Coca Cola India 301081324

CASE STUDY –
COCA COLA INDIA- MORE THAN JUST SUGAR AND FIZZ
MKTG - 717
Ethics & Stakeholder Management
Submitted to: Prof. MIKE SULLIVAN
Submitted on: July 15TH , 2020
Submitted by:
Kumud Arya – 301081324
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Based on the case study and what you have learned about Brand Extensions, do you
believe that Coca-Cola India should move beyond its core business of soft drinks into
other business categories?
Yes, Coca-cola India should move its business beyond its core business of soft drinks into
other categories. As a soft drink brand, Coca-Cola should practice category extension. Though
they have already started doing the same in India and has launched products in different
categories as a strategic shift to capture market that is interested in healthier drink options
from sugary drinks. The categories they have entered are flavored milk, coconut water and
tea. Since tea- coffee and juices has the major market share in India, Coca-cola should focus
on introducing more products under this line.
Coca- Cola is planning to introduce fruit-based products which can promote virtuous circular
economy. This will fulfill initiatives by adding the juices to their product portfolio, adding the
local Indian fruits to the types of flavors available in the drinks, it will help in launching new
products and can export fruits to other global markets.
Adding new categories will reduce the brand dependence on single flavour or category as in
the current times people are more aware about their health and healthy beverage options and
not shifting to different categories would be unfavourable for Coca-Cola in longer run.
Since Pepsico is the direct or major competitor for Coca-Cola, they have already introduced
some major products in different categories, this will reduce the overall market share of Coca-
Cola. Overall, this move will help Coca-Cola leverage the brand’s strength and prevent losing
it’s share to pepsico.
This move will also address the changing consumer preferences and will promote the brand
growth. It will also bring new customers to the brand who always prefers fruity or healthy
beverage options.
Based on what you have learned about Brand Extensions, which of the following two
strategies would you recommend, and why?
 A line extension of existing products
 Create new products for new categories
I would recommend Coca-Cola to go with the following option:
 Creating a new category extension of the products
Category extension would help cater different type of consumer and will help Coca-Cola capture
major market share. Since customer base in India is evolving and growing every day.
Technological and Lifestyle changes are affecting Indian Consumers buying behaviour which has
become more demanding and value conscious.
Rapid urbanization is also changing the lifestyle habits of Indian consumers which is shifting
towards healthier lifestyle and is looking for healthier option. Since consumers are more
concerned about health and well being, introducing a new category catering to these consumer
needs and demands would address to the changing consumer preferences.
Also, the competitors are responding well to the new consumer habits and buying behaviours
which is affecting the market share of the Coca Cola brand. Adding a new category line would
help Coca Cola prevent the entry of competitor and would help leverage the brand’s strength in
the market. This way competitors won’t be able to claim that Coca-Cola don’t have and healthier
options than them.
This move will also benefit the parent brand by
 Incrementing brands ‘associations.
 Improving Retailers’ interest towards the brand
 Motivating consumers to buy products from their brand
 Adding new customer base to the brand
 Improving brand loyalty
As Coca Cola India moves towards extending its business, what challenges do you believe,
based on what you learned about Brand Extensions, the company should prepare for as it
makes these strategic business initiatives?
 Brand Dilution: Coca-Cola should not deviate from the true meaning and true offering of
its brand. As Coca-Cola launched too many flavours in the global market, it started to
dilute the original meaning of the brand. Therefore, they should stay away from the same
mistake in the Indian market as it diluted the true meaning of the brand.
 Risk to the Parent Brand: Coca-Cola should launch and market the products carefully.
One wrong launch can give Coca-Cola bad press and bad market image as well. If the
product fails, it loses the consumer’s trust and loyalty towards it. Also, one bad product
can spoil the image of the brand in the minds of retailers as well as the stock owners. This
will give a major setback to the brand.
 Not the right fit: Launching the products which deviates the consumer from its’ main
brand image. For example, if they enter frozen foods category.
 Negative Brand Association: Launching more flavors of sugary carbonated beverage
when consumers are looking for healthier and non sugary options of the beverage.
 Cannibalization and Increased Costs: When the new launch results in decline of sales and
revenue of old and signature products. For example, if the company launches some
healthier option of coca-cola’s signature beverage then people might deviate and
purchase just the healthier option resulting in sharp decline of coke’s sale.
Also, just introducing new bottle design that is more efficient and cheaper than the
previous one would shift the consumers to the new design and would deviate the sales
from the signature bottle design.
 Product affordability: Coca-Cola should launch affordable line of products and category
extension costs should not affect the overall costs of the product.
Overall, Coca-Cola India should test the waters before jumping into a new product category.
Also, it should be prepared how to combat a backslash from the customer. Also, it should be
prepared for a stiff competition from its competitors already producing healthy beverage options
such as Pepsico India Holdings Private Limited, Hector Beverages Private Limited, Parle-Agro
Private Limited. Since they are planning to use natural sweetener, they should take in account the
failure of the Coca-Cola Life brand failure before experimenting the same in Indian Market.
At the end, their marketing propagandas should be very clear and should target the right market.
Wrong marketing agendas and propagandas would result in negative impact on the brand. They
should be prepared for the backslash they might be getting from the non targeted market. They
should also be prepared for the brand extension failures and brand managers should take all the
risks into account and should proceed with the calculative risks only. Since the juices and other
beverages categories are not in the line with the parent brand, it might result into a failure and
bad press. Brand managers should calculate the risk and prepare for the combacks they might
need to have to save the parent brand from negative image and the backslash.
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CASE STUDY –

COCA COLA INDIA- MORE THAN JUST SUGAR AND FIZZ

Ethics & Stakeholder Management

Submitted to: Prof. MIKE SULLIVAN

Submitted on: July 15TH , 2020

Kumud Arya – 301081324

other business categories?

on introducing more products under this line.

products and can export fruits to other global markets.

it’s share to pepsico.

strategies would you recommend, and why?

 A line extension of existing products

 Create new products for new categories

I would recommend Coca-Cola to go with the following option:

 Creating a new category extension of the products

become more demanding and value conscious.

needs and demands would address to the changing consumer preferences.

options than them.

This move will also benefit the parent brand by

 Incrementing brands ‘associations.

 Improving Retailers’ interest towards the brand

 Motivating consumers to buy products from their brand

 Adding new customer base to the brand

 Improving brand loyalty

makes these strategic business initiatives?

will give a major setback to the brand.

brand image. For example, if they enter frozen foods category.

 Negative Brand Association: Launching more flavors of sugary carbonated beverage

from the signature bottle design.

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