LSST MG412 Marketing Report: Coca-Cola Brand Extension Strategies

This report examines Coca-Cola's brand extension strategies, focusing on the effectiveness of market penetration, market development, product development, and diversification using the Ansoff growth matrix. It analyzes external environmental factors through the PESTLE framework, highlighting the importance of political, economic, social, technological, legal, and environmental considerations in business expansion. The study also discusses segmentation, targeting, and positioning strategies for attracting and retaining customers. Furthermore, it assesses Coca-Cola's brand values, target market, and competitive landscape, concluding that brand extension is crucial for organizational success and requires careful analysis of market dynamics and competition.

Portfolio Individual
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Executive Summary
Brand portfolio can be defined as the leading brand of a company that covers all other
brands, operated by company. This study has shown effectiveness of brand extension and
reasons as why companies expand their business in other countries and market. It shows some
factors that need to be considered by companies for brand extension and business expansion.
Some factors that this study shows in a detailed manner include: political situation of country
where company wants to expand its business and extend its brand, economic condition,
technological changes and adaption by other companies, social factors, legal and environmental
factors. There are number of strategies that help companies in successful expansion of business
and brand and Ansoff growth matrix is one of them. This study shows all 4 growth strategies of
Ansoff by which company can expand business and can accomplish goals as per the nature and
size of business.
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Table of Contents
Executive Summary ....................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Methodology................................................................................................................................4
FINDINGS.......................................................................................................................................4
Brand and the brand values..........................................................................................................4
Targeted market...........................................................................................................................5
PESTLE Analysation...................................................................................................................5
Ansoff's Grid................................................................................................................................5
Brand extension...........................................................................................................................6
Competition analysation..............................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
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INTRODUCTION
Brand portfolio is a collection of smaller brands that falls under a larger main brand of
company (Kirca and et.al., 2020). This present study is based on Coca-cola, North American
multinational beverage corporation. It wants to become the market leader in manufacturing,
retailing and marketing of non-alcoholic beverage. It focuses on brand extension for satisfying
changing needs of customers. This present study is going to discussion brand extension strategies
by which Coca-cola brand can be expanded. It will further discuss effectiveness of penetration,
market development, product development and diversification Ansoff growth strategies and the
best suitable strategy for Coca-cola for its brand extension. It will further discuss reasons and
effectiveness of analysing external environmental factors by PESTLE framework. This analysis
helps out company in taking better decision and successful business expansion. Segmentation,
targeting and positioning marketing strategies also plays a vital role as it helps company in
attracting target customers and retaining them with business for the long run.
MAIN BODY
Methodology
The research has been done with the help of secondary sources, the complete analysation of the
targeted market, existing brand along with the extension of new brand and analysation of the new
market has been done while using the secondary source. The chosen source of research has
determined the actual-facts and figures that is providing the idea in relation of the brand value of
the coco-cola (Ahn, Park and Hyun, 2018). Also, the brand extension that has been performed by
the company has been shown. The concept of brand extension has been effectively managed by
the company and the research has shown that brand extension has helped the firm in making
higher growth.
FINDINGS
Brand and the brand values
Brand includes type of product and services offered to the customers. The brand value refers to
the value and the satisfaction that has been offered to the customers. The brand has been
determined with its features. Brand identity prism of Kapferer's suggest that, there are different
types of brand in the market. Consumer can recognize the brand on the basis of the features
concerned with the products. The coco-cola posses the brand feature of selling non-alcoholic
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drinks and low calorie drinks This is the brand value that has been assured by the company in
their brand feature.
Targeted market
Segmentation
It refers to selecting the segment of the customers for whom the brand extension has to be
perform. For example: The coco-cola brand has chosen the behaviour segmentation (Butcher,
Sung and Raynes-Goldie, 2019). This includes the consumers who has the habit of drinking cold-
drinks and wants less calories in drink.
Targeting
For performing the brand extension it is important to target audience. As the chosen company
has targeted the all the individual of 15 to 40 years of age.
Positioning
This is the major element that has to be kept focus while brand extension that what is the current
position of the brand in the market. Coco-cola has the effective positioning in the market.
PESTLE Analysation
Political Economical Social Technological Legal Environment
The policies
related to the
food and
beverages can
effect the
brand of the
company.
The change in
the cost of
labour can
affect the
brand
extension as
the cost of
production
becomes high.
Change in the
taste of the
customers
makes a call
over brand
extension
(Zahari and
Romli, 2019).
Variation in
the technology
affects the
brand.
The legislation
related to the
Intellectual
property rights
keeps the
brand safe.
Harm to
nature while
producing
products
affects the
image of
brand.
Ansoff's Grid
Market penetration- Under this, the aim of the coco-cola is to increase the sales of its existing
brand.
Market development- This refers to attracting new customers for the existing brand of the coco-
cola. So, the brand value can be increase.
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Product development- The coco-cola company is introducing new products and performing the
brand extension and ensuring the products to the existing customers (Dawes, 2018).
Diversification- Under this step, the organization is focusing on capturing the new market. So,
the brand value and extension can be performed.
Brand extension
Tauber's brand extension suggest that the expansion of the brand can be done by introducing the
new products and packaging. As it leads to affect the visibility of the brand. The coco-cola
company has performed the brand extension by introducing the new bottles within the changing
pace of time (Wang, 2021). Also, the company is assuring the non-alcoholic and producing the
various coke products in the attractive bottles.
Competition analysation
Coco-cola Pepsi
 The company is assuring the effective
packaging by using bottles.
 The company uses the less sugar in the
drinks in all the coke.
 The organization has limited scope in
packaging.
 There are more calories has been found
in the Pepsi (Han and et.al., 2021).
It can be easily analyse, that the coco-cola company has more opportunities of brand extension
and the company has adopted it effectively.
CONCLUSION
From above discussion, it has been concluded that, the brand extension plays an important role in
assuring the success to the organization. The brand is identified by the values that has been
assured in the brand by the company. There are various factors that has to be kept in mind while
performing the concept of brand extension. The brand extension refers to the process of
expanding the brand in the market. The report has described that, the brand can be expand by
adding and enhancing the features that are present in the existing products. The brand is the
standard form of attracting the customers. As it shows the sign of luxuriousness. Therefore, it is
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important to add new features in the existing brand. So, the value of the brand can be increase
timely.
Along with this, the report has shown the various elements that are needed to analyse
while performing the brand extension and those are, the existing brand value in the market as it
provides the idea in relation of the ability possess by the company for performing the brand
extension. Also, the targeted market has to be analyse. The PESTLE Analysation and market
analysation has to be done. The most important part, the evaluation of the current competition in
the market has to be perform. It provides the complete idea in terms of expanding the brand.
Also, it guides about the benefit that can be experience by the firm after the brand extension.
Thus, adding new feature in the existing brand and performing brand extension helps in the
growth of the organisation.
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REFERENCES
Books and journals
Ahn, J., Park, J.K. and Hyun, H., 2018. Luxury product to service brand extension and brand
equity transfer. Journal of Retailing and Consumer Services. 42. pp.22-28.
Butcher, L., Sung, B. and Raynes-Goldie, K., 2019. Gotta catch ‘em all: invigorating Pokémon
through an innovative brand extension. Journal of Brand Management. 26(3). pp.227-
239.
Dawes, J., 2018. The Ansoff matrix: A legendary tool, but with two logical problems. But with
Two Logical Problems (February 27, 2018).
Han and et.al., 2021. The effects of a targeted financial constraint on the housing market. Review
of Financial Studies. 34(8). pp.3742-3788.
Kirca, A.H. and et.al., 2020. The interactive effects of product and brand portfolio strategies on
brand performance: Longitudinal evidence from the US automotive
industry. International Journal of Research in Marketing. 37(2). pp.421-439.
Wang, J., 2021. October. How Coca Cola and Pepsi Use Segmentation in Consumer Product
Industry. In 2021 International Conference on Public Relations and Social Sciences
(ICPRSS 2021) (pp. 866-870). Atlantis Press.
Zahari, A.R. and Romli, F.I., 2019. Analysis of suborbital flight operation using
PESTLE. Journal of Atmospheric and Solar-Terrestrial Physics. 192. p.104901.
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