Principles of Marketing: Coca-Cola Brand Extension Report Analysis

This report provides an executive summary of Coca-Cola's brand extension strategy, focusing on the marketing function and its role in successful brand expansion. The report delves into the existing brand values, the target market in Ireland, and an analysis of the new market, including trends and the introduction of Diet Coke, a sugar-free product. It utilizes various methodologies such as qualitative research, PESTEL analysis, and Ansoff matrix to understand the business environment and strategic marketing approaches. The report also examines the competitive landscape and concludes with recommendations for the successful extension of the Coca-Cola brand. The report highlights the importance of STP model for targeting customers and the application of Ansoff's matrix for market development and product innovation. It also discusses the impact of political, economic, social, technological, environmental, and legal factors on the brand extension. The report aims to provide a comprehensive overview of the marketing strategies employed by Coca-Cola to extend its brand into the Irish market.

COCA-COLA BRAND
EXTENSION

Executive Summary
Marketing function and brand extension activity of business completely interrelates with
each other, because when a business plans for extending own brand, then it has highly required
to use marketing function for successful extension. This report discusses the brand extension task
to Coca Cola company.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
METHODOLOGY..........................................................................................................................4
FINDINGS.......................................................................................................................................5
Existing brand and brand values..................................................................................................5
Description of the Target Market................................................................................................6
Analysis of the New Market, Including Trends...........................................................................7
An Explanation of the New Product............................................................................................9
Competition.................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is too important function to an organisation, because it gives an opportunity to
each business and company for attracting many customers and people towards own brand.
Currently most business has plan to highly extend own venture operations in different market
places or countries, because if a business has highly extended own brand, then it will be able to
gain huge profit margins in the market place in comparison to businesses which runs only in a
selected market place (Donkor, 2016). In this situation, upper management of a business have to
take steps towards considering own function of marketing while extending own business
operations at the large scale in market place. This report discusses brand extension process of
Coca Cola. Basically, Coca Cola is highly reputed brand beverage brand which currently serves
many countries, headquartered in Georgia, United States. This report discusses some other
factors as well which has based on the brand extension and marketing.
MAIN BODY
METHODOLOGY
Basically, there are two types of research methodologies available in the market place,
named; qualitative method and quantitative method, in which the first one gives opportunity to
gain data through interviews, observation, books and journals etc. and the second one gives
opportunity to gain data through mathematical and numerical sources. However, qualitative data
collection method has been used below for achieving various information about Coca Cola and
its brand extension strategy. On the other side, some frameworks, like; PESTLE, Ansoff matrix
also has been used below for knowing key factors of the business environment (Goodluck,
2020). Currently, upper management of Coca Cola has been decided to extended own brand in
Ireland by offering its new product, named; Diet Coke. This is basically a new version of
previous diet coke, because the company make this coke completely Sugar free, and that will
give great experience and satisfaction to patients of sugar in Ireland.

FINDINGS
Existing brand and brand values
In this dynamic and modern world, Coca Cola is the most reputed and leading beverage
multinational company which currently has the largest market share in international beverage
industry. The company was founded 128 years ago in 1892, and from establishment to data
upper management of business putted its great efforts for highly expanding own business
operations in the international market place. Most people respect this brand just because of its
quality products and services. On the other side, company always fulfils its obligation of CRS as
well in order maintain its positive brand image in the market place. There is Kapferer’s brand
identity prism has been used below for knowing existing brand and brand values of Coca Cola.
Kapferer’s brand identity prism has been used by many organisations and companies for
knowing effectiveness of own brand in the selected market place (Barlow and et.al., 2018).
Basically, this prism of brand identity discusses about six key elements of a brand in order to
show its effectiveness in the market place.
Physique: Coca Cola is the leading business in global beverage industry, and currently it has
workforce of over 86,200 effective people. It has wide range of products and services which
gives an excellent experience to all customers in market place.
Personality: Upper management of this business always believes in properly communicating
with different people in market, because it is necessary to improve own brand value in market
place. There are many leaders and managers of this business always tries to maintain effective
personality and professionalism for highly growing own venture.
Culture: Top-level management has succeeded in maintaining an effective work culture in the
workplace. However, it has putted its huge efforts for maintaining this type of effective cultures.
For example; it manages the concept of equality and diversity in the workplace, it quickly
terminates such employees or people from workplace which promotes unethical business
practices.
Self-Image: Coca Cola’s self-image is very positive in market place, because this beverage
business always believes in offering quality products and services in market place. It follows the

standards of healthy products, and that is why many of people like to consume its various
products and services.
Reflection: This beverage company currently runs many countries, in which upper management
of busines has always required to make some productive strategies in order to gain huge
competition advantage (Porto, 2019). For example; it has used competitive based pricing strategy
for attracting maximum customers towards own brand.
Relationship: The management of Coca Cola knows the value of an effective relationship, and
this is why is use own well-developed skills of communication in daily operations for interacting
with different people. With the support of own polite behaviour and effective communication,
upper management has succeeded in building a very effective relationship with various
stakeholders, like; customers, employees, suppliers etc.
Description of the Target Market
Recently top-level management of Coca Cola has decided to extended own brand in
Ireland by offering its new sugar free product Diet Coke, and due to this is reason the
management of company have to use some effective strategies for targeting own customers. For
example; there is STP model is very unique as well as productive strategy of targeting customers
in the market place which has chosen for brand extension. In this situation, the STP model has
been applied below for successfully extending own brand in Ireland’s beverage industry (Onegi,
Eser and Korkmaz, 2019). Of course, this company already runs own business operations in this
country but not at the large scale, and that is why brand extension of Coca Cola is very necessary
for gaining more profit in the future.
STP model
STP model is mainly considered as an effective marketing strategy which helps
businesses for targeting their customers in market place. Basically, this strategy includes three
stages of effectively targeting customers, in which these all stages has been discussed below;
Segmentation: Segmentation is the first stage under model that helps businesses and companies
for dividing their large market into small segments of market on the basis of various factors, like

geographically and demographically. In this situation, segmentation stage of model will help
Coca Cola as well in Ireland.
Targeting: Targeting is the main stage under the model where a business has to take steps
towards targeting own customers on the basis of their many factors, like; interest, hobby, caste,
ethnicity, culture, religion, attitude etc. Coca Cola have to target such people in Ireland who are
suffering from the disease of sugar for highly extending own brand in international market.
Positioning: Positioning is last stage that aware ventures and businesses for improving their
supply chain operations, because it is very necessary in order to reach own products and services
to targeted customers on time (Serôdio, McKee and Stuckler, 2018). On the other side, it has
required to properly communicate also with the local people of this market place for building
great relationship with customers.
Analysis of the New Market, Including Trends
There is market analysis task is also very necessary to the business, because currently
many factors and trends exists in market that can affect Coca Cola in both ways, positively and
negatively. In this situation, PESTEL analysis tool has been used below for analysing market,
and Ansoff matrix strategy also has been applied below for company to gain better outcomes in
Ireland.
PESTEL Analysis
PESTEL analysis is very helpful tool to ventures for knowing key market trends and
factors of own business environment. This tool shows six key factors which has been discussed
below;
Political factors: Political factors will affect to present business when it will run own business
operations in Ireland. According to local government of Ireland, each existing business or
company have to fulfil its obligation of taxation, so this political factor will affect to Coca Cola
as well.
Economic factors: These factors can also affect business operations of beverage company in
Ireland (Joshi and Yadav, 2019). For example; currently this country’s economic conditions

faces something slowdown due to corona virus, in which this economic factors will be negatively
affect to business in market place.
Social factors: Social factors of Ireland are very effective and favourable for the company,
because most people in this country are fully literate and knows the value of quality products, in
which this factor will positively affect to Coca Cola, because this beverage business has already
provided quality products and services to customers.
Technological factors: Technological factors will also positively affect to business, because
currently those all tools and gadgets are simply available in market place of Ireland which can be
used for improving daily business operations of business.
Environmental factors: These factors will affect to company for not conducting such practices
and business operations in the workplace which can negatively impact to the natural environment
(Nikodimou and Dimitrakopoulou, 2019). It will need follow relating to environment also
extending own brand in Ireland.
Legal factors: Legal factors of Ireland will also affect to business, in which upper management
of Coca Cola have to adhere each law and ethic of business in this country which has formulated
by the local government in the welfare of society. It is necessary to business for legally
extending own brand in Ireland as well.
Ansoff’s Grid Matrix
Ansoff matrix is generally a set of marketing strategies which helps ventures for gaining
very productive outcomes in the market place. Basically, Ansoff matric includes four strategies
which has been discussed below;
Market penetration: This is the strategy that motivates or encourages upper management of
business for using own existing products and services for selling them in the present selected
market place.
Product development: Product development strategy will motivate to business for innovating
and developing a new exclusive range of products and services for selling them in the present
market place.

Market development: Coca Cola is currently following the concept of this strategy, because
recently upper management of business has decided to extend own brand, and this process
generally comes under the market development strategy.
Diversification: Diversification is the last strategy that has followed by different companies and
businesses for extending own brand in the international market place (Barragán Floriano, 2020).
Basically, this strategy of Ansoff Grid will help Coca Cola for developing a new product for
launching it in the new market place.
An Explanation of the New Product
The Coca Cola is multinational beverage company and specially knows for its wide range
of products and services. Upper management of this business has ordered to its research and
development department for innovating new products and services regularly for retaining
customers for the long time period. Recently, this department of company has developed a new
and exclusive range of product, named; diet coke. According to management, this product is
completely sugar free and very favourable for the patients of sugar. On the other side, normal
customer also can consume this product, because it will give an excellent experience and
satisfaction to customers in market place.
Competition
Currently there is huge competition in the beverage industry of Ireland, in which this
competition will become threat to company when it will be extended own venture operations in
this country (Greenhalgh, 2019). For example; Pepsi, Fanta, Red bull, Gatorade etc. are well
established multinational beverage companies in Ireland which will difficulty give very tough
competition to Coca Cola during brand extension.
CONCLUSION
It can be concluded that upper management of Coca Cola should follow different
marketing strategies for successfully extending own business operations in the new selected
market place. Basically, the process of brand extension is very mandatory to each business for
increasing its levels of profit margins in own respective sector. It can be also concluded that,
existing business or local companies always gives tough competition to business which has

recently extended its business operations in the same market, so upper management of Coca Cola
have to use productive marketing strategies for successfully extending own brand.

REFERENCES
Books & Journals
Barlow, P., and et.al., 2018. Science organisations and Coca-Cola’s ‘war’with the public health
community: insights from an internal industry document. J Epidemiol Community
Health. 72(9). pp.761-763.
Barragán Floriano, J. A., 2020. Coca-Cola y el Impacto en el Consumidor de su Producto
Clásico. (Doctoral dissertation, Universidad del Rosario).
Donkor, S., 2016. Organizational change as a tool for enhancing organization development. A
case study of Coca-Cola Bottling Company Limited. (Doctoral dissertation).
Goodluck, S., 2020. The Impact of Automation on Employment in Manufacturing Industry: a
case of Coca Cola company in Tanzania. (Doctoral dissertation, Mzumbe University).
Greenhalgh, S., 2019. Science and Serendipity: Finding Coca-Cola in China. Perspectives in
biology and medicine. 62(1). pp.131-152.
Joshi, R. and Yadav, R., 2019. The study of brand extension among generation Y in the Indian
market. International Journal of Indian Culture and Business Management. 19(3).
pp.339-353.
Nikodimou, V. and Dimitrakopoulou, P., 2019. The Power of Marketing in the Industry of
Sports.
Onegi, M., Eser, Z. and Korkmaz, S., 2019. Consumers’ evaluation of glocal marketing
strategies of global firms in Turkey: An example of a glocal product. International
Journal of Business and Administrative Studies. 5(3). pp.109-118.
Porto, C. B., 2019. Marketing de patrocínio em eventos: um estudo de caso da marca Coca-Cola
no festival Rock in Rio no Brasil (Bachelor's thesis, Universidade Federal do Rio
Grande do Norte).
Serôdio, P. M., McKee, M. and Stuckler, D., 2018. Coca-Cola–a model of transparency in
research partnerships? A network analysis of Coca-Cola’s research funding (2008–
2016). Public health nutrition. 21(9). pp.1594-1607.