Wednesday 12 August 2015

Coca-Cola's One Brand Strategy

Even though Coca-Cola isn't changing its name or any of its products' names, the company launched a 'one brand' strategy in the UK market earlier this year. From May, Coca-Cola will be the company brand and individual product lines (such as Diet Coke and Coca-Cola Zero) will be variants or subsets of the company brand.

The purpose is to increase awareness of the low- and no-cal product variants and -- by 2020 -- achieve the goal of having 50% or more of Coca-Cola sales in Great Britain come from these variants.

Now the Coca-Cola company brand will be the most salient aspect of packaging, with variant names featured below the main brand in this redesign. Ads will focus on the Coca-Cola brand and benefits, with individual variants pictured or mentioned briefly. The aim here is to emphasise the brand's heritage and associations as an umbrella for all variants.

This approach has the potential to strengthen all variants by association with the well-known, well-liked company brand and increase awareness of the low- and no-cal variants as choices available to Coca-Cola fans.

However, changes to packaging (as shown above) can also be risky because consumers may not recognize the variant they prefer in its new packaging or may be confused by the new brand and packaging offers. Meanwhile, Coca-Cola is introducing the one brand strategy in more nations and supporting it with advertising and distribution activities to motivate purchase.