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Business And Marketing : Brand Extension

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Question:

Write about the Business and Marketing for Brand Extension.

 

Answer:

Line Extension

Coca Cola Company has extended its existing brand name by introducing new flavors like the diet Coca cola with vanilla. This is a form of brand extension is what is referred to as line extension. Coca Cola did not develop an entirely new product for customers who do not take sugary food or drinks. Instead, the company used brands which were already in the market to introduce coca cola diet such as coke diet. (Ishikawa and Tsujimoto, 2008)

Brand Extension

Brand extension marketing strategy has also been practiced by coca cola. It involves using existing brand name but with new brand category. The latest example of this extension by coca cola is coca cola life. This brand was launched in Chile and Argentina in the year 2013 as a trial and will be subsequently launched to other parts of the world. This brand has low-calorie and sweetened with stevia and sugar blend and contains less sugar and calories by a third compared red coke brand. (Ishikawa and Tsujimoto, 2008)

Multi-Brand and New Brand

Multi-brand is a marketing strategy where different brands are developed under same category of products. Coca cola has practiced this strategy for long time and has several brands some new some old in the same product category. Example is Fanta citrous and blue current, same category but different brands. (Ishikawa and Tsujimoto, 2008)

 

References

Ishikawa, A. and Tsujimoto, A. (2008). Creative marketing for new product and new business development. Hackensack, NJ: World Scientific.

Stone, M., Desmond, J. and McCall, I. (2007). Fundamentals of marketing. London: Routledge.

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