Compare And Contrast Coca Cola And Ruth's Chris

Coca Cola and Ruth’s Chris use vastly different expansion models. While Ruth’s Chris has focused on the market development model, Coca Cola has implemented all four models.
Ruth’s Chris is very confident in their product and has no interest in developing new product lines. Although they do offer some limited alternative menu items at times, the menu stays consistent. Dinner entrees include; Prime grade steaks, premium quality lamb chops, veal chops, fish, chicken and lobster as well as a vegetable platter. They are of a mindset that they have optimized their product and want to offer the same product line to a larger number of people in select new areas that will support their model.
Ruth’s Chis has a limited geographical footprint to areas

They have implemented product development by offering and acquiring new products for distribution in existing markets. The disastrous release of New Coke is an example of this. They have also implemented diversification by releasing new products in new market areas, as attested to by the video which stated that Coca Cola has over 500 brands worldwide, with only 70 in the US. The penetration model is probably the one most commonly used by Coca Cola. In their constant battle with Pepsi over market share, Coca Cola puts a lot of emphasis on brand recognition in and attempt to increase the sales of existing products in existing markets. Finally, the use of the market development model is evident by the fact that Coca Cola is the world’s most recognized brand. Coca Cola, unlike Ruth’s Chris, enters into markets that are undeveloped. They provide a highly commoditized product for a very low price. This allows them to have a larger geographical footprint than Ruth’s Chris.
Coca Cola consistently has to review its products to meet the demands of the consumer. Consumers like to have a variety of beverage selectins and are continually looking for new flavors. This puts more burdens on Coca Cola to be creative and innovated to stay