Marketing Design Innovation - Assignment Example

Marketing Design Innovation Table of Contents Task 3 Benefits and Value Derived by the or s or Recipients 3 Uniqueness of Design Elements – Shape, Colour, Design, Imagination, Relevance And Usefulness 5 Brand Appeal In Relation To Competitors in Contemporary Markets 7 Task 2 9 Summary of the Journey Discovered Through the Module, Learning Outcomes and Challenges Faced 9 References 13 Task 1 Benefits and Value Derived by the Clients or Customers or Recipients Diet Coke is one of the best carbonated drinks, which provide by The Coca-Cola Company to its customers. It has been viewed that after the introduction of Diet Coke into the market, there has been a huge demand for this product (The Coca-Cola Company, 2010). Accordingly, this product i.e. Diet Coke has been the biggest selling product of Coca-Cola in America as the drink contain lower content of calorie. This aspect of the product eventually attracted huge number of customers as it was benefitting them to a huge extent. The benefitting factors of Diet Coke to the customers can be ascertained as that it provided a refreshing experience to the customers with greater taste along with refreshment (The Coca-Cola Company, 2010). Likewise, Diet Coke is totally free from sugar, which only includes 1 kilocalorie (kcal) for a diet coke of 250 millilitres (ml) consumed by the customers. It has been viewed that the needs of the customers have been frequently changing due to which Coca-Cola has taken the initiative of focusing on products such as Diet Coke and other light products that provide innovative packaging to the customers. Moreover, in order to address the changing requirements of the customers, the company has offered variation in its choices of products to customers that would match their preferences and lifestyle (The Coca-Cola Company, 2012). Diet Coke provides a huge value to the customers as the product has created the awareness of the customers regarding the maintenance of a healthy diet. Diet Coke has been developed in an innovative way and it has been the product that has responded to the trendy requirements of the customers (Bates, 2011). The company i.e. Coca-Cola has understood that through offering the product of Diet Coke, long-term growth can be achieved as it caters the emotional requirements of the customers. Diet Coke has been the product, which has crafted the message of bringing in an evolution within the customers experience that is totally driven towards their preferences and desires. It has been apparent that needs of the customers have been continuously changing and the company has adopted a perfect strategy by introducing Diet Coke in the market as the product tends to address the changing requirements of the customers (Bates, 2011). In the present day context, people have become more conscious about their health maintenance and Diet Coke has been the perfect product, which has been developed considering the aspect of health maintenance for customers. This particular factor has helped in providing huge value to the customers and resulted in meeting their requirements at large (Bates, 2011). It can be asserted that the benefits and the values derived from Diet Coke have supported Coca-Cola to attain superior competitive position. It has been apparently observed in this similar context that there has been a steady increase in the demand of Diet Coke within the customers and the product has been popular amid the people of 18 to 34 years old (Ashley, 2012). It has been witnessed that Diet Coke has been popular among the above discussed group of people as the product is more focused towards considering the health aspect of the consumers. Moreover, its stylish look has been the major factor for the customers to get attracted to the product. Overall, it has been often observed that benefits and values of Diet Coke have changed overtime wherein the product has gained huge popularity as the content of calorie in this particular product found to be relatively lower as compared to other products in the market. In relation to the benefits, Diet Coke has resulted in providing a refreshing experience along with catering changing tastes and preferences of the customers due to which it has gained the centre of attraction in the global market (Ashley, 2012). Uniqueness of Design Elements – Shape, Colour, Design, Imagination, Relevance And Usefulness Diet Coke has been designed in such a way, which is unique from all other products accessible in the market. The product i.e. Diet Coke can is cylindrical in shape, which has been the main centre of attraction for the customers. In addition, the colour of the diet coke can is silver, which properly matches with the product and its specifications. Moreover, it has been viewed that customer imagination in relation to the design and colour has been completely fulfilled due to which the demand of the product has increased in the market (The Coca-Cola Company, 2010). Likewise, it would be worth mentioning that Diet Coke has been developed with a series of imagination and innovation so as to design the product in a unique manner. The key features of Diet Coke are that it does not contain any carbohydrate content and is totally free from sugar. Besides, Diet Coke is low on calorie, which has added up as a key feature to the product and helped the customers in maintaining their health. It has been revealed that Diet Coke was actually sugared with aspartame initially after which the sweetener turned out to be available in the US during the year 1983 (Astley, 2013). The formula used for producing Diet Coke product is entirely different to that of other products produced by Coca-Cola (The Coca-Cola Company, 2010). The product was produced with the intention of offering sugar free refreshment to the customers suffering from diabetes and who are more concerned about the extent of calorie they consume in their daily lives. It can be asserted that Diet Coke is relevant to the customer requirements, as it has matched the sophisticated lifestyle of the people along with balancing their tastes and preferences. Accordingly, the product has maintained the history of serving both adult and younger group of customers by keeping the product more relevant to use for them. Coca-Cola has stressed much upon bringing flexibility in its product offerings and being connected with the customers due to which Diet Coke has made a continuous growth in the market through becoming culturally relevant to the distinct group of customers. It has been revealed that there are various uses of Diet Coke to the customers as the features imbibed in this product tends to be completely useful for the customers (The Coca-Cola Company, 2010). The first usage is that it uplifts the mind of the customers, which results in regenerating their energy to undertake a certain task. Moreover, it stimulates the frame of mind to endure positivity in the approaches of the customers towards performing any act. Likewise, Diet Coke’s main usage is that it provides an opportunity for bringing refreshment and joy in customer’s life (The Coca-Cola Company, 2010). It has been apparently recognised that the design of Diet Coke has been changing overtime in order to cater the changing requirements of the customers (Klara, 2011). In recent years, Coca-Cola has introduced various limited editions of Diet Coke in the market that changed the entire design of the product. However, the colour scheme, which was previously present in the Diet Coke cans, has not been changed. Therefore, it can be ascertained that the product redesign of Diet Coke has been initiated so as to match the fashionable lifestyle of the people in the community (Klara, 2011). Thus, it can be affirmed that the design of Diet Coke has been changed as per the changing needs of the customers. Brand Appeal In Relation To Competitors in Contemporary Markets Diet Coke has been produced in the market, which has been totally different from other products produced by Coca-Cola and its competitors. Specially mentioning, Porter generic strategies have been taken into concern in order to acquire a clear understanding regarding the position that Diet Coke holds in the customer mind-set and the market. It has been revealed that Coca-Cola has used a differentiation strategy, which helped the company to remain different with innovativeness as compared to its major competitors (Vrontis & Sharp, 2003). Diet Coke has been successful in creating a unique value in the eyes of the customers with the help of this differentiation strategy. This in turn has created a good position of Diet Coke in the market and has attracted the customers through providing superior quality of the product to them. Moreover, the company has also utilised a cost leadership strategy, which has resulted to low cost of production through effectively using distribution networks, reasonable labour and innovation system (Vrontis & Sharp, 2003). As a matter of fact, it can be asserted that through the application of the above discussed Porter’s generic strategies, Coca-Cola has been successful in attaining superior competitive position in terms of creating a good position in the market and positively influencing the mind-set of the customers towards buying this product in bulk (Vrontis & Sharp, 2003). Based on the above discussed Porter’s generic strategies, it can be acclaimed that the cost leadership and the product differentiation strategy that adopted as well as executed by Coca-Cola has supported the company to successfully promote its product i.e. Diet Coke as compared to the products of its competitors. Thus, it can be asserted that the strategies used by the company for Diet Coke have enabled the company to attain greater competitive advantage. It can be affirmed that there are certain advantages, which reaped by the company in relation to the differentiation strategy being used for Diet Coke (Vrontis & Sharp, 2003). These advantages include producing good quality products, attracting the customers while producing the same and most importantly raising its profitability among others. It would be vital to mention in this similar context that Diet Coke obtained a good image in the eyes of the customers along with being quickly recognised, which in turn initiated huge demand for the product. The company mainly focused on innovating Diet Coke as a product by using a different packaging process that added up to its differentiation strategy. On the other hand, there were certain disadvantages for cost leadership on Diet Coke wherein the company had to remove the extra offerings that it made to the customers, which created a possibility of reduction in demand for diet coke (Vrontis & Sharp, 2003). Diet Coke was introduced in the business markets as a product in the year 1982 and the main aim of Coca-Cola is to get recognised as a valuable brand in the global market. Thus, through the introduction of Diet Coke, the company strongly realised that it could attain a competitive advantage and improve its global market presence at large (Slideshare Inc.,, 2011). In relation to the competitive advantage, it can be apparently noted that customers are becoming more conscious towards their health and Diet Coke is the perfect fit to cater their requirements. This comparatively benefitted the company to a large extent. In the preceding few years, it was witnessed that Diet Coke was one of the products that helped the company in obtaining huge revenue. It was strongly believed that the product got introduced at the perfect time, which resulted the company towards attaining greater profitability (Coca-Cola FEMSA, 2014). Moreover, Diet Coke helped the company in positioning itself with a competitive hold on the market as the product was focused to target the younger group of customers along with women who were more conscious about their health. As reported by Jay Moye, it was stated that “The economics of Diet Coke were so unbelievably simple because it didn’t have any sugar. When you remove the second-highest cost item after aluminium cans, you can make the numbers trend pretty well. Diet Coke gave us dramatically accelerated growth in a growing category with a very high-margin structure” (Moye, 2013). Therefore, it can be asserted that these facts provide evidence revealing Diet Coke to make huge contribution in providing a competitive advantage to Coca-Cola. Task 2 Summary of the Journey Discovered Through the Module, Learning Outcomes and Challenges Faced According to my understanding, it could be derived that Coca-Cola has grown as a company due to its innovative strategies and expertise in the soft drinks industry. The assignment helped me in understanding that design and innovation is an important aspect for a company to develop new products and introduce it in the market with the aim of attaining several benefits. These benefits can be measured in terms of raising sales figure, profitability and attaining higher competitive position. In relation to Coca-Cola, I could personally experience that the company has been enjoying greater market leadership capabilities from the previous few years due to major emphasis given to designing and innovating its broad array of product lines. I could reveal that Diet Coke was introduced in the year 1982 and since then the demand for the product was continuously growing for several years. However, in recent times, the demand for Diet Coke has drastically fallen due to the awareness of its side effects amid the customers. However, previously, it was perceived that Diet Coke proved to be was quite beneficial for the customers who had been much concerned about their health. I observed that initially when the product got introduced in the market, there was a huge demand for it as the customers were highly attracted to the benefits and value that the product offered to them. Consequently, Diet Coke attained the highest peak in relation to its sales, as it became the product that was sold on a large scale in the US. This in turn injected a huge flow of revenue to the company and helped it in attaining greater competitive advantage as compared to its competitors. I could experience that Diet Coke accomplished highest sales in the market due to certain factors such as possessing relatively low content of calorie. This particular product according to my understanding provided an exceptional experience of refreshment to the customers and the drink was completely free from sugar, which added up to the customers’ attraction regarding the product. In fact, I could witness that Diet Coke was the perfect product for the frequently changing tastes and preferences of the customers and it can be assured that the product was successful in catering the changing expectations of the customers along with providing them optimum satisfaction. From the assignment, I could understand that Diet Coke effectively reacted to the changing trends within the customers as the company took an innovative approach in developing the product. The product was mainly targeted to the people of 18 to 34 years of age as this age group had the requirement for stylish product due to which Diet Coke gained huge popularity. Through this assignment, I could also determine that Diet Coke was a perfect match for the sophisticated lifestyle of the customers that perfectly balanced their tastes and preferences. However, the design of Diet Coke changed as the time passed wherein a unique design was given to the external look of the product. This was an outcome of change in the requirement of the customers in relation to the appearance and innovation aspect of the product. After analysing the strategies used by the company for marketing and selling Diet Coke, it was revealed that the product was introduced in the market with a differentiation and cost leadership strategy. This in turn helped the company in achieving market leadership along with a competitive advantage. On one hand, it can be apparently observed that in a particular point, there was a huge demand for Diet Coke in the market wherein most of the customers were highly attracted towards the product. On the other hand, it has been revealed that Diet Coke is in its maturity phase according to the product life cycle theory due to which the demand for the product has been continuously rising. Likewise, in the preceding few years, it was witnessed that the company was going through a phase of continuously decline in the sales of the product i.e. Diet Coke (Esterl, 2014). Irrespective of the fact that Coca-Cola has applied various innovation strategies in the process of developing Diet Coke, there lay little evidences proving that the product is presently covering a large share in market. This particular aspect directly contradicts to the fact that there has been a change of pre-convinced ideas of the customers. This statement can be justified by stating that there has been a change of ideas within customers because formerly the customers perceived Diet Coke as a useful product for maintenance of their health. Moreover, it was believed that consuming Diet Coke would eventually result in fitness amid the customers. Specially mentioning, Diet Coke was previously perceived to be a product, which mainly offers the customers with refreshment in terms of completely low on calorie and totally free form sugar. However, in the present day context there has been a change in the ideas and the perceptions of the consumers towards the product of Diet Cole. This is mainly because of the various side effects that the consumers can experience while consuming the product. Through the conduct of various researches, I came to know that consuming excessive Diet Coke could impose severe impact on the wellbeing of an individual. I found that consuming the product of Diet Coke in a regular manner could affect the health of the individuals in the form of serious kidney damages along with triggering high blood pressure and chance of increase in the level of diabetes. Moreover, I also found that the product can result in weight gain due to which a person might face obesity. Likewise, tooth decaying can also be influenced through consumption of Diet Coke. Additionally, as per my opinion, the most concerning factor of Diet Coke consumption is that the product would result in bone loss, which would ultimately make a person weak. However, in the coming future, I strongly believe there might be a possibility of making the product further improved and innovative measures are taken by the company for reducing its side effects. According to me, this might raise the demand of the product in future through making change in customers’ perception towards the same. References Ashley, M., 2012. Diet Coke Still Scoring High with Demanding Millennial Consumers –Mintel. William Reed Business Media SAS. [Online] Available at:http://www.beveragedaily.com/Markets/Diet-Coke-still-scoring-high-with-demanding-Millennial-consumers-Mintel [Accessed April 05, 2014]. Astley, M., 2013. Coca-Cola Under Pressure’ From Consumers Over Diet Coke Aspartame Use. Manufacturers. [Online] Available at: http://www.beveragedaily.com/Manufacturers/Coca-Cola-under-pressure-from-consumers-over-Diet-Coke-aspartame-use [Accessed April 05, 2014]. Bates, R., 2011. Diet Coke: Brand Message In A ‘Cottle’. Insight/ Branding & Communications. [Online] Available at: http://www.cmo.com/articles/2011/5/11/diet-coke-brand-message-in-a-cottle.html [Accessed April 05, 2014]. Coca-Cola FEMSA, 2014. Company, Strategy and Competitive Advantages. Investor Relations. [Online] Available at: http://www.coca colafemsa.com/femsa/web/conteudo_en.asp?idioma=1&conta=44&tipo=27617 [Accessed April 05, 2014]. Esterl, M., 2014. The Diet Soda Business Is in Freefall. Business. [Online] Available at: http://online.wsj.com/news/articles/SB10001424052702304157204579473772336022200?mg=reno64wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304157204579473772336022200.html [Accessed April 5, 2014]. Klara, R., 2011. Diet Coke Gets New Look for Fall No. 1. Headlines. [Online] Available at: http://www.adweek.com/news/advertising-branding/diet-coke-gets-new-look-fall-134138 [Accessed April 5, 2014]. Moye, J., 2013. We Needed a Big Idea: The Extraordinary Story of How Diet Coke Came to Be. Coca-Cola Journey. [Online] Available at: http://www.coca-colacompany.com/history/we-needed-a-big-idea-the-extraordinary-story-of-how-diet-coke-came-to-be [Accessed April 5, 2014]. Slideshare Inc., 2011. Management on Coca-Cola. Coca-Cola Marketing Project. [Online] Available at: http://www.slideshare.net/almas_sshahid/cocacolamarktingproject [Accessed April 5, 2014]. The Coca-Cola Company, 2012. Annual Report. Form 10-K. pp.1-169. The Coca-Cola Company, 2010. Diet Coke. Brands. [Online] Available at: http://www.coca-cola.co.uk/brands/category/diet-coke.html [Accessed April 5, 2014]. The Coca-Cola Company, 2010. Brand Facts: Core Brands. Brands Category Content. [Online] Available at:http://www.cokesolutions.com/Vending/BrandsCategoryContent/12100_BrandFact_CORE_LB2.pdf [Accessed April 5, 2014]. Vrontis, D. & Sharp, I., 2003. The Strategic Positioning of Coca-Cola in their Global Marketing Operation. The Marketing Review, Vol. 3, pp. 289-309. Read More