Marketing Report: Coca-Cola Vanilla Shake New Product Development

This report provides a comprehensive overview of the new product development process, using Coca-Cola's potential vanilla shake as a case study. It details the key stages, starting with idea generation, which involves analyzing market demand for shakes and juices. The report then explores idea screening, concept development and testing, and the formulation of a marketing strategy, including the selection of a tagline, target audience, and promotional methods. Product development, test marketing in specific regions, and commercialization are also discussed. Furthermore, the report outlines funding strategies for the new product, including loans, company funding, and the issuance of shares. The analysis incorporates references to relevant academic sources, providing a well-rounded perspective on the topic.

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Principle of Marketing Management 1
Table of Contents
New Product Development Process.................................................................................................2
Funding of Product..........................................................................................................................2
References........................................................................................................................................4

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New Product Development Process
It is one of the processes that are used by the companies to launch new product in the market in
an effective manner. Therefore, Coca Cola is planning to introduce vanilla shake in the market
which is new segment for the company. Therefore certain steps will be taken by the company to
introduce its new product in the market which is explained in the below points:
Idea Generation: It is the first process in which the generation of idea is done. The idea is
generated by analyzing the demand of shakes and juices in the market. The consumers demand
more shakes and juices in the market that force the company to expand its business with new
sector.
Idea Screening: While analyzing the market, the company has decided to expand its business in
the shakes market in which variety of flavors will be introduced in the market due to the reason
the demand of shakes in the summer and winters is high especially vanilla shakes
Concept development and testing: Blind test will be done before the launch of product revealed
that consumers like the taste. The organization will target urban teenagers, young adult from the
high and middle income group (Wowak et al., 2016).
Marketing Strategy and Business Analysis: The new shake will carry the tag line “Creamy
Shake”. It will target its consumers through social media and traditional marketing method such
as Television, Newspaper and sales promotion. Relatively Johnny Depp will be choosing for the
ad. It will start promotional activities in shopping mall, and also launched retrospective music
album. The company will analyze the overall cost of the promotion and the manner they can
enhance its sales and profit
Product Development: The Company will use glass bottles to make unique from other
competitors and will also use recyclable straw to represent its company as sustainable
participator and essence will be added in the bottle. It will attract maximum consumers towards
the product.
Test Marketing: The product will enter in some specific market of Australia which is Sydney in
the form of test. The product will be provided in the shopping malls and other retail stores. Great

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discount will be provided at the starting stage to analyze the demand of shakes among the
consumers.
Commercialization: At the end the product will be commercialized and will enter in the market
with huge level of stock and will be available in every store small or big. It will cover maximum
number of consumers through healthy promotional activities (Zahay, Hajli and Sihi, 2018).
Funding of Product
The company will manage funds for its new product in the following manner:
 Loan from bank will be taken by the company of around 20% of the overall cost that is
estimated to be investing in launching the product in the market (Moran, 2016).
 30% will be own funding by the company. It will help in controlling the liabilities of the
company.
 Shares will be issue by the company in the market. they will use its goodwill and can able
to raise the fund in more efficient manner (TAN and Reddy, 2018)

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References
Wowak, K.D., Craighead, C.W., Ketchen Jr, D.J. and Hult, G.T.M. (2016) Toward a “theoretical
toolbox” for the supplier‐enabled fuzzy front end of the new product development
process. Journal of Supply Chain Management, 52(1), pp.66-81.
Zahay, D., Hajli, N. and Sihi, D. (2018) Managerial perspectives on crowdsourcing in the new
product development process. Industrial Marketing Management, 71, pp.41-53.
Moran, M. (2016) The grand convergence: closing the divide between public health funding and
global health needs. PLoS biology, 14(3), p.e1002363.
TAN, Y.H. and Reddy, S.K. (2018) Funding by the Masses: Crowdfunding Platforms and Their
Disruption of Traditional Marketing Functions. Handbook of Advances in Marketing in an Era of
Disruptions: Essays in Honour of Jagdish N. Sheth, p.167.