Sacrifique Nada. (Sacrifice Nothing.)
Coca-cola Zero Marketing Plan — México City
Jennifer Cifuentes
IMC-453 Multicultural Marcomm
5/3/08
Table of Contents
Executive Summary
3
Situation Analysis
6
SWOT Analysis
7
Demographics and Geographical Information
8
Worldview and Target Market
10
Product Strategy 11
Creative Message Strategy
12
Marketing Communications Tactics
13
Creative Executions
14
Conclusion & Next Steps
17
List of Sources
18
Appendix: Literature Review
20
Executive Summary
Méxican Soft Drink Market
The Méxican soft drink market is the second largest in the world and is worth an estimated $11.6 billion.
Méxican soft drink consumption is the largest in the world per capita. Méxicans drink an estimated 438 8 oz
of Coca-Cola products per capita annually. Competition is fierce in this market and both Coke and Pepsi has
experienced market share erosion to Big Cola and other smaller independent bottlers.2, 20 However, Coca-Cola
brands remain as the clear market leader with 63.6% market share.20
Until the launch of Coca-Cola Zero in México, Coca-Cola Light was the premier choice among sugar-free
sodas.20 However, Coke Light was seen as being a feminine soda and many male consumers refused to drink it.
During Coke Zero’s January 2007 launch in México, the white label was seen as being too similar to Coke Light
and there was brand confusion between the two. Coke Zero was relaunched in February 2008 with a new, more
masculine black wrapper and has produced encouraging sales numbers.5, 20
Rising Health Concerns in México
Middle and upper class consumers of México are becoming more health conscious and are starting to
demand healthy alternatives to sugar-filled soda.8, 12 Links have recently been made to México’s heavy soda
consumption to both diabetes and obesity. Diabetes is now the number 1 killing disease of México and México’s
obesity rate has now surpassed that of the United States.8
Demographics and Geographical Information
México population is an estimated 106.5 million and is expected to grow to 110 million by the year 2010. Most
of the population lives in urban areas, with about 20% living within México City. There is a near equal mix of
males and females, with slightly more females at 51%. The Méxican population is young with 30.7% under the
age of 15, 26.3% aged 15-29 and 20.4% aged 30-44. The mestizo ethnicity is the most frequent with 64.3% of
the population. Most Méxicans are of the Catholic faith. More people in México (52.6%) have access to a mobile
phone than a landline phone.16
México City has a purchasing power of $305 billion annually and is the eighth richest city in the world. The city
has three major fútbol (soccer) teams — Club América, Cruz Azul and the Pumas. Fútbol remains the most
popular sport, with bullfighting, luche libre (wrestling) and boxing, all very masculine sports, are also popular.
México City is also home to Latin America’s largest mass transit train system, which is used by 4.5 million
people daily.15
México’s Worldview
Méxicans take much pride in their country, culture and ethnicities. They have strong family ties, respect for
their ancestors and place hard work and socializing as important values.16 Méxican worldview is a blend of
eastern and western thinking. Most Méxicans are collective, with individualistic tendencies in urban areas.
They are also hierarchical, non-mechanistic, dualistic, polychronic and high context. In addition, they can be
defined as having a high uncertainty avoidance and as being male orientated, but also valuing feminine traits.
Many Méxicans are present orientated, but are starting to display the short term, future orientations of the
western world.
Ideal Target Market for Coca-Cola Zero
Based on the information gathered, the best target market for the product Coca-Cola Zero in México would be
urban, middle class males living in México City and surrounding suburbs who are between the ages of 18 and
3
Executive Summary
30. Those in the middle class tend to be more health-conscious than those in lower classes and want a sugarfree, calorie free alternative to regular Coke. However, they are not willing to sacrifice the taste of real Coke or
their reputations as men by drinking Coca-Cola Light.
Bottling and Distribution of Coca-Cola in México
FEMSA (Fomento Económico Méxicano, S.A. de C.V.) is the second largest bottler of Coca-Cola products in the
world and is the largest bottler in Latin America. and holds an exclusive bottling rights contract for México and
several other Latin American regions.1 FEMSA purchases concentrated syrup from Cola-Cola for each of the
brands it bottles and then produces the final product by adding filtered carbonated water and then sweetens
the resulting mixture to the taste of the region.1 The Coca-Cola FEMSA accounts for two billion cases of Coke
brand products annually and is responsible for almost 10% of Coca-Cola sales globally; equaling $4 billion.1,23
Brands bottled by Coca-Cola FEMSA include Coca-Cola, Coca-Cola Light (Diet Coke), Coca-Cola Zero, Sprite,
Fanta, Fresca, Lift, Senzao, Beat, Delaware Punch, Ciel Mineralizada, Ciel and Powerade.6
Latin America has millions of mom-and-pop stores, some consisting of no more than a street vendor cart.7
These mom-and-pop businesses typically charge more than the larger supermarkets for items, such as soda.7
However, consumers are willing to pay the higher prices because of convenience.7 It is estimated that 80%
of the developing world’s population patronizes mom-and-pop shops.7 Out of México’s estimated 547,187
retailers, many are mom-and-pop vendors. Supermarkets account for 28% of the soda distribution process.20
Mom-and-pop shops account for the rest. Coca-Cola FEMSA has a solid distribution record with both mom-andpops and larger supermarket chain stores.7
Pricing
Coca-Cola Zero will be positioned as a premium soda brand and will be sold at a cost of 13 pesos ($1.30) per
2.5 liter bottle, which is a slightly higher cost than Coca-Cola and Coca-Cola Light.
Modification of Product for the Target Market
Coca-Cola FEMSA will add filter carbonated water to the Coke Zero concentrate and then sweeten with the
artificial sweetener Splenda until it reaches a taste consistent with the regular Coke sold in the region.
Sacrifique Nada. (Sacrifice Nothing.)
“Sacrifique Nada.” is the creative theme line that will be used to promote Coca-Cola Zero to the target market.
It embodies the spirit of Méxican culture and speaks to the young men, who are looking for more healthfriendly alternative to Coca-Cola. No self-respecting Méxican male would be caught dead drinking Coca-Cola
Light, as this is a women’s diet drink and not for men. However, Coke Zero is the male counterpart to Coke
Light, creating balance within the soda world. Men now have a sugar-free soda of their own that does not make
them sacrifice anything important to them — taste, their health, their manhood.
Todo el sabor. Sin azúcar. (All the taste. Zero sugar.)
“Todo el sabor. Sin azúcar.” was the theme line used for the Méxican relaunch in February of 2008. This theme
line will be reused and transferred into the current marketing efforts as a tag line/sign-off under the Coca-Cola
Zero logo. This tag line will remind the target that Coke Zero has all the taste of the original, but no sugar.
Combined, the “Sacrifique Nada.” theme line and the “Todo el sabor. Sin azúcar.” tag line will effectively
communicate the brand value on a high context and low context level. Images used with this campaign will be
high context in nature and will show situations in which sacrifice is not an option.
4
Executive Summary
Planned Marketing Tactics
• Fútbol (Soccer) Team and Stadium Sponsorships
• Television and Radio Sponsorship of Fútbol Game Coverage
• Plaza de Toros Stadium Sponsorship
• Event and Television Sponsorship of Luche Libre (Wrestling) Programming
• Sponsorship of Championship Boxing Matches Hosted in México City
• Mass Transit Advertising
• Billboards
• Vendor Posters and Promotion Items
• Mobile Website and Text Messaging
• Music Stations: Radio Advertisement
5
Situation Analysis
Méxican Soft Drinks Industry
The Méxican soft drinks market is worth an estimated $11.6 billion and is expected to grow 18% to a value of
$13.7 billion and to have an annual volume of 28.5 billion liters by the year 2011.20 With these numbers, México
is only second to the United States of America as the largest soda market in the world. Carbonated beverages
make up the majority of this market at 83.8%.20
Competition in this market is fierce.2 Coca-Cola brands are the clear market leader with 63.6% of the market,
which has seen market share erosion over the last five years.20 Pepsi brands remain as Coca-Cola’s main
competitor with 23% market share in México.2 However, it has been unable to stop eroding market share or
take much share away from Coca-Cola over the years.20 Coca-Cola’s largest competitive threat comes from
the fast-growing Big Cola, a less expensive brand with a taste that is strikingly similar to Coke.3 Competition
from Big Cola has forced Pepsi to lower prices by 15%, although Coke’s price has held steady.3 Coca-Cola
sells for about 12 pesos ($1.20) per 2.5 liter bottle. Big Cola sells for approximately 8 to 9 pesos ($0.80 to
$0.90).10 Big Cola shares and holds the majority of the remaining market share of 13.4%.20
México’s urban poor have easier and cheaper access to soda than they do to drinkable water.19 Nearly 80%
of Méxican schools do not have drinking water.19 Jorge Meyer, VP of Corporate Affairs for Pepsi, has been
quoted as saying, “If there were no sodas, what would school children drink?”19 Jorge Chavéz, a former
resident of México City, stated in a recent interview, “Drinking soda is a way of life – the basis of what we
drink. You get up and have a soda to have energy for the day’s work. You drink it throughout the day to refresh
yourself. You can take away water and we in México would survive; as long as we still have our sodas.”9 A tax
on soda was recently voted down in the Méxican Congress because it was argued that such a tax would be too
discriminatory against the poor.12
Rising Health Concerns in México
Middle to upper class Méxican consumers are becoming more health-conscious and are starting to demand
healthier alternatives to soda in the beverage market.8,12 Many have started to link México’s large consumption
of soda to obesity and diabetes, as México is the leading consumer of soda per capita in the world.12 México’s
adult obesity rate of 72% is now slightly higher than that of the United States.12 It has also seen the obesity
rate rise most significantly in young boys, which is now at 72%.12 Diabetes has surpassed other diseases as
the number one killer in México in recent years.8 About 4 million Méxicans have diabetes and many die from
the disease due to lack of awareness and lack of treatment.8
In response to the recent health concerns, Coca-Cola doubled the number of brands sold in México in 2005
by launching 20 new health drinks.8 However, most of these drinks are non-carbonated and thus not preferred
to soda by the majority of Méxican consumers.8, 12 Coca-Cola Light (Diet Coke) is the premier choice for those
looking for a sugar-free soda alterative.20 However, Coca-Cola Light is seen as being a drink for women.
Therefore, México’s men refuse to drink it.20
In January of 2007, Coca-Cola launched Coca-Cola Zero in México.5 Coke Zero has a taste that is extremely
similar to regular Coke, but has zero calories and no sugar. The product was targeted to males as being the
“man’s choice” for a sugar-free soda. A marketing campaign highlighting the tag line, “The same great taste.
Zero sugar.” was used.5, 14 However, the label of Coke Zero was similar to the label used by Coke Light, and
there was brand confusion between the two. Coca-Cola Zero was relaunched in México with a new, more
masculine black label to help differentiate it from Coke Light’s white label and has seen encouraging sales
numbers since.5, 14
6
SWOT Analysis
Strengths
• Coca-cola has largest market share in the soft drinks category in México.
• Méxicans view Coca-Cola brands are premium products.
• Most Méxicans are brand loyal to Coca-Cola products and will continue buying their favorites even if
they are a higher price than other brands.
• Coca-Cola FEMSA strong distribution systems and relationships with supermarkets and mom-andpop shops.
Weaknesses
• Coca-Cola Light is seen as a woman’s soda. Coca-Cola Zero was initially launched with a similar
looking label as Coca-Cola Light and there was brand confusion between the two.
• Méxican men may not be willing to change their current soda drinking behaviors and may not want to
switch to Coke Zero.
• Coke Zero sales may cannibalize Coke sales.
Opportunities
• Coke Zero could help keep brand switchers loyal, as there is no real other no sugar cola that has a
taste so close to regular Coke. Although they may be switching from regular Coke, at least they are
still with a Coca-Cola brand and not choosing the competition.
• Take advantage of the growing concern about health issues and present Coke Zero is a viable
alternative in which taste is not sacrificed.
Threats
• Big Cola’s fast-growing market share.
• Pepsi Max recently launched and is a similar product as Coke Zero. It takes more like regular Pepsi,
but also have energy boosters, such as ginseng.
• Emergence of smaller private label brand soft drinks.
• Links to obesity and diabetes with soda consumption.
• Growing health concerns.
7
Demographics and Geographical Information
Demographics of México
México has a population of 106.5 million people, who have a per capita consumption of Coca-Cola products
equaling 438 8 oz servings per year. It is projected that México’s population will be more than 110 million by
the year 2010.16, 1
Most (76%) of México’s population resides in an urban area.16 There are slightly more females (51%) than
males.16 There is a large youth population with 30.7% under the age of 15, 26.3% ages 15-29, 20.4% ages
30-44, 11.8% ages 45-59 and the remaining 10.8% over the age of 60.16 The mestizo ethnicity is the largest
with 64.3% over Amerindian (18%), white (15%), Arab 1%, black (0.5%), Spaniard (0.3%) and other (0.9%)
ethnicities.16 An estimated 96.3% of Méxicans are of the Christian faith, with 87% of this number being of the
Roman Catholic faith.16
More people in México have access to a mobile phone (52.6%) than a landline phone (18%), as under
developed infrastructure makes landline installation difficult. Only 13% of Méxicans own a computer and only
18% have access to the internet. Only 28% own televisions.16 However, most Méxicans without televisions
have access to them through relatives and friends. It is common for groups of family members and/or friends
to gather together to watch important programming, such as sporting events.16
México City
México City was originally built by the Aztecs on an island of Lake Texcoco as the city of Tenochititlan in 1325.
Since that time México City has been rebuilt and redefined several times and has grown throughout the Valley
of Anáhuac to its modern state.22 Today it is officially known as Ciudad de México and is the capital city of the
United Méxican States.16
With a population of 8.7 million, México City is the most populous city in México.15 Including the suburban
areas of México City, the population is 19.2 million.15 The area accounts for almost 20% of the nation’s
population. México City is the largest population in the Western Hemisphere and the second largest in the
world. México City also has the largest population (600,000) of United States of America citizens living
abroad.15
There are sixteen boroughs in México City and 100’s of neighborhoods, often referred to as colonias. Greater
México City has a purchasing power of $305 billion annually as of 2005 estimates and is considered the eighth
richest urban area in the world (the richest in Latin American).15
México City is the home to three major fútbol teams, Club América, Cruz Azul and Pumas, as well as many
other lower level teams.16 México City’s largest fútbol stadium, with a capacity to accommodate 126,000 fans,
belongs to Club América.15 The Cruz Azul team play in Estada Azul, while the Pumas team plays in the Olympic
Stadium.15 All home and most away games for all three teams are televised. México City is also home to the
50,000 seat Plaza de Toros, which hosts bullfighting every Sunday afternoon. The Plaza de Toros is the largest
bullfighting specific stadium in the world.15
Each day 4.5 million people utilize Mexico City’s mass transit train system, the Sistema de Transporte
Colective México, through it’s 11 lines and 175 stations.15 This train system is the largest in Latin America. An
estimated 25 million people a year use the mass transit bus system through four stations.15
8
Demographics and Geographical Information
There are several television stations native to México City that include Televisa, TV Azteca, Canal 11, Canal
12, Cadena Tres, Teveunam and several other free access channels.15 México City residents have a wide
variety of radio choices, with more than 60 stations from which to choose that play everything from fútbol
game broadcasts to traditional Méxican country music to the urban sounds of hip-hop/reggaetón.15
9
Worldview & Target Market
México’s Worldview
The people of México take much pride in their country, culture and ethnicities. They exhibit strong family
ties and respect for their ancestors, while valuing hard work and gathering together to socialize within their
families and communities.16 Méxicans share a blended worldview, which is a mix of Eastern and Western world
thought. Méxicans are collective by nature. However, individualistic behavior has quickly emerged within the
urban areas. Evidence that México has a hierarchical society can be seen in their government, religion (mostly
Catholic) and their family structures. Formality is important as titles (Señor, Señora, Doctora, etc) are often
used, especially for those members of society who are older or who have official positions.
Méxicans are non-mechanistic, relying on their intuitions, and do not mind waiting for an answer to present
itself. They are dualistic, seeing themselves separate from God. Most of México’s people are polychronic
multi-taskers, who place importance of relationship ahead of a linear time frame. Through their dance, art and
music, it can be determined that México is a high context society.
A high uncertainty avoidance is evident in Méxican culture, as the people are careful not to cause
embarrassment to others. The society is male orientated and contains a good deal of male dominance that is
referred to as “machismo” within the male population. However, feminine roles do have value. One example of
this is the reverence of the Virgen de Guadalupe above all others in the Catholic faith.
Most Méxicans have a present orientation, often referred to as fatalism or a “living for today” attitude.
Traditionally, a long-term orientation has dominated. However, Méxicans living in urban areas have adopted
the Western world’s short-term “I want it now” philosophy and have started to become more future orientated
looking towards “the next big thing.”
Sports are very important in México, especially fútbol (soccer). Large stadiums for the sport are numerous
throughout the country and games can be viewed on television on an almost daily basis.16 Supporting their
local, regional and national teams are way for Méxicans to unify as a collective and to display their cultural
pride. In Mesoamerica times, the majority of indigenous tribes of México (Aztec, Maya, etc) played a game
similar to modern day fútbol. This game was simply referred to as “the ballgame” and was seen as the game of
the gods. The ballgame was played by México’s ancestral elite to settle disputes and for the glory of the gods
they worshipped and the edification of individual cities. Many Méxicans hold modern day fútbol close to their
hearts and see today’s fútbol players as modern day gods and as their society’s elite members.22 Bullfighting,
boxing and wrestling, all very masculine sports, are also highly popular in México.16
Ideal Target Market for Coca-Cola Zero
Based on the information gathered, the best target market for the product Coca-Cola Zero in México would be
urban, middle class males living in México City and surrounding suburbs who are between the ages of 18 and
30. Those in the middle class tend to be more health-conscious than those in lower classes and want a sugarfree, calorie free alternative to regular Coke. However, they are not willing to sacrifice the taste of real Coke
or their reputations as men by drinking Coca-Cola Light, which is perceived as being a feminine soda.
We expect a trickle down effect to occur among the lower classes and other regions within México and
marketing efforts will be expanded at a later time to cover other areas within México.
10
Product Strategy
Bottling and Distribution of Coca-Cola in México
FEMSA (Fomento Económico Méxicano, S.A. de C.V.) is the second largest bottler of Coca-Cola products in
the world and is the largest bottler in Latin America.1 It does business under the name Coca-Cola FEMSA, S.A.
de C.V. and holds an exclusive bottling rights contract for México and several other Latin American regions.1
FEMSA purchases concentrated syrup from Cola-Cola for each of the brands it bottles and then produces the
final product by adding filtered carbonated water and then sweetens the resulting mixture to the taste of the
region.1 The Coca-Cola FEMSA bottling facility located in México City accounts for two billion cases of Coke
brand products annually and is responsible for almost 10% of Coca-Cola sales globally; equaling $4 billion.1,23
Brands bottled by Coca-Cola FEMSA include Coca-Cola, Coca-Cola Light (Diet Coke), Coca-Cola Zero, Sprite,
Fanta, Fresca, Lift, Senzao, Beat, Delaware Punch, Ciel Mineralizada, Ciel and Powerade.6
Latin America has millions of mom-and-pop stores, some consisting of no more than a street vendor cart.7
These mom-and-pop businesses typically charge more than the larger supermarkets for items, such as soda.7
However, consumers are willing to pay the higher prices because of convenience.7 It is estimated that 80%
of the developing world’s population patronizes mom-and-pop shops.7 Out of México’s estimated 547,187
retailers, many are mom-and-pop vendors. Supermarkets account for 28% of the soda distribution process.20
Mom-and-pop shops account for the rest. Coca-Cola FEMSA has a solid distribution record with both momand-pops and larger supermarket chain stores.7
Pricing
Coca-Cola Zero will be positioned as a premium soda brand and will be sold at a cost of 13 pesos ($1.30) per
2.5 liter bottle, which is a slightly higher cost than Coca-Cola and Coca-Cola Light.
Modification of Product for the Target Market
Coca-Cola FEMSA will add filter carbonated water to the Coke Zero concentrate and then sweeten with the
artificial sweetener Splenda until it reaches a taste consistent with the regular Coke sold in the region.
11
Creative Message Strategy
Sacrifique Nada. (Sacrifice Nothing.)
“Sacrifique Nada.” is the creative theme line that will be used to promote Coca-Cola Zero to the target market.
It embodies the spirit of Méxican culture and speaks to the young men, who are looking for more healthfriendly alternative to Coca-Cola. No self-respecting Méxican male would be caught dead drinking Coca-Cola
Light, as this is a women’s diet drink and not for men. However, Coke Zero is the male counterpart to Coke
Light, creating balance within the soda world. Men now have a sugar-free soda of their own that does not
make them sacrifice anything important to them — taste, their health, their manhood.
Todo el sabor. Sin azúcar. (All the taste. Zero sugar.)
“Todo el sabor. Sin azúcar.” was the theme line used for the Méxican relaunch in February of 2008. This theme
line will be reused and transferred into the current marketing efforts as a tag line/sign-off under the CocaCola Zero logo. This tag line will remind the target that Coke Zero has all the taste of the original, but no sugar.
Combined, the “Sacrifique Nada.” theme line and the “Todo el sabor. Sin azúcar.” tag line will effectively
communicate the brand value on a high context and low context level. Images used with this campaign will be
high context in nature and will show situations in which sacrifice is not an option.
12
Marketing Communications Tactics
Fútbol (Soccer) Team and Stadium Sponsorships
Coca-Cola Zero will become a lead or co-lead sponsor (where Coke is already a lead sponsor) for stadiums
and fútbol teams of México City — Club América, Cruz Azul and Pumas. The Coke Zero logo will be placed on
the jerseys of the Cruz Azul and the Pumas teams, but will not be placed on the Club América jerseys because
of the current placement of the Coca-Cola logo.
Coke Zero will become the official soda of fútbol in México City stadiums. Samples of the soda will be
distributed by a team of Coke Zero girls just outside of the stadium before games during special pre-game
events that involve fun for the whole family.
Ads will be placed throughout the stadium through ad boards and other forms of media, such as
announcements and half-time shows. A Coke Zero Cam will periodically sweep the audience to display diehard fans drinking Coke Zero on the stadium’s big screen. Lucky audience members will have their ticket
numbers drawn at random to win Coke Zero prize packs. The Coke Zero girls will also be on hand inside
the stadium during game breaks to distribute Coke Zero/team specific t-shirts by launching them into the
audience through t-shirt cannons.
Select fan favorite fútbol players will be chosen to endorse Coke Zero in our advertising efforts. During the off
season, Coke Zero will sponsor free autograph sessions for fans featuring the chosen Coke Zero endorsing
players.
Television and Radio Sponsorship of Fútbol Game Coverage
Coca-Cola Zero will be a lead sponsor for radio and television coverage of Club América, Cruz Azul and
Pumas. On television the Coke Zero logo is appear in on screen score display and team specific and fútbol
themed 30 second commercial spots will run during breaks. Coke Zero will also sponsor any half-time game
report show in which commentators discuss the game. Bottles of ice cold Coke Zero will be in front of the
commentators for their refreshment.
During radio broadcasts, Coke Zero will receive short mentions during slow game play. Fútbol themed 30
second commercial spots will run during breaks.
Plaza de Toros Stadium Sponsorship
Coke Zero will become the official soda of Plaza de Toros. Ads will be placed throughout the stadium through
ad boards and other forms of media, such as announcements.
Event and Television Sponsorship of Luche Libre (Wrestling) Programming
Ads will be placed throughout the stadium through ad boards and other forms of media, such as
announcements. The Coke Zero logo will be place in the middle of the fighting ring. On television the Coke
Zero logo is appear in on screen with any statistical displays and luche libre themed and general Coke Zero 30
second commercial spots will run during breaks.
Sponsorship of Championship Boxing Matches Hosted in México City
Coca-Cola Zero will become the soda of boxing champions. The brand will become a lead sponsor for all
championship level matches and will award endorsement deals to select boxing champions.
13
Marketing Communications Tactics
Mass Transit Advertising
Train and train station ads will be placed within the Sistema Colective México system. Trains running to and
from the archeological site will have specialized creative.
Billboards
Billboards located in high traffic areas. Boards near the archeological site will have specialized creative.
Vendor Posters and Promotion Items
Posters and other promotion items, such as cart umbrellas and point-of-purchase displays, will be distributed
to supermarkets and other vendors with the delivery of their Coke Zero orders.
Mobile Website and Text Messaging
A mobile website will be developed and used to deliver promo codes via text message for Coke Zero.
Music Stations: Radio Advertisement
In addition to fútbol game radio coverage ad placement, Coke Zero will run advertising on México City’s radio
stations that meet our demographic needs.
14
Creative Executions
Key Visuals
This look and feel would be translated across the marketing campaign tactics and would be used in the
fútbol stadium sponsorships, media placement and promotions. The fútbol players of México City’s teams are
revered as society’s elite and are seen as the ultimate men. Images of star players, who never sacrifice their
game performance and never sacrifice the game, will be prominently placed in ads and used as professional
endorsers of Coke Zero.
Images of the fans will also be used, showing the family unit enjoying the game with the male as the family
leader. Méxican males do not want their families to make any sacrifices or go without the things they need.
Instead, the men are often the ones making the sacrifices in order to provide for their families. However,
they are not willing to sacrifice the taste of their soda. Coke Zero lets them have that same taste without
sacrificing their health or machismo.
15
Creative Executions
Key Visual
This look and feel would be translated across the marketing campaign tactics and would only be used in the
area of México City that is specific to the archeological sites. This key visual communicates a man of power
in the Aztec world choosing Coke Zero as his soda and references the indigenous influences and ancestor
worship behaviors displayed by most Méxicans.
If Aztec men had soda in their time, they would have been drinking Coca-Cola Zero. In this instance there
is a play on words between the theme line and the image. The sacrifices made by the Aztec empire were
numerous, including human sacrifices to the gods. However, you will not have to make any sacrifices by
choosing Coke Zero — not even your health or manhood — as it has all the taste of regular Coke, but none of
the sugar.
16
Conclusion
Based on México’s worldview, demographics, market information and rising concerns about health, now is
the right time to market Coke Zero to our chosen target — urban, health-conscious, middle class males living
in México City ages 18 to 30. A mix of marketing tactics will be used to communicate the creative theme line
“Sacrifique Nada.” and the tag line “Todo el sabor. Sin azúcar.” will be used to build on and tie back to the
theme line used for the Méxican relaunch in February of 2008.
17
List of Sources
1) Cola-Cola FEMSA Website. (n.d.). Retrieved April 12, 2008, from www.coca-colafemsa.com.
2) Beware Mexico. (2002, August 19). The Economist. Page 7.
3) Mireles, Richard Castillo. (2004, March). In Mexico, Big Cola is the Real Thing. Logistics Today.
Page 9.
4) Hoover’s Website. (n.d.). Retrieved April 12, 2008, from www.hoovers.com.
5) Coca-Cola Corporate Website. (n.d.). Retrieved April 12, 2008, from www.coca-cola.com.
6) FEMSA Corporate Website. (n.d.). Retrieved April 12, 2008, from www.femsa.com.
7) Nieszen, Carlos and Rodriguez, Julio. (2008, April). Distribution Lessons from Mom and Pop.
Harvard Business Review. Page 23.
8) Reuters. (2005, August 31). Coke hopes things will go better in México with healthier drink line.
The Globe and Mail. Page B10.
9) Chavéz, Jorge. (2008, April 5). Personal interview. (México City native)
10) Cola Down Mexico Way. (2003, October 11). The Economist. Volume 368. Issue 8345.
11) Geographic Website. (n.d) Retrieved April 12, 2008, from www.geographia.com/mexico/
mexicohistory.htm.
12) Fizz, fat and junk food in Mexico. (2008, January 8). The Irish Times. Health: Your Lifestyle
section. Page 2.
13) Bloomberg News. (2008, February 14). Higher Pop Sales in Asia, Latin America Send Cocacola’s Profit Higher. National Post. Financial Post section. Page FP5.
14) Bokaie, Jemima. (2007, November 14). Cokes seeks strategy to lift Zero. Business Source
Premier.
15) Encyclopedia Britannica Website. (n.d.) Retrieved April 12, 2008, from www.britannica.com/eb/
article-9108721/mexico-city.
16) Encyclopedia Britannica Website. (n.d.) Retrieved April 12, 2008, from www.britannica.com/
nations/mexico.
17) Mexico Sector Outlook — Food & Drink Market Overview. (2005, January). Business Monitor
International. Page 6-7.
18
List of Sources
18) Beverages and Tobacco Forecast. (2005, June). The Economist Intelligence Unit.
19) Product focus-soft drinks in Mexico. (2004, April). Market: Latin America. Volume 12. Issue 4.
Page 2-2.
20) Soft Drinks Industry Profile: Mexico. (2007, September). Datamonitor.
21) Anderson, Linnea. (2008). Carbonated Beverages — Industry Overview. Hoover’s online
version. Retrieved April 12, 2008, from www.premium.hoovers.com/subscribe/ind/overview.
xhtml?HICID=1049.
22) Longhena, Maria. (n.d.). Ancient Mexico: The History and Culture of the Maya, Aztecs and Other
Pre-Columbian Peoples. Barnes and Noble New York.
23) Key Facts: Coca-Cola FEMSA, S.A. de C.V. SWOT Analysis. (2008, January). Datamonitor.
19
Appendix: Literature Review
México’s Worldview
The people of México take much pride in their country, culture and ethnicities. They exhibit strong family
ties and respect for their ancestors, while valuing hard work and gathering together to socialize within their
families and communities.16 Méxicans share a blended worldview, which is a mix of Eastern and Western world
thought. Méxicans are collective by nature. However, individualistic behavior has quickly emerged within the
urban areas. Evidence that México has a hierarchical society can be seen in their government, religion (mostly
Catholic) and their family structures. Formality is important as titles (Señor, Señora, Doctora, etc) are often
used, especially for those members of society who are older or who have official positions.
Méxicans are non-mechanistic, relying on their intuitions, and do not mind waiting for an answer to present
itself. They are dualistic, seeing themselves separate from God. Most of México’s people are polychronic
multi-taskers, who place importance of relationship ahead of a linear time frame. Through their dance, art and
music, it can be determined that México is a high context society.
A high uncertainty avoidance is evident in Méxican culture, as the people are careful not to cause
embarrassment to others. The society is male orientated and contains a good deal of male dominance that is
referred to as “machismo” within the male population. However, feminine roles do have value. One example of
this is the reverence of the Virgen de Guadalupe above all others in the Catholic faith.
Most Méxicans have a present orientation, often referred to as fatalism or a “living for today” attitude.
Traditionally, a long-term orientation has dominated. However, Méxicans living in urban areas have adopted
the Western world’s short-term “I want it now” philosophy and have started to become more future orientated
looking towards “the next big thing.”
Sports are very important in México, especially fútbol (soccer). Large stadiums for the sport are numerous
throughout the country and games can be viewed on television on an almost daily basis.16 Supporting their
local, regional and national teams are way for Méxicans to unify as a collective and to display their cultural
pride. In Mesoamerica times, the majority of indigenous tribes of México (Aztec, Maya, etc) played a game
similar to modern day fútbol. This game was simply referred to as “the ballgame” and was seen as the game of
the gods. The ballgame was played by México’s ancestral elite to settle disputes and for the glory of the gods
they worshipped and the edification of individual cities. Many Méxicans hold modern day fútbol close to their
hearts and see today’s fútbol players as modern day gods and as their society’s elite members.22 Bullfighting,
boxing and wrestling, all very masculine sports, are also highly popular in México.16
Demographics of México
México has a population of 106.5 million people, who have a per capita consumption of Coca-Cola products
equaling 438 8 oz servings per year. It is projected that México’s population will be more than 110 million by
the year 2010.16, 1
Most (76%) of México’s population resides in an urban area.16 There are slightly more females (51%) than
males.16 There is a large youth population with 30.7% under the age of 15, 26.3% ages 15-29, 20.4% ages
30-44, 11.8% ages 45-59 and the remaining 10.8% over the age of 60.16 The mestizo ethnicity is the largest
with 64.3% over Amerindian (18%), white (15%), Arab 1%, black (0.5%), Spaniard (0.3%) and other (0.9%)
ethnicities.16 An estimated 96.3% of Méxicans are of the Christian faith, with 87% of this number being of the
Roman Catholic faith.16
20
Appendix: Literature Review
More people in México have access to a mobile phone (52.6%) than a landline phone (18%), as under
developed infrastructure makes landline installation difficult. Only 13% of Méxicans own a computer and only
18% have access to the internet. Only 28% own televisions.16 However, most Méxicans without televisions
have access to them through relatives and friends. It is common for groups of family members and/or friends
to gather together to watch important programming, such as sporting events.16
México City
México City was originally built by the Aztecs on an island of Lake Texcoco as the city of Tenochititlan in 1325.
Since that time México City has been rebuilt and redefined several times and has grown throughout the Valley
of Anáhuac to its modern state.22 Today it is officially known as Ciudad de México and is the capital city of the
United Méxican States.16
With a population of 8.7 million, México City is the most populous city in México.15 Including the suburban
areas of México City, the population is 19.2 million.15 The area accounts for almost 20% of the nation’s
population. México City is the largest population in the Western Hemisphere and the second largest in the
world. México City also has the largest population (600,000) of United States of America citizens living
abroad.15
There are sixteen boroughs in México City and 100’s of neighborhoods, often referred to as colonias. Greater
México City has a purchasing power of $305 billion annually as of 2005 estimates and is considered the eighth
richest urban area in the world (the richest in Latin American).15
México City is the home to three major fútbol teams, Club América, Cruz Azul and Pumas, as well as many
other lower level teams.16 México City’s largest fútbol stadium, with a capacity to accommodate 126,000 fans,
belongs to Club América.15 The Cruz Azul team play in Estada Azul, while the Pumas team plays in the Olympic
Stadium.15 All home and most away games for all three teams are televised. México City is also home to the
50,000 seat Plaza de Toros, which hosts bullfighting every Sunday afternoon. The Plaza de Toros is the largest
bullfighting specific stadium in the world.15
Each day 4.5 million people utilize Mexico City’s mass transit train system, the Sistema de Transporte
Colective México, through it’s 11 lines and 175 stations.15 This train system is the largest in Latin America. An
estimated 25 million people a year use the mass transit bus system through four stations.15
There are several television stations native to México City that include Televisa, TV Azteca, Canal 11, Canal
12, Cadena Tres, Teveunam and several other free access channels.15 México City residents have a wide
variety of radio choices, with more than 60 stations from which to choose that play everything from fútbol
game broadcasts to traditional Méxican country music to the urban sounds of hip-hop/reggaetón.15
Méxican Soft Drinks Industry
The Méxican soft drinks market is worth an estimated $11.6 billion and is expected to grow 18% to a value of
$13.7 billion and to have an annual volume of 28.5 billion liters by the year 2011.20 With these numbers, México
is only second to the United States of America as the largest soda market in the world. Carbonated beverages
make up the majority of this market at 83.8%.20
21
Appendix: Literature Review
Competition in this market is fierce.2 Coca-Cola brands are the clear market leader with 63.6% of the market,
which has seen market share erosion over the last five years.20 Pepsi brands remain as Coca-Cola’s main
competitor with 23% market share in México.2 However, it has been unable to stop eroding market share or
take much share away from Coca-Cola over the years.20 Coca-Cola’s largest competitive threat comes from
the fast-growing Big Cola, a less expensive brand with a taste that is strikingly similar to Coke.3 Competition
from Big Cola has forced Pepsi to lower prices by 15%, although Coke’s price has held steady.3 Coca-Cola
sells for about 12 pesos ($1.20) per 2.5 liter bottle. Big Cola sells for approximately 8 to 9 pesos ($0.80 to
$0.90).10 Big Cola shares and holds the majority of the remaining market share of 13.4%.20
México’s urban poor have easier and cheaper access to soda than they do to drinkable water.19 Nearly 80%
of Méxican schools do not have drinking water.19 Jorge Meyer, VP of Corporate Affairs for Pepsi, has been
quoted as saying, “If there were no sodas, what would school children drink?”19 Jorge Chavéz, a former
resident of México City, stated in a recent interview, “Drinking soda is a way of life – the basis of what we
drink. You get up and have a soda to have energy for the day’s work. You drink it throughout the day to refresh
yourself. You can take away water and we in México would survive; as long as we still have our sodas.”9 A tax
on soda was recently voted down in the Méxican Congress because it was argued that such a tax would be too
discriminatory against the poor.12
Rising Health Concerns in México
Middle to upper class Méxican consumers are becoming more health-conscious and are starting to demand
healthier alternatives to soda in the beverage market.8,12 Many have started to link México’s large consumption
of soda to obesity and diabetes, as México is the leading consumer of soda per capita in the world.12 México’s
adult obesity rate of 72% is now slightly higher than that of the United States.12 It has also seen the obesity
rate rise most significantly in young boys, which is now at 72%.12 Diabetes has surpassed other diseases as
the number one killer in México in recent years.8 About 4 million Méxicans have diabetes and many die from
the disease due to lack of awareness and lack of treatment.8
In response to the recent health concerns, Coca-Cola doubled the number of brands sold in México in 2005
by launching 20 new health drinks.8 However, most of these drinks are non-carbonated and thus not preferred
to soda by the majority of Méxican consumers.8, 12 Coca-Cola Light (Diet Coke) is the premier choice for those
looking for a sugar-free soda alterative.20 However, Coca-Cola Light is seen as being a drink for women.
Therefore, México’s men refuse to drink it.20
In January of 2007, Coca-Cola launched Coca-Cola Zero in México.5 Coke Zero has a taste that is extremely
similar to regular Coke, but has zero calories and no sugar. The product was targeted to males as being the
“man’s choice” for a sugar-free soda. A marketing campaign highlighting the tag line, “The same great taste.
Zero sugar.” was used.5, 14 However, the label of Coke Zero was similar to the label used by Coke Light, and
there was brand confusion between the two. Coca-Cola Zero was relaunched in México with a new, more
masculine black label to help differentiate it from Coke Light’s white label and has seen encouraging sales
numbers since.5, 14
Bottling and Distribution of Coca-Cola in México
FEMSA (Fomento Económico Méxicano, S.A. de C.V.) is the second largest bottler of Coca-Cola products in
the world and is the largest bottler in Latin America.1 It does business under the name Coca-Cola FEMSA, S.A.
de C.V. and holds an exclusive bottling rights contract for México and several other Latin American regions.1
22
Appendix: Literature Review
FEMSA purchases concentrated syrup from Cola-Cola for each of the brands it bottles and then produces the
final product by adding filtered carbonated water and then sweetens the resulting mixture to the taste of the
region.1 The Coca-Cola FEMSA bottling facility located in México City accounts for two billion cases of Coke
brand products annually and is responsible for almost 10% of Coca-Cola sales globally; equaling $4 billion.1,23
Brands bottled by Coca-Cola FEMSA include Coca-Cola, Coca-Cola Light (Diet Coke), Coca-Cola Zero, Sprite,
Fanta, Fresca, Lift, Senzao, Beat, Delaware Punch, Ciel Mineralizada, Ciel and Powerade.6
Latin America has millions of mom-and-pop stores, some consisting of no more than a street vendor cart.7
These mom-and-pop businesses typically charge more than the larger supermarkets for items, such as soda.7
However, consumers are willing to pay the higher prices because of convenience.7 It is estimated that 80%
of the developing world’s population patronizes mom-and-pop shops.7 Out of México’s estimated 547,187
retailers, many are mom-and-pop vendors. Supermarkets account for 28% of the soda distribution process.20
Mom-and-pop shops account for the rest. Coca-Cola FEMSA has a solid distribution record with both momand-pops and larger supermarket chain stores.7
23