Coca-Cola and Pepsi both introduced low carbohydrate colas in mid-2004, but both companies have also struggled with how to market the products. The colas have fewer calories than the companies' regular colas, but considerably more calories than the companies' so-called "diet" offerings. The products also have lower carbohydrates and less sugar than the companies' premium offerings, but again, significantly more than traditional diet beverages. The challenge for Coca-Cola in marketing its C2 is to find a product strategy that gives C2 the market support and longevity that the company seeks.
C2 is the Coca-Cola entrant into the so-called mid-calorie product category. It is a new product that is supposed to have the same taste as a full-calorie Coke, but it has fewer carbohydrates and less sugar. Low-carbohydrate products and diets have gained particular attention in recent years as the Atkins diet has become popular. C2 entered the market at approximately the same time as Pepsi's mid-calorie product, Pepsi Edge. While both products are lower in calories, carbohydrates and sugar than their company's premium products, they are higher than diet drinks from both companies. C2 has 67.5 calories and 18 grams each of sugar and carbohydrates in a 12-ounce can (Cioletti, p. 8). Diet Coke has no calories, no carbohydrates and no sugar. Diet Coke however, like Diet Pepsi, also has a distinct taste that is different from the premium cola offerings.
Coca-Cola is currently positioning C2 as "lower calorie," and is emphasizing the carbohydrate count in advertising along with the premium taste (Cioletti, p. 8). It is not clear whether consumers are sufficiently concerned about the carbohydrate count in their soft drinks to move to a product such as C2 simply because it is lower in carbohydrates. Consumers who are committed to dieting are more likely to consume a zero-calorie, zero-carbohydrate, zero-s
...