MKT10007 Report: Brand Extension Strategy for Storm Healthy Drink

This report analyzes a brand extension strategy for Coca-Cola, focusing on launching a healthy drink for kids named 'Storm'. It includes a target market analysis, evaluating the fit of different segments (toddlers, 5-10 year olds, and 11-15 year olds) with the brand's identity and structural attractiveness. The report recommends targeting the 11-15 year old segment. Furthermore, the report discusses brand strategy, emphasizing product extension as the most suitable approach. A competitor analysis is conducted, and the marketing mix (product, place, price, promotion) is defined for the 'Storm' brand, highlighting its positioning as a healthy and energetic drink for children. The report concludes by emphasizing the importance of market targeting, brand extension research, and utilizing advanced technology and social media for promotion.

Fundamentals Of
Marketing

Table of Contents
Contents
Introduction......................................................................................................................................3
Part 1. Target Market Analysis........................................................................................................3
References........................................................................................................................................8

Introduction
Brand extension is the marketing strategy where a organisation is marketing a product
with well develops image that is using of same brand name for a different product category. That
new product is generally regarded as the spin off. Organisations are working towards using of
this strategy for the purpose of enhancing their present brand equity, there are many different
products that can be launched for the purpose of introducing of new products in the existing
brand that can help in the process of enhancing the present profitability of business organisations
(DENG and MESSINGER, P2021). In present scenario Coca a well known global beverage
brand is willing to launch or extend their brand with name “storm”. The major focus of this
newly launched brand will be towards serving of healthy drinks for kids. Coca cola is one of the
best selling soft drinks brand that is originally started in unites states.
Part 1. Target Market Analysis
The fit of the segment with the brand’s identity/positioning
Coca cola is already offering a wide range of product as per the changing needs of their
target segment of customers. This brand is working towards ensuring that berage requirements
are timely meet up through new launches (Lin, Chen, Yand Lee, 2021). In present scenario
storm will be focussed on using the existing brand image of coca cola to enhance their market
share. For this there will be use of new rand strategy in which coca cola will launch a
complete new brand named as “storm” in its name. In this there is focus on creation of a similar
brand to deal with the overall competition in the macro environment.
Size and growth
the size of children market is very high in UK as the main focus will be on children who
belong to the age group between 6 to 15 years (Brexendorf and Keller, 2017). It will focus on
toddlers who are from age to 1-4 years and further school going children who are lacking the
required level of nutrients.
Structural attractiveness
There can be campaigns in schools that can be organises further parents of such children
can be approached effectively through various print and electronic mediums. There will be use of
both offline and online distribution strategy to reach such target segment of customers. There are
many other competitor brands such as pre earthy, vit-hit that are also offering healthy and natural

drinks range but presently they are not targetting children. So, thus can be a competitive
advantage for storm as it will be able to successfully approach its target market in the most
innovative and creative manner (Le Tan, and Dai Trang, 2019).
The fit of the segment with the
brand’s identity/positioning
Size and growth Structural attractiveness
Toddlers 1-3 years Low size and growth Low structural attractiveness
5-10 years Medium size and growth Low structural attractiveness
11-15 years High size and growth High structural attractiveness
It can be analysed from the above made analysis that presently Strom will focus on enhancing
its present profitability and market share by using their existing brand image and present loyal
customer base.
Part 2
Brand Strategy: It is a strategy for the long term plan to achieve a series a long term plan to
accomplish a better series goals ultimately result in the identification and preferences of brand by
consumer (Lin, Chen and Lee, 2021). A successful branding strategy encompasses when
individual company is having proper vision and objective clarity promotes its customer and how
these are communicated. In perspective of Coco Cola is coming up with its new brand called
Storm which is healthy Drink products for Kids.

This strategy consist four important factors which determines such as Line Extension,
Brand Extension, Multi-brands and new brands such as:
 Line Extensions: It is one of the simplest form of brand extention as it all about to better
introduce an existing product and services in new way. For instance, it allows to create
new type of product and services which create benefit to the customer health.
 Product Extension: To launching of new product and services is great initiative by
company as they focus on effective product development to attain more competitive
advantages to make better brand identity.
 Expertise Extension: According to this factor it creates on existing authority of brand
(Becker. and Jaakkola., 2020). In this it depends upon the company creativity and
innovation that eligible to bring new changes and make strong impact on market. By
building on that existing credibility.
 Market Extension: According to this process, it occurs when company plans to start or
explore different kind of niche market. In this, when company is having the low budget
of planning to introduce the new product and services then it would creates more scope
to attain competitive advantages.
Evaluation:
Illustration 1:
Brand Extention., 2020.
Source: https://medium.com/@steve_fabrik/brand-extension-strategies-dont-get-stretched-
out-of-shape-895f232c8f8e

From above analysation of brand extension and product strategy that makes more
vulnerable to analyse the market where Coca-cola-brand is coming up with new innovative brand
with generate new Glucose Energy Drinks Storm for Kids that can attain more customer
attention as well as they would target the beverages market on which they can promote flexible
manner the product of Coco Cola new brand product Strom with kid's health safety. Through
this, Coca Cola new brand Storm must follows Product extension as this strategy is provides to
expand the new brand in market to create strong and positive awareness about Kid's health
safety to generate more competitive advantages effectively. The Coca Cola is one of leading and
established brand to gain more competitive advantages attained. Therefore, Marketing plan is an
essential strategical framework of plan that instruct to form a promotional strategy for an
organisation perspective, which will implement to generate the lead and attain the target market.
A execution of marketing plan through effective source of promotional strategies that undertakes
to evaluate the company measures effect of these initiatives.
Task 3.
Competitors Analysis
As the Coca Cola is one of the leading beverages company as they have more competitors in the
market such Pepsico. With that the company to regenerate many substitute product as they are
planning to bring with new glucose energy drink for Kids to attain more competitive advantages.
Part 4
Marketing Mix
The marketing mix is a foundation model for businesses and it is centred around product ,
place, price and promotion. A marketing mix includes multiple areas of focus as part of a
comprehensive marketing plan. Coca cola is extending this new product as healthy drink for kids
named as storm
Product: It refers to a good or service that a company offers to their customers. Product strategy
can be used which defines that what the product is going to offer to their customers. To remain
successful into the market, it is required that product life cycle needs to be understood in an
appropriate manner (Kuppelwieser and Klaus, 2020). Business executives should have a plan for
dealing with products at every stage of their life cycle. With respect to brand storm they are

offering healthy drink for kids and small children. It is the healthy drink which they want to
deliver to their kids so that they feel themselves always energetic and healthy as well.
Place: When a company takes decision with respect to place, then they trying to determine that
where they want to sell their products and in which manner they want to deliver it to market.
With respect to brand storm, they sell their products in different parts of UK country. They
targeted those places where mostly families are living over there. Retailers help in terms of
delivering the product to their customers. Retailers act as key parameter in terms of distributing
their products to different stores. Then these stores and shops will deliver this drink to their
customers through online and offline medium.
Price: Price is the factor which consumer want to pay for their product. Marketers link the price
of product to the real and perceived value of the product and they also certain other factors. It
includes supply costs, seasonal discounts and competitor's prices. With respect to storm health
drink, they have set price according to customers willingness and capability to pay for the
product. The price have been set according to the income criteria of an individual so that every
family can afford for this product.
Promotion: It basically includes public relations, advertising, and promotional strategy. The
main target of promoting the product is that is to reveal to the consumers that why they need it
and reason behind for paying this particular price. The key message which company wants to
deliver to their consumers is that healthy and energetic life for kids. Through this product, they
keep the stamina high for kids even in the busy routine as well. Through social media platforms
and advertising factor company can promote their products. The key message which company
wants to deliver is related to positioning of the company (Chen., 2020). Company wants to create
a picture in the minds of their consumers such that they are providing healthy drink and life to
their small kids and children.
In this way, brand storm health drink perform into the market and target market
according to appropriate strategy and planning.
CONCLUSION
The above stated report concludes that marketing plays a very important role in this
business world. It has been concluded that for entering into new market it is essential that market
should be targeted in an appropriate manner. The factors related to segmentation, targeting and
positioning plays a key role in terms of meeting out the objectives of an organisation. In terms of

brand extension and product strategy it is important to do research and planning into appropriate
manner so that results can be achieved into successful manner. With respect to marketing mix, it
has been determined that product should be targeted according to requirement of market. With
respect to price, place and promotion factor it is essential that needs and requirement should be
fulfilled within a set period of time. For promoting the product advance technology and social
media platforms can be used for purpose of getting into the eyes of customers.

References
Books & Journal
DENG, Q.C. and MESSINGER, P.R., 2021. Dimensions of brand-extension fit. International
Journal of Research in Marketing.
Le Tan, T. and Dai Trang, D.T., 2019. Factors Affecting Brand Image: The Case of Pepsodent in
Da Nang, Vietnam. IUP Journal of Brand Management, 16(2).
Brexendorf, T.O. and Keller, K.L., 2017. Leveraging the corporate brand: The importance of
corporate brand innovativeness and brand architecture. European Journal of Marketing.
Lin, Y.C., Chen, Y.H. and Lee, Y.C., 2021. The effect of product attributes, brand awareness and
product knowledge on consumers-A case of Air Jordan retro shoes. Journal of Statistics
and Management Systems, 24(5), pp.1151-1168.
Becker, L. and Jaakkola, E., 2020. Customer experience: fundamental premises and implications
for research. Journal of the Academy of Marketing Science, 48(4), pp.630-648.
Palmatier, R.W. and Sridhar, S., 2020. Marketing strategy: Based on first principles and data
analytics. Bloomsbury Publishing.
Kuppelwieser, V.G. and Klaus, P., 2020. a primer for inclusive service marketing theory.
Journal of Services Marketing.
Chen, K., 2020. The effects of marketing on commercial banks' operating businesses and
profitability: evidence from US bank holding companies. International Journal of Bank
Marketing.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.