Coca Cola product life cycle Case Study Example | Topics and Well Written Essays - 1500 words

Coca Cola product life cycle - character reference Study ExampleThis concept holds that the life of any product can be divided into intravenous feeding distinct periods. The original one is the introduction phase, in which the initial sales are made to customers that akin trying out new products, although sales in this phase are inadequate to recuperate cost of the products development (GecEvska et al, 2010 p209). The second phase is the growth peak, in which the sales rapidly amplify with increasing product popularity and profits begin to be generated. The third stage is referred to as the maturity stage, which generates nearly of the products profits and sales and is the longest phase. Most companies seek to prolong this phase to gain profits by implementing extension strategies. The last stage is decline, in which the product sales begin to deteriorate and being profitable. Marketing strategies should be adapted to external dynamics within the marketplace for every stage (Matsokis & Kiritsis, 2010 p789), which Coca-Cola has done to make it the most consumed global soft drink company.Coca-Cola was founded in mid-1886 by John Pemberton and was first introduced in form of a dada fountain drink (Coca-Cola Company.com, 2012 p1). During this stage, it was sold at 5 US cents for each glass. Because John Pembertons partner and accountant Frank Robinson believed that Cs would be cute in advertising, they settled on the name Coca-Cola. The objective of Coca-Cola during this phase was to generate initial awareness nearly the product and put it in the market for trial by the public, which exceeded Dr. Pembertons initial targets (Allen, 2012 p13). In addition, they totally launched a basic product that was not even sold in bottles. Rather, they sold the product from soda fountains located strategically at Dr. Pembertons businesses. In addition, the company used a cost rundown pricing strategy during this phase and it has been suggested it is most likely the y used price skimming in clubhouse to