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Benefits of Brand Equity: Coca Cola

Building a brand is crucial exercise that often takes years or decades to accomplish. The benefit of brand equity is realized in the bottom line. Select a big nationally or internationally known brand that has advertisements that feature a famous person or persons to complete the following:

PART 1: Research Background

- What does the brand mean in today's market?
- How has it evolved over time?
- What is the target market(s) for the brand? Has that changed from the past?
- How is the competition positioned?

PART 2: Application

Marketing is not all serious research involving scholarly, statistical, and practitioner resources; it is also about trends, buzz, and pop culture of the day. Actors, models, musicians, athletes, and reality stars of the moment are hounded by the press. Their lives unfold in the media, and many are seen wearing, carrying, eating, or driving a particular brand. For this section, you may research the following in any media outlet:

- Which celebrity/ies endorse your brand? Why are they a good fit? To what target market do they connect?
- What other famous characters could be connected to your brand? Explain why.
- What about the competition? What kind of endorsers do they use?

Solution Preview

PART 1: Research Background

- What does the brand mean in today's market?

The selected global brand is Coca Cola. Currently it is sold in 200 odd countries and it is a symbol of freshness, and energy. Abroad Coca Cola is a symbol of American business. The Coca Cola bottle is the most recognized packing. The brand Coca Cola means several things to a consumer. It means the design of the bottler, ingredients, the manufacturing company, the nationality of the manufacturing company, the marketing practices, advertising, and the logo of Coca Cola (1). On the other hand the brand Coca Cola means valuable property for the company. It is an important asset that can be used to market its concentrate and syrup worldwide. In today's market because of recession the people are willing to question global brands. There was a time when Coca Cola Company had aimed for competing with water in every country. Today because of recession the consumers of Coca Cola are reverting to water (3).

- How has it evolved over time?

Coca Cola was born in 1886 when Atlanta and Fulton County imposed prohibition. Coca Cola was a non-alcoholic substitute for French Wine Coca. It was first sold as a patent medicine for five cents a glass. It was believed that carbonated water was good for health. Coca Cola at that time was a cure for dyspepsia, headache, impotence, and morphine addiction. When it reached its 50th year the brand Coca Cola had become a national icon (5). The brand was so firmly ingrained in the minds of the people that when in 1985 Coca Cola introduced New Coke instead of Coca Cola, there was nostalgia ...

Solution Summary

The benefits of brand equity are discussed in great detail in this solution by looking at endorsements and the history of Coca Cola and how it compares with the popular competitor Pepsi. Includes 1065 words and 6 scholarly references.