Product Life Cycle of Coca-Cola

By: Reyna Robles

Product Life Cycle of Coca-Cola

Coca-Cola was introduced in 1886 when it was first intended to be sold for patent at a cost of five cents. During the first year profits made came to $50. Current growth of this product increases along with profits of The Coca-Cola Company which come to 1.8 billion drinks per day. As of 1993 Coca-Cola has spent 1.0 billion dollars in advertisement which has increased by .1 billion dollars per each year. As of 2006 the advertising cost spent is now 2.6 billion dollars. The billions of dollars spent in advertisements are essentials in order for The Coca-Cola Company to continue to gain profits when sales have leveled off during the maturity stage. Currently there is no decline stage but in 1985 is when Coca-Cola faced it's worse decline and was a bad marketing decision on behalf of Coca-Cola. Coca-Cola "redesigned" the can and also named it "New Coke" while changing the formula of Coke. Customers were not satisfied with this change and in order for Coca-Cola to make a profit once again, The Coca-Cola Company went back to it's original formula and can design which has lead them to the profits they continue to make today.