What brand development strategy is Coca-Cola undertaking?

Coca-Cola launched Coca-Cola Plus in a limited market in Japan last year and now plans to launch it nationwide in that country. Coca-Cola Plus is a zero-calorie soda (essentially Diet Coke) with 5 grams of an indigestible dietary fiber called dextrin. Although some might just call it Diet Coke with a laxative, Coca-Cola Plus is touted in Japan as a health food that suppresses the absorption of fat and keeps blood triglycerides at moderate levels. In fact, the product has earned the Japanese government’s “gold label,” designating it as a government-approved Food of Specific Health Use (FOSHU). Although the new Coca-Cola Plus reaps a higher wholesale price for the company ($1.20 per 470-milliliter bottle versus $1.15 per bottle for the original Diet Coke), it also comes with higher variable costs ($0.65 per bottle versus $0.55 per bottle for the original product). Although some Diet Coke drinkers will switch to Coca-Cola Plus, the company believes the new product will attract new customers because of its health benefits. Coca-Cola is no stranger to introducing new products in Japan. The company released Coca-Cola Coffee Plus last year and recently introduced its first alcoholic beverage called Lemon Do.