The product lifecycle of Coca-Cola Essay Example

the Second World War. Woodruff ensured that each American soldier could spend 5 cents to buy a bottle of Coke anywhere of the world regardless how much the production cost was. Bottling factories spread all over the world by American army and this initiative makes Coca-Cola obtained absolute advantage of market share in European and Asia countries. There was a serious decline of profit and sales in 1954.

Using extension strategy, Coca-Cola changed the bottle volume to 12 oz. This method was used frequently during the next 50 years. The same challenge also appeared in 1980s. In 1982, Diet Coke, which held the same taste as ordinary Coke but with less sugar, emerged. The concern about health issues once impeded customers to enjoy Coca-Cola, but whittled by Diet Coke. In 1986, a cherry flavored Coca-Cola came up and was aware by customers. The secret of converting the declining trend is alteration. The preference of customer is fickle, so enterprises should enhance the creation of their products to avoid risk of hard sale.

Nowadays, Coca-Cola still holds the main sector of Coke market in spite of saturating sales. Interestingly, Coca-Cola is not so welcomed in Chinese teenagers. It is not relative to insufficient advertising and promotion in Chinese market, but caused by the massive domestic drink industries, which fitly illustrates how does the competition imperils the market share of an enterprise. In conclusion, the product lifecycle demonstrates the entire tendency of a firm or a specific industry. It helps firms to act properly to fit the market (customer demand).