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The effect of Coca cola’s New Product (Ref No: 1347)
Table of Contents
4.1 Introduction to Branding Strategies.
4.2 Factors Affecting the Consumers’ Perception towards a Brand.
4.3 Theories and Models related to Brand Extension.
4.4 The impact of Brand Extension on the Sales and Profitability of Parent Brand.
4.5 The impact of Brand Extension on Consumer’s Perception towards Parent Brand.
5.1 Beverages Market and Recent Trends.
5.2 health concerns of the target market and its impacts on Carbonated Drinks Market
6. Methodology.
7. Conclusion.
7.1 Limitations of the Research.
11. References.
1. Introduction
The dissertation aims to analyse the impacts of brand extension on the consumer’s perception towards the brand. The brand selected for the dissertation is Coca-Cola as it has introduced a new product named Coca-Cola Life; the impact of the introduction of this new product has been analysed on the consumer’s perception towards the brand. The research aims and objectives of the dissertation are as follows:
- To study the effects of launching a new product as a brand extension strategy on the brand.
- To study the effects of the introduction of Coca Cola’s new product, Coca-Cola Life on the consumers’ perceptions towards the brand Coca-Cola.
- To analyse the success of Coca Cola’s strategy to introduce Coca-Cola Life as a brand extension.
- To recommend whether the brand extension can be used to improve the consumers’ perception towards the brand or not.
1.1. Background of the Study
In the view of Franco (2015), the brand extension is defined as the introduction of a new product or product variant under the head of an already established brand. There are numerous purposes of the brand extension by the companies. The effect of Coca cola’s New Product Those purposes include catering to a new segment of the market, countering a new product introduced by a competitor or increasing the market share of the brand. Marketing managers often use brand extension because they want the existing brand perception to help generate the sales of a new product. In accordance with Kotler (2011), the brand extension can help the companies improve the overall image of the brand especially if the new product has a higher value to the consumers. It is also one of the purposes why the brand extension is performed by the managers in the current era.
However, Martinez and Pina (2003) contradict the findings and state that the brand extension has led to decline in the brand value or it has been maintained because if the new brand is able to maintain the standards then consumers’ perception towards the brand remains same and in the other case, The effect of Coca cola’s New Product there is a negativity in the consumers’ perception towards the brand. Based on these assumptions, they concluded that the brand extensions cannot have a positive impact on the consumers’ perception towards the brand as a whole.
The discussion shows that the impact of brand extension on the brand value and consumers’ perception towards the brand value is still a debatable topic which forms the basis for this research as well. The case of Coca-Cola has been taken into account due to the fact that the researcher has personal interest towards the beverage industry and Coca-Cola has undergone the brand extension recently by introducing Coca-Cola Life product. This study will examine the impacts of brand extension in the consumers’ perception towards the brand specifically in the case of Coca-Cola. While pursuing the main objectives of the dissertation, the strategy of Coca-Cola in the introduction of Coca-Cola Life is also studied in a detailed manner.
2. Rationale
The concept of brand extension and its impact on the brand value has been studied by many researchers. It has been found by Serrao and Botelho (2008) that the brand extension is one of the popular and most common strategies being implemented by the marketing managers around the globe. Some of these have been successful where others have been a failure based on the relevance of the product introduced under the head of the main brand and its quality. In the view of Taylor (2004), there have been many researchers who conducted the research to analyse the impact of brand extension on the parent brand. Most of those researchers agree that there is a positive impact of the brand extension on the parent brand.
However, some of the researchers have concluded that if a brand extension fails, it can impact the credibility of parent brand as well due to the fact that the consumers’ perception about the brand is affected adversely (Martinez and Pina, 2003). The discussion shows that the research title is still debatable despite sufficient research being carried on brand extension. This discussion clearly highlights that there is a research gap pertaining to academic researches available currently. One of the rationales behind conducting the research on the current research title is that the research gap identified pertaining to academic research can be fulfilled and significant contribution can be made to theory and academic literature on the topic. As the brand extension is gaining importance and is becoming one of the most commonly employed tools by companies for successful marketing, therefore, an examination of its impacts on consumer perception is very important. So another rationale for the project is the application of the research into this topic for the companies which are considering the brand extension for their brands as well…
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