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Coca-Cola: Water, water everywhere... - Developing new products

Developing new products

The reputation of a brand plays a key role in market positioning as it represents an organisation's investment in its products. Organisations aim to leverage (or capitalise on) the strength of their brands by undertaking product line extension. For example Diet Coke (launched in Australia in 1983) was a natural extension of Coke and extended the Coke product line and brand.

Data collection and analysis is essential in new product development. Quantitative market research focuses on numerical information and key performance indicators (KPIs) and data such as market share, demographic targeting (Pump is primarily consumed by 20-30 year-olds) and sales growth (sales of Pump waters grew 35 percent in the first quarter of 2007). Qualitative market research relies on feedback through focus groups, new product testing and trials and web-based feedback.

Research and development in the bottled water market has seen the emergence of enhanced waters, which are based on adding natural flavours and/or vitamins and minerals to still water to enhance hydration. Enhanced waters are positioned somewhere between sports-drinks (which are primarily male-orientated) and still waters. It's only natural that an organisation such as Coca-Cola has tapped into the needs of this growing wellbeing market, with water that has enhanced flavour. Coca-Cola's Pump is positioned for the modern, active consumer. Its convenient squeezy bottle makes it an ideal choice for on-the-go hydration.


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Associated with:
Learning Area(s):
  • Business Environment | Mission and Objectives
  • Ethics and Social Responsibility | Risk Management
  • Ethics and Social Responsibility | Socially responsible programs and approaches
  • Global Business | Ethical global management
  • Global Business | Types of global business/expansion
  • Marketing | Ethical/legal marketing decisions
  • Marketing | Market research methods/analysis
  • Marketing | Marketing analysis and segmentation
  • Marketing | Marketing evaluation including use of KPIs
  • Marketing | Promotion strategies and their application
From: Edition 4

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