Brand Extension: Nutrient Set - Healthy Food for Healthy Life

Coca Cola is planning to launch a brand extension called Nutrient Set, offering a range of healthy food items such as breakfast cereal, Greek yogurt, oats, cornflakes, peanut butter, and wholegrain breads. This brand aims to target fitness-conscious customers and provide them with nutritious options for their daily diet. The marketing mix for Nutrient Set includes product development, pricing strategies, promotional activities, and distribution channels.

Foundations of
Marketing

CONTENTS
Contents...........................................................................................................................................2
BACKGROUND INFORMATION................................................................................................1
JUSTIFICATION FOR RECOMMENDING A NEW PRODUCT................................................1
MARKETING MIX.........................................................................................................................2
SUMMARY.....................................................................................................................................6
REFERENCES................................................................................................................................8

BACKGROUND INFORMATION
The Coca-Cola company is considered among the top beverages company throughout the
world which refresh the consumers with more than 500 brands and nearly 4300 choices in
beverages. The company’s portfolio features around 21 billion dollars where 19 are available
with low or no calories options. These brands mainly include Diet Coke, Del Valle, Coca-Cola
Zero, Sprite, Fanta, Minute Maid, Dasani, vitamin water, Gold Peak, Simply, Georgia and
Powerade. Additionally, it offers within around 140 countries throughout the world (The Coca
Cola Company, 2020). The main vision, mission and value that Coca-Cola offers are mentioned
below:
Vision: The vision of Coca Cola is to create a brand with choice of drink people love that
can refresh their body and spirit. It is to be created in more sustainable manner that make a
difference in people’s community, lives and planet.
Mission: - The Coca Cola work over the mission of growth by taking up expansive
approach to what’s possible and ensure continuous learning for improving the business.
Value: - Coca Cola creates value among its stakeholders by ensuring cutting edge
excellence and innovation within ingredients for better taste, reducing carbon footprint, grow
business while reducing sugar, invest within employee’s personal growth etc.
JUSTIFICATION FOR RECOMMENDING A NEW PRODUCT
The Coco Cola is one among the biggest beverage company throughout the world that have
a range beverage to offer customers throughout the world with different taste and preferences.
But as the food and beverages industry is growing the demand of customers also raising day by
day. Now, a day’s people are getting more concern about their health and trying to involve this
concern in their daily life by improving their dietary habit by adding some healthy things in their
diet plan. But before adding some healthy things to their diet people mainly prefer it to be from
the brand to whom they trust and hold years of relationship with them, as people do not prefer to
take risk at such point. By assessing this transforming demand of customers toward healthy foot
items several competitors of Coca-Cola already trying to work over this as they don’t want to let
their customer base get split in any manner. In this race, PepsiCo is at top as it tied up with the
Quaker Oats that provide a nutrient and energetic start for a day by promoting healthy breakfast
(About PepsiCo. 2020). These oats come under several flavour as per the varying need of
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customers in term of taste they prefer. This support PepsiCo in getting positive response from its
consumer base and as a result of which it become able to strengthen their relationship with its
customers.
Therefore, it is recommended to Coca-Cola that it must focuses toward bringing such
products into their portfolio that build up with healthy benefit. It offers range of drinks that holds
healthy benefits with packed nutrients but now it must focus toward extending brand by offering
healthy food items (Coca-Cola Beverages and Products, 2020). For this it should perform brand
extension for adding up the diet essential food that includes breakfast cereal, Greek yogurt, oats,
cornflakes, peanut butter, wholegrain breads etc. This brand extension would be more successful
as people are getting more and more focused toward adding foods that support them in getting a
healthier life. In addition to this it will also provide a tough competition to other rivalry present
in the marketplace, as PepsiCo is also offering healthy food to its targeted customers. But when
Coca-Cola enter with this brand extension to the market then it gets competitive advantage over
its biggest competitor i.e. PepsiCo as it offers a single product line of healthy food, but Coca
Cola will bring a range of healthy food items that are also daily essentials of people.
MARKETING MIX
The success of an organisation is mainly depending over the strategies that it mainly formulates
or adopt as per the market condition in order to represent the products or services in effective
manner within marketplace. Therefore, in order to achieve success within marketplace the Coca-
Cola must focuses toward formulated effective strategy in order to offer this healthy food range
in marketplace (Ahmed and Rahman, 2015). For this Coca cola must focuses toward developing
an effective marketing mix which ensure its success at marketplace. The marketing mix consists
of several strategies related with certain elements of product for ensuring market acceptance. The
marketing mix for the brand extension of Coca cola is mentioned below:
Product: - The Coca Cola has decided to perform brand extension in healthy food range as
per the current demand of customers. This includes products like breakfast cereal, Greek yogurt,
oats, cornflakes, peanut butter, wholegrain breads etc. It supports in creating values among
customers by offering these products with low fat and high fibre that support in keeping people
full day energetic. The major benefit that it provides, these food support people in getting food
that reduces the chances of diabetes, high cholesterol and obesity. Hence, it can be said that this
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product category of breakfast essentials will support in fulfilling the customers demand of
getting food which cut off bad fat, sugar etc.
For effective positioning of this product range of Coca-Cola, the STP model will be used which
support in selecting the most appropriate segments and group of consumer to be target along
with the appropriate strategy to be adopt for positioning it in marketplace (Anselma, Mazzei,
Piovesan and De Michieli, 2014). It can be understood using following points:
 Segmentation: - It define as the process of dividing the larger market in small chunks and
then chooser the most appropriate one as per the product benefits. For this product range
the customers would be segmented on the basis of psychographic basis as the products
are mainly developed and offer by getting focused over the psychography of consumers.
 Targeting: - It refers to the selecting a particular category out of segmented market for
imposing all the marketing efforts toward that particular group of customers. These food
categories will be targeting the consumers who remain more health conscious or fitness
freak.
 Positioning: - This involves the set of practices performed in order to fix up the locus of
product in consumer’s mind. This product range of Coca cola will be placed as “Healthy
food for healthy life”. The main reason behind this is that all of products involves within
this food category will support people in getting a health which they want and help them
in getting fit (Ash, Mulholland, Burnett and Wilde, 2014).
This product category will be donated by the brand name i.e. “Nutrient set” as its food
involve range of nutrition. In addition to this its tag line for the food category over which brand
is positioning in marketplace i.e. as “Healthy food for healthy life” will support in defining the
main perception behind the existence of brand. The perpetual map of Coca Cola is given below:
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This map represents that there are number of competitors to which Coca Cola has to deal
with such as PepsiCo, nestle etc. which also deal in health food range. But the brand image as
well as years of trust among customer base will act as a factor that support it in achieving
competitive edge over these competitors. Despite of this several different core brand elements
will also support Coca Cola in attracting customers toward purchasing items from its “Nutrient
set” product category. Among these elements brand promise is the crucial one where Coca Cola
promises for good health with these products. These products will be positioned within
marketplace over the demand of healthy food by customer, so the brand performance will be
measured over increase in growth of audience.
Price: - As the Nutrient set of Coca cola is newly entering into market it is very crucial to
set price strategy in more effective manner as price is an element which highly influence the
choice of consumers. The price of product is also get influences by the product life cycle as it
represent the position to which a product stand within marketplace (Davari and Strutton, 2014).
Therefore, it is decided that at the introductory stage of this product range of Coca cola the price
would be kept low i.e. penetration pricing strategy will be used. On the other side with the
approach of products to next level of product life cycle i.e. growth stage the price would be
increased and then premium pricing method will be used for offering high quality products at
higher price.
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This would be more appropriate and successful strategy for market growth of products
offered by Coca Cola as these strategies would support in keeping customers bind with the
company and keep them influence to buy products. This can also be understood effectively
through the pricing strategy matrix which is based over four pricing categories such as economy,
penetration, skimming and premium. Which clearly explains the strategy to capture market
share, to survive or to ear high profit out of efforts.
Promotion: - The promotional practices performed by an organisation plays a significant
role in generating awareness about a particular product or services among customers and
influencing them to make purchases. The Coca Cola will make use of several channels in order
to promote its brand as well as product category which mainly includes traditional media such as
TV advertisements, newspaper, radio, billboards etc. On the other side, it uses latest mediums
such as social media marketing, mobile advertisements, pop up ads, influential marketing etc.
This Omni channel marketing would be more helpful as it supports in generating more and more
awareness among the target market (Kumar and Patra, 2017). This can be effectively understood
with the help of promotional mix which is theoretical model that consist of 5 major components
which support an organisation to performing its promotional practices effectively.
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From the above-mentioned image, it can be said that Coca Cola must focuses toward
giving its retailers some extra commission over performing personal selling to their customers
who mainly seeks for healthy food. This will support in approaching more and more customers
for brand offering (Nour and Almahirah, 2014). Despite of this, at introductory stage of products
sale promotion will be performed where some discount coupons will be presented to customers
which they can redeem on their purchase for attracting more and more customers. Additionally,
it also provides direct selling option through online sale and organise event to introduce these
products from people that are fitness ideal for society which support in generating more and
more awareness.
Place: - Coca-Cola already maintain an extensive distribution system which have its
network to more than 140 countries. This distribution network will be further used to make these
food items get delivered to wholesalers and then to the retailers in different countries to which
Coca cola is already operating in order to make these products reach to final consumers (Huang
and Sarigöllü, 2014). Despite of this, these food items will also be available through online
channels also with an aim to deliver food items anytime and anywhere as per the convenience of
customers.
SUMMARY
The Coca Cola is planning to perform a brand extension by offering some healthy food
items that cover up the demand of customer toward healthy food for complimenting their fitness
dream. For this Coca Cola has decided to launch a new brand i.e. Nutrient set, which includes
range of food items such as breakfast cereal, Greek yogurt, oats, cornflakes, peanut butter,
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wholegrain breads etc. This product are being offered by Coca Cola by targeting the customers
who are fitness freak i.e. these food items will be manufactured by keeping in mind the
requirement of people who want to consume food that support them in maintaining their health.
This brand would be different from other rivals because it is mainly offer food by
keeping in mind a particular duration of food consumption that is morning breakfast. The main
concept behind this is that first meal of day should be rich in fibre that fuel up energy in an
individual to remain active whole day long. This feature will differentiate it from others
operating in marketplace. The information about this brand will be communicated through both
traditional as well as digital mediums and product will be distributed through existing retail
network of company along with online medium.
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REFERENCES
Books & Journals
Ahmed, S. and Rahman, M., 2015. The effects of marketing mix on consumer satisfaction: A
literature review from Islamic perspective. Turkish Journal of Islamic Economics, 2(1),
pp.17-30.
Anselma, L., Mazzei, A., Piovesan, L. and De Michieli, F., 2014, September. Adopting STP for
diet management. In 2014 IEEE International Conference on Healthcare
Informatics (pp. 371-371). IEEE.
Ash, A., Mulholland, F., Burnett, G.R. and Wilde, P.J., 2014. Structural and compositional
changes in the salivary pellicle induced upon exposure to SDS and
STP. Biofouling, 30(10), pp.1183-1197.
Davari, A. and Strutton, D., 2014. Marketing mix strategies for closing the gap between green
consumers' pro-environmental beliefs and behaviors. Journal of Strategic
Marketing, 22(7), pp.563-586.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer, New York, NY.
Kumar, S. and Patra, S., 2017. Does promotion mix really help to enhance brand equity: A
literature review. Asian Journal of Management, 8(4), pp.1387-1392.
Nour, M.I. and Almahirah, M.S., 2014. The Impact of Promotional Mix Elements on Consumers
Purchasing Decisions. International Business and Management, 8(2), pp.143-151.
Online
The Coca Cola Company. 2020. [Online] Available through:<https://www.coca-
colacompany.com/>
Coca-Cola Beverages and Products. 2020. [Online] Available
through:<worldofcoca-cola.com/about-us/coca-cola-beverages-products/>
About PepsiCo. 2020. [Online] Available through<https://www.pepsico.com/>
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