MARKETING MIX In what way "products" will be utilized?

(Application)
LESSON 1  A company will produce and offer various types of products
that will meet the customers' needs and wants. Also, by
The marketing mix is a blend of strategies and practices used by a selling some products. The company will gain profit that will
company to drive business and successful product promotion, help the company grow.
consisting of the "7 P's" elements: Product, Price, Place,
Promotion, People, Positioning and Packaging.
Price
 Price is a key component of the marketing mix that
The 7P's of Marketing
generates revenues and serves as a strategic tool,
 Established by Prof. James Culliton of Marketing at Harvard
enhancing customer value.
University in 1948.
 Expanded and introduced by Jerome McCarthy in his book:
"Basic Marketing: A Managerial Approach". For example:
 If a product is overpriced, only a few consumers will
purchase it. While a low price can create an expression of
Importance of 7P's bad quality that prevents the consumers from bu ying.
 The 7 P's of Marketing gives you a framework to use in
your marketing planning. In what way "pricing" will be utilize? (Application)
 It is an essential strategy to effectively promote to your  Pricing strategy is an approach businesses use to
target market through marketing campaigns. determine what prices they should charge for their products
and services. It involves analyzing the market and customer
demand, understanding customer needs, evaluating
production costs, and setting competitive prices that
Product
maximize profits.
 A product is anything that can be offered and sold to a
market for sale. It can be a tangible or intangible product.

Place
For example:  It refers to the final location of where a customer
 Tangible products; purchases a product and how to deliver the product to the
- Clothes, Foods, Appliances, and School Supplies. market.
 Intangible products; • The location of the business is crucial since it determines the
-Services like Haircut, Tutor, Spa, and Virtual assistant. product's accessibility to the target market. Customers will
 find it difficult to purchase the product if the shop is located People
in an inconvenient location.  Anyone who is in contact with customers. They can be
directly or indirectly involved in the business
In what way "place" will be utilize? (Application)
 Your product should be available from where your target
customer finds it convenient to shop. For examples;
Executive Leadership
Board of directors
Promotion Department Heads
 Promotion is the part of the marketing mix that the public Managers
notices most. It includes television and print advertising, Staff
content marketing, coupons or scheduled discounts, social
media strategies, email marketing, display ads, digital In what way "people" will be utilized? (Application)
strategies, marketing communication, search engine  A company will hire the best people to work on their
marketing, public relations and more. As simply as "How company, to produce products or offer different kinds of
you advertise your product or services. services that will meet or even exceed the needs and
wants of people. Also, it will help the company build a loyal
IMPORTANCE/BENEFITS OF PROMOTION customer base, increase sales, and generate profit.
1. Increase brand awareness
2. Create interest Positioning
3. Generate Sales  It is a strategic exercise that defines where your product or
service fits in the marketplace and why it is better than
4. Create brand loyalty alternative solutions.

In what way "promotion" will be utilized? (Application)

For examples:
 A company will use various promotion strategies to  Coca cola has the ability to connect with consumers on an
communicate product value and increase awareness emotional level. They don't just sell a beverage, they sell
among consumers, attracting potential buyers. This happiness, celebration, and positive life experiences in a
satisfies customer wants and needs, ensure the production bottle. Coca cola positioned their products as a source of
of sales, and generates profits, contributing to company positivity and friendship
growth.
 In what way "positioning" will be utilize? (Application) LESSON 2
 Market positioning is a strategic exercise companies use
to establish the image of a brand or product in a
consumer's mind.
Craft Winning Positioning Statement: Example and
Tips
Packaging If you meet someone new, and they ask you about your product or brand,
 It provides valuable information of the product and clear what would you tell them? As a business owner or a brand owner you
assure that you know your brand inside and out. But how often do you
instructions.
know if someone just across your brand and think what it is for? Do you
 The packaging also provides protection for the product. have a statement that describe your brand and how you’d like to know it by
The product will not have damage due to mishandling or the public?
misuse of package experience during shipment.
A key concept in BRANDING BASIC is to create a brand identity as well as
In what way "packaging" will be utilize? (Application) understand the unique value of a curtain brand brings to the user. As a
 A good packaging leaves good impression and makes business owner we all have competitors, how would you make your brand
stand out in the crowd? And why should someone use your brand instead
easier for the customer to identify and differentiate it from
of your competitors?
other products.

What is a positioning statement?

This is called positioning statement writing a brand positioning statement is
Summary the summary of your BRAND IDENTITY. A brand positioning statement act
as an anchor and foundation for all of your branding and marketing. This
 Overall, it refers to the thoughtfully designed blend of statement provides the overall view of your product or service that fill’s your
strategies and practices a company uses to drive business TARGET AUDIENCE needs.
and successful product promotion. Initially 4, these
elements were Product, Price, Place and Promotion, which
were later expanded by including People, Packaging and Key parts of a positioning statement
Process. These are now considered to be the "7 P's" mix What are the key elements that every positioning statement should have?
elements. Without this element’s your positioning statement is incomplete and
ineffective.
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Key parts of positioning statement
* Target audience A competitive advantage is a circumstance or characteristic that gives your
brand a favorable position against your competitors. Understanding and
* Value proposition
knowing your competitors will help you to stand out your brand and be the
* Competitive advantage leading one in the market. Here’s some of the question you can ask:

* Branding  What is unique about your product?

 What is special about your brand and/or product that puts you
ahead of the rest?
 What are the circumstances that provide your brand with a leading
Target audience
position in your niche?
Know your target audience it is important to understand your target  What have you learned from your competitor analysis?
audience, how they think, and what are “must have” for them. By defining  What does your market assessment tell you?
your target audience, you will find out why they need your product. Ask
yourself:
Branding
 Who are the people who will benefit from your product?
 What demographic is your brand going to connect with? Creating a brand strategy and brand identity is necessary for any
 Where can I find this audience? businesses, whether you’re promoting a product or service. This key
 What is the best way to connect with this audience? element creates a recognizable identity that your target audience may
recognize when thinking about your company or business. Branding is
displayed every where this may be form into logo’s, visual design package,
brand mission statement, and presentation, including the audio and visual
Value proposition customer interaction. So, to develop your branding ask yourself:

This element is necessary for your positioning statement that stand as a  How do users perceive my business?
unique selling proposition, this also determine how a customer will benefit  What does my logo represent? Is it best logo for my brand?
by using your product or services. Knowing your brand’s value is essential  What visual do I use to create marketing materials?
key to market your brand. In order for you to fulfill customer’s needs, you  What song or jingle does my brand inspire?
must understand what benefit will they gain by using your product and why  What emotion are connected with my brand? How do people feel
yours is the best. Answer this question to figure out your value proposition: about it?
 Does my business align with the mission statement?
 What makes your product one-of-a-kind?  Does customer look on my business the way I intended?
 Why do people need your product?
 What makes your brand special than another brand?
 What benefits will your brand deliver to customer?
 What values does your brand offer to potential users that When creating a positioning statement, it’s crucial that your branding is on
differentiates from the crowd? specification and clearly perceived. A good way to see if your brand is
viewed the way you intend is through an A/B testing. Once you know and
Competitive advantage learned the key parts of a positioning statement, you are ready to create
your own positioning statement for your brand.
 expectation set by your branding. Then you will need to assemble proof of
your claims and prepare explanation to customer why your products differ
5 Tips to craft a strong statement from others and why is it the best.
1. Learn how your brand fits into your industry
Unless you are the first business to sell a specific product or service to
anyone, you are entering an established industry. Many customers already
have a relationship with the industry you are entering. Therefore, it’s helpful
to learn about traditions and established practices in the industry that
4. Keep it short
customers have expect. Then, with this knowledge you have, you can
decide how you can fit in with the industry while providing something new A positioning statement should be one or three sentences or phrases. No
that customers are asking for. The better you know your industry, the better more than that. So, if your positioning statement is too long you might lose
you will be able to position your brand within it. your audience. Keep it short and straight to the point.

2. Knowing your brand inside and out 5.Make sure it says what you want
A key factor in creating a position statement is by knowing your brand Once your position statement is crafted, make sure it says what you want.
inside and out. Make sure you know: It must be clear and concise and reflect your brand core values. Using your
positioning statement as the foundation, you will be able to make a clear
 Who is the owner of the business?
decision about your brand that reflect your brand position.
 Why did they start the business?
 What is the background of the person who started the business?
 What is the goal of the brand?
 What is the ideal result that a user will have when using the brand? When writing a positioning statement, remember to:
 How does your product operate and do you supply everything  Be concise
needed for its use?  Reach out to your target audience
 What makes your brand special in the marketplace?  Emphasize your competitive advantage
 Stay true to your branding
So, if you are expert to your brand and you know your brand inside and  Use your statement consistently
out, then you will better understand on how will you going to position it as
well as to compare it to other brand in the industry.

Some of the position statement of a well-known brand

3. Prove that your brand meets your expectations
Nike
As a business owner you must prove that your product will meet your
expectation. Therefore, before you demonstrate your product to potential Here is Nike's positioning statement:
user, make sure that your product works without fail and meets the
 For athletes in need of high-quality, fashionable athletic wear, Nike
provides customers with top- performing sports apparel and shoes made of
the highest quality materials. Its products are the most advanced in the Make your position known
athletic apparel industry because of Nike's commitment to innovation and
By creating a positioning statement, you give your brand a voice. Using this
investment in the latest technologies. With this statement, Nike has clearly
statement as your foundation or guide, you can project the brand identity
defined its brand as one that is for serious athletes-for athletes in need of
that you want customer to see in everything you do to market and produce
high-quality, fashionable athletic wear. Nike's product is top of the line- Nike
your product. That includes your logo, website, advertisement, packaging,
provides customers with top-performing sports apparel and shoes. And the
shipping, and anything else in your brand uses. To sum it all, positioning
brand is innovative-its products are the most advanced in the athletic
statement help us to perceive our target audience about our brand or
apparel industry because of Nike's commitment to innovation, Customers
product that we wanted to offer. Remember that in writing positioning
looking for durable, high- performing, and fashionable athletic wear are
statement you must be clear and concise for this is the identity of our
sure to look to Nike due to this positioning statement. The statement offers
brand.
confidence in current products and future products moving forward
because of its focus on innovation.

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Coca-Cola
LESSON 3
Here is Coca-Cola positioning statement:
Coca-Cola For individuals looking for high-quality beverages, Coca-Cola
What is STP? Segmentation, Targeting, and Positioning
offers a wide range of the most refreshing options - each creates a positive
experience for customers when they enjoy a Coca-Cola brand drink. Unlike - A marketing model that redefines whom you market your
other beverage options, Coca-Cola products inspire happiness and make a
products to, and how.
positive difference in customers' lives, and the brand is intensely focused
on the needs of consumers and customers. Coca-Cola is a well- Philip Kotler – Proponent of STP Framework
established brand with visual recognition worldwide. It has a wide target
audience and offers emotions as well as flavor to its customers. Their - In 1969, Philip Kotler (Father of Modern Marketing) created the
products are refreshing-- Coca-Cola offers a wide range of the most STP Framework to find a more helpful method to reach
refreshing options. Drinking Coke is a positive experience-a positive customers in large and diverse markets.
experience for customers when they enjoy a Coca-Cola brand drink. They
engender good feelings-inspire happiness and make a positive difference What is Segmentation?
in customers' lives. Coca-Cola has the benefit of being a well- known brand - Dividing potential target market into groups based on similar
with an established history that is recognized pretty much anywhere. Even interests or characteristics.
when the product is in another language, it is easy to identify the logo and
branding. Coke doesn't define itself as just a refreshing drink, Coke defines
1. Demographic Segmentation
its brand as one that brings positivity and happiness to all of its customers
 -It involves dividing the market into groups based on What is Targeting?
demographic variables such as age, gender, income, - It is a marketing strategy that involves identifying specific
education, occupation, and/or religion. personas or markets for specific content.
Examples:
-Arcades • How it works?
-DALI Philippines - By separating consumers into segments, or groups, based on
-Luxury Brands their demographics, interests, purchasing history, and more.

2. Geographic Segmentation • Why is it important to target a customer in a market place?

- A marketing strategy used to target products or services at
- Understanding your target market makes it easier to advertise to
people who live in, shop at, in a particular location. It works
them.
on the principle that people in that location have similar
needs, wants, and cultural considerations. EXAMPLE OF TARGETING
Examples:
A famous clothing brand targets fashion-conscious young adults
Bonifacio Global City (BGC)
aged 18-30 who seek trendy, affordable apparel.
SM Supermalls
What is Positioning?
3. Psychographic Segmentation
- It refers to the place you want your brand or product to have within
-A type of targeting that allows businesses and marketers
a particular target market.
to divide customers based on psychological traits such as
Personality, Lifestyle, Social Status, Attitudes, Activities, • What is the importance of using this?
Interest, and Opinions (AIO).
Examples: - It allows your business the opportunity to differentiate itself from its
Arcades competitors.
Luxury Cars

(3) Forms of Positioning:

4. Behavioral Segmentation
-It includes the time when your customers make a purchase, 1. Symbolic Positioning
their buying habits, product usage, or loyalty to your brand.
- Enhance the self-image, belongingness, or even ego of your
Examples:
customers.
Coffee Shops
Online Shops Example: Luxury Cars Industry
2. Functional Positioning 3. Market Research & Product Innovation – More effective
because you know exactly whom to ask for advice and
- Solve your customers’ problem and provide them with
feedback in the development phase.
genuine benefits.
Example: Toyota
STP EXAMPLE: THE COLA WARS
Pepsi-Cola was trying to claim some of the market share from
3. Experiential Positioning Coca-Cola, Pepsi used segmentation to target certain key
- Focus on the emotional connection that your customers have audiences. They focused on an attitude and loyalty segmentation
with your product, service, or brand. approach and divided the market into three consumer segments:

Example: Making an event that showcases and highlights 1. Consumers with a positive attitude to the Coke brand who were
branded products or services by having them present and 100% loyal to Coke.
showing them in action. 2. Consumers with a positive attitude to the Pepsi brand who were
100% loyal to Coke.
• Why is it important to apply the STP Framework on their
businesses? 3. Consumers with a positive attitude to both brands, with loyalty to
both, who switched their purchases between both brands.
- Using the STP Framework, businesses can identify their most
valuable customer segments and create products and marketing The new iteration of America’s favorite beverage missed the spot
communications that target those customers. with a lot of loyal consumers.
Pepsi began targeting loyal Coke drinkers. Pepsi started drumming
up the fact that Coca-Cola, supposedly, changed its classic Coke
• Benefits of STP marketing? with New Coke to resemble more the taste of Pepsi. That same year,
Pepsi announced a 14% spike in overall product sales.
1. Brand Messaging – More personal and empathetic because
you have your customer personas and know exactly whom • Total Available Market (TAM)
you’re talking to. Example: NIKE, “Just Do It”
- How big is the largest
possible market?;
2. Marketing Mix – More crystalized and yields higher return on Sector’s entire revenue
investment because you’re no longer wasting budget on opportunity.
channels that your audience simply ignores.
• Serviceable Available Market (SAM)

- What portion of TAM fits you?;

 Percentage of SAM you can realistically capture.
• Serviceable Obtainable Market (SOM)
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- What portion of SAM can you reach?; -------------------------------------------------------------------------------------------
Portion of the market you can acquire based on your business LESSON 4
model / your targets.
What is Branding?
• What is the relation of TAM, SAM, SOM, and STP Framework? Branding is the process of creating the brand identity of a
company.
- They are both helping the business to know where they put their
focus by identifying the target market. (General – Specific)
The concepts, planning, execution, and maintenance that go
Example: DIET COKE
into branding can be involved. All the steps in the branding process
TAM: $200 billion (entire softdrink market) involve choosing or creating elements designed to evoke a specific
feeling in your target audience or customers.
SAM: $50 billion (low-calorie softdrinks)
SOM: $2.5 billion (targeting health-conscious consumers in the U.S This process also delivers materials that support the brand,
market) like a logo, tagline, visual design, or tone of voice.

• Marketing Mix What is the difference between Brand, Brand Identity,

Product Price and Branding?

Promotion Place BRANDING MARKETING

Is why is why

• What is the relation of Marketing Mix and STP Framework? Is long term Short term

- The STP Framework comes first when it comes to establishing macro micro
the business, followed by the Marketing Mix. Defines trajectory Defines tactics
Reason why someone Reason why someone
buys first buys
 Builds loyalty Generates response analysis to see how competitors are marketing a similar product.
Is being Is doing

9 Types of Branding 4. Retail branding

- is branding designed just for retail businesses. This type of
1. Corporate Branding branding takes all of the different products under one roof and finds a
- includes every aspect of the business, including products, way to market the seller rather than each individual product, which
services, employees, and more. Good corporate branding focuses may come from multiple other businesses and manufacturers.
on the unique selling points (USP) and value proposition of the
business as a whole and includes the creation of brand guidelines to 5. Geographic branding
cover the ways you'll communicate those selling points with - focuses on the customers in your area and the traits of a
customers and the public. Corporate branding affects more than just specific region as a selling point. This type of branding is best for the
your marketing and sales efforts; it can improve your hiring strategies tourism industry because it can attract people to a city, town, or
and help you find partners. state. But, of course, businesses can benefit from geographic
branding, too, especially if your primary customers are located in the
2. Personal Branding same region as your business.
- is how a single person brands themselves. Personal
branding is best suited for self-employed individuals like freelancers, 6. Service branding
affiliate marketers, or influencers who must develop a personal brand - is a lot like product branding in that you're focusing on one
identity to stand out from the rest. Personal branding can differ from aspect of the business rather than the business as a whole.
your personal image. Also personal branding allows you to Unfortunately, service branding is much more difficult than product
specifically target a niche and leverage any existing fame you have branding because you don't have physical items like packaging or
to earn more business. the product itself. Instead, you have to brand something consumers
can't see to generate trust. Branding your services requires you to
3. Product branding understand the pain points of potential customers and be able to
- is one of the most well-known forms of branding because it's provide them with a service that can solve their problems.
done for single product lines rather than the entire business. Every
time a business puts out a new line of products, they do branding for 7. Co-branding
just those products because they may have a variety of products with - occurs when several brands work together to offer a product
different price points, benefits, and end users in mind. When or service. The co-branding identity is sometimes a completely new
considering how to brand products, always consider the end user brand identity. Other times, it will be a combination of the brand
and customer journey. You may also need to perform a competitive identities of the two (or more) brands involved.
8. Online Branding
- you may also hear online branding called internet branding. What is the importance of a brand logo?
This is a type of branding that combines various online content to
show your company’s personality and offerings. The goal is to 4 Ways to Maintain Brand Consistency
improve your company’s digital positioning. It can include channels 1. Set Brand Guidelines
such as social media, blogs, and websites. 2.Organize your marketing assets
3. Use a marketing calendar to plan ahead
9. Offline branding 4. Repurpose content
- occurs in the real world, so to speak. It includes physical
interactions, such as billboards, print ads, trade shows, and business
lunches. Modern companies can’t use offline branding in isolation as
so much of your audience is online. That being said, many industries 9 Types of Logos to Use for Your Brand
will still benefit from some aspects of offline branding.
1. Brand Marks
- a simple logo with a combination of letters, symbols, design, image,
What is branding strategy? picture, or a visual depiction of the brand.
The brand strategy is how the company establishes its identity,
defines its market, and creates a distinctiveness for the product. 2. Abstract Marks
- have a general shape and set of colors that represent the brand,
Key Elements Of A Branding Strategy making them more recognizable.
1. Brand purpose
2. Brand vision 3. Monograms
3. Brand Values - are designed using typography—or letters. Monograms often
4. Target audience consist of an acronym that’s used as a brand name.
5. Market Analysis
6. Awareness goals 4. Wordmarks
7. Brand Personality - are very similar to Monogram logos, only they consist of entire
8. Brand voice words rather than acronyms or abbreviations.
9. Brand tagline
5. Mascot Marks
- are logos that has a mascot that people immediately associate with
the brand. Often this mascots are in the form of a cartoon.
6. Letterforms
- are a lot like Wordmarks and Monograms, but Letterforms only they
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use a single letter. --------------------------------------------------------------------------------------------------

7. Combination Marks
- are a logo design that makes use of a blend of 2 or more different LESSON 5
types of logos– typically a Brand Mark and a Wordmark design.

8. Dynamic marks 9 EXAMPLES OF INNOVATIVE PRODUCTS

- are movable or fluid logos which change their looks with the
context. Often, these logos have multiple iterations –they can change One of the biggest misconceptions of innovation is that it’s a
their shapes, colors, and forms with each individual viewing, with the modern concept. Past discoveries tell us otherwise. For
turn of events, evolution, or the specific service or product that
centuries, innovators have built upon standard products and
certain branches of a company offer.
practices to create something new and exciting. Yet, novelty is
9. Emblems and shape logos only one characteristic of successful innovation. The other
- are logos that are designed around a specific shape, with the piece that’s often overlooked is usefulness.
entirety of the logo being contained within that shape.

In simpler terms, innovation must be new and useful. It needs

to be original but won’t be successful unless people utilize it.
Keeping these two characteristics in mind is essential to a
design’s success.

WHAT ARE THE THREE TYPES OF

INNOVATION?

Innovation in business isn’t limited to products. While there’s no

denying Apple’s transformative products have made them an
industry giant, it’s important to remember that innovation has several
applications. Here are three types of innovation your company can
design and implement.

WHAT MAKES A PRODUCT INNOVATIVE?

 Product or service innovation: Creating a new product or
service or enhancing an existing one, such as the internet or the In business, innovation is an original idea that’s useful to consumers
pivoting head of Gillette razor blades
 Process innovation: Implementing changes to make a process One way is by identifying and addressing the pain points your
stronger or more efficient, such as assembly lines in consumers are experiencing
manufacturing
 Business model innovation: Transforming business operations
 Explicit pain points: Customers are aware of and can easily define
like ride-sharing platforms Uber and Lyft did by taking the taxi and
these pain points.
car service companies’ business model and altering it to a peer-to-
 Latent pain points: These are more difficult to define because
peer, digitized one
most customers aren’t aware of them.

Innovative ideas focused on users’ challenges have a better chance
of success and longevity. Understanding your innovation’s viability
can be harder than identifying pain points, but it’s another crucial
factor in this process.

Remember, innovations aren’t inherently modern. Netflix’s streaming

service is a successful innovative product but grounded in the
modern world. Even ancient innovations, such as the creation of
language, are examples of how prospective innovators should
approach the creative process. Consider this when looking for
Although product innovation is only one type, much can be gleaned inspiration and guidance in your innovation process.
from analyzing past product innovations. This requires an
understanding of what makes products innovative.
9 INNOVATIVE PRODUCT EXAMPLES element transformed the publishing world by making the process
easier and quicker.
Recency bias—limiting your understanding of innovation to modern
products and services—can be detrimental to the innovation 3. The Lightbulb
process. Don’t let a narrowed perspective of what successful
innovation is negatively affect your creativity. Although there’s some debate on who invented the lightbulb, no one
denies its significance. It’s a great example of an innovative product
that solved explicit and latent pain points. Before lightbulbs, products
Here are nine incredibly successful innovations that have stood the
like lanterns and oil lamps produced light but made houses more
test of time.
susceptible to fires. At the time, these accidents were accepted as a
necessary risk until innovation showed people otherwise.
1. The Wheel

Invented around 4000 BCE, the wheel is one of the earliest recorded 4. Automobiles
innovations. While it’s often forgotten as an innovative product, it
Tesla founder and CEO Elon Musk wouldn’t be the business mogul
continues to have an impact. Its inventive design addressed a
he is today without the initial innovation of motorized automobiles.
common pain point around moving multiple heavy objects at once.
The automobile’s invention in 1886 kickstarted a technological
The result was a circular frame that allows users to transport many
evolution by focusing on the transportation landscape’s challenges,
heavy items in a short time. Its significance is still felt today and has
such as fatigue from walking or bicycling and caring for horses that
led to additional breakthroughs, such as carriages and today’s more
pulled carriages. Today, horse-drawn carriages are nearly obsolete
modern transportation methods.
beyond tourist attractions and services.

2. The Printing Press

5. Computers
Your favorite book or magazine wouldn’t exist without the printing
Computers have completely changed everyday life. Since their
press. This technological breakthrough was novel and useful in that it
humble beginnings of automating mathematical equations,
allowed for the mass production of written documents. It solved an
computers have progressed and evolved according to users’ ever-
explicit pain point in document production: time consumption and
changing pain points. For example, computers were originally
tediousness. Creating a product that eliminated the handwriting
enormous, spanning nearly 50 feet long and weighing almost five
tons. Over time, their size and portability have reduced from desktop the process of emptying his vacuum cleaner bags. They sometimes
computers to laptops and smartphones. caused clogs and buildup that affected the vacuum’s performance.
With these pain points in mind, he built the first bagless vacuum
6. Cellular Phones cleaner. Since then, Dyson has revolutionized cleaning technology
and continues to innovate based on its users' key pain points.
While cellular phones also evolved, they initially solved a specific
problem for phone users: landlines weren’t portable. People were 9. iPhones
tethered to house phones, beepers, and phone booths if they wanted
to receive a call. Cellular phones allowed users to take calls from It’s no surprise that Apple products are almost always mentioned in
anywhere. As more consumers bought cellular phones, this product any discussion about innovation. The iPhone is a modern innovation
solved latent pain points about safety outside the house and that revolutionized cellular phone technology. While computers and
emergency contacting. cell phones were constantly evolving, Steve Jobs understood that
consumers’ latent need for portability and speed couldn’t be solved
7. The Internet with a computer or phone alone. This is what led to the iPhone.

The internet is such a widely used product that it’s hard to imagine a
HOW TO BE INNOVATIVE IN THE MODERN
world without it. In this way, it may be the most successful modern
innovation. It was originally based on the expression “information at WORLD
your fingertips.” Although limited information was accessible to those
Innovation isn’t just for inventors and entrepreneurs. It isn’t just for
with a library card, basic cable, and a newspaper subscription,
the workplace either. In fact, an excellent way to foster innovation as
waiting for information was still inconvenient. The internet solved this
a regular practice is to adopt a design thinking mentality.
latent pain point by becoming a vast hub of instantaneous knowledge
and information.
Design thinking is a user-centric, solutions-based approach to
innovation. In the online course Design Thinking and Innovation,
8. Bagless Vacuum Cleaner
Harvard Business School Dean Srikant Datar touches on design
Bagless vacuums may seem like an odd addition to this list, but it’s a thinking’s principles using the four phases of innovation framework:
great example of how simple updates to a product can impact an
industry. James Dyson, an industrial designer, was frustrated with
 useful idea, whether you're an entrepreneur, small business owner,
or part of a larger organization. Innovation is achievable with the right
approach and mindset.

The design thinking process is a wonderful resource for

innovation on any scale. Each stage is conducive to all forms of
innovation and can guide you through your new product, service,
process, or business model creation.
 Clarify: Conduct research to clarify a problem and empathize with
your target audience. The goal is to identify key pain points, --------------------------------------------------------------------------------------------------------
ensuring solutions are useful. --------------------------------------------------------------------------------------------------------
--
 Ideate: Focus on idea generation to solve problems identified
LESSON 6
during research.
 Develop: Explore potential solutions generated during ideation.
Create prototypes to validate their effectiveness. DISRUPTIVE INNOVATION
 Implement: Advocate for your innovation to key stakeholders and Changes in the competitive landscape have made companies feel the need to
encourage its adoption into the organization. continuously adapt. Innovation pushes brands to think outside the box, but
not all of them were ‘disruptive’ enough to cause a significant change in their
This approach provides structure to aid your innovation process but chosen industries.
doesn’t require rigid adherence. Creative problem-solving methods,
The concept of ‘disruptive innovation’ was first coined in 1995 to describe
like design thinking, aren’t one-size-fits-all. Rather, they’re roadmaps small companies that became market leaders by beating out established
to creating innovative products and services. organizations through devising products in ways that have surprised the
world.

CLAYTON CHRISTENSEN- first who coined the term "disruptive

HOW YOU CAN CREATE AN INNOVATIVE innovation" when researching the disk-drive industry in the mid-90s. He also
introduced it in a popular HBR article and in his 1997 book The Innovator's
PRODUCT Dilemma: When New Technologies Cause Great Firms to Fail.

Classifying products as “innovative” isn’t just applicable to products

like an iPhone or electric car, and it doesn’t require teams of experts. DISRUPTIVE INNOVATION IN SIMPLEST SENSE:

Innovation can be accomplished by anyone with an original and

Capsizing an existing market through new business models or 1.) AMAZON prime – 200 million members
technologies. Creating a whole new market segment by extending value
Amazon, a leading ecommerce giant, has disrupted brick-and-mortar retail
that varies from the current offerings of top-tier businesses.
with its Amazon Prime service. Launched in 2007 at $79, Prime offered
Disruptive innovation is an innovation that simplifies and makes more unlimited two-day shipping, a bold move given the costs and potential for
affordable products and services to undesirable or ignored markets. abuse. However, Jeff Bezos believed it was a worthwhile risk. Fourteen
years later, Prime boasts over 200 million global members enjoying
Disruptive innovations are not advanced versions of already existing
benefits like same-day delivery and streaming for $119 annually.
products. They are entirely different from sustaining innovation, which
only focuses on turning the good into better.
Instead, disruptive innovations redefine trajectories by offering new 2.) GOOGLE maps- Billion Users
benefits such as affordability, accessibility, and convenience.
Google has dominated the tech space for years, but its fame as a search
Disruptive innovation is more often than not, a cheaper alternative that
engine doesn’t define it as disruptive; other search engines like Yahoo!
caters to a larger yet least demanding population.
preceded it. However, Google Maps is truly revolutionary, replacing
physical maps and GPS devices. It offers global location services,
complete with images, directions, suggested routes, and estimated travel
A PRODUCT IS CONSIDERED DISRUPTIVE IF IT HAS THE
times.
FOLLOWING PROPERTIES
- Low cost
3.) SPOTIFY Music – 626 Million Active Users
- Highly Accessible
Spotify is a leading music streaming platform, but its disruption lies in its
- -Lower gross margins than its incumbents freemium business model. Users can access music for free with ads and
- Caters to least-demanding markets before experiencing no offline capability, while a premium membership allows ad-free listening
tremendous growth and offline access. This model attracts a broad customer base by offering
basic services upfront and encouraging upgrades for additional features.
- Dramatically upends existing markets or creates a new
market segment
- Supported by new technology or business model 4.) AIRBNB- 150 MILLION USERS

EXAMPLES OF DISRUPTIVE BRANDS Airbnb enables homeowners to rent their properties to travelers, offering a
budget-friendly alternative to hotels. The idea emerged when founders
(When disruptive products are made, established brands are often needed to make rent and rented out air mattresses during a sold-out
‘dethroned’) conference in San Francisco. Positive feedback led them to expand the
concept, creating a platform that disrupts the hotel industry with diverse
Despite being at the bottom of the competition, disruptive brands
accommodations like tents, boats, and treehouses. Airbnb allows guests to
are able to move up the market by offering Lo-cost solutions that also meet
experience destinations like locals, and it now boasts over 150 million
the requirements of high-demanding customers.
users worldwide.
 consumer needs. Achieving such transformation requires creativity,
resources, and a clear understanding of market demands. Businesses
5.) APPLE Ipods- 420 Million Solds
must offer affordable alternatives and innovative technologies that disrupt
The iPod revolutionized music consumption, replacing cassette tapes and competition and create new market segments. Unlike sustaining
CDs. While competitors focused on walkmans and mp3 technology, Apple innovations, disruptive innovations aim to provide simple, accessible
developed a digital music player that seamlessly synced songs from products rather than refining existing ones for current customers.
computers via iTunes. Smaller, with greater storage and battery life—5 GB
and 10 hours on its launch—the iPod solved compatibility issues and made
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portable music accessible. Its success transformed Apple into a tech
----------------------------------
powerhouse, paving the way for iconic mobile devices like smartphones
and tablets BRANDING AND RE-BRANDING
REBRANDING*****
 Rebranding is a process of changing how a brand is perceived by
its target audience through a makeover in its look, voice, and feel.
6.) NETFLIX- 277.65 MILLION SUBSCRIBERS
 Rebranding is a major milestone for a company, as it can redefine
Netflix is a prime example of a disruptive brand. Initially a DVD-by-mail
its vision, attract more customers, and stay relevant in the market.
rental service, it faced stiff competition from Blockbuster, a dominant player
in video rental. Recognizing the internet's potential, Netflix pivoted to  Reasons for rebranding include targeting a new audience, standing
streaming after securing a $30 billion investment from Groupe Arnault. This out among competitors, improving customer communication, and
shift allowed users to access a wide range of films and TV shows from eliminating negative associations.
home for a low subscription fee. Over time, this model gained popularity, as
Companies rebrand for a myriad of reasons.
customers appreciated the convenience of not needing to visit a store to
rent or return movies. Netflix is a prime example of a disruptive brand.  Whenever a brand has extended its offering or product line.
Initially a DVD-by-mail rental service, it faced stiff competition from
Blockbuster, a dominant player in video rental. Recognizing the internet's  Whenever a brand has added a new product or service to its
potential, Netflix pivoted to streaming after securing a $30 billion portfolio.
investment from Groupe Arnault. This shift allowed users to access a wide  Whenever a brand merges with another brand or is acquired by
range of films and TV shows from home for a low subscription fee. Over sub-brands under its umbrella.
time, this model gained popularity, as customers appreciated the
convenience of not needing to visit a store to rent or return movies. Who should you rebrand for?
1.Current Customers

SUMMARY* 2. New and potential customers

Disruptive innovations transform industries, but they take time to 3. For staying updated on market trends
develop. The brands mentioned in this article began as market entrants,
4. Competitors
and their success stemmed from innovative ideas that addressed
 The origins of the logo can be dated back to the Ancient Egyptians. They
originally used hieroglyphics to brand and identify their possessions, until in
When should you rebrand your organization?
medieval times when graphic imagery such as coats of arms were used to
1. New Goals and Values distinguish between the statuses of different nobilities.

2. Obsolete Brand Image History of Logo by the following company:

3. Market Changes APPLE

4.Merger or Acquisition Where should you focus while rebranding your Apple started in a small Californian garage in 1976. Initially, it was founded
organization? by 3 people named Steve Jobs, Steve Wozniak, and Ronald Wayne in April
1976. Apple Incorporation is an American computer and consumer
Where should you focus while rebranding your organization? electronics company famous for creating the iPhone, iPad and Macintosh
1. Logo and Visual Identity computers. Apple is one of the largest companies globally with a market
cap of more than $3 trillion.
• Logo Design
• Brand Guidelines
Apple’s Logo from 1976 – Present
2. Messaging and Communication
• Tagline and Brand Message
1976 (Emblem and Shape Logos)
• Content Strategy
The job of creating the company’s first logo fell to Ronald Wayne, who
3. Website and online presence decided to use Isaac Newton’s image sitting below a tree – the same Isaac
Newton who discovered gravity when an apple fell out of a tree onto his
• Website redesign
head. It captures the moment right before an apple fell on his head.
• Social Media profiles
4. Collateral and Marketing materials
1977 (Combination Marks)
• Brochures and print material
Jobs hired Rob Janoff, a graphic designer tasked with creating a logo that
• Digital Marketing would blend the name “Apple” with a modern-looking design. The design
took Janoff about two weeks, costing Steve Jobs around $100,000. It was
based on Steve Jobs’s desire for a simpler and more approachable logo. 2
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LESSON 7 1984 (Brand Marks)

History of logo
The logo underwent a little change when Landor & Associates was hired in
1984 before the Macintosh was launched. Apple got a new typeface, but
the logo is now often used without the name.

1998 (Brand Marks)

Steve Jobs returned to Apple in 1997 and revamped the company's entire
brand image. He removed the rainbow colors and replaced them with solid
black known as the monochromatic logo, symbolizing a fresh start and a
refined vision for the company which was used briefly until 2001.

2001 (Brand Marks) TOYOTA

Alongside the groundbreaking launch of the iPod, Apple introduced a Toyota is the largest automobile manufacturer in the world, producing about
refreshed logo that featured a chrome texture design in silver, moving away 10 million vehicles per year. Kiichiro Toyoda was the founder of Toyota
from the flat monochrome emblem, symbolizing the company’s Motor Corporation and the automotive centered Toyota Group. Kiichiro
commitment to elegance and advanced technology. used the spirit of invention, and the business base inherited from his father
Sakichi Toyoda to expand into the automotive business and build the
foundation of today's Toyota Group. It was founded by Kiichiro Toyoda and
2007 (Brand Marks) incorporated on August 28, 1937.

This new design, with its glossy, reflective surface, perfectly complemented
the innovative feel of the iPhone and other products of that era. Toyota’s Logo from 1935 – Present

2017 (Brand Marks) The logo underwent a little change when Landor & 1935 (Combination Marks)
Associates was hired in 1984 before the Macintosh was launched. Apple
got a new typeface, but the logo was now often used without the name. 3 The 1935 logo wasn’t that much different than the present day. It
incorporated the same red and white colors we see today. However, the
main difference between past and present designs is the 1935 version
featured a very geometric logo compared to today.

1949 (Abstract Marks)

This logo replaced the past geometric design with a red circle and
markings spelling out Toyota. The new spelling was considered good luck
in Japanese belief due to it taking 8 pen strokes. 8 pen strokes in Japanese
belief are how many strokes make up a lucky number. Hence, bringing
2019 (Combination Marks)
good luck. That logo change influenced the international market, and the
company introduced a watermark similar to times new roman spelling out By the year 2019, Toyota updated its image again. This time refine the
“Toyota”. Changing the initial name from Toyoda to Toyota. contours of the oval emblem. Displaying its logo on a red, white, or black
background.

1958 (Word Marks)

2020 (Abstract Marks)
The company had forayed into the international market, which also was a
reason for adopting the new name Toyota, which sounds Roman. This time This change, according to The Partnership and Toyota, was an
they used a font that looked like Times New Roman font and created the acknowledgement of the brand's visual recognition amongst European
letter in black. consumers, meaning it no longer needs to plainly state its
to be identified.
1969 (Word Marks)
In 1969 the wordmark for Toyota changed again, evolving into a sans-serif PEPSI
design. Creating a more modern image. 1978 (Word Marks)
The company continued to embrace the bright red and white coloring.
Resulting in a wordmark very similar to what we see today. With minor Pepsi, produced by PepsiCo, Incorporation, is a globally recognized
changes to letter height and spacing. carbonated soft drink known for its bold cola flavor. Originally created in
1893, Pepsi has grown to become a leading competitor in the beverage
industry, offering various product lines like Pepsi Zero Sugar and flavored
colas. The brand is associated with youthful energy and has made a
1989 (Combination Mark)
significant impact through pop culture partnerships and innovative
Toyota updated its logo with more than just a wordmark. Incorporating the marketing strategies.
first version of the oval emblem. Featuring a large horizontal oval with a set
of two overlapping ovals in the middle. Originally, the color for the oval
emblem was a deep red. The color scheme has since been updated Pepsi’s Logo from 1893 – Present
through the years.

1893: Brad’s Drink (Word Marks)

2005 (Combination Marks) Before Pepsi was Pepsi, it was known as Brad’s Drink, created by
pharmacist Caleb Bradham in New Bern, North Carolina in 1893. During
During the year 2005, Toyota updated its oval emblem to a silver version.
that same era, pharmacists created a bunch of the sodas like coca cola
Which made the separate ovals of the Toyota symbol easier to recognize. 4
and dr pepper. The Brad’s Drink logo was a blue wordmark against a white
background. The font was bold and ornate, a characteristic the Pepsi logo Pepsi embraced 1970s minimalism when it switched to the globe logo in
would hold on to for a while, even after changing colors and becoming 1973. This was a fairly simple change; the bottle cap just dropped its
known as Pepsi-Cola. ridges.

1998 – 1940 (Word Marks) 1991 (Combination Marks)

In 1898, Brad’s Drink became known as Pepsi-Cola, a name derived from The big Pepsi logo shift in 1991 was just to pull the brand name out of the
the word “dyspepsia,” another word for indigestion. (Remember, these wavy globe. The font and design elements largely stayed the same, they
were the days when soft drinks were considered medicinal aids.) Over just pull the brand name out the wavy globe to improve its visibility and
time, the logo words started to become softer and less wild, in that the make the logo more versatile across different media. This allowed the logo
letters started to show a much more even spacing. By 1940, the logo was to be clearer and more easily recognized, especially in an era where
paired down to a succinct banner with smooth words. It had a very Art- branding needed to stand out in digital and print formats.
Deco-era feel. The letters were clean cut and more thinned out from the
version in 1906, where the font gave off a little bit of a carnival vibe. And
the lines from the ‘C’ took on flourishes that highlight the rest of the word, 1998 – 2005 (Combination Marks)
without the awkward connection it had previously tried to share with the ‘P.’
In 1998, Pepsi's logo became 3D, featuring a dominant blue background, a
glowing globe, and a rounded, futuristic font. By 2005, the logo added more
depth with a gradient background, shine on the globe, and shadowed serif
letters for a sleek, dynamic appearance.
1950s (Emblem and Shape Logo)
To differentiate from Coca-Cola, Pepsi introduced blue to its logo,
2006 (Combination Marks)
particularly on bottle caps. The red, white, and blue color scheme became
iconic, symbolizing energy and fun, with slogans like “More Bounce to the The addition of droplets to the 2006 Pepsi logo was meant to evoke a
Ounce refreshing, thirst-quenching appeal, which fit the early 2000s trend of
adding detailed, dynamic elements to make logos feel more interactive and
visually engaging.
1962 (Combination Marks)
This was a pivotal year for the entire Pepsi brand. Two major things
2008: A global cola leader (Dynamic Mark)
happened: The logo bottle cap now laid flat, and Pepsi-Cola dropped the
word “cola.” emphasizing the brand’s youth-oriented approach. From here The 2006 version was cool, but by 2008, it was time for another change.
on out, it was just Pepsi. 5 This time around, Pepsi was due for a big change. Famously, Pepsi paid
Arnell Group more than $1 million to design their next logo,

1973-1990 (Abstract Marks)

his was not just a simple tweak, Pepsi was looking for a visual shift that
would not only stand out but also become iconic, ushering in a new era for
the brand.

2014 - (Dynamic Mark)

In 2014, Pepsi made a subtle yet impactful change by removing the outline
around the globe, opting for a minimalist design that emphasizes implied
waves within the circle. This streamlined branding aligns perfectly with
modern platforms and packaging, ensuring clarity and ease of recognition.
6

2023 (Combination Mark)

In celebration of its 125th anniversary, Pepsi made a notable return to a
bold, uppercase font that harkens back to its iconic designs from the 80s
and 90s. This nostalgic choice not only pays homage to the brand’s rich
history but also evokes feelings of familiarity and trust among longtime
consumers. The flat design aesthetic aligns with contemporary branding
trends while still incorporating classic features, like the black accents used AMAZON
for the Zero Sugar product line, which help differentiate it within the
Amazon is a multinational technology company based in Seattle, primarily
portfolio. This blend of nostalgia and modernity reflects Pepsi's strategy to
known for its e-commerce platform. Founded by Jeff Bezos in 1994, it
appeal to both older fans who remember the brand's vibrant past and
began as an online bookstore and has since expanded to offer a wide
younger consumers who appreciate clean, minimalist designs.
range of products and services, including cloud computing (AWS), digital
streaming, and artificial intelligence. Amazon is recognized for its customer-
centric approach, innovative logistics, and vast marketplace, making it one
of the world's largest and most influential companies.

1995 (Combination Marks)

In 1995, Amazon's first logo was a stylized black "A" with a white line
representing the Amazon River. The wordmark "amazon.com" was placed
beneath in a simple sans-serif typeface. It was designed by Jeff Bezos, the
company's founder. t was a straightforward design that aimed to establish
Amazon's identity as an online bookstore.
1997 (Combination Marks)
The first logo redesign features the same garish late 90s stylings and
ridiculousness. The logo was redesigned with white horizontal lines
extending from the Amazon River, creating a resemblance to a tree and a
zebra pattern. The wordmark became bolder, and the emblem was made
smaller and more elegant. It designed by Turner Duckworth, a design firm
based in San Francisco and London.

1998 (Combination Marks)

GOOGLE
In 1998, Amazon experimented with several different logos, reflecting the
company's rapid growth and evolving brand identity. Here's a breakdown of
the logos used that year: Early 1998: A simple wordmark "amazon.com" in Google's parent company, Alphabet Incorporation, is one of the five Big
a serif typeface with the tagline "Earth's Biggest Bookstore" in all caps and Tech companies focusing on online advertising, search engine technology,
a sans-serif font. This logo was black and white and was quickly replaced. cloud computing, computer software, quantum computing, e-commerce,
consumer electronics, and artificial intelligence. Google was founded on
September 4, 1998, by American computer scientists Larry Page and
1998 (Word Marks) Sergey Brin while they were PhD students at Stanford University in
California.
Mid-1998: A capitalized wordmark "amazon.com" in black with a large
yellow "O". The tagline was removed. This logo was also short-lived.
Late 1998 - 2000: The "swish" logo was introduced, featuring a lowercase Google’s Logo from 1998 – Present
wordmark "amazon.com" in black with a bright yellow line underneath,
slightly arched to represent a bridge connecting past and future. The
wordmark was executed in Officina Sans typeface, with "amazon" in bolder 1996 (Word Marks)
lines than ".com". This logo laid the foundation for the current logo.
Google originally started as a search engine project called “Backrub” at
Stanford in 1996. The founders, Sergey Brin and Larry Page, wanted to
organize all of the information on the internet in an easily accessible way.
2000 (Combination Marks)
The current logo, designed in 2000, features a lowercase wordmark
"amazon" with a bold yellow arrow extending from the "a" to the "z", 1998 (Word Marks)
forming a smile. The ".com" was removed as Amazon expanded its offline
The Baskerville Bold typeface and brave, yet playful, logo colors caught the
presence. 8
attention of Google’s audience.
 The 2013 revision saw Google take the modern minimalist approach a step
further. It eliminated the shadow effect and opted for a flatter, simpler
design. 9
1998
There’s no rhyme or reason as to why Google chose these brand colors.
But there’s speculation that the first Google logo was inspired by the Lego
tower that stored the tech giant’s first server. This rendition only lasted a
month before Google decided it needed a change.

1997 – 1998 (Word Marks)

In 1997, Google presented its first official logo, a classic 90s creation with
an exclamation point at the end. The use of a serif font provided a sense of Additional Information:
authority and trust. Essential for a company that wants users to rely on it
for the world’s information. The team introduced more shadows and gave The genesis of Google’s Doodles
the lettering more rounded notes. And of course, changed the first ‘G’ from
Google Doodles revolutionized how users interact with a brand. It all began
green to blue.
as a playful, quirky modification of the Google logo back in 1998 when
Page and Brin attended the Burning Man Festival. The Doodles embody
Google’s brand ethos of injecting fun and creativity into technology.
1999 – 2010 (Word Marks) Doodles commemorate a wide range of events, anniversaries, and unsung
In 1999, Google decided to lean further into its playful spirit. The team heroes from around the world.
brought in Ruth Kedar, a designer, to create the colorful Google we’re all
familiar with. The new logo consisted of a new typeface, Catull. The Catull
font has sharp serifs, an angled axis, and modern features. The google “G” favicon used since September 1, 2015
A favicon is a small image that represents a website in web browsers. If
you look at your browser’s address bar right now, you’ll see several
2010 – 2013 (Word Marks) favicons, including SE Ranking’s favicon. Typically, favicons feature things
By 2010, Google began shedding its startup skin. The logo’s drop shadow like logos, the first letter of the company’s name, or images that reflect the
was minimized and the colors were slightly muted, creating a smoother specifics of the websites they represent.
appearance. It was the beginning of modern design that reflected the stark
advancement of technology. ----------------------------------------------------------------------------------------------------
------------------------------------

2013 – 2015 (Word Marks)

LESSON 9 replacing the logo with popular names. This campaign encouraged social
sharing and community engagement, driving sales and creating a viral
COLA WARS
sensation across social media.
HISTORY
The Cola wars are the long-time rivalry between soft drinks producers The
PRODUCT INNOVATION
Coca-Cola Company. and PepsiCo, who have engaged in mutually-target
marketing campaigns for the direct competition between each company's This rivalry began in the late 19th century, with Coca-Cola establishing an
product lines, especially their flagship cola, Coca Cola and Pepsi. early lead. Pepsi differentiated itself through affordability during the Great
Beginning in the late 1970s and into the 1980s, the competition escalated Depression, marking the start of their ongoing battle.
until it became known as the cola wars.
Coca-Cola's New Coke (1985): A controversial reformulation that was met
In 1886, John Stith Pemberton, a pharmacist from Atlanta, Georgia, with consumer backlash, reinforcing brand loyalty when the original formula
developed the original recipe for Coca-Cola. By 1888, control of the was reintroduced
recipe was acquired by Asa Griggs Candler, who in 1896, founded The
Pepsi's Crystal Pepsi (1992): An experimental clear cola that, despite
Coca-Cola Company. Two years later, in 1898, Caleb Bradham renamed
marketing efforts, failed to gain long-term success.
his "Brad's Drink" to "Pepsi-Cola," and formed the Pepsi-Cola Company in
1902, prompting the beginning of the cola wars.
The two companies continued to introduce new and contemporary CULTURAL INFLUENCE
advertising techniques, such as Coke's first celebrity endorsement and
1915 contour bottle, until market instability following World War I forced The competition between Coca-Cola and Pepsi has driven significant
Pepsi to declare bankruptcy in 1923. In 1931, Pepsi went bankrupt once advertising innovations, from celebrity endorsements to creative product
more, but recovered and began selling its products at an affordable 5 cents photography. Pepsi's
per bottle, reigniting the cola wars through to today. Pepsi offered to sell out bold marketing, exemplified by campaigns like the Pepsi Challenge, often
to Coca-Cola following both of its bankruptcies during this time, but Coca- forces
Cola declined each time.
Coca-Cola to react. However, taste tests can be misleading; while
MARKETING BATTLES consumers may prefer Pepsi's sweeter flavor in short sip tests, long-term
In 1975, Pepsi conducted a blind taste test called "The Pepsi preferences often differ.
Challenge" to see which product people liked better, Pepsi or Coca- Sustainability and Social Responsibility
Cola. In 1982, Coca-Cola released "Diet Coke" but changing its recipe to
"New Coke" in 1985, but ultimately returned the original recipe, resulting in Diversification of Product Lines
the creation of "Coca- Cola Classic."
Health and Wellness Trend
As marketing moved into the digital age, Pepsi launched the “Live for Now”
Globalization and Local Adaptation
campaign. This campaign was all about capturing the spontaneity and
excitement of life, heavily promoted through social media. Coca-Cola Digital Marketing and Social Media
launched the “Share a Coke” campaign, which personalized bottles by
Cultural Authenticity and Storytelling
BRAND LOYALTY This concept is used by management and marketing professionals to make
marketing and sales decisions, such as whether or not to increase
The Cola Wars, a competition between Coca-Cola and Pepsi, reveal that
advertising, reduce prices, expand to new markets, or redesign packaging.
brand loyalty in mature markets is strong. Despite intense advertising and
The process of strategizing ways to continuously support and maintain a
price wars, consumer loyalty remains strong. A study found that 94.4% of
product is called product life cycle management.
Coca-Cola households remained loyal over a quarter, while 91% of Pepsi
households did the same. This suggests that brands could benefit from
targeting "fringe" consumers, those who haven't committed to a brand,
HOW PRODUCT LIFE CYCLE WORKS?
rather than competing for entrenched customers.
A product begins with an idea. Within the confines of modern business, that
idea isn't likely to go further until it undergoes research and development
SUMMARY (R&D). If the business finds that it is feasible and potentially profitable, the
product will be produced, marketed, and rolled out.
The Cola Wars, a long-standing rivalry between Coca-Cola and PepsiCo,
have significantly shaped the soft drink industry and popular culture since
their inception in the late 19th century. The rivalry has led to marketing
FOUR STAGES OF PRODUCT LIFE CYCLE
campaigns such as the Pepsi Challenge, "Live for Now," and "Share a
Coke." The competition has also influenced sustainability, social 1. Introduction
responsibility, product diversification, health trends, globalization, digital
marketing, and cultural authenticity. Despite initial financial struggles faced - First launch of the product
by Pepsi, the two companies have engaged in intense marketing battles - High advertising costs to create awareness
and product innovations. Marketing campaigns have been pivotal in the
Cola Wars, with campaigns like "Pepsi Challenge" and "Share a Coke" - Limited competition
capturing consumer interest and driving sales. The Cola Wars have also
- Negative financial results (low sales, high expenses)
left a lasting impact on culture and society, driving advertising innovation
through celebrity endorsements and creative product presentations. In 4Ps Strategy in the Introduction Stage
recent years, both companies have shifted their focus towards
sustainability, social responsibility, and product diversification. ● Product: Launch a minimal viable product (MVP)
● Price: Use skimming or penetration pricing
---------------------------------------------------------------------------------------------------- ● Place: Limited distribution channels, often testing the product in
--------------------------------------------------------------------------------------------------- select regions or through direct channels.
LESSON 10 ● Promotion: Heavy focus on advertising and promotions to create
PRODUCT LIFE CYCLE product awareness. Use influencer marketing or product trials.

The product life cycle is the length of time that a product is available to 2. Growth Stage
customers. It starts when a product (a good or a service) is introduced into - Increasing demand and production
the market and ends when it's removed from the shelves.
- Product becomes more recognizable ● Objective: Minimize costs and exit the market gracefully.
- Competition increases ● Characteristics:
- Higher sales but thinner margins - Sales decline due to changing customer preferences or new alternatives.
4Ps Strategy in the Growth Stage - Profits dwindle, and companies may cut back on investments.
● Product: Add new features or variants 4Ps Strategies in Decline
● Price: Slightly lower prices for competitiveness ● Product: Reduce the number of variants or discontinue less
profitable versions.
● Place: Expand distribution to new regions or retailers, both online
and offline. ● Price: Offer deep discounts to clear inventory.
● Promotion: Shift from awareness to persuasion, emphasizing ● Place: Reduce distribution to only the most profitable channels.
product benefits over competitors. Use customer testimonials and
● Promotion: Minimize advertising, focusing only on loyal
social proof.
customers or niche markets.
3. Maturity Stage
- where market growth slows, competition becomes intense, and firms
BENEFITS AND DRAWBACKS OF USING THE PRODUCT LIFE CYCLE
focus on maintaining market share rather than increasing sales.
BENEFITS:
- products have typically reached widespread acceptance, leading to stable
demand and the need for companies to differentiate themselves through ● Clarify portfolio of offerings
pricing strategies, product improvements, or enhanced customer service to
sustain profitability. ● Better allocation of resources

4Ps Strategy in the Maturity Stage ● Positive impact on economic growth

● Product: Companies may enhance product features to differentiate them ● Promotes innovation
from competitors. DRAWBACKS:
● Price: Companies may need to lower prices to maintain market share. ● Not appropriate for every industry or product
● Place: becomes more intensive, and companies may offer incentives to ● Legal or trademark restrictions
encourage preference over competitors.
● Planned obsolescence
● Promotion: Promotion emphasizes product differentiation and social
proof. ● Product or resource waste
PRODUCT LIFE CYCLE VS. BCG MATRIX

4. Decline Stage
A similar analytical tool to help businesses determine the market
positioning of a product is the
Boston Consulting Group (BCG) Matrix. This four-square table defines
products based on
their market growth and market share:

● Stars: Products with high market growth and high market share
● Cash cows: Products with low market growth(slow-growing industry) and
high market
share
● Question Marks: Products with high market growth and low market
share
● Dogs: Products with low market growth and low market share

EXAMPLE:
One of the most widely well known consumer product companies in the
world is Apple.
● Cash Cow - Once an innovative product, Apple’s laptops are no longer in
a fast-growing industry but generate healthy profits for the company
● Dog - Apple’s iPods have now been cannibalized by its iPhones and
should no longer receive further heavy investment
● Question Mark - Apple’s AirPods are growing extremely quickly but have
yet to dominate the market
● Star - Apple’s iPhones continue to generate excess profits and the
company dominates the growing smartphone market
Both systems analyze a product's market growth and saturation. However,
the BCG Matrix does not traditionally communicate the direction in which a
product will move. For example, a product that has entered the maturity
stage of the product life cycle will likely experience decline next; the BCG
Matrix does not communicate this product flow in its visual depiction. There
is no direct relationship between where a product sits in the BCG Matrix
and where it is in the product life cycle.