Plainspeak pays

Cola companies must find ways to reach out to the informed target segment

When Deepika Padukone signed up for Coke, she was trolled in her social media page by her fans for endorsing Coke, a product which is being perceived by the target segment as “unhealthy”. This is the slice of reality in today’s India. With 50 per cent of India’s population (below 25 years of age) being the target market for aerated drinks, Coke and Pepsi cannot afford to ignore the market due to its size and potential. However, they have to deal with the “informed target segment” that is concerned about the nutritional profile of the product.

 

Millennials as well as centennials, who form a majority of the target market, are innovative, question authority and more importantly educate themselves. While targeting such consumers, it is better for marketers to be direct and truthful in their communication efforts. The recent ad by Coke, where they bravely declared that their products are not suitable for children, is an effort in the right direction. Such actions would be perceived as more credible by the target market rather than those trying to hide the facts.

 

A 300 ml can of coke contains 115-120 calories, whereas a medium-sized pizza contains 1,600-1,900 calories. Why are cola companies targeted and not pizza sellers? Coke and Pepsi have been around longer and are far more powerful brands. Naturally, customers trust these companies and they expect the companies to act responsibly. Responsibility could begin in the form of providing information on ingredients of the drink in enhanced form in the pack. Efforts taken by Nestle to incorporate the nutritional compass (Good to Know, Good Question, Good to Remember) across most of their products globally have been successful and similar efforts could be emulated by cola companies.

 

Responsible actions also mean efforts taken by companies to make their products healthier. Coke Life, a product that uses Stevia leaf extract, a natural sweetener that reduces the amount of sugar in a 300 ml can by a third, is a right move. While the product has been launched in 40-odd countries, it is still to be introduced in large markets such as India and China. Incidentally, India, China and the US have the largest number of diabetics. Resurgence of “swadeshi” and “natural/organic” sentiment among the populace provides a right opportunity to companies who take efforts in this direction. Ditto for local flavours (case in point: Paper Boat)

 

Coming to the second question of how companies would sell sans celebrity endorsement, what comes to the mind is, “Are celebrity endorsements required for products in the current age?” In a connected, post-modern world where consumers are going to be more skeptical and critical of communication messages, and where reality is defined by context and is socially constructed, celebrity endorsements may not be relevant. In the long run, communication messages have to be contextual and have to be spread by the members of the consuming community (read millennials and centennials). Campaigns similar to Airtel’s 4G campaign featuring an archetypical “4G girl” would be far superior than a Ranveer Singh or Deepika Padukone promoting the product. Anyway, effectiveness of celebrity endorsements are strongly correlated to popularity and credibility of the celebrity.

 

For the simple pleasure of colas to create memorable moments, companies have to be direct, truthful and responsible in their actions. A message conveyed by a member of the target market to its constituents would be more effective. This would ensure that the fizz does not fizzle out.