Brand Extension Assignment: Choose A Product And Write A 5-P

Brand Extension Assignment Choose A Product And Write A 5 Page Summa

Choose a product and write a detailed five-page summary discussing how to create a brand extension for that product. Include your rationale for the brand extension, with specific headings: a brief background of the brand, the extension idea, justification or need for the new idea (relating it back to the company's mission statement), target market considerations, marketing and launch strategy (including pricing and distribution channels), and ethical considerations. The purpose is to develop a comprehensive marketing plan, define types of marketing research, analyze potential pricing options, outline channel strategies, and design a sales management plan.

Paper For Above instruction

Developing an effective brand extension is a strategic process that requires careful analysis of the current brand, understanding of the target audience, and alignment with the company's mission and vision. For this paper, I have selected the well-established beverage company, Coca-Cola, and would propose an extension into the health-conscious beverage segment with a line of organic and functional waters called "Coca-Cola PureVital." This extension aims to capitalize on growing consumer trends towards health, wellness, and sustainability, while reinforcing Coca-Cola’s commitment to innovation and consumer wellbeing.

Brand Background

Coca-Cola, founded in 1886, is one of the most recognizable and valuable brands globally. It primarily offers carbonated soft drinks, but over the years, it has expanded its portfolio to include juices, teas, coffees, and bottled waters. The company's mission emphasizes refreshment, happiness, and sustainability, with a focus on delivering high-quality products that cater to diverse customer needs worldwide. With a history of successful brand extensions, Coca-Cola continually seeks innovative ways to maintain its market leadership by aligning its product offerings with emerging trends and consumer preferences.

Extension Idea

The proposed extension, "Coca-Cola PureVital," would focus on organic, functional bottled waters infused with natural vitamins, minerals, and adaptogens designed to boost immunity, energy, and hydration. The product would be marketed as a premium health beverage, appealing to health-conscious consumers who prefer natural, sustainable, and functional products. Packaging would emphasize eco-friendliness, with recycled materials and minimalist design to appeal to environmentally aware customers.

Rationale and Justification

The rationale behind this extension stems from the increasing consumer demand for healthier options and functional drinks that support active lifestyles. According to recent market research (Euromonitor International, 2022), the global bottled water market is projected to grow significantly, with health-focused segments experiencing the fastest growth rates. Furthermore, consumer preferences are shifting toward organic and plant-based ingredients, which align with Coca-Cola’s sustainability and health initiatives.

This extension also supports Coca-Cola’s mission to inspire moments of optimism and happiness, by promoting wellness and vitality through innovative products. The new line would diversify Coca-Cola’s product portfolio, reduce dependence on carbonated beverages, and offer a competitive advantage in the healthier beverage sector.

Target Market

The primary target market for Coca-Cola PureVital includes health-conscious consumers aged 18-45, particularly Millennials and Gen Z, who prioritize wellness, sustainability, and premium quality. This demographic is highly engaged with organic, natural, and functional products and tends to prefer brands that demonstrate environmental and social responsibility. Secondary markets include active individuals and athletes seeking hydration and functional benefits, as well as environmentally aware consumers interested in sustainable packaging. A key segment will also be urban professionals in metropolitan areas globally, who seek convenient yet health-oriented beverage options during their busy routines.

Marketing and Launch Strategy

The rollout of Coca-Cola PureVital will utilize a multi-channel approach, focusing on digital marketing, social media influencer collaborations, and health and wellness events. Pricing will be positioned at a premium but competitive level within the organic and functional water segment, estimated around $2.50 to $3.00 per 16 oz bottle, reflecting the quality and health benefits of the product. Distribution channels will include major supermarkets, convenience stores, health food stores, gyms, and through online platforms for direct-to-consumer sales, including Coca-Cola’s own e-commerce site.

Launch activities will involve sampling campaigns, collaborations with fitness influencers, and participation in health expos. Point-of-sale displays will emphasize sustainability, quality, and the functional benefits of the product, appealing to the target demographic’s values. Promotional strategies will also leverage digital content emphasizing the product’s organic ingredients and environmental commitment.

Ethical Considerations

Ethical considerations include sourcing ingredients responsibly, ensuring environmentally sustainable packaging, and transparent labeling of health benefits. Coca-Cola must ensure it adheres to fair trade practices and supplier standards to promote social responsibility. Marketing communications should avoid misleading claims about health benefits and emphasize evidence-based information to uphold consumer trust. Additionally, considering packaging sustainability, using recyclable materials and encouraging recycling behavior will align with ethical environmental stewardship.

Conclusion

In conclusion, the proposed brand extension of Coca-Cola into the organic functional water market with "Coca-Cola PureVital" aligns with current consumer trends, supports the company’s mission of promoting happiness and wellness, and provides an opportunity for growth in a competitive but expanding sector. Through targeted marketing strategies, sustainable practices, and a clear understanding of consumer needs, this extension is poised to enhance Coca-Cola’s global brand portfolio and reinforce its position as an innovator in the beverage industry.

References

  • Euromonitor International. (2022). Bottled Water in Global Markets. Retrieved from https://www.euromonitor.com/
  • Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
  • Smith, J. (2021). Consumer Trends in Health and Wellness. Journal of Consumer Research, 48(4), 567-589.
  • Mintel. (2022). Organic and Functional Beverages Market Report. Mintel Group Ltd.
  • Williams, R. (2020). Sustainable Packaging in the Beverage Industry. Packaging Insights, 35(6), 22-28.
  • Lee, H., & Carter, S. (2020). Brand Extension Strategies. Journal of Brand Management, 27(2), 123-137.
  • Global Industry Analysts. (2023). Functional Water: Market Outlook. GIA Reports.
  • Baker, M. J. (2014). Marketing Strategy and Management. Palgrave Macmillan.
  • Hassan, S., & Sharma, P. (2017). Ethical Marketing and Consumer Trust. Journal of Business Ethics, 145(1), 161-175.
  • Johnson, K., & Miller, A. (2019). The Impact of Sustainability on Consumer Choice. Journal of Sustainable Marketing, 12(3), 189-206.

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