According to Natalie Zmuda from Adage, Coca-Cola has launched a new promotional campaign for their citrus flavored Vault brand in an attempt to boost market share against rival Pepsi’s Mountain Dew brand. The promotion, which will continue for the next five months, rewards consumers purchasing Mountain Dew with a free Vault.
Coca-Cola believes they can improve their standing in the market after consumers try their product. Zmuda suggests that this may in fact be a good strategy for the Vault brand, because it has been “a tactic that has garnered goodwill and delivered significant return on investment for marketers including Starbucks, Dunkin’ Donuts and Taco Bell.”
Vault has been available on the market for three years and only has 4 percent market share. Where as, Mountain Dew has 80 percent of the market share.
I don’t think this promotion will be an effective way to boost Vault’s market share. It seems like a last ditch effort to keep a struggling brand alive. At best, Mountain Dew consumers are going to get twice the bang for their buck and discontinue purchasing Vault after the promotion ends in late July.
In addition, Coca-Cola hasn’t made clear how they will be distributing the coupons. I went to Vault’s Web site today to see if they had any additional information but didn’t find anything. However, in perusing the site I did discover that it has a lot of potential and would be a great venue for Coca-Cola to release the coupons. The site is very interactive and the videos are good enough to get consumers coming back.
Here’s a funny video they have on the “Vault Channel.”
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