For the first time ever, Coca-Cola will launch a Coke drink that isn't a soda across America

Coca-Cola is rolling out its first Coke-branded energy drink in the US in 2020.

On Tuesday, the company announced that Coca-Cola Energy, the first energy drink under the Coca-Cola brand, will come to the US in January 2020. The energy drink will launch with four flavors: Coca-Cola Energy, Coca-Cola Energy Zero Sugar, Coca-Cola Energy Cherry, and Coca-Cola Energy Cherry Zero Sugar.

Janki Gambhir, a Coca-Cola brand director, described the launch as the Coca-Cola brand's "first foray outside of the traditional cola category."

"We always just want to make sure we're servicing consumers with the experiences and the benefits that they're looking for from the brand," Gambhir told Business Insider.

Coca-Cola has been pushing the boundaries for what brands fit under the Coca-Cola umbrella over the last few years.

In early 2018, the company launched new Diet Coke flavors including Feisty Cherry and Twisted Mango to win over millennials. Coke Zero has been a significant sales driver, as shoppers seek out classic Coke without the sugar. Earlier in 2019, the company launched Orange Vanilla Coke, the first new Coca-Cola flavor in more than a decade.

According to Gambhir, these new Coca-Cola variations have sparked enthusiasm for the brand more generally. Beyond Coca-Cola Energy, the company is also planning on launching Coca-Cola Cinnamon for a limited time in the coming months and Cherry Vanilla Coke in early 2020.

Energy drink sales are 'exploding'

As people across the US are buying less soda, energy drink sales are booming. Dollar sales of energy drinks increased 11.2% in the 52 weeks ending September 24, going from $11 billion to $12.2 billion, according to Nielsen data.

"The category is exploding at the moment without Coca-Cola being in it," Gambhir said.

Coca-Cola Energy will have more caffeine than a traditional can of Coca-Cola, with 114 mg, more than three times as much as the classic Coke's 34 mg. Gambhir says the company predicts the drink will be appealing because its caffeine levels are similar to those of rival energy drinks, without losing the familiar classic Coca-Cola flavor.

"One of the things that we've been learning from consumers too is they need something to go from day to night," Gambhir said. "Their days don't end at five o'clock. They transfer into a night full of hopefully fun things that they like to do, versus things they kind of have to do during the day."

Previously, Coca-Cola's involvement in the category has primarily been through Monster Energy.

Source: Business Insider, Kate Taylor, Oct 1, 2019

Questions:

1. What data and for what country prompted Coca-Cola to create these products for the market?

2. Based on the comments of the interviewed Coca-Cola Brand Director, who do you think is the intended target customer? Explain why you believe that this is the target customer.

3. You have been assigned as the Marketing Manager in charge of creating the promotional strategy for these new Coca-Cola products. Based on your choice of target customer, what types of promotion would work? What different media would be appropriate for the intended target customer?

4. Based on the product category of these new Coca-Cola Products, what type of distribution would you need? Describe how you would get this type of distribution.