Preview

Choueke Spreading Cola Brands Too Thin

Satisfactory Essays
Open Document
Open Document
1493 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Choueke Spreading Cola Brands Too Thin
Cover Story
Cola variants

Spreading cola brands too thin
Over the past 20 years, the battle for supremacy between Coca-Cola and Pepsi has resulted in the launches of numerous brand extensions. In combating decline in the fizzy drinks market, are the cola giants wise to rely on new variants to protect market share? By Mark Choueke variants. Coca-Cola added Diet Coke with Lemon to its permanent range this year, only for PepsiCo to follow with lemon and lime-flavoured Pepsi Max Twist. Not to be outdone, Coke launched Diet Coke with Lime, and, as a limited-edition flavour for summer. Coke with Lemon. A Coca-Cola spokeswoman says: "Everything we do is consumer-led and research told us Coke with Lemon is the taste of summer. Consumers reminisce about childhood summers and heing treated to a bottle of Coke with a slice of lemon, so we made it available." Coca Cola is determined to forge ahead with CSD product innovation in 2006. "Consumers will determine all future launches. If a product fits our positioning and is demanded by consumers, then anything goes," the spokeswoman says. Britvic, which is licensed to distribute PepsiCo products in the UK, adopts a more guarded approach to brand extensions and limited editions. Britvic category director Andrew Marsden says: "'Limited editions add novelty and surprise to everyday categories and generate additional interest and revenue. But you have to be careful with the flavour of limited editions and how many you release. It is a risk and you need confidence in the product."
ONLY FOOLS RUSH IN

D

rink Coca-Cola. Coke Is It. The Real Thing. Three unmistakably clear and powerful advertising campaigns once used by the soft drinks giant to stress the inimitable essence of the world's most powerful brand. But the sheer number of Coca-Coia and Diet Coke variants now on the market set to increase when Diet Cherry Coke launches next February - are making the straplines obsolete. Diet Coke was launched in the UK 21 years ago

You May Also Find These Documents Helpful

  • Better Essays

    MGT330 Final Paper

    • 2291 Words
    • 10 Pages

    To Minnick, growth means more than simply boosting sales of Coca-Cola Classic. And innovation involves more than repackaging existing beverages in slightly different flavors (Carvens & Piercy, 2009). As the head of marketing at Coca-Cola, Minnick is implementing a new marketing and innovation strategy that will help transform the company’s position. Although Coca-Cola is one of the world’s biggest brands, it wasn’t moving forward in a positive direction. In fact, the company’s sales and market share growth was slowly declining. Coca-Cola, as a company, was still stuck back in their glory days, the 80’s and 90’s, where carbonated drinks dominated the beverage market. Since…

    • 2291 Words
    • 10 Pages
    Better Essays
  • Good Essays

    Some industry analysts think soft-drink companies should develop products that will bring new customers into the market rather than just creating variants on the old. They warn that products like Coke Zero will cannibalize lost market share from other soft drink categories instead of…

    • 746 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Pepsi Next

    • 1345 Words
    • 6 Pages

    The article considers the product launch of the Pepsi Next brand soft drink by beverage industry firm PepsiCo scheduled for the summer of 2011. The soft drink is a so-called mid-calorie soft drink sweetened with a blend of high-fructose corn syrup and artificial sweetener. The launch is considered in terms of PepsiCo's attempts to reverse a decline in the market share of its cola soft drinks.…

    • 1345 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Coca-Cola Case Study

    • 303 Words
    • 1 Page

    These types of segments Coca-Cola presents are effective in this type of market. This is because Coke notices there are men and women worried about their weight and diets, therefore you have the Dieters segment and the Real Men segment, and they also present the Do It Yourself segment which gives the opportunity to create coke, dieted or not along with caffeine free or not, and adding shots of lemon or lime. However I believe there is an additional segmentation that could be added. A segment for those who enjoy the flavored cokes, such as cherry coke, vanilla coke, or black cherry vanilla coke.…

    • 303 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Coke Case Study

    • 900 Words
    • 4 Pages

    I don't think that Coke can stay up with changing tastes for non-cola drinks. I believe that Goizueta did have the right idea to develop new products, but Coke fell behind after some embarrassing problems within the company, such as the 1999 contamination scare, their slowing unit growth, ugly class action racial discrimination suit (which result in a $195.2 million settlement with 2000 employees), and an aborted takeover offer for Quaker Oats and its Gatorade Sports drink brand. Losing out to PepsiCo in the Gatorade battle left the company with a weakened strategy of beefing up its "fizless" soft drink products. Daft plans to launch coke's first U.S. coffee brand, Planet Java, but the problem now is that they have not dominated this market at all yet. The competition (Pepsi and Starbucks) are well established companies with very well recognized brand names. I think at this point, the most he can expect is for Coke to take half of the market share. For example, Sony came out with the first ‘walkman' portable tape player. If apple had come out with a walkman as well they could have expected to take over half the market at most. By creating the ipod, a completely original and different idea, they were able to take over the entire market. The difference here is that people personalize food and drink. It is hard to introduce new products because people become accustomed to what they like. When they consistently enjoy a certain product, there is a certain comfort level they have to that food or drink, and therefore people usually reject new products.…

    • 900 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    MIS302 Paper

    • 792 Words
    • 3 Pages

    When it comes to soft drinks, Coca-Cola always appears first in consumers’ minds. It is the world largest non-alcoholic beverage company in terms of size, the number of products it offers, and its proportion of market share. Coca-Cola owns more than 500 brands, 3,500 products worldwide, and presents in more than 200 countries. It offers a variety of beverage such as carbonated drink (Coca-Cola, Sprite), bottle water (Smart Water), fruit juice (Fanta, Simply, Minute Maid), ready-to-drink coffee (Georgia), flavored tea (Nestea), yogurt drink (Cal King), sport drink (Powerade), and diet or low-calorie version for some of these (Coke Zero).…

    • 792 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Historically, the soft carbonated soft drink (CSD) industry has been valued at $74 billion in the United States. In order to understand the reasons why the industry has been hugely profitable despite the ‘Cola Wars’, an examination of the CSD industry with Porter’s five forces analysis will be conducted. As market leaders, the analysis will be centred on both Coke and Pepsi (hereafter “C&P”).…

    • 1231 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    April 13th 1992, PepsiCo introduced an exciting change to its popular Pepsi product in the test cities of Providence, Denver, and Dallas and called it Crystal Pepsi. This is believed by many to have been one of the best ideas that PepsiCo had ever came out with, as they simply removed any and all coloring from Pepsi, creating a healthier and visually stimulating product. During the 1980's, Madison Avenue advertisers created one of our society's most aberrant spectacles yet, the pinnacle of decades of pop culture and advertising prowess, The Cola Wars. In our technological, media-driven, consumer-happy, and product-driven culture, selling and consuming soda has certainly become one of our biggest American pastimes. Coca-Cola and PepsiCo squared off for decades in various advertising coups trying to sell more soda to the already overly indulgent American public. A seemingly easy goal, but these companies have tried everything from using pop-stars, bold and daring challenges and most recently the chance to win a billion dollars on national television just for drinking their products. Throughout the…

    • 1403 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Having had a successful launch in America, Coca Cola decided to launch it’s new Vanilla flavoured version in Great Britain. Prior to doing so, Coca Cola carried out taste tests and developed the graphical ‘look’ of the Diet Coke brand. When they did this, they took great care to incorporate aspects of the Coca Cola brand, but still differentiating it so consumers would see it as an alternative to Coke.…

    • 704 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    New Coke

    • 1958 Words
    • 8 Pages

    By 1977, Pepsi had actually pulled ahead of Coke in food store market share. (Schindler, 1992) Coke's lead had dropped from a better than two to one margin to a mere 4.9 percent lead by 1984. (Bastedo & Davis, 1993) Coke was clearly in danger of becoming the Number-Two soft drink. In April 1985, the management of Coca-Cola Co. announced its decision to change the flavour of the company's flagship brand. The events that followed from this decision, as well as the factors which led up to it, have been reviewed, discussed, and extensively analyzed in this report.…

    • 1958 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Coca Cola Case

    • 858 Words
    • 4 Pages

    Coca-Cola began working with franchised bottles to be made available wherever and whenever a consumer might want it. It also initiated “lifestyle” advertising, emphasizing the role of Coke in a consumer’s life. In the early 1970s, the US soft-drinks market was on the verge of maturity, and as the major players, Coke and Pepsi offered products that 'looked the same and tasted the same,’ substantial market share growth seemed unlikely. However, Coke and Pepsi kept revitalizing the market through product modifications and pricing/promotion/distribution tactics. The soft drink industry sold to consumers through five principal channels: food stores, convenience and gas, fountain, vending, and mass merchandisers.…

    • 858 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Oligopoly

    • 347 Words
    • 2 Pages

    There are many soft drinks in the market, yet the main suppliers of popular soft drinks are only two: Coke and Pepsi. The soft drink market in America is a very big business with annual sales of $58 billion. Coke, with its patented Coca Cola drink, enjoys the dominant role in the soft drink market, and runner-up Pepsi is always challenging Coke for the top spot. In recent years, American consumers' preferences for soft drinks was changing from carbonated to non-carbonated soft drinks such as fruit juices or teas. This shift in taste gave Pepsi an excellent chance to challenge Coke. Pepsi purchased food giant Quaker Oats for $13 billion. Quaker Oats produces, in addition to Quaker oatmeal, a very popular non-carbonated soft drink called Gatorade with an annual sales of $2 billion. Pepsi also purchased a popular tonic called SoBe for $370 million. With these additions to its popular Tropicana orange juice, Pepsi now can challenge Coke at least in the non-carbonated soft drink market. Coke belatedly rose to Pepsi's challenge, experimenting with 100 different non-carbonated soft drinks. Thus, with rapidly changing consumer tastes at work in the modern economy, an economic hierarchy of firms is constantly challenged and often changed. To maintain the oligopoly position, a firm must continue to expand by merger or diversification. More importantly, the firm must constantly search for the changing pattern of consumer taste and immediately adapt to it. Otherwise, a mammoth firm of yesterday simply becomes a dinosaur of today.…

    • 347 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Pepsi Refresh Analysis

    • 555 Words
    • 3 Pages

    For decades, PepsiCo beverages have had success in capturing much market share of the soft drink industry through fascinating advertising campaigns. Their campaigns revolved around the idea that Pepsi was a drink for the young and young at heart. The advertisements were filled with optimism and aimed to bring people together in some way. At the turn of the twenty-first century, Pepsi was challenged with the fact that people were simply drinking less soda to switch to healthier options. In response to the issue, Pepsi began to expand its product portfolio by including healthier alternatives to the sugar-filled soft drink. Although it was a good attempt to conform to the more health-conscious world, this new focus hindered the attention that was given to their money-making products.…

    • 555 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Diet Coke and Coca Cola

    • 2857 Words
    • 12 Pages

    The coca cola company uses an agency as any other business does. Diet Coke (also known as 'Diet Coca-Cola ', Coca-Cola light or Coke light) is a sugar-free soft drink produced and distributed by The Coca-Cola Company. It was first introduced in the United States on August 9, 1982, as the first new brand since 1886 to use the Coca-Cola trademark. The…

    • 2857 Words
    • 12 Pages
    Good Essays
  • Satisfactory Essays

    The ability to meet the changing needs and preferences of consumers through product innovation and differentiation from traditional drinks is imperative in the maintenance of volume and growth in mature markets where PepsiCo’s has experienced a decline in sales and a reduction in the consumption of soft drinks. Continuous product innovation is also essential for acquiring larger market share in international markets with low saturation rate.…

    • 286 Words
    • 1 Page
    Satisfactory Essays

Related Topics