La Moradita de Inca Kola Soft Drink: The risks of relying on brand equity when tackling a national favorite

La Moradita de Inca Kola Soft Drink: The risks of relying on brand equity when tackling a national favorite

  • June 2016 •
  • 18 pages •
  • Report ID: 4147238
Summary
This case study looks at how Inca Kola tried to turn a traditional purple corn-based beverage into a ready-to-drink product and ultimately failed due to a confused marketing campaign.

Key Findings
Reduce the risk of failure by learning from brands/products that have under-performed: failed innovation can severely impact profit and reputation.

Understand the relevant consumer trends and attitudes that drive and support innovation success.

Gain a broader appreciation of the fast-moving consumer goods industry.

Access valuable strategic take-outs to help direct future decision-making and inform new product development.

Reasons To Buy
What is La Moradita?

Why was the marketing campaign a failure?

What factors should future product launches consider to avoid the pitfalls experienced by La Moradita?

Key Highlights
La Moradita turned a traditional purple corn-based beverage into a ready-to-drink product. It was marketed under the Inca Kola brand – the most iconic soft drink brand in Peru, which is seen as part of the nation's identity – and inspired by a local drink (chicha), the product intended to appeal to consumers' localism. However, it failed to gain traction.

Shoppers did not understand the nature of the product. Moreover, Peruvians felt disappointed with its flavor and lack of health benefits compared to normal chicha. Confused messages and a lack of segmentation led to an inefficient marketing campaign.

A strong brand is not enough to drive success for brand extensions, as adding value is essential for new launches. Established brands need to consider the risk-aversion factor among loyal consumers. Companies' interests need to merge with a real market need in order to succeed.
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