Conclusion

The drink named ‘Virgin Cola’ launched by Virgin group in 1994 with the leadership of
Mr. Richard Branson was moderate successful in the UK market. Branson decided to launch
Virgin cola in the world market without listening to the advice of his ‘Advisory
Committee’ which made Virgin Cola unsuccessful in the cola market.

The world cola market is very much larger than UK, and ‘Virgin Cola’ had to share the
market with world no 1 and 2 cola products such as Coca-cola and Pepsi Cola, Coca-cola and
Pepsi cola holds more than 90% of the world cola market. Virgin Cola entered world cola market
with a huge advertisement campaign in the initial stage, exceeding their budgetary framework
but their campaign was insufficient to break market share of Coca-cola and Pepsi cola, hence
Virgin cola never earned profits.

The consumers recognized Virgin Cola as a “Girlie Cola Drink” and difference in taste
comparatively to the other Colas. Moreover great leadership, diversified conglomerate synergy,
Power of brand name is some of the strengths of the Virgin Cola. Where as poor distribution,
poor market penetration, and too much dependence on the core brand are some of the
weaknesses.

When moving into a new market segment, using of family brand name may harm the
image of the new product line. Utilization of existing distribution channels of Virgin to produce
and distribute the new product and Use “do-feel-learn” model to get pure response of the
customer, could increase quality of the new cola product and give consumers a better cola drink.