Coca-Cola Soft Drinks Brand Extension

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Coca-Cola Soft Drinks Brand Extension

Table of Contents

Background of Coca Cola
Extension Idea
Justification of the New Idea
Target Market
Marketing Strategy
Ethical Considerations
References

Background of Coca Cola

With a 19-percent increase in perceived brand value to approximately US$36.2 billion by 2019, Coca-Cola retains its place as the worlds most successful brand. In the U.S., Coca-Cola took over Disneys leading position, which fell to fourth place with an index score of 89.7 after its value proposition dropped 9 percent to $51.2 billion. Disneys brand value fell 9 percent to $51.2 billion. The Coca-Cola firm celebrated its 135th commemoration on May 8, 2021. It is not a surprise that the franchise has undergone many changes. In Atlanta, Coca-Cola sold nine beverages at Jacobs Drugstore daily, but today it sells over 1.9 billion refreshments in over 200 countries daily (Stuckler et al., 2018). Coke is probably one of the most well-known firms in the country today.

Back in 1886, when a new company was founded, it used discount coupons for beverages to increase its positive brand image. Asa Candler purchased Coca-Cola from the creator, Dr. John Pemberton, in 1892. In the beginning, Candlers marketing campaign budget was approximately $11,000. Coke was advertised on calendars, soda fountain cups, signs, pencils, wall signs, watches, and napkins. As early as 1895, Coca-Cola claimed that soft drinks were traded and consumed in every state in the U.S. The Coca-Cola label was an early proponent of emotional marketing before it became a trend. It has never tried telling its clients how tasty or fizzy or distinctive its beverages are, no matter how much the company has changed in recent years. Cokes marketing communications and slogans try to convey the lifestyle it wants to associate with (Stuckler et al., 2018). It knows that consumers place more emphasis on their feelings about an organization, not on what it can offer. According to a new report, Coca-Cola has built loyalty over generations by ensuring customer satisfaction among its customer base.

Extension Idea

The virtual fitness business is a perfect business idea following the advancing technologies. Early in its development, the fitness industry focused on small segments of the market and a small number of enthusiastic people involved. During the 1980s, a fitness craze centered around workouts, followed by the popularity of home exercise videos. First, one must choose the necessary equipment, devices, and fitness software to drive their online personal training business before creating a virtual workspace map. If trainers want to train their clients effectively, they will need to ensure they have the right technology to ensure they interact with their target clients remotely (Cvetkovi et al., 2018). Although the fitness industry has grown, there still be inconsistencies in the sector. Most people still do not go to the gym regularly despite higher expenditure and a fast-growing industry. Those who do not currently belong to a gym or take part in other gym classes are prime targets for fitness franchises.

Many factors are propelling the development of the simulated fitness market. Among the factors include the increasing need for fitness training to achieve fitness levels, the interest of insurance providers in online training facilities to lower health care costs, and the growing interest in health-related foods. As a result, the market is expected to continue to grow. Fitness facilities such as gymnasiums or other sports facilities have been forced to close due to the COVID-19 outbreak. The pandemic led to the rapid development of virtual exercise solutions, as people began working out at home. Due to tech glitches and the lack of interaction with the instructor, virtual fitnesss growing demand may be limited to some extent (Cvetkovi et al., 2018). There are multiple opportunities to grow the market due to the growing prominence of online workout routines among older adults and their emphasis on quality health and fitness.

This trend is set to continue during the projected timeline, as on-demand workout plans are by far the most sophisticated option that allows coaches to operate with their potential customers. On-demand streaming exercises are becoming more popular than live gym classes because they allow people to select an exercise design and intensity that fit their specific needs, regardless of class schedules (Cvetkovi et al., 2018). As a result of its popularity among routine-oriented gym-goers and people inclined to be coherent and accountable regarding fitness coding format and schedule, the live streaming segment is expected to grow the fastest.

Justification of the New Idea

The Coca-Cola Foundation makes donations of all sizes to help individuals live productive, healthy lives. Through this funding, local groups can expand their proper nutrition and physical activity programs. Healthy communities are the focus of the Coca-Cola Foundation. A healthy diet and regular physical activity are essential for a healthy lifestyle. Several health conditions are linked to sugary drinks, such as obesity, diabetes, and oral infections. Drinking one can of Coca-Cola beverage can have detrimental effects on health within an hour. It contains almost ten teaspoons of sugar in a single cola can (Greenhalgh, 2019). The world health organization recommends consuming less than six teaspoons of processed sugar daily. It is easy to reach this goal by drinking just one serving of Coke a day. As a result, within twenty minutes of sipping cola, a persons blood glucose increases dramatically. Thus, the company is endeavoring to counter the criticisms and uphold its mission of overseeing a sustainable and healthy community. The company introduced Coca-Cola Zero sugar for diabetic consumers. Also, starting an online fitness plan will help the consumers burn the excess sugars after taking the Coca-Cola drinks.

Target Market

This business targets the loyal Coca-Cola syndicate and the global population as a whole. Health specialists associate the intake of soft drinks with high chances of chronic health conditions such as obesity and hypertension (Cvetkovi et al., 2018). Thus, this initiative will accord the health-conscious customers to continue purchasing the Coca-Cola products without fear of suffering from the adversities associated with the consequences. In addition, technological advancements and the emergence of the deadly Covid-19 pandemic led to the increase in the virtual market, making this business proposal an excellent idea. Thus, the fact that Coca-Cola is a global brand means that the online fitness sessions will target the global market.

Marketing Strategy

After using social media and Coca-Colas official website to post the proposal, Coca-Colas loyal customers offer a $30 discount for the proposed monthly subscription. This approach will aim to attract the customers to consider enjoying the sweetness of the Coca-Cola products and reduce the excess amount of glucose they get into their bodies after that. After six months, a standard monthly subscription of about $150 will follow to ensure that the global customers enjoy the online sessions. Additionally, the endorsement of a worldwide celebrity will play a crucial aim in creating awareness in various international countries. Famous personalities and authority figures are more likely to be noticed by many people or product lines than ordinary advertisements. An endorsement from a celebrity can give a franchise a larger-than-life image. Subsequently, it will be wise to educate the channel marketers to ensure that they share the information with all the target customers across the global boundaries (Kingsnorth, 2019). The availability of the Coca-Colas official website and the various social media podia will help in marketing.

Ethical Considerations

Companies that are expanding need to be aware of international ethical dilemmas and the groups mission and vision. They also need to comprehend the organizations goals, regulations, and techniques. A companys long-term decision to bring in a new product involves several moral, altruistic, and decision-making issues. For instance, cultural consideration is crucial; everyone has a unique culture and nation with their unique history and customs, customs, cultural practices, and moral code. Language barriers can hinder a companys communication with local businesses and clients. Certain religious holidays and other cultural events can cause a halt to trading. An ethical and culturally sensitive approach is crucial for a big corporation if it wants to gain the trust of its customers, win its business and gain a competitive edge in the market. With the argument that the initiative will help burn the added sugar from the Coca-Cola products, the corporation needs to ensure that it produces beverages that match the health demands of the potential customers (Greenhalgh, 2019). Moreover, the marketing and pricing methodologies need to consider the economic discrimination present in all the global countries.

References

Cvetkovi, N., Stojanovi, E., Stojiljkovi, N., Nikoli, D., Scanlan, A. T., & Milanovi, Z. (2018). Exercise training in overweight and obese children: Recreational football and highintensity interval training provide similar benefits to physical fitness. Scandinavian Journal of Medicine & Science in Sports, 28, 18-32.

Greenhalgh, S. (2019). Making China safe for Coke: How Coca-Cola shaped obesity science and policy in China. BMJ, 364.

Kingsnorth, S. (2019). Digital marketing strategy: An integrated approach to online marketing. Kogan Page Publishers.

Stuckler, D., Ruskin, G., & McKee, M. (2018). Complexity and conflicts of interest statements: a case study of emails exchanged between Coca-Cola and the principal investigators of the International Study of Childhood Obesity, Lifestyle and the Environment (ISCOLE). Journal of Public Health Policy, 39(1), 49-56.