(3) Diet Coke in itself is a product line extension of Coca-Cola to find a relev
ID: 374358 • Letter: #
Question
(3)
Diet Coke in itself is a product line extension of Coca-Cola to find a relevance within the growing young citizens who are typically concerned about health and try to avoid the detrimental effect of the sugar is chronic diseases. In order to promote the notion of healthy supplement, diet coke was evolved. It began in the1970s when the market research team of the company 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. Diet coke was subsequently launched in 1982.
Though being a popular brand extension, diet coke suffers problems particularly due to the fact that being a 'diet' supplement of a 'regular' coke, it denigrates the regular brand image and as a result, the overall brand identity is harmed. To take care this, Coca-Cola has recently decided to focus on unique brand strategy (example - change of bottle's color to predominantly red). The diet coke brand can alternatively be modified and could be promoted as a 'healthy drink' instead of a 'diet' version of the regular coke. This will need minor alteration and innovation in the imagery and product attributes but will create a 'positive brand association' instead of a negative association which is prevailing now. This will also make the product more appealing to the target market without really harming the baseline brands of Coca-Cola.
(4)
Diet Coke is still the world's leading low-calorie soft drink, sold in a total of 149 countries with most of the sales being in the USA, Britain, Germany, Canada, and Australia. We will definitely conclude that this is still in its growth phase of PLC. However, within the coming five years, the product will reach its maturity and then may decline if no further innovation is not planned. But if innovative measures like those suggested in part (3) are taken, the product life cycle may be extended beyond this limit. Due to the introduction of a new brand which stands for a 'healthy product', the company will have the option even to launch that as a new product. In that case, the product can start a new PLC starting right from introduction phase. This will double the PLC of the product with optimal investment in the product attributes and hence will create positive cash flows for an extended period of time making the product a cash cow for the company.
Explanation / Answer
The product In Question is =Diet Coke=
3.) Product line extensions or new product development. Should the current product or service be modified to more fully meet the needs of your new target market? Would the changes constitute a new product line, a product line extension or a new product? If no product changes are needed, how does the same product or service meet the need of your target market differently than current customers?
4.) Product lifecycle. In which stage of the product lifecycle is your product or service offering now? Would the changes described in number 3 above change the lifecycle stage and if so how? What would this mean to the lifecycle marketing strategy?
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