Coca-Cola may never totally outlive its failed New Coke product introduction, but its latest innovation, the Freestyle machine, seems like a good step in that direction. With this introduction, Coke has set out to reinvent the fountain experience and give customers more choice. The result has been a product success for all stakeholders.
For consumers, the Freestyle vending machines offer access to any combination of caffeine, flavor, and calories they prefer. For example, there are 90 different caffeine-free options on every machine!
For supply chain partners, such as restaurants and convenience stores, the Freestyle machines offer high-tech capabilities. Computer software connects every machine to a global supply chain, which enables immediate replenishment and the virtual elimination of out-of-stock situations. It also gives them a new revenue stream.
For Coca-Cola, the Freestyle software tracks exactly what was ordered on each machine. It thus not only knows what machines to refill but also learns about which products customers prefer in which markets. It then can target its advertising ever more precisely, based on totally accurate preference information that the consumers provide themselves.
For society as a whole, Freestyle machines embody Coca-Cola’s “Live Positively” slogan. The cartridges in the machines are LEED gold certified. The syrup that goes into beverages poured from the Freestyle machine is highly concentrated, which makes the product 30 percent less bulky than bottled beverages. The outcomes include not just cost savings on shipping for the supply chain but also a reduction in its environmental footprint.
Discussion Questions:
- What is so innovative about the Freestyle machine?
“Coca-Cola Freestyle, Best Global Brands 2011,” Interbrand, 2011.
Grewal Levy Marketing News 
Everything about the Freestyle machine is revolutionary, from the reduced environmental footprint to the customer choice it entails. By allowing consumers to create their own soda combination, Coke is not only letting the customer feel like they are in the drivers seat and that Coke may actually care about what kind of soda they prefer, but Coke is also doing important market research, while selling product and not making the consumer feel like they are being evaluated. On the operations side, not only does it reduce the amount of packaging they need, but this process also simplifies the supply chain. This would also please the consumer because there will rarely be the type of soda they want out of stock. This new twist on a typical soda machine will cause a revolution in the soda distribution market.
There are many different things that are innovative about the Freestyle machine. For example, there are 90 different flavors on each machine, where a regular station for fountain drinks would only have about 6 to 8 different flavors. This machine also eliminates refills which saves time and money. The machine also collects customer preferences and information to help Coca Cola’s marketing department target a more specific market with a specific product. This machine still seems to be fairly new and it is not found in many places yet, but as soon as this expands more, it will be sure to knock out its competition. Coca Cola definitely has an idea of how to improve their company and it also has a way to attract new customers who may have found some of the flavors the new machine offers hard to find in the past.