Coca Cola Fairlife Case

TO: Prof.
Harmon TOPIC: Coca Cola Fairlife Case Study

CLASS: Marketing Communications FROM: Elizabeth Gagnon
Coca Cola Fairlife Case
Class: Marketing Communications

For: Prof. Harmon
By: Elizabeth Gagnon
Date: September 13, 2017
1
TO: Prof. Harmon TOPIC: Coca Cola Fairlife Case Study
Section I Overview:
Coca Cola added the Fairlife brand in early 2015 after the decline of soft drink
consumption. Fairlife is a joint venture with US dairy farmer was premium milk with higher
levels of protein, less sugar, and no lactose. Coca Colas goal was to enter the lactic market with
its own brand. They also bought many other companies such as Odwalla and VitaminWater to
ramp up their healthier options. Soda consumption still contributed to 75% of Coca Colas global
sales.
Business Issues:
Coke Milk gives the milk a bad reputation
Declining of soft drink consumption in the US
Dieticians felt like milk had no need to be changed
Section II Marketing Options:
1. Should Coca Cola stop altering their milk?
2. Should Coke change their ad campaign to take away the stigma?
3. Should Coke look into creating or buying a new, healthier drink?
Section III Facts:
1. Milk sales in the US fell 8% over the past decade since 2005
2. Proprietary milk filtering process that allows you to increase protein by 50%, take sugar
down by 30%, and have no lactose
3. 75% of Coca-Colas global sales is dominated in soda
4. Conventional milk lasts 15 days and pasteurized milk lasts 90 days
5. Milk is already a great package of nutrients
6. Ad campaign is Have a Coke with a smile
2
7. Cokes only role was to distribute milk and ensure it goes on shelves
8. Fairlife is better than traditional lactose-free milk since it offers the benefit of more
calcium and more protein
9. 50% of adults dont drink milk
10. Sales of fresh/pasteurized milk sales would drop 10.8% from 2014 to 2019
Section IV Recommendations:
I recommend that we change the ad campaign from Have a Coke with a smile (fact 6)
to something more genuine and less Coke focused. Due to a rise in a more health conscious
society, the consumption of sodas have gone down drastically even though Coca Colas global
sales are dominated by soda, with 75% of their sales (Fact 3). With a more milk-focused
campaign, the spotlight would be taken off of the Coke aspect and give the milk side a better
light. Consumers would feel as though they are getting quality, more farm fresh milk than the
association of processed drink products with many additives and dyes. Parents can have the
sense that they will have a higher quality product that can last longer and is better for their
growing children. It would also beneficial to market to older women. One reason is because it
has a higher percentage of calcium and protein (fact 8), which can help elderly women keep up
with bone degeneration and osteoporosis. Another reason is because the shelf life is much longer
than non-pasteurized refrigerated milk on the market, meaning they do not have to go out as
often and carry as many heavy gallons of milk.
I recommend that Coke does not change their process of production. By altering the milk
minutely, they can market to both a niche market and a broader market. Now a day many people
are looking for items high in protein and supplements from meat. By using the proprietary milk
filtering process, you receive an increase of protein by 50%, take sugar down by 30%, and have
3
no lactose (Fact 2). This is a niche for vegetarians looking to gain protein in their diets, people
and families with lactose intolerance and those who need to decrease their sugar consumption. If
they altered the process to not have these benefits, they would be just like any other type of milk
and have more competition. By having the alterations, they are one of the first in their market.
This would help to become more brand aware and if more competitive brands came along, they
would already have the brand recognition.
I recommend that Coke does look for and or make a new healthier drink. This can be
beneficial ways. One way is that if the milk market continues to decline, milk sales in the US fell
8% over the past decade since 2005 (Fact 1), they will have a backup and continue to make a
profit. Another reason is that they could change their image and become a company looking to
change the health crisis in our country. For example, CVS stopped selling cigarettes because it
was unhealthy and wanted to promote to all people willing to get better. Lastly, they can become
more competitive in the market than they already are. Coke could come up with more smoothie
based or healthy sodas that can still have the appeal but not the same product.
Top Recommendation:
Coke should follow all of my recommendations listed above. Each one can bring growth
economically and with a new consumer pool. Many new types of consumers may buy into the
new product as described in my third recommendation or those who are in need of a healthier
option may look to Fairlife as a viable option. Lastly, by changing the marketing campaign, they
can focus on the benefits of the product and the new line of drink they have instead of the
different sectors such as sodas and energy drinks. Overall, if Coke followed my
recommendations, I feel as though they would be largely successful.

Coca Cola Fairlife Case

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TO: Prof.

Harmon TOPIC: Coca Cola Fairlife Case Study

Coca Cola Fairlife Case

Class: Marketing Communications

Coke Milk gives the milk a bad reputation

Declining of soft drink consumption in the US

Dieticians felt like milk had no need to be changed

Section II Marketing Options:

1. Should Coca Cola stop altering their milk?

2. Should Coke change their ad campaign to take away the stigma?

3. Should Coke look into creating or buying a new, healthier drink?

Section III Facts:

down by 30%, and have no lactose

3. 75% of Coca-Colas global sales is dominated in soda

4. Conventional milk lasts 15 days and pasteurized milk lasts 90 days

5. Milk is already a great package of nutrients

6. Ad campaign is Have a Coke with a smile

calcium and more protein

9. 50% of adults dont drink milk

often and carry as many heavy gallons of milk.

would already have the brand recognition.

recommendations, I feel as though they would be largely successful.

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