The Real Thing?
One of the signs of a very mature market is when manufacturers introduce a seemingly endless stream of line extensions. These new products are an attempt to retain interest in a particular brand, and stave off decline or the perception that the company is asleep at the wheel.
The summer of 2002 is the year of flavored soft drinks. Recently, Dr. Pepper announced the introduction of Red Fusion, a red soda that has a hint of Dr. Pepper flavor. Not to be outdone, Pepsi Cola is introducing a berry-flavored Pepsi in August.
But first to market is Vanilla Coca Cola Classic, a soda that beckons memories of Coke floats.
The bottle I purchased in Fort Wayne IN looks very similar to the the flagship label, and is easy to miss in the rack. The soda tasted quite a bit like a Coke float, but was almost too syrupy sweet. In other words, it might be nice to try this once, but it's so sweet that I doubt it would quench my thirst on a hot day. Never mind that it was noticeably flatter than regular Coke. I missed the fizz that Coke Classic packs into each bottle.
Textbook authors and marketing pundits alike stress that line extensions are often weak products that can do more harm than good, but in a market as mature as soft drinks, what else is there left to do? The point is well taken that there probably are no more big innovations coming down the pike, at least not in the foreseeable future. Thus, corporate chemists spend their time concocting new flavors that are supposed to impress us.
But what about the more important issue of cannibalization? I went into a convenience store to buy a Coke Classic, and came out with a Vanilla Coke. Fortunately for Coke, I still purchased one of their products. But at what expense to them? I would have purchased the Coke Classic regardless of any marketing activity done by Coke; however, they have gone to great effort to get me to abandon the Classic in favor of the Vanilla...a zero-sum game if there ever were one.
And therein lies the problem with line extensions. They rob Peter to pay Paul. I doubt that Vanilla Coke will last very long. I also doubt that it will result in any incremental sales for Coca Cola. But I do not doubt that this move cost them money just to stay even.
Furthermore, the dillution of Coke Classic's powerful name is not worth risking. Any variation is just Milli Vanilli to me.
©2002 R. Nicholas Gerlich
|