Cobalt Sodas has seen its market share erode in recent years, as consumers increasingly turn toward healthier beverage choices such as unsweetened sparkling water. Hoping to rekindle interest in sugary sodas, Cobalt decides to produce a limited run of "throwback" cans using labeling first introduced in the 1980s. What is wrong with this strategy?

Question

Business

Landon Blair

1 September, 03:44

Cobalt Sodas has seen its market share erode in recent years, as consumers increasingly turn toward healthier beverage choices such as unsweetened sparkling water. Hoping to rekindle interest in sugary sodas, Cobalt decides to produce a limited run of "throwback" cans using labeling first introduced in the 1980s. What is wrong with this strategy?

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Answers (1)

Know the Answer?

Destiny Mcdonald · Answer 1

The answer is: Cobalt Sodas is not dealing with its main problem, which is the shift in consumer behavior

Explanation:

The main issue that Cobalt Sodas (CS) must address is the change in consumer behavior and to do this they must diversify their product lines.

Consumers are less interested now in beverages that are seen as unhealthy. They want to buy beverages considered to be healthy, so CS should start to develop a new product line of healthy beverages. If they sell "old style" cans that wouldn't have a lasting positive impact. Maybe at the beginning they sell more cans but eventually their sales will keep falling until they diversity their product lines.