Products, Positioning, and Market Segmentation
Advertising professionals realize that the heart of any campaign is the product and the position it holds in people's minds. Products and their brand names are newsmakers themselves. Wendy's hamburgers, Apple computers, and California raisins (particularly when they sing and dance) are objects of our attention and interest.
Understanding the complexities of a brand identity and its position is no easy task. A good case in point is the activities of Coca-Cola in the last few years. After a $4 million research project, Coca-Cola brought out a new Coke formula in May 1985 with the intention of retiring the old formula. To everyone's surprise, the intense feelings of American consumers
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When they first appeared, generics were seen as threats to brand products, particularly for products for which lower price might be a primary criterion for purchase. Although generics enjoyed growth during the recession of the early 1980s, with increase in American incomes, they have now dropped back to their selling level at introduction. In their growth stage, however, the threat they posed to brands stimulated major manufacturers to bring out lower-cost brands that were more competitive with the generics. It is interesting in studying the no-name generic phenomenon to compare these products with a product like Coke, which, because of years of advertising, has such a strong personality.
One of the most controversial areas of product concepts is the brand extension. A new product gets to share the name of an older, established brand. Early theorizing suggested that brand extensions would sap market clout from the established product, but these fears proved groundless. Today brand extensions occur not only within the company, but companies are licensing their brandnames to all kinds of products in the hope of increasing brand awareness. Department stores have whole sections devoted to Coca-Cola clothing. There are Strawberry Shortcake breakfast cereal, clothing, books, and tricycles. In July 1987, Sears began marketing McKids children's wear in a licensing agreement with McDonald's.
"Extensions Leave Brand in New Areas" discusses the growth, advantages and
When coming across a food advertisement, what is the first thing that makes you want to buy it? Is it the packaging of the product? Is it how delicious the food looks? Or is it the celebrity endorsement? Every company uses a combination of rhetorical strategies, such as ethos, pathos, and logos, to attract their customers. Popchips, for example, is a healthier, lighter version of potato chips. Instead of fried or baked, they are heated in a pressurized chamber and then quickly released, which makes them “pop”; hence the name. There are many different flavors of Popchips available and each of them has their own advertisement. All of the ads have one thing in common; the endorser, Popstar, Katy Perry. She automatically has fans grabbing bags off the shelves as quickly as they are stocked. The particular ad we are reviewing is the barbeque flavor. At first glance, we see large, lower-case words that say “love. without the handles.” Then, our eyes move towards the middle and we see thin, fit Katy Perry holding two bags of Popchips as if she were lifting dumbbells. Looking down in the left corner is the Popchips slogan, “think popped! never fried. never baked.” While pathos and logos both play a role in this Popchips ad, ethos is really what grabs the attention of most buyers.
While product promotion and advertising certainly suffered under Quaker control, the decline of Snapple was probably most affected by its the important driver of the Snapple brand in the beverage industry, its distribution. One important issue that arose during brand analysis under Quaker was that consumers began reporting that they could no longer find their favorite, or otherwise offbeat flavors, of Snapple anymore. This illustrated the effect of Quaker’s new distribution strategy in trying to use the original Snapple distribution channels to proliferate other Quaker products, but the relationship was just
Without executing properly on brand awareness a consumer will not be able to differentiate between its’ competitors. There are hundreds of different types of beverages to choose from and even sodas for that matter. In order to stay market leaders, Coke and Pepsi most continue to innovate and adapt to new competitors, not only on a domestic scale, but on a global scale. They must also continue to acquire brands that pose a threat. Below is a chart of the top, nonalcoholic beverage brands that control the marketplace.
The Coca Cola company is perceived to be the most famous trademark on the globe, and it is equally so. The company claims more than 400 brands that appeal to a wide range of individuals throughout the world. They are in a position to fulfill needs of every one of their buyers making their experience with their beverages a better one. The entity’s drinks entice a lot of people across all races, age, and gender. Coca Cola is outstanding for its overall popularity as its items are sold in over four hundred countries in the world, while major contenders like Pepsi are just available in very few countries. Such a competitive advantage has placed
Coca-Cola is the result of a patent medicine formulated in a small southern pharmacy over a hundred years ago. It has grown into a multibillion dollar international company. It also owns one of the most valuable brands in the world. Their Coca-Cola banner has won the world’s top brand 13 times on brand c-consulting firm Interbrand’s annual list (Fraser, 2012). In addition to its main product, Coke, the company owns over 3500 beverages. One of its core competencies is brand building. They have built their brand to have respectability and dependability. Their brand and logo are recognized all around the globe. It has actually become a new known on almost all households worldwide (RNWILKIN, 2009).
n April 1985, the management of Coca-Cola Co. announced its decision to change the flavor of the cotnpany 's flagship brand. The events that followed from this decision, as well as the faetors which led up to it, have been reviewed, discussed, and extensively analyzed in the popular press, the trade press, and in marketing textbooks. Two books and at least two marketing cases have been written on the events surrounding the flavor change decision. Also, a well-known, but somewhat older Harvard Business School marketing case deals with some of the key events which led up to the decision. Despite the extent of this
most of Coke's competitors (Pepsi, 7 Up, RC) also have widely recognized brand names as well,
Uniqueness is the third major factor for building brand image. According to Pearson Case Study 4 (pp 71-2), Red Bull created a new food category, Functional Food that enabled it to have the unique ability to make any performance claims about a food. The study notes (p 81) that this act enabled Red Bull to “establish the brand’s prominence on its own terms.” This gave it a unique message to communicate to its users, and a significant barrier to entry for competitors. It now enables Red Bull to establish in consumers the belief that its characteristics are prototypical for all members of this category, because today there are competitors. Keller (p 59) notes that this is positive for brand image.
The best part of the Coca-Cola branding wasn´t the invention of the product, or even the manufacturing and distributing it, but in telling a clean, particular, periodically magnified proclamation about the product. Coca-Cola persistently advertised the quality of their product as part of their brand
One of the main revolutions in Coca-Cola’s history is the change of your recipe (The Coca-Cola Company, 2012). However, the public reaction to the change was negative, even hostile. As a result, the new cola became a major marketing failure. When a product or service is consumed regularly, the consumers would expect it to be constant in character (Brehm, 1989). It is considered to be one of their freedoms that the character remains constant. By
Coca-Cola has been around for generations with the same iconic taste, logo and symbolism. Its brand has represented family and the memories of good times, celebrations and comfort of being with those we love. Unfortunately, the company has not made good marketing decisions in the recent past and has lost relevancy. The purpose of this essay is to assess the conditions that created Coca-Colas marketing problems, evaluate the future of healthy beverages and non-carb drink brand extensions, and provide recommendations to the management.
Having worked in one of the leading healthcare companies, I have seen a situation where a product has been performing well for quite some time due to the famous brand name but after a while the sales of the product have dwindled and the management of the company is left wondering where they went wrong. With proper information about the trend of a branded product, a company might be in a position to stop such an occurrence and to maintain a great sales performance for a branded product. I theorized that consumers are generally interested in brand-named products, namely products that provide them with status, security and importance.
Founded in 1892, the Coca-Cola Company is known to have created the “world’s best-selling soft drink.” However, in the 1970s, Coca-Cola was rivaled by Pepsi-Cola, a competitor offering a substitute product. Coca-Cola had been winning the war for over 87 years when consumers began to prefer Pepsi-Cola’s product. Even loyal Coca-Cola consumers admitted to desiring Pepsi over traditional Coke. These confessions, combined with Pepsi’s own research findings, encouraged Pepsi to unleash a new stream of advertisements dubbed the “Pepsi Challenge.” These ads depicted participants choosing Coca-Cola soft drinks, which were later revealed to be Pepsi soft drinks. The Coca-Cola Company was worried and began researching and developing a new Coke formula. When the formula was completed, blind taste tests were conducted to determine how consumers would react to the new formula. In all the tests, consumers preferred new Coke over Pepsi and old Coke. The company did many more tests to verify those findings; Coca-Cola Company spent over $4 million on the research and sampled over 200,000 consumers. The company took the new formula public and felt very confident. Initial reactions to new Coke were positive, and as expected, customers consistently chose new Coke over old Coke. However, customers loyal to old Coke were incensed at the change in the formula. They wrote angry letters, rioted and boycotted the new Coke formula. Coca-Cola Company
This consulting paper aims to focus on the challenges of Procter & Gamble in the area of brand management. The topic of brand management is an important aspect of multi-national companies like Procter & Gamble especially in the area of consumer goods. The tasks being encountered by consumer goods companies like Procter & Gamble present the highly complicated business environment characterized by increased global competition, the need to diversify products, and the pressure to reduce cost while maintaining brand quality (Haas, McGurk, and Mihas, “A new world for brand managers”). These business elements are important indicators that must be addressed by Procter & Gamble in order to maintain their market edge and competitiveness especially in an immensely globalized economy and great competition in the area of consumer goods. The paper’s objective is to identify the various possible issues and challenges that can impact Procter & Gamble’s marketing efficiency specifically in the area of brand management.
The definition of private label branding has evolved significantly over time. Some would argue the term “private label” is a misnomer of great proportions. There is no question that the words “private label” acknowledges the birth, history and existence of generic and store brands. Yet, the term does not adequately capture the extent to which private label has progressed. Today 's retail marketers are managing their proprietary brands with the same combination of care and innovation as manufacturers of national brands.