According to legend, Dr Pemberton was trying to develop a revitalizing tonic and produced a thick brown syrup that he carried down the street in a jug to Jacob’s pharmacy. It was sampled with carbonated water, pronounced ‘delicious and refreshing’ and placed on sale for five cents a glass as a soda fountain drink. In trying to develop the new product, Dr Pemberton’s partner and bookkeeper, Frank M. Robinson, suggested that two ‘c’s would look good in advertising and penned the now famous trademark ‘Coca-Cola’ in his unique script.
The first newspaper advertisement for Coca-Cola appeared in the Atlanta Journal and invited thirsty citizens to sample the new refreshing soda fountain drink. During the first year sales averaged a modest nine drinks a day! In 1888, John Pemberton sold his interests to Asa Chandler. Chandler formed The Coca-Cola Company in 1892 and by 1895 Coca-Cola was being drunk in every state across America. As demand for the product grew, production was increased and it was made available in bottles rather than just through the soda fountain. The opening of bottling plants in 1909 meant that all the lements were in place to launch a global brand. Little did Pemberton know the impact his mixture was to have on the soft drinks industry. Today Coca-Cola is located all over the world. In Ireland they have concentrate factories in Drogheda and Ballina, and bottling plants in Dublin and Belfast. Here the concentrate is mixed with carbonated water, bottled and sold. These businesses work hard to quench the thirst of the Celtic Tiger so much so that Coca-Cola holds a54% market share of the Carbonated Soft Drinks (CSD) business in Ireland. A total of 910 people are employed in Coca-Cola businesses in Ireland.
The payroll to these employees is in the region of ? 15m each year. But this is only a fraction of the money that Coca-Cola contributes to the Irish economy. In addition to wages, Coca-Cola spends? 50m on Irish raw materials and ? 25m on Irish services, such as marketing and transport. That represents ? 90m ploughed back into the economy by Coca-Cola each year. This case study will focus on the second key brand in The Coca-Cola Company, diet Coke. It will examine how diet Coke was developed, positioned in the marketplace and how the advertising for diet Coke has developed as the brand has evolved. Product Life Cycle
The Coca-Cola formula has always been a well-kept secret and has not changed through the years. In other respects, however, Coca-Cola has been constantly developing. This has been important in maintaining the brand in its number one position. It is quite natural for products to go into decline, at some stage, after being introduced into a market. This isknown as the product life cycle. The trick is to delay this decline by constantly developing the product and or the brand, to extend its lifecycle. Within an industry sector it is possible top lot the position of several similar products on a product life cycle diagram.
For example, the diagram below shows the different types of drives that have been used in computers since the 1970s. You may not have heard of the 5” drive but that is because it is not available in most computers today. At the other end of the scale s a question mark because no one is quite sure what new drives will be launched next? What is happening here is that new products are created as the technology improves. What about the Coca-Cola brand? It has been around for over 100 years. How has it maintained its leadership position even though the product has not changed in over100 years?
The answer is that Coca-Cola are constantly developing the brand image and reinforcing the core product benefits of taste and refreshment to ensure that the brand grows instead of declining. One way Coca-Cola does this is to make the product more accessible, ensuring that it is always there to meet changing consumer needs. For example, you would probably never have tasted Coca-Cola if it had remained available only over the counter from a soda fountain. Once the decision was made to bottle the drink then it became possible to sell the product outside the main cities and indeed outside America.
Years later the 330mlcan continued the growth and development of the brand. The 1990s saw the introduction of the 500ml screw cap bottle and the 2 liter contour bottle was launched in February1999. The lifecycle of the brand has certainly been extended by making Coca-Cola more accessible through new package forms. Launch of diet Coke Another way to extend a product through its lifecycle is to adapt it as consumers need change. The example below illustrates how computer drives were developed to adapt to more technically advanced equipment. For diet Coke it was quite similar.
It began in the1970s when market research indicated that consumer’s attitudes to their diet and their health were changing. Coca-Cola conducted careful and extensive research and as a result identified an opportunity to develop a product that would meet these changing consumer needs. The identification by The Coca-Cola Company of this unmet need with consumers and the unique opportunity it represented heralded the launch of diet Coke. When diet Coke was first launched in 1982no one could have predicted the huge impact it was to have on the marketplace.
The initial advertising campaign was carefully planned, with no expense spared the introductory sixty-second commercial cost $2. 5 million to make. By 1986 diet Coke was being sold in 61countries with 60 million drinks sold everyday. It was a phenomenal success. Brand Extension Strategy When companies with existing brandsintroduce new products under those brandnames to the marketplace, this is known as abrand extension strategy. A brand extension strategy offers a number of advantages. A popular brand name gives the new productinstant recognition and immediate acceptance.
However, brand extension is not without risk. Ifthe brand extension does not live up to theexisting brand ’ s reputation then it coulddamage its image. Diet Coke is an example of a successful brandextension because it has grown and establisheditself within its own right. Within a year of itslaunch it was the biggest selling diet soft drinkin America and by 1987 it was the third largestselling soft drink of any kind in the world. Diet Coke is now the world ’ s leading low-calorie soft drink, sold in a total of 149countries with most of the sales being in theUSA, Britain, Germany, Canada and Australia.
Northern Ireland has the second highest percapita consumption of diet Coke in the world. This is second only to the Cayman Islandwhere the consumption of diet. Coke is driven by high tourist industry. Positioning diet Coke During a products life, a company will re-formulate its marketing strategy manytimes in order to retain and driveconsumer interest. Not only do economicconditions change but there are also newproducts being introduced by competitors. The product will also pass throughdifferent stages of buyer and consumerinterest and advertisers must respond tothis.
Anew product like diet Coke presents aparticular challenge to the advertisingdepartment of Coca-Cola: How is it possibleto position diet Coke so that existing sales ofCoca-Cola are not affected and new growthis achieved? The answer was to position diet Coke as theonly soft drink that can give you great Colataste with just one calorie. Previous diet andlow calorie drinks were only aimed atwomen but diet Coke emphasised the uniqueand refreshing taste benefits of diet Cokeright from the beginning and this appealed toboth men and women. The catchy themesong proclaimed that “ you ’ re gonna drink itjust for the taste of it. Advertising Campaigns The main objective of advertising is toproject and communicate the brand image,drive awareness of the availability of theproduct and in turn target and appeal topotential customers. Advertising shouldalso create consumer interest in the brandand persuade the potential customer topurchase. Market Research is an essentialpart of product development but also playsan essential role in the development ofadvertising in order to identify what are the key elements to be included in theadvertisement that will appeal to potentialconsumers eg, music, humour, etc. s Target Audience
Diet Coke advertisements target both menand women. In the years immediately afterthe launch women in their twenties weretargeted but once the brand was wellestablished the age range was extended tofemales between 18 and 35 years of age. The male audiences for the campaigns areusually over 25 years of age. s Advertising Aim The main aim of diet Coke advertising isto communicate the unique productbenefits of refreshing Cola taste with justone calorie. However, the advertisementmust also communicate and portray otherelements such as the brand image, brandname, people who drink the product, etc. Market Research Coca-Cola uses both qualitative andquantitative research to judge andmeasure lots of different things frommarket share to consumers ’ reactionsto different advertising campaigns. Qualitative research involves getting afocus group of 2 – 8 people to discuss, for example, the new advertisement for a few hours. Quantitative research ison a much larger scale and uses aquestionnaire to ask specific questionsand in this way keep track of trends. Sometimes the researchers can get asurprise. s Advertisements
As a result of continuously using marketresearch and understanding how consumersattitudes towards products change thisinformation has helped diet Cokeadvertisements to evolve and developover the years. Prior to 1990 the diet Coke commercialsfocused on adults enjoying the uniqueand refreshing taste of diet Coke aspart of their lifestyle. Between 1990 and 1992 celebritieswere used to endorse the brand. DemiMoore, Whitney Houston and RodStewart all appeared in diet Cokecommercials during this time. 1994 saw the launch of the first “ Break ” tyle commercial. Both men and womenfeature prominently in the commercialenjoying a break from their routinewith a great tasting, low calorierefreshment. In addition diet Coke commercialsfocus on contemporary lifestyle andfeature adults who are full of energyand vitality and are living their life tothe full. The advertisement illustratesthe good feeling one gets fromdrinking diet Coke. Character and Personality Companies very often give their products brand personalities in order to identify andpersonify the personality of the consumer.
Over the years, diet Coke advertisementshave ensured that the brand has establishedits own unique character and personality. Researchers are able to imagine what dietCoke would be like if diet Coke was aperson. This type of character andpersonality definition is important whenmaking an advertisement and helpsdetermine lots of things from the type ofactors used, the music, the setting and thewhole focus of the advertisement. Diet CokeBrand Personality If diet Coke were a person, that personwould be: s fun s independent s sociable s confident s lively s unafraid to show emotions. Summary
In 1897 The Coca-Cola Company ’ s maindrink was Coca-Cola and it was not until1982 that the company extended the brandwith the launch of diet Coke. Other brandsin the Coca-Cola portfolio include Lilt,Fanta, Sprite and their diet counterparts. Worldwide diet Coke has grown to be thethird largest brand in The Coca-ColaCompany. The introduction of diet Cokestrengthened the position of Coca-Cola asthe leading supplier of soft drinks inIreland. Over two-thirds of people whowant a non-alcoholic drink choose acarbonated soft drink (CSD) and over halfof those that choose a CSD select a Coca-Colabrand.
Quite often they choose diet Coke – just for the taste of it. Describe the importance of the TheCoca-Cola Company to the Irisheconomy. Draw a product life cycle diagram andshow where you would place each ofthe following electrical goods:(a) black and white television(b) colour television(c) digital television(d) computer monitor(e) digital camera. Outline the brand extension strategyfor any other brand you know. Positioning a product in the marketplaceis very important. Describe how Coca-Colamet the challenge of introducing diet Cokeonto the world market.
The history of the Coca-Cola Company is long and its main product, Coca-Cola, is currently on the maturity stage. The product was on its introduction stage in the late 1890s when it was first invented.What are the 4 stages of product life cycle of Coca-Cola? ›
These include introduction, growth, maturity, and decline.What is a good example of product life cycle? ›
Here are a few product life cycle examples: The home entertainment industry is filled with examples at every stage of the product life cycle. For example, videocassettes are gone from the shelves. DVDs are in the decline stage, and flat-screen smart TVs are in the mature phase.What are the 4 stages of product life cycle examples? ›
A product life cycle is a management tool that evaluates a product's journey from development to withdrawal from the market. As mentioned earlier, it includes four stages- introduction, growth, maturity, and decline.What production process does Coca-Cola use? ›
The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors.
Coke aggressively markets its product lines through advertising across multiple mediums and channels, including TV, online ads, sponsorships, etc. Coca-Cola's sponsorships include NASCAR, NBA, the Olympics, American Idol, etc.What are the 5 stages of product life cycle with examples? ›
- Market development. The first stage in the product life cycle is development. ...
- Market introduction. When your product launches, you've entered the introduction stage of the life cycle. ...
- Market growth. ...
- Maturity. ...
- Market decline.
It analyses the 4Ps (Product, Price, Place, and Promotion) of Coca-Cola Company and explains its business & marketing strategies.What are the four factors of production for Coca-Cola? ›
These include water, carbon dioxide (with which the water is carbonated), sugar, corn (which is utilized for high fructose corn syrup), and phosphate rock (used for the phosphoric acid).What is the product life cycle essay? ›
The four fundamental stages in a product cycle include introduction, growth, maturity, and decline. All these stages are pertinent to the development of a company.
Example of the Product Life Cycle
Introduction phase – Self-driving cars. Self-driving cars are still at the testing stage, but firms hope to be able to sell to early adopters relatively soon. Growth – Electric cars. For example, the Tesla Model S is in its growth phase.
In biology, a life cycle represents a series of changes that an organism undergoes, from birth to death. Extended to a business setting, an entity's formation and eventual decline follow a similar path to biological applications. The life cycle represents the entire existence or life of something in the marketplace.What is an example of the growth stage of the product life cycle? ›
Examples of products currently in the growth stage include artificial intelligence, smartphones, and electronic cars. A common reaction for companies with products in the growth stage is to expand the supply chain distribution of the product.What are the 4 levels of product explain with example? ›
Four Levels of the Product. There are four levels of a product (shown in the figure below): core, tangible, augmented, and promised. Each is important to understand in order to address the customer needs and offer the customer a complete experience.What is product life cycle explanation? ›
Product life cycle (PLC) is the process of a product's growth, maturity, and decline over time. It consists of four stages: introduction, growth, maturity, and decline. During each stage, the product experiences different levels of sales and profits.What types of products are produced by Coca-Cola? ›
Our portfolio of brands includes Coca-Cola, Sprite, Fanta and other sparkling soft drinks. Our hydration, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, Powerade, Costa, Georgia, Gold Peak, Ayataka, and BodyArmor.How does Coca-Cola measure success? ›
We conduct an engagement survey with an independent third party and measure our results against the norm for companies who perform highly on this metric. Our employee engagement is above the high-performing norm. Maintaining our high engagement score is part of the CEO's individual performance metrics.What are the 3 key strategies of Coca-Cola? ›
- Gain more consumers.
- Gain market share, especially in hot drinks.
- Strengthen stakeholder impact.
- Equip the organisation to win.
Our original and iconic cola is still our top-seller.
He defines a product as anything that can meet a need or a want, and his Five Product Levels Model provides a way to show the different levels of need customers have for a product, such as: Core benefit, Generic Product, Expected Product, Augmented Product and Potential Product.
Product management life cycle in seven main stages: Idea generation and management, research and analytics, planning, prototyping, validation, delivery, and finally, launch.What is product life cycle PDF? ›
Product Life Cycles. (PLC) ● The course of a product's sale and profit over it. lifetime.It involves five distinct stages:product development,introduction,growth,maturity,and decline.How does Coca-Cola attract customers? ›
- Firstly, the company targets young people between 10 and 35. They use celebrities in their advertisements to attract them and arrange campaigns in universities, schools, and colleges.
- They also target middle-aged and older adults who are diet conscious or diabetic by offering diet coke.
Coca-Cola has referred to their pricing strategy as "meet-the-competition pricing". The company analyzes the pricing strategies of its competitors, sees where comparable products have been priced, and strives to set their own prices around the same level as their competitors.What are the 3 main ingredients in Coca-Cola? ›
- Carbonated water – Approximately 90% of Coca-Cola is water. ...
- Sugar – Coca-Cola Classic's sweet taste (and also some of its mouthfeel) comes from sugar. ...
- Caramel colour – A very specific caramel is made especially for Coca-Cola, to give the drink its characteristic colour.
Coca Cola sales are impacted by a set of economic factors that beyond of company's control. These factors include the level of economic growth in the country and in the industry, tax rates and currency exchange rates, interest rates, labor costs and others.How many different types of products does Coca-Cola have? ›
The Coca-Cola Company is a total beverage company, offering more than 200 brands—from sodas to waters, from coffees to teas, from juices to kombuchas, and a growing list of flavored alcohol beverages —in more than 200+ countries and territories.Why is product life cycle important? ›
What Is the Product Life Cycle Important? The product life cycle is important in marketing because it helps define and determine strategies related to a particular product. According to subjectquery.com, it works as “a forecasting tool, planning tool, control tool, and estimated for profits.”How do you write a good product introduction? ›
- Answer important questions before writing. ...
- Know your audience. ...
- Focus on benefits and features. ...
- Use storytelling. ...
- Make it easy to read - Use bullet points. ...
- Think about SEO - optimise with keywords. ...
- Use photos and video.
- Define a selling point. A selling point is a reason your customer may buy your product. ...
- Gather support. ...
- Show enthusiasm. ...
- Train your team. ...
- Let your team demo the product. ...
- Schedule a launch date. ...
- Control your product's life cycle. ...
- Prepare a mission statement.
A life cycle is a series of stages a living thing goes through during its life. All plants and animals go through life cycles. It is helpful to use diagrams to show the stages, which often include starting as a seed, egg, or live birth, then growing up and reproducing. Life cycles repeat again and again.How do you write life cycle? ›
life cycle: Two words as a noun. life-cycle: Hyphenated as an adjective.What are the factors affecting product life cycle? ›
In general, the product life cycle is heavily impacted by market adoption, ease of competitive entry, rate of industry innovation, and changes to consumer preferences.What are some examples of products in the decline stage? ›
For example, products like typewriters, telegrams, and muskets are deep in their decline stages (and in fact are almost or completely retired from the market).How would you describe the maturity stage of the product life cycle? ›
The maturity stage of the product life cycle is when business growth levels out because the product has saturated its market. Ironically, this is where the money is made, but it's also where the product – and business – is at the most risk of disruption from below.What are the 3 main categories of product and give example? ›
- Consumer products. A consumer product is a finished product available for sale to a customer. ...
- Industrial products. Businesses usually purchase an industrial product to make other products or to help them with running their business. ...
- Service products.
This is the basic product and the focus is on the purpose for which the product is intended. For example, a warm coat will protect you from the cold and the rain. The more important core benefits the product provides, the more that customer is satisfied and need the product.
This is the collection of traits that customers expect a product to have. For example, a customer who buys a pair of headphones likely expects it to have good audio quality and comfortable earpieces. Different customers may also have different expectations for the same product.
The Coca-Cola Company is a total beverage company, offering more than 200 brands—from sodas to waters, from coffees to teas, from juices to kombuchas, and a growing list of flavored alcohol beverages —in more than 200+ countries and territories.What is the product level of Coca-Cola? ›
Core product – at the core level, Coca-Cola drinks aim to quench a consumer's thirst. Generic product – drinks are either carbonated or non-carbonated and come in various flavors, types, and packages. Expected product – in terms of value-adding, Coca-Cola sells some drinks cold to entice consumers.
The product life cycle consists of four stages which are introduction, growth, maturity and decline stages.At which stage of the product life cycle is product? ›
Introduction – This is the first stage of the product life cycle. Once a product is developed, the first step is its introduction into the market. During this stage, the product is released into the market for the very first time.What is Coca-Cola most successful product? ›
Our original and iconic cola is still our top-seller. However, 43% of the cola we now sell is made up of Coca‑Cola Zero Sugar, Diet Coke or Coca‑Cola Life, which have less or no sugar. Get the facts about all our drinks.What are examples of Coke products? ›
- Coca-Cola Energy.
- Coca-Cola zero sugar.
- GLACÉAU Smartwater.
- Dr Pepper.
- Schweppes Classic.
At The Coca-Cola Company, we market, manufacture, and sell beverage concentrates, syrups, and finished beverages, including sparkling soft drinks, water, sports drinks, juice, dairy, plant-based drinks, tea, and coffee.What Coke products sell the most? ›
Diet Coke was the first new product to use the Coca-Cola trademark in nearly 100 years when it was released in 1982. Despite competition from in-house brand Coke Zero and diet soda from other major manufacturers, Diet Coke is by far the most sold diet soda brand in the US.What are the three levels of product for Coca-Cola? ›
3.1 Explain how products are developed to sustain competitive advantage There are three levels of coca cola's products. They are core product, actual product and augmented product.What are the 4 stages of product life cycle of Pepsi? ›
According to Raymond Vernon, a product has a certain life cycle. It begins with its research and development stage and ends with its decline stage. The product life cycle consists of four stages which are introduction, growth, maturity and decline stages.What are the 5 parts of the product life cycle? ›
There are four stages in a product's life cycle—introduction, growth, maturity, and decline. A company often incurs higher marketing costs when introducing a product to the market but experiences higher sales as product adoption grows.How long is a product life cycle? ›
The length of the product life cycle varies based on industry, product and market factors. In some situations, a product may pass through the life cycle stages in a matter of months. However, in other cases, a product may remain in the life cycle for a period of several years.
A product's life cycle is usually broken down into four stages; introduction, growth, maturity, and decline. Product life cycles are used by management and marketing professionals to help determine advertising schedules, price points, expansion to new product markets, packaging redesigns, and more.What are examples of products in the growth stage? ›
Examples of products currently in the growth stage include artificial intelligence, smartphones, and electronic cars. A common reaction for companies with products in the growth stage is to expand the supply chain distribution of the product.