Counting Beans

In 2013, Coca-Cola acquired Zico coconut water to compete for customers seeking heathier options.  The coconut water segment has seen significant growth in recent years and is a new product in the beverage industry.  Let’s analyze the Zico brand applying the VRIO Framework. 

Is Zico coconut water valuable? Yes.

Is Zico coconut water rare?  No.

Based on the answers above, exploiting Zico coconut water in conceiving and implementing strategies will generate competitive parity for Coca-Cola and the beverage industry.

Competitors in this specific market segment are Vita Coco, distributed by Dr. Pepper Snapple Group and O.N.E., a PepsiCo brand.  Vita Coco has significant market share, followed by Zico then O.N.E.  It seems that Vita Coco had a first mover advantage and has maintained an image of a brand focused on producing natural and healthy products.  So how does Zico gain market share in this industry?  Coca-Cola should leverage their organizational strengths in order to gain market share.  Coca-Cola has used their marketing expertise and signed on Jessica Alba as their spokeswoman for Zico and in their advertising(check out my photo gallery for a preview).  Coca-Cola should continue to focus on advertising in this rapidly expanding market, reaching new customers and pulling away customers from the competition.