Principles of Marketing: Coca-Cola Brand Extension Report

This report examines Coca-Cola's brand extension strategy, focusing on the introduction of Diet Coke in the Irish market. It begins with an overview of Coca-Cola's background and existing brand values, followed by a description of the new product and its target market. The report analyzes relevant trends and PESTEL factors influencing the brand extension, including political, economic, social, technological, environmental, and legal considerations. A comparative analysis of the brand extension concept and its distinctiveness from competing goods is also provided. The report concludes by highlighting the benefits of adopting brand extension as a marketing strategy, particularly in terms of increased profitability and revenue generation, and the successful launch of Diet Coke in Ireland using a differentiation strategy. The report references relevant academic sources to support its analysis.

COCA COLA BRAND EXTENSION
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Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Back ground of chosen company...........................................................................................2
Existing brand values in context of Coca Cola-.....................................................................2
Brief explanation of new item................................................................................................3
Target market for new brand extension-................................................................................3
Trend and PESTEL problems influence on brand extension idea..........................................3
Comparative analysis of brand extension concept.................................................................4
Brand extension distinct from competing goods....................................................................4
REFERENCES................................................................................................................................5
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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 brandThis study will
justify target market, important trends and PESTEL elements that will influence brand extension
concept. This presentation will clarify comparative analysis and also define ways through which
brand extension distinct from competing items.
MAIN BODY
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. Firm operate its
business within more than 200 nations. Organization adopt different trends in sales for example,
it has invest in further growth and success opportunities. Furthermore, company conduct
collaborative practices more closely with marketing, which is one of the biggest trends in sales.
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. Organization
in order to satisfy customers through services and products conduct effective communication
activities which make it able to identify their needs and in return improve brand value at
international and national level.By keeping brand value in mind management creates their
organization website where all information about its venture and products has been mentioned.
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
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management decide to extend business in Ireland by manufacturing and selling new item named
Diet Coke. By using differentiation as Ansoff growth tactic Coca Cola innovate new product in
form of Diet coke which is quite beneficial for customers who are conscious about their diet and
health as well. The best thing about new product is that it does not appear to maximize heartburn
and improve fatty liver.
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. The main focus of
company is to target those consumers in chosen market who are dealing with & suffering from
specific health issue such as diabetes and because of that they could not be able to eat such food
products that are sugar contaminated.
Trend and PESTEL problems influence on brand extension idea
Political factor-
Change in taxation charge put negative impact on brand extension idea of Coca Cola as it
could leads to increase pressure on management in context of paying tax rate and fulfil
obligation that Ireland government decided.
Economic factor-
Slow economic growth because of pandemic is one of the economic factors that put
negative impact on current tactic of Coca Cola.
Social factor-
Market trend is a social element that put positive impact on brand extension idea of
chosen company, because people in Ireland follow trend in term of eating and drinking fat or
sugar free products.
Technology factor-
Due to technological advancement in recent time instead of collecting data from door to
door, people follow trend in form of using social media sites where information about everything
is easily accessible. It put positive impact on selected idea of Coca Cola in term of giving chance
to marketing team for using the latest social media platform where they can promote new
product effectively and in influencing manner.
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Environmental factor-
Coca Cola Brand extension idea could affected by this factor when firm could not
conduct its practices according to CSR policies and rules which may impact sustainable
environment and beauty of nature.
Legal factor-
It impact negatively when company would not adhere business policies and ethics while
entering into Ireland with new Diet Coke as innovative item.
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.
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REFERENCES
Book and Journals
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.
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