Brand Extension versus New Brand Launch in Emerging Markets by the Example of the Coca-Cola Company

Topic: «Brand Extension versus New Brand Launch in Emerging Markets by the Example of the Coca-Cola Company». Key worlds: comparison of branding strategies, brand extensions, new brand launch, emerging markets The aim of this work is to decrease the knowledge gap in the existing researches and provide an answer to the research question through the analysis and comparison of the branding strategies of brand extension and new brand launch in the drinks market in order to identify ways for better entrance of emerging market. The research gap of previous studies, was that these papers did not consider the form in which it is better to carry out a new product to emerging markets, in this paper was taken as a basis for the study. The object of the research is the choice of the brand policy. The subject of the research is preferences over brand extension and new brand launch in emerging countries. Three hypotheses and the theories from scientific publications, were combined into our research model, which is the theoretical contribution of this paper. Our findings: new brand launch survivability rate might be higher on emerging markets, while on the markets of developed countries brand extension survivability rate is higher (J.-N. Kapferer, 2012: 275). Besides, most common launch form in emerging markets is the launch under a new brand, which is confirmed both in second hypothesis testing and in the study carried out by Mary Sullivan in 1992.Moreover, the product launch under the new brand on emerging markets often allows winning bigger market share. Thus, we made attempts to decrease the knowledge gap in the existing researches and provide an answer to the research question through the analysis and comparison of the branding strategies of brand extension and new brand launch in the drinks market at the example of the Coca-Cola Company in order to identify ways for better entrance of emerging market with new product by multinational company.