Failure Case Study: La Moradita de Inca Kola soft-drink ; The risks of relying on brand equity when tackling a national favorite
Carbonates consumption in Peru is forecast to only grow by 1% in the forthcoming years, affected by the junk food law, which promotes healthy eating for children and adolescents, and a poor economic forecast. This suggests the category needs new approaches and fresh ideas to revitalize the segment, where health and quality play an essential role.The segment is also quite static and is dominated by Inca Kola with its yellow soft drink products. New launches need to provide a sustained innovative idea, in the form of a defined selling proposition, with a clear target audience and very specific benefits.
This soft drink seemed to have everything necessary to be a success as it was marketed under the most iconic soft drink brand in Peru, considered part of the national identity, and featured chichi, a flavor inspired by local cuisine. However, it failed to gain traction and the product was withdrawn from the market only four months after its launch.
Shoppers were confused about the product as they did not understand its concept or any of its benefits. This, together with confused communication messages and lack of marketing segmentation, contributed to its failure on the market.
Failure Case Study: La Moradita de Inca Kola Soft Drink is part of Canadean's Successes and Failures research and explores the reasons for the failure of this product in Peru.
WHAT? Understand the characteristics of La Moradita de Inca Kola soft-drink
WHY? Discover how La Moradita de Inca Kola failed to provide a unique selling proposition to appeal to shoppers
TAKE-OUT: Learn from this failure, seeking further opportunities in the soft drink segment.
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