Kevin Arias

Principles of Marketing

3/29/2020

Assignment #3
1. Explain the reasons behind Coca Cola's decision to launch a new flavor. Evaluate the decision: do
you think it is a good decision? Explain/justify your opinion -- why or why not? (3 points)

Coca Cola has a robust global presence. To stay relevant as a company, they provide product line
extensions to give variety and gain new consumers. It was a good idea for Coca Cola to launch their
unique Orange Vanilla flavor. Loyal customers deserve new variances of flavor that compliment the
original recipe. Taste testers from Business Insider confirmed how the new flavor was more appealing
than expected. Under these circumstances, launching this unique flavor was a good move.

2. How will this decision help the brand? What are they expecting? What are some of the dangers of
implementing such a growth strategy? (3 points)

It will give another reason for a customer to love the brand if they like the new flavor. The
company is expecting its market share to go up with this new flavor. The original vanilla coke was a hit
and showed how it was firm in recent years with minimal marketing support. If the new flavor can
perform the same or even better than vanilla coke, then the new flavor was a hit. The only issue or
danger that may persist is that people do not give the new flavor a chance, or it does not come to their
liking. In this case, the flavor would eventually be discontinued, and Coca Cola would use it as a learning
block upon future flavors.

3. Earlier in the term, we discussed that brands can grow in many ways (Penetration, Market
Development, Product Development, Line extension, Brand Extension, etc.). What kind of a strategy
does this decision represent? You MUST provide a clear explanation of your answer. (3 points)

Coca Cola is using a brand development strategy. The ultimate goal is growth. By offering new
flavors it shows that the company does not want to be bland or stagnant. It shows how they want to be
bigger by offering new flavors in hopes of attracting new consumers. Having multiple successful
products is also how a company becomes more than just a regular company. Coca Cola grew to
something more than just a soda company for many reasons. The main one is how they offer variances
to their consumers for all sparkling and still beverages. By doing this, they acquire most of the
consumers since they offer almost anything you would want to drink.
 4. In class, we discussed several BRAND DEVELOPMENT strategies (Line extension, Brand
extension, etc.). What kind of strategy does this product launch represent? You MUST provide a clear
explanation. (3 points)

Coca Cola is using a line extension strategy. Orange Vanilla Coca Cola still contains the original recipe but
just modified. It adds variety to its existing product. Since it is not a whole different product, it makes it a
line extension. Some consumers may get bored by drinking the same product, but if there is a new flavor
that they like, they will tend to have the product in their arsenal for much longer.

5. With respect to the Total Product Concept, identify parts of the Core and Actual product. Also,
highlight how the brand is mixing both tangible and intangible elements to deliver the product
experience. (3 points)

Coca Cola is known all around the world by both its name and logo. Its brand equity is very
valuable as it earned many benefits over the years. One crucial one is brand loyalty because consumers
will prefer coca-cola products over any other soft drink. The trust consumers give to Coca Cola goes a
long way and it's a fundamental aspect to their success. Coca Cola's products are also very convenient,
due to the price and it being available everywhere. Anyone can afford a soda so the company did a great
job in convincing people to choose Coke. Coca-cola conducts their research and stays in touch with what
consumers want. With this research the product line extensions of coca-cola grows globally and suits
itself to customer needs and still stays loyal to their original products that have brought the brand to
where it is today.