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The Product Life Cycle of Coca-Cola

Reference Chapter 7.2

Azzeza Mussa

on 9 November 2012

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Transcript of The Product Life Cycle of Coca-Cola

The Introduction Stage The first stage of the Product Life Cycle
Identical to commercialization or the last stage of the new product development process.
Profits are often low in this stage
Length of introduction stage varies
The Decline Stage Sales decrease and continue to drop to lower levels.
Companies decide whether to harvest the product or divesting the product. By: Azzeza Mussa The Product Life Cycle of Coca-Cola The Growth Stage The Maturity Stage Number of potential new customers decline and the sales of a product typically begins the level off.
Competition causes profits to fall until the strongest competitor is standing.
Longest stage in the PLC
Companies look for marketing strategies to market their product.

Increasing sales, more competitors, and higher profits.
Competitors are beginning to enter the market more rapidly.
Number of distribution outlets begin to increase.
The Introduction Stage Created during the spring of 1886 by Dr. John S. Pemberton
Was first introduced as a soda fountain drink
Placed on sale for 5 cents a glass
Pemberton's partner and bookkeeper, Frank M. Robinson suggested 'c's would look good in advertising, which led to the name "Coca-Cola"
In 1888, Pemberton sold Coca-Cola to Asa Chandler
Chandler formed the Coca-Cola Company in 1892 and by 1895 Coca-Cola was being drunk in every state across America
As demand grew, production increased and Coca-Cola was made available in bottles rather than just through soda fountains
The Growth Stage Coca-Cola is currently in this stage.
To extend it's mature stage coca-cola has developed the following marketing strategies: product improvement, new models were developed, it entered new market segments, and enlarged its distribution channels
The Maturity Stage Reference Chapter 7.2
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