part of our formula". The added spices are described as
"amped-up versions of the spices in regular Coke". This strategy suggests a
lower-risk approach by building on familiar flavours while introducing a novel
twist.
• Hint of Raspberry (Chikweche, 2009): While the "spiced" name suggests heat,
the main flavour profile of Coca-Cola Spiced is a "hint of raspberry". This
indicates that Coca-Cola's interpretation of the spicy trend is more about
BMZ ACADEMY 068 053 8213
, THE BMZ ACADEMY
complex and intriguing flavours rather than intense heat, potentially broadening
its appeal.
• Product Development Influence (Varadarajan, 2020): The increasing consumer
preference for novel flavours directly influenced Coca-Cola's product
development. They experimented with adding hints of coconut, strawberry,
watermelon, and other flavours through the Coca-Cola Creations series.
• Consumer Research (Beirman, 2020): The development of Coca-Cola Spiced
was fed by customer research conducted for Coca-Cola Creations. This
highlights the importance of consumer insights in shaping product offerings and
demonstrates how Coca-Cola leverages these insights for new product
launches.
• Rapid Innovation (Vululleh, 2020): The development timeline for Coca-Cola
Spiced was remarkably short at just seven weeks, compared to their usual year-
long process. This signifies a shift towards rapid innovation as a potential
competitive advantage in the beverage industry. Coca-Cola aims to replicate
this speed to be "faster than the speed of the market".
• Marketing Strategy
Brand Extension (Vululleh, 2020): Introducing Coca-Cola Spiced and Coca-
Cola Spiced Zero Sugar represents a brand extension. Coca-Cola is leveraging
its established brand name to enter a new flavour territory and appeal to a wider
range of consumer preferences, including those seeking sugar-free options.
• Marketing Strategy
Appealing to Younger Consumers (Varadarajan, 2020): The launch and the
exploration of flavours like "Happy Tears" sold through TikTok clearly indicate a
marketing strategy focused on reaching younger demographics. The "spiced"
offering aligns with this by tapping into a flavour trend popular among this group.
• Marketing Theory
Marketing Concept (Johns, 2020): Coca-Cola's actions align with the marketing
concept, which emphasizes being more effective than competitors in creating,
delivering, and communicating superior customer value to chosen target
markets. By responding to evolving consumer preferences, Coca-Cola aims to
maintain relevance and attract new customers.
BMZ ACADEMY 068 053 8213
THE BMZ ACADEMY
The BMZ Academy@068 053 8213
BMZ ACADEMY 068 053 8213
, THE BMZ ACADEMY
Question 1 (25 Marks)
Discuss the impact of evolving consumer preferences on Coca-Cola's decision to
introduce Coca-Cola Spiced. In your answer, analyse how trends such as increasing
demand for spicier snacks and beverages influence product development and
marketing strategies. Use relevant marketing theories and examples to support your
analysis.
Theoretical framework
• Evolving Consumer Taste Palettes (Chaffey, 2023): Coca-Cola recognized that
consumers' taste palettes have evolved, with an increasing demand for
spiciness. This is evident in the "aisles" where the "amount of spiciness has
gone up".
• Trend of Spicier Snacks and Beverages (Durgee & Agopian, 2018): The
introduction of Coca-Cola Spiced follows a clear trend of America’s snacks
getting spicier, exemplified by products like Flamin’ Hot Cheetos and Sweet
Heat Starburst. This indicates a broader consumer shift towards bolder flavour
profiles beyond traditional sweetness.
• Coca-Cola's Opportunity (van Wyk & Venter, 2023): Coca-Cola identified this
evolution as a potential "opportunity" for them in the beverage market. They
saw a gap to cater to consumers seeking more interesting and unique tastes.
• Attracting the Next Generation: A key driver for Coca-Cola was the desire to get
younger drinkers excited about their signature cola. The spicier trend is
perceived as a way to appeal to this demographic and bring in the "next
generation of consumers".
• Leveraging Existing Formula (Ramsern & Govender, 2023): Coca-Cola Spiced
is not a completely radical departure. Instead, it involves dialling up something
"which is already part of our formula". The added spices are described as
"amped-up versions of the spices in regular Coke". This strategy suggests a
lower-risk approach by building on familiar flavours while introducing a novel
twist.
• Hint of Raspberry (Chikweche, 2009): While the "spiced" name suggests heat,
the main flavour profile of Coca-Cola Spiced is a "hint of raspberry". This
indicates that Coca-Cola's interpretation of the spicy trend is more about
BMZ ACADEMY 068 053 8213
, THE BMZ ACADEMY
complex and intriguing flavours rather than intense heat, potentially broadening
its appeal.
• Product Development Influence (Varadarajan, 2020): The increasing consumer
preference for novel flavours directly influenced Coca-Cola's product
development. They experimented with adding hints of coconut, strawberry,
watermelon, and other flavours through the Coca-Cola Creations series.
• Consumer Research (Beirman, 2020): The development of Coca-Cola Spiced
was fed by customer research conducted for Coca-Cola Creations. This
highlights the importance of consumer insights in shaping product offerings and
demonstrates how Coca-Cola leverages these insights for new product
launches.
• Rapid Innovation (Vululleh, 2020): The development timeline for Coca-Cola
Spiced was remarkably short at just seven weeks, compared to their usual year-
long process. This signifies a shift towards rapid innovation as a potential
competitive advantage in the beverage industry. Coca-Cola aims to replicate
this speed to be "faster than the speed of the market".
• Marketing Strategy
Brand Extension (Vululleh, 2020): Introducing Coca-Cola Spiced and Coca-
Cola Spiced Zero Sugar represents a brand extension. Coca-Cola is leveraging
its established brand name to enter a new flavour territory and appeal to a wider
range of consumer preferences, including those seeking sugar-free options.
• Marketing Strategy
Appealing to Younger Consumers (Varadarajan, 2020): The launch and the
exploration of flavours like "Happy Tears" sold through TikTok clearly indicate a
marketing strategy focused on reaching younger demographics. The "spiced"
offering aligns with this by tapping into a flavour trend popular among this group.
• Marketing Theory
Marketing Concept (Johns, 2020): Coca-Cola's actions align with the marketing
concept, which emphasizes being more effective than competitors in creating,
delivering, and communicating superior customer value to chosen target
markets. By responding to evolving consumer preferences, Coca-Cola aims to
maintain relevance and attract new customers.
BMZ ACADEMY 068 053 8213
