University Brand Extension Report: Coca-Cola and Diet Coke, MG412

This report examines Coca-Cola's brand extension strategy, focusing on the introduction of Diet Coke in the Irish market. It begins with an introduction to brand extension and provides background information on Coca-Cola, including its existing brand values and market share. The report then analyzes the target market for Diet Coke, employing demographic and geographic segmentation strategies. It further explores the influence of political, economic, social, technological, environmental, and legal factors (PESTEL) on the brand extension idea. A comparative analysis of competitors such as Pepsi, Red Bull, and Fanta is presented, highlighting the competitive landscape. The report also discusses how Coca-Cola can differentiate its new product and concludes with a summary of the benefits of adopting a brand extension strategy, including increased profitability and revenue generation through differentiation. The report includes references to relevant academic sources.

COCA COLA BRAND EXTENSION

TABLE OF CONTENT
 Introduction
 Main body
 Conclusion
 References

INTRODUCTION
 Brand extension can be defined as marketing tactic through
which a company can markets its products or services.
 The current presentation will be based on Coca Cola, which falls
under category of leading beverage companies in the world.
 This study will explain key info about chosen organization and
existing brand values.
 Furthermore, it will define brief explanation base on new
product with reference to growth tactic adopt by brand

BACK GROUND OF CHOSEN COMPANY
 Coca Cola is one of the most popular beverage brands in the whole world as
it known worldwide for its huge ranges of goods and services as well.
 It has interest in producing, retailing and advertising non alcoholic syrups
and beverage concentrates. Firm is still inconsequential after being around
for more than a year.
 In 130 billion juices market, brand has 31.4% market share with PepsiCo
17.4% and Parle Agro having 22.5% share.
 The market size of Coca Cola brand can define by considering its selling
activities in number of nation.

EXISTING BRAND VALUES IN CONTEXT OF COCA COLA
 Brand value is beliefs that a firm stand for,
for example, Coca Cola to assure its
consumers about products quality conduct
marketing activities in form of advertising
campaigns, which is quite beneficial for its
business growth and success within market
place.

BRIEF EXPLANATION OF NEW ITEM
 Coca Cola in order to gain competitive
advantages and generate more profits has
chosen brand extension concept.
 With this idea firm want to enter into new
market with new product; its management
decide to extend business in Ireland by
manufacturing and selling new item named
Diet Coke.

TARGET MARKET FOR NEW BRAND EXTENSION
 Before producing and selling new Diet Coke
into new marketplace such as Ireland,
Company target specific group of market or
consumers.
 By using demographically and geographical
segmentation strategy Coca Cola brand target
customers on basis of different elements such
as hobby, culture, interest, attitude, religion
and ethnicity.

TREND AND PESTEL PROBLEMS INFLUENCE ON
BRAND EXTENSION IDEA
 Political factor
 Economic factor
 Social factor
 Technology factor
 Environmental
 Legal factor

COMPARATIVE ANALYSIS OF BRAND
EXTENSION CONCEPT
 Within new market sector, competition level is quite huge because of competitors’
accessibility in Ireland Beverage industry.
 Pepsi, Red Bull, Fanta etc. are consider as main competitors of chosen brand which
impact its brand extension idea in negative manner in term of posses as the biggest
threat.
 Exiting brands can give touch competition of Coca Cola because they have good brand
image which has been build since from establishment by selling quality products.

BRAND EXTENSION DISTINCT FROM
COMPETING GOODS
 Coca Cola Brand extension would distinct from
competing goods in term of producing it
according to current trend and by considering
health concern about customers accordant to
recent era.
 Firm would differentiate its new Diet coke from
competing items by adds valuable features among
it and setting appropriate price.

CONCLSUION
 By summing up above discussion, it has been concluded that Coca Cola by
adopting brand extension as marketing strategy has gained several benefits in
term of increased profitability and generate revenues.
 Furthermore, it has been identified that by using differentiation strategy
organization has successfully launched its new product in Ireland.

REFERENCES
 Deshpande, A and et.al., 2020. Influence of Strategic Branding in Soft Drink
Market in Indian and Malaysian Context: Study on Coca Cola to remain Top of
the Mind Brand (TOMB). Asia Pacific Journal of Management and Education.
3(1). pp.82-93.
 Figueiredo, J. and Eiriz, V., 2020. Fragrances' luxury brand extension:
consumer behaviour and influences. EuroMed Journal of Business.
 MacLaran, P., 2020. Coke and gender. Decoding Coca-Cola: A Biography of a
Global Brand, p.77.
 Sharpe, J.D and et.al., 2016. Evaluating Google, Twitter, and Wikipedia as tools
for influenza surveillance using Bayesian change point analysis: a comparative
analysis. JMIR public health and surveillance. 2(2). p.e161.