Coca Cola Product Life Cycle

Topics: Coca-Cola, Soft drink, Advertising Pages: 8 (2120 words) Published: September 10, 2009




Coca-Cola - The Beginning

The history of Coca-Cola goes back to1886 when it was invented by Dr John Pemberton, in Atlanta, Georgia, USA. According to legend, Dr Pemberton was trying to develop a revitalizing tonic and produced a thick brown syrup that he carried down the street in a jug to Jacob’s pharmacy. It was sampled with carbonated water, pronounced ‘delicious and refreshing’ and placed on sale for five cents a glass as a soda fountain drink. In trying to develop the new product, Dr Pemberton’s partner and bookkeeper, Frank M. Robinson, suggested that two ‘c’s would look good in advertising and penned the now famous trademark ‘Coca-Cola’ in his unique script. The first newspaper advertisement for Coca-Cola appeared in the Atlanta Journal and invited thirsty citizens to sample the new refreshing soda fountain drink. During the first year sales averaged a modest nine drinks a day!

In 1888, John Pemberton sold his interests to Asa Chandler. Chandler formed The Coca-Cola Company in 1892 and by 1895 Coca-Cola was being drunk in every state across America. As demand for the product grew, production was increased and it was made available in bottles rather than just through the soda fountain. The opening of bottling plants in 1909 meant that all the elements were in place to launch a global brand. Little did Pemberton know the impact his mixture was to have on the soft drinks industry. Today Coca-Cola is located all over the world. In Ireland they have concentrate factories in Drogheda and Ballina, and bottling plants in Dublin and Belfast. Here the concentrate is mixed with carbonated water, bottled and sold. These businesses work hard to quench the thirst of the Celtic Tiger so much so that Coca-Cola holds a54% market share of the Carbonated Soft Drinks (CSD) business in Ireland. A total of 910 people are employed in Coca-Cola businesses in Ireland. The payroll to these employees is in the region of £15m each year. But this is only a fraction of the money that Coca-Cola contributes to the Irish economy. In addition to wages, Coca-Cola spends£50m on Irish raw materials and £25m on Irish services, such as marketing and transport. That represents £90m ploughed back into the economy by Coca-Cola each year. This case study will focus on the second key brand in The Coca-Cola Company, diet Coke. It will examine how diet Coke was developed, positioned in the marketplace and how the advertising for diet Coke has developed as the brand has evolved.

Product Life Cycle

The Coca-Cola formula has always been a well-kept secret and has not changed through the years. In other respects, however, Coca-Cola has been constantly developing. This has been important in maintaining the brand in its number one position. It is quite natural for products to go into decline, at some stage, after being introduced into a market. This isknown as the product life cycle. The trick is to delay this decline by constantly developing the product and or the brand, to extend its lifecycle. Within an industry sector it is possible top lot the position of several similar products on a product life cycle diagram. For example, the diagram below shows the different types of drives that have been used in computers since the 1970s. You may not have heard of the 5” drive but that is because it is not available in most...
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