CONSUMER AND INDUSTRIAL BUYING BEHAVIOUR ASSIGNMENT – 2 SUBMITTED TO: MS. HARLEEN SAHNI
SUBMITTED BY: ANUSHKA DUDUSKAR PRIYANKA RAJANALA SHASHANK GUPTA
Coca-Cola was initially sold as a patent medicine for five cents a glass at soda fountain in the United States because of the belief that carbonated water was good for the health and could cure many more diseases. The transformation of the brand image leads to a situation, where we believe and also enjoy it as a drink for happiness. We are analyzing the brand charisma, how well image advertisement works for the “ Coca-Cola Company ”.
Coca cola was invented by John Pemberton. It got known to the world due to the marketing strategies of Asa Candler. Some people say it is an “American dream” in a bottle. It is very important here to understand the hidden strategic
symbol making process, which portrayed as a symbol of spirit, vitality, creativity and optimism. It has been successful in expressing the American spirit and also the American pop culture in front of the world. Also strategically able to position itself as a cultural icon. It not only spreads and sells the American culture, but takes different strategies to meet the varied taste preferences of consumers everywhere. If coca-cola only limited itself on the expression of American culture for its marketing, it would be impossible for it to become a brand that can be recognized in the multicultural world. Studies have shown that Coca‑ Cola is among the most‑ admired and best‑ known trademarks in the world. In fact, it is documented that “Coca‑ Cola” is the second‑ most widely understood term in the world, after “okay.”
In 1886, Company accountant, Frank Robinson, named the drink “Coca‑ Cola,” and thinking the two Cs would look well in advertising, pens the famous Spencerian script logo. Three core elements of its logo design made it possible to complete the visual identity system of coca cola brand.
Coca-Cola was initially sold as a patent medicine for five cents a glass at soda fountain in the United States because of the belief that carbonated water was good for the health and could cure many more diseases. The transformation of the brand image leads to a situation, where we believe and also enjoy it as a drink for happiness. We are analyzing the brand charisma, how well image advertisement works for the “ Coca-Cola Company ”.
Coca cola was invented by John Pemberton. It got known to the world due to the marketing strategies of Asa Candler. Some people say it is an “American dream” in a bottle. It is very important here to understand the hidden strategic
symbol making process, which portrayed as a symbol of spirit, vitality, creativity and optimism. It has been successful in expressing the American spirit and also the American pop culture in front of the world. Also strategically able to position itself as a cultural icon. It not only spreads and sells the American culture, but takes different strategies to meet the varied taste preferences of consumers everywhere. If coca-cola only limited itself on the expression of American culture for its marketing, it would be impossible for it to become a brand that can be recognized in the multicultural world. Studies have shown that Coca‑ Cola is among the most‑ admired and best‑ known trademarks in the world. In fact, it is documented that “Coca‑ Cola” is the second‑ most widely understood term in the world, after “okay.”
In 1886, Company accountant, Frank Robinson, named the drink “Coca‑ Cola,” and thinking the two Cs would look well in advertising, pens the famous Spencerian script logo. Three core elements of its logo design made it possible to complete the visual identity system of coca cola brand.
What’s there in the Name?
Name of the brand: “Coca-Cola” (easy to speak and remember). Strategic standard color : associated color of the company- “ BRIGHT RED” Uniform color of employee in the company is “RED”, packaging is done with “RED” color. The company has attached the color red so completely in its brand image that whenever we see any red colored thing then there is a chance that coke will come to our mind. The famous spencerian script logo can be recognized even if it is written in china letters. That’s how the brand recognition of name works here.
Packaging aspect:
The Coca‑ Cola Company asked bottle manufacturers to submit designs for a bottle for Coca‑ Cola that was so distinctive that it could be recognized by feel in the dark or identified lying broken on the ground. Alexander Samuelson of the Root Glass Company in Terre Haute, Indiana, designed the distinctive shape, and it was patented on November 16, 1915. In 1960, the contour bottle was granted registration as a trademark by the U.S. Patent Office. Today, it is still the most recognized bottle in the world, and the shape is used for packaging from the new aluminum can to the 2‑ liter family size. They do integrate the package with beautifully designed logos and cultural symbols and its chilled look make’s the first attraction. If you will see Chinese coke cans have a totally different look, they include young and sizzling Chinese stars on their can cover and Chinese traditional culture and events too. This way they have a varied approach from market to market keeping the country in mind.
Advertising Strategies in India:
Two decade old Brand Coca Cola India’s advertising journey has been full of innovation and creativity. Coca Cola India made a consistent effort on its part to align its product with the Indian Culture and tradition. The earliest of the ad campaigns shows the brand positioning itself as a relaxing drink, fighting off the hot weather and humidity of Indian weathers.
Since rival Pepsi had already established a strong brand image based on first mover advantage, Coca Cola adopted the dual strategy of Jingles and Celebrity endorsements.
If you are going out in the sun, don’t forget your dark glasses.
Jo Chaaho Ho Jaaye, Coca Cola Enjoy was one of the company’s first campaigns
in India. It was remarkably well executed, and appealed both at a product level as well as at an emotional level. These ads featured celebrities such as Hrithik Roshan and Aishwarya Rai. The target segment for Coca Cola in its initial days was the youth segment and this campaign clearly connected well with the segment. However, the next advertising campaign of Thanda Matlab Coca Cola was launched with an objective to have a mass appeal. The campaign leveraged the product platform rather than the emotional platform that it had established earlier.
Thanda Matlab Coca Cola Ad Campaign
It is however, important to note here that Coca Cola made some exceptions for India. The company has similar marketing strategies across geographies and usually doesn’t depend on celebrity endorsements. But given the great fan-following, and in adapting to the Indian context, the company had to initially deviate from its set charter. However with the current campaign of Open Happiness, Coca Cola seems to have achieved both an emotional as well as a mass appeal. There is a very natural connect with the target segment, that of celebrating every day, and sharing small moments of joy with our loved ones, irrespective of any barriers. As much as the coca cola drinks enjoy popularity with the masses, the brand has been under serious criticism owing to the health issues associated with the consumption of Cola drinks. Health experts allegedly blame the cola manufacturers for promoting child obesity and other lifestyle diseases. Environmentalist has shunned the manufacturing practices of Cola giants as they claim that cola manufacturing plants cause water depletion and contamination. Thus to counter all negative complaints coke Post 2009, Coca Cola adopted the “Global happiness” campaign. It experimented with different kinds of images of the year. It was projected as a beverage enjoyed by the entire family together through
ad campaigns like “Saath Khao Khushiyaan Badao”. Saath Khao Khushiyaan Badao – Coca Cola India Marketing Campaign
Coca Cola India campaign “Umeedon Wali Dhoop, Sunshine Wali Asha” ad launched in the year 2012, sells hope for better tomorrow. The clearly gives a message of hope and growth and shows that every and any dream is achievable. Similarly the brand also roped in Sachin Tendulkar, as a “happiness brand ambassador” to support various CSR initiatives the brand is undertaking.
Coca Cola India Ad Campaign: Umeedon wala Dhoop, Sunshine wali Asha
An uplifting Coca-Cola film shows that what unites us is stronger than what sets us apart. High-tech vending machines installed in two popular shopping malls in Lahore, Pakistan and New Delhi, India – two cities separated by only 325 miles, but seemingly worlds apart due to decades of political tension – invited consumers to put their differences aside and share a simple moment over a Coke. The “Small World Machines” provided a live communications portal linking strangers in two nations divided by more than just borders, with the hope of provoking a small moment of happiness and promoting cultural understanding around the world. Coke and Leo Burnett used first-of-its-kind 3D touchscreen technology to project a streaming video feed onto the vending machine screen while simultaneously filming through the unit to capture a live emotional exchange. People from both countries and various walks of life were
encouraged to complete a friendly task together – wave, touch hands, draw a peace sign or dance – before sharing a Coca-Cola.
Coca-Cola India spreads the spirit of celebration and togetherness during Diwali with its television commercials. The “Homecoming this Diwali” campaign, focused on the youth, talks about their desire to remain close to their roots, even as they step out in search of new opportunities. The advertisement appeals to our optimism, to our belief in goodness and stands for celebrating togetherness. It is about enabling and acting as a catalyst in making connections. Much like the brand, Warli -- the traditional art form used in the advertisement -- is also about togetherness and simplicity, and symbolizes ones connection to their roots. The Coca-Cola Diwali campaign ties all this together. It is a tribute to the youth of today. It captures their emotions and their desire to remain close to their roots, as they step out in search of new opportunities
Coca Cola India Ad Campaign: 'Come Home on Deepawali'
The television commercial titled 'Do diye zyaada jalaao', celebrates the joy of sharing and spreading happiness. The TVC is backed by a sweet and happy sound track that says 'Do diye zyaada jalaao'. Coca-Cola, the universal icon of happiness, believes that happiness grows more when shared with others. They have built their Diwali campaign based on this simple proposition. Just as Diwali marks a new beginning and ushers in a celebratory mood, it also gives a good reason to undertake a little act of digging into our own happiness and sharing it with others, in turn making the moment even more special. What better way to symbolise this act other than by lighting diyas. It is only Coke which can speak such a heartwarming language and talk about happiness in such a simple, yet special manner. The campaign echoes the same sentiment and encourages everyone to make Diwali more special and memorable by the simple act of lighting two diyas for someone, extending happiness and spreading joy.
‘Diwali (Do diye zyaada jalao)’
Their new series of ads focus on making strangers happy. The series has a very cute and easy to remember jingle (in Hindi language) – ‘Haan haan mein crazy hun’ (which means ‘Yes I am crazy’). This positioning is slightly different from the earlier ones where Coca Cola focused on celebrating events with your near and dear ones. But, this new positioning has expanded the circumference of one’s happiness from own friends/relatives to any stranger you find on the
road. It has different ads in this same campaign. All of us are fast becoming a society with growing levels of selfishness and apathy, and are losing intrinsic values such as kindness and concern for others. In such times, when you see someone being kind to strangers, it brings a smile to your face. You feel positive and optimistic about the world we live in. Spreading happiness brings joy to both the giver and the receiver.
Coca Cola 2013 – Haan mein crazy hoon
Creativity/Freshness: Coca Cola always comes out with something unique in its concept, however their campaign always focusses on spreading love and happiness. This advertisement is also creative in its own natural way as every character in this TVC is trying to shower happiness/ kindness through any means. So it’s kind of something fresh idea to share your happiness even with
strangers.
Emotional Connect: It is at par in this TVC as one character is feeding stray dogs and other tries to make security guard happy by giving him a bottle of coca cola. Emotional connect is high as it is showing the height of peace you get when you make other person happy. Brand Association: Coca Cola beverages always revolve around its so strongly created brand value. It has featured its beverages bottles with highlighting the name Coca cola and thus brand association is kept intact. Segmentation: This TVC has segmented people of all the categories still youth is the main center of attraction in it as there is nothing wrong if I say that youth are the main consumers of coca cola in India. Relevance: Relevance of this TVC lies in the fact as Coca cola always try to impart happiness through its campaign, this advertisement is also paving on the same path with a new motto of spreading happiness in your own crazy ways.
Coca Cola 2013 – Student of the year star-cast
In this TVC they leveraged the star-cast of the movie ‘Student of the Year’, but emphasized a strong message. We generally treat restaurant bearers as just another set of non-existing servants and few end up giving money as tip. However, this ad clearly emphasizes the humanitarian aspects of the bearer and sends a clear message that even they work hard in their roles and we should treat them as fellow human beings.
The marketing implications of this campaign are as follows: 1)
Social Message: Even the most educated people these days have maids at
their place and many of them ill-treat these maids. The younger generation (the major target audience of Coca Cola) is made to realize the importance of humanity. It is a huge step by a global brand for a societal cause. 2) Target audience: Coca Cola is not only targeting now with their regular customers but also trying to reach its non-consumers. Yes, there are many people on this earth who haven’t tasted Coca Cola for variety of reasons. But, if
they get to taste this product through someone who cares for the society, these non-consumers would be sampled. All this is happening without any extra cost on part of Coca Cola, but at the cost of their regular customers who are now brand ambassadors. 3)
Increased sales: If this ad gets registered even amongst 1% of total
viewers and if even 10% of those 1% viewers decide to practice this when they are out next time, imagine the increased spend by a consumer. They are now not only purchasing few bottles for themselves and their friends but also for a person or two around them.
Advertising strategies around the world:
The first newspaper ad appears announcing Coca‑ Cola as a “Delicious and Refreshing Beverage.”
Coupons are first used to promote Coca ‑ Cola.
The Coca-Cola Happiness Buy One Get One Free 2013
Everyone loves freebies so when Coca Cola wanted to do a Buy one, get one promotion, they went about doing it, as they state it “The Coca -Cola Way”, filled with surprises and happiness. In order to do so they arranged for 18 hidden cameras, 8 – Ipads and 2 unsuspecting shoppers. This advertisement was called the Coca-Cola BOGOFF,
Buy one and get one free. If a shopper would pick two Coke Bottles and put it in their trolley, Coke would give those consumers another trolley which would be the duplicate of the trolley consumer has shopped for free. During this promotional period, the sales of Coke had increased by 1200%. In this fashion, Coke was successful in making profit as well as spread happiness. http://www.youtube.com/watch?v=8-78wuwEfzU
Coke Happiness bus
Irritated school, college students, professionals waiting at the bust stop for hours see a bus approaching towards them. Coke arranges a bus ride for such people as a part of their marketing campaign. They supplied the commuters with free coke bottles. For entertainment they had an inbuilt TV as well as a magician who would interact with them showing them varied tricks and gift them Coke T- Shirts. This initiative was carried on by Coca Cola in order to position it as a drink which would rejuvenate a person completely and thus would make the person feel happy. This in turn would increase their sales. http://www.youtube.com/watch?v=3x-rvhK-m1k
Coca-Cola creates Park Roll Out
In today’s competitive world where people are so busy competing with the day – to – day life scenario’s, be it house related responsibilities, study load, or be it work load, a person keeps striving hard to give situations a tough fight , but in such a muddle he forgets to enjoy small moments of happiness, such as sitting in park and relaxing . Therefore, Coke took an initiative to make people realize what they were missing and to imbibe in them the thought to live like there was no tomorrow and hence created a Roll out Park where people would come and chill. They had come up with the concept of “To open happiness, take off your shoe.” Where in if a person would unlace his shoes and stand in
front of the machine he would be gifted with a free bottle of Coca-Cola. When more people came to know about this they started visiting this park getting their near and dear one as well playing guitar, football, frezbie, flying kite, catching up with friends etc. http://www.youtube.com/watch?v=6Ih0Drtuufc
Love Is In the Air: A Coca-Cola Valentine
This year on Valentine’s Day, Coke m ade arrangements to make people realize
that Coca-Cola would be present and be a part of their lives on special occasions. In order to make the auspicious day more special the Company tied few balloons to the coke cans and let them in the air. These cans flew in the direction of the wind and landed in the hands of people, who were more than happy to encounter something so celestial. http://www.youtube.com/watch?v=CtW2tw-OzL0
The Coca Cola Friendship Machine
The day when all the friends get together Coca-Cola created something very special for them which would enhance their celebration. They created a Friendship machine where in you pay for one coke and you get the other one for free. In short you would get two bottles, even if you paid for one. In order to avail this benefit the person was supposed to take help of your friends, where in they would lift you in order to insert the money into the machine which would be risen to a particular height which would be difficult to reach by yourself. http://www.youtube.com/watch?v=Bj3QLLTFDX8
Finals - Coca-Cola Commercial
In a TV commercial, a boy who has his history exam at 11.30 am is fast asleep due to studying till late in the night .It is shown that the characters from the history come out of the book and try to wake him up by firing at him, shooting arrows at him, dropping a bomb on his forehead with the help of jet plane, finally people travelling in the air balloon tries to open the cap of the Coca-Cola bottle. The boy wakes up with that sound takes a sip and rushes to write his exam. Taking this advertisement particularly in consideration, when you relate it to happiness the boy is saved from missing his examination. This would relieve him from the fear of not failing in the examination thus making him happy. http://www.youtube.com/watch?v=e099hgLQRs0
Coca-Cola Happiness Truck
A special truck was developed , where in , on pressing a button a person would get a coke bottle, a teddy bear , funky glasses ,bands, hand bags, some flowers, chocolates etc. This was done in order to enhance popularity and ensure customer loyalty to have an edge over its competitors. http://www.youtube.com/watch?v=A0n2iKaF2rg SHARE A COKE CAMPAIGN With the world flocking to the digital space, the way we connect has started to change, and, it would seem, the more friends we gather online the fewer we see in real life. Coke needed to adapt to this changing environment and needed a campaign that would encourage people to connect with the brand both online and offline. In addition, summer has always been a key sales period for Coca-Cola. With the introduction of new products, brand extensions and the blurring of traditional categories, however, the soft drink market has never been so competitive. So in summer 2011, Coca-Cola wanted a big idea to combat this competitive market and get Australians to sit up and notice Coke. A campaign was needed
that would make a big splash and disrupt and excite Australians. It also needed to have mass appeal, while hitting the 24-year-old bull’s-eye target.
The primary campaign objective was simple: increase consumption of CocaCola over the summer period. The secondary objective was to get people talking about Coke again. The campaign needed to make consumers see Coke in a way that would encourage them to actually consume the product, not just love the brand.
Coca-Cola wanted a core idea that would reunite Australians with the idea of getting together and sharing a good time over a Coca-Cola.
They wanted to jumpstart real conversations and remind people of those in their lives they may have lost touch with, or have yet to meet. Australians are known for calling each other by their first name, or ‘mate’ for that matter. And, in order to bring people together, Coca-Cola needed to encourage this on a more personal level… and what better way to spark conversation than by using a first name! So in 2011, Coca-Cola initiated these conversations by putting Australians front and centre and encouraging them to connect and ‘Share a Coke’.
Coca-Cola printed 150 of the country’s most popular names on labels of Coke bottles for the first time in the brand’s history, to remind Aussies n ot only of
those people currently in their lives, but also people they may have lost touch with, giving them a reason to connect. The multi-platform communications strategy acted as an invitation to ‘Share a Coke’ with someone you know, or want to know and gave people the tools to find, connect and share.
Varied content was created to suit a broad target audience allowing people to engage with the campaign in different ways, to varying degrees and via different contact points, making the campaign relevant to people who wanted to get highly involved or for those who just wanted to take part in the fun. Coke constantly listened to what consumers were doing with the campaign in order to be able to surprise, maintain momentum and spark further conversations throughout the campaign period. Prior to campaign launch, Coke bottles with names on them began appearing in fridges across Australia, allowing consumers to discover the names on-pack themselves, sparking online conversations and media interest. The campaign then launched with a big bang across multiple channels. First, the campaign story broke on page three of The Australian newspaper, followed by a flow of marketing trade coverage. The TVCs, which featured a montage of volunteered photos of real people who shared that name, first aired across the biggest weekend in Australian sport –
during the AFL (Australian Football League) and NRL (National Rugby League) grand finals, reaching 30% of the population. Key media and celebrity influencers with a large social media footprint were identified and sent personalised seeding kits with a Coke product bearing their name, including campaign messaging to share with their network of fans. Through a partnership with Austereo, 150 name songs were created and broadcast on-air nationally. Consumers then used these songs as inspiration to connect via Facebook. Consumers were invited to SMS a friend’s name, which was projected live onto the iconic ‘Coca-Cola’ sign at Sydney’s King’s Cross. They then received an
MMS enabling them to share their friend’s name up in lights, via Facebook and email.
Participation and mass sharing was achieved through Facebook, which provided consumers with the tools to connect and ‘Share a Coke’ by:
Creating a personalised virtual ‘Coke’ can to share with a Facebook friend, and
Making their own TVC, featuring their friends’ profile pictures.
Following launch, thousands of requests poured in for more names. They were ready with kiosks that toured 18 Westfield shopping centres inviting consumers to personalise a Coca-Cola can with any name of their choosing. Still, requests kept coming in. They listened to their captive Facebook audience and asked them who they wanted to ‘Share a Coke’ with most. After 65,000 people got their say, Coke bottles with 50 new names were released. The campaign exceeded expectations with millions of Australians getting together and ‘Sharing a Coke’ either virtually or literally.
Young adult consumption increased significantly during the campaign, up by 7%, making 2011 the most successful summer ever. The campaign earned a total of 18,300,000-plus media impressions. Traffic on the Coke Facebook site increased by 870% and the Facebook page grew 39%. In Australia, we were the number one most talked about Facebook page and 23rd globally. Seventy-six thousand virtual Coke cans were shared online and 378,000 custom Coke cans were printed at local Westfield malls across the country. The campaign also changed attitudes: over the campaign, teens claimed it gave them a ‘very positive’ impression of Coke. Scores on ‘always doing new things’, ‘is a brand I love’ and ‘for someone like me’ all improved with the young adult
audience. Customized packaging has now been activated in 30 countries so far. In Japan, where customizing packaging by names could not be done, Coke found another ingenious way to deliver the idea. It partnered with Sony so its customers could download free songs that were tied to their birth year. The Sochi 2014 Winter Olympics – Anti Gay June 2013, Russian president Vladimir Putin signed a so-called “anti-gay law” which prohibited the promotion of “non-traditional” relationships to minors.
The move had cast a shadow over the forthcoming Olympics, with gay athletes and sports fans fearful of arrest should they attend. Coca-Cola, the than sponsorer of the Sochi Olympics, had come under particular pressure for not protesting the law. A petition created by campaign
group All Out urging the brand to call for the repeal of the anti-gay law had been signed by almost 360,000 people. 100 days from the start of the Games, All Out held a demonstration at Coca-Cola’s Atlanta campus with trucks towing 22-foot- high billboards stating: “Coca -Cola don’t stay bottled up, speak out against Russia’s anti-gay laws”. The situation in Russia was regarded as a “sensitive issue” but it gave the brand an opportunity to dial up its “work that matters” values -based marketing
proposition it presented at Cannes. As a brand, Coke has always been about inclusivity and diversity. “It has been respectful of different cultures, Governments and policies because
they are none of that, but yet they put out more pointed messages about Coke’s brand values. Coke as a brand has always believed the world is a better place when you are accepting things as they come and they have always brought people of different backgrounds together.” Marketing around Sochi was about “insuring people came together and
enjoyed the event, respect the athletes and be respectful of their different backgrounds. This strategy was “not reactive” to the protests around the antigay law being passed in Russia, but the issue witnessed the actual doing of the brand. Coca Cola’s mission statement
Coca-Cola’s mission is not about selling products but to create significant positive change in the world that makes the world a better place. •
To refresh the world
•
To inspire moments of optimism and happiness
•
To create value and make a difference
Recently they have realized that their marketing strategy that has worked well for them for decades needed to evolve and as such they are moving from “Creative Excellence” to “Content Excellence”
Creative excellence has always been at the heart of Coca Cola’s advertising and
they have decided that content is now the key to marketing in the 21st century on a social web. Content for Coca Cola is now the “Matter” and “Substance” of “Brand Engagement” Marketing Strategy
Coca-Cola has been able to create the most appropriate marketing mix. Since its inception, Coca-Cola has built its business using a universal strategy based on three timeless principles: Acceptability - through effective marketing, ensuring Coca-Cola brands are an integral part of consumers' daily lives, making Coca-Cola the preferred •
beverage everywhere. •
Affordability - Coca-Cola guarantees it offers the best price in terms of
value for money •
Availability - making sure that Coca-Cola brands are available anywhere
people want refreshment, a pervasive penetration of the marketplace.
•
Coca-Cola’s international success is attributed to many things but Sergio
Zyman, former chief marketing officer of the Coca-Cola Company (1999) confirms that in order to think globally, a company is bound to act locally by meeting the demands of local tastes and cultures.
•
Buzzell and Gale (1987) stated that there is a definite correlation
between the size of a firm’s market share and the level of profitability i.e. the
larger the market share the greater the level of profitability. The reasons for Coca-Cola to be a globally popular company among its consumers are because of four reasons.
•
Firstly, scale economies coupled with an increase in the learning
experience resulting in the most effective and efficient use of production techniques and technology.
•
Secondly, customers are unwilling to take risks and will therefore stay
with the main market player due to the comfort factor. As also following the theories stated by Demetris Vrontis and Iain Sharpthat. Thirdly, due to the influence and dominance the leader has in the market it is able to use its position to negotiate lower pricing with suppliers and to command higher market price for its products. The fourth reason is that the market leader has in place excellent management teams and it has successful procedures and processes developed throughout the organisation. CocaCola is renowned for its marketing strategies. Coca-Cola's marketing focus changed in 2007 when Mr. Tripodi came on board from Allstate AdAge. He described the following marketing challenges: (1) Coca-Cola was too dependent on its flagship drink – Coke. (2) Coca-Cola's advertising and use of advertising agencies was inconsistent; (3) Coca-Cola was seen as a "sluggish, hidebound marketer." (4) The lingering effects of the global recession in 2009 (5)concerns about obesity and nutrition in developed markets had negatively affected sales. (6)weak consumer confidence had also had an unwelcome impact. After overcoming these challenges CocaCola reclaimed its status as a marketing model.
There are many good reasons as to why CcaCola is regarded as marketer of the year - in the year 2011. Diet Coke is now the Number Two brand of soda, leaving Pepsi in its dust. The Coca-Cola Company added two billion-dollar brands to the product mix: Del Valle and Minute Maid Pulpy, which was the first of Coca-Cola's billion dollar brands to launch in an emerging market. Coca-Cola was on the top of interactive brand charts. These are the reasons which sum upto the reason as to why Coke is leading the growth of the company with global sales volume up by 3 percent every year. The reason for The growth in its success is due to the Coca-Cola's ThreePronged Approach The Coca-Cola Company is taking a three-pronged approach to growth: (1) Product innovation, (2) packaging innovation, and (3) consumer engagement. Coca-Cola has therefore developed a 2020 Vision with which it intends to double the system revenue and double the servings volume to about 3 billion per day. Over the next 10 years, Coca-Cola is hoping to duplicate the efforts of 125 years of product developing and customer wooing. Recently, The company’s CEO Muhtar Kent on(18 February) stated that it plans
to make an extra $1bn in productivity savings by 2016 - the majority of which it will reinvest back into marketing - to overcome its “speed bump” year and achieve its plan to double revenues by 2020. The company plans to build on its marketing, in both quantity and quality, which it believes will restore “steady momentum” in 2014 and beyond. The turnaround plan covers five areas: accelerating growth of its sparkling portfolio, strategically expanding the profitable still portfolio, increasing media
investments by maximising systems optimisation, making improvements to point of sale and investing in the next generation of leaders. Increasing media investments by maximising optimisations Coca-Cola plans to make $1bn in productivity savings by 2016 through global supply chain optimisation, data and IT standardisation and more efficient resource and cost allocation. Those savings will be invested into global brand building initiatives with increased consumer-facing media spend. The global increase in marketing and every country we operate in, large or small, in which the company works. When they invest in marketing, their global partners invest in feet on the street, more coolers, more trucks…that’s what will be happening and that’s what is going to happen in their business as
they restore steady momentum in 2014 and beyond.” Accelerating sparkling growth, led by brand Coca-Cola. The brand Coca-Cola is used as a catalyst for growth. It is the world’s most universal beverage brand. “In many markets around the world, brand Coca-Cola is monadical but the
company needs to work harder to enhance the romance of the brand over the world.”
The global Share a Coke campaign, which originated in Australia and New Zealand in 2012 and was executed in the UK in 2013, as an example of how the company will look to invest in the brand going forward - including a return to the activity year. The activity was much more than a marketing campaign, but rather a “system
wide collaborative effort to engage with consumers in a meaningful and effective way”. Coca-Cola stated that the effort helped increase volume sales,
household penetration and brand love scores over the 20-plus markets it has appeared in to date. Strategically expanding the profitable still portfolio
Coca-Cola is the owner of four $1bn still and juice brands, but it is keen to build on that number. In order to create value in stills categories, it has taken a step forward by move to taking a majority stake in the Innocent juices and smoothies business last year. It announced a 10-year deal with Keurig coffee machine maker Green Mountain Coffee Roasters, this strategy could also include further partnerships. The trend forecasters state that for the next 10 years, people are going to spend more time at home, work more from home, so home is going to be an even more important place for consumers and we need to be present there with different technologies, packaging and different ways to present our brands.” The Vrontis’ Framework of AdaptStand Integration (Vrontis 1999).
Considering Coca-Cola’s international performance, the company has been thriving as it is effective-doing things right (having the desired effect, producing the intended result) and efficient-doing the right thing (able to work well and without wasting time or resources). The Coca-Cola Company has adopted both a Differentiation and a Cost Leadership Strategy. The use of a differentiation strategy is where the firm attempts to be diverse from its competitors by adding something to its product that will provide a unique value to its customers. Differentiation for Coca-Cola is achieved through perceived superior quality product, which surpasses their nearest rivals, and high brand image and recognition. The company has also used their promotion and packaging as a means of further differentiation, for example, the Coca-Cola bottle, which has become an internationally recognised symbol. The decision in1999 to revitalise the contoured bottle design was Coca-Cola’s first global marketing priority (Boutzikas, 2000). They capitalised on a resource that none of their competitors had or have as an asset. They can, therefore, adopt a premium
pricing policy in many markets where economic conditions allow .It should also be noted that Coca-Cola is positioned in the Cost Leadership quadrant. Aaker (1998) points out that there are several approaches a firm can take to become a low cost producer, which can be used in isolation or as a combination. The Coca – Cola’s positioning in the cost Leadership quadrant is achieved through economies of scale in research , development and promotion , but also through learning , knowledge and experience in production and operational process. It is also achieved through effective/efficient distribution networks and manufacturing systems. From the time of its inception Coca-Cola, a single core product, geographically located in the US has become established in its home market by increasing market share and product usage using the Market Penetration Strategy. CocaCola was launched into foreign markets and competed within the international arena. This Market Development Strategy was undertaken by targeting new geographical areas and target segments. As these foreign markets developed further, the Coca-Cola Company had faced many turmoil’s with the problem of how to further penetrate them. The solution was simply to develop new products (Diet Coke, Fanta and Sprite), which over time have also become core products into the competitive market. Product Development Strategy Originally Coca-Cola’s business was defined as one operating in the carb onated softdrinks (CSD) market. In order to further penetrate these markets Coca-Cola has broadened the definition of the business it is in to ‘ready packaged liquid refreshments’. This allowed the company to look beyond its traditional CSD
market, to markets such as bottled water, fruit juices and innovative ready to drink tea markets. They have therefore successfully used a Diversification Strategy. Coca-Cola’s core ‘global’ brands are mainly standardised, but with a number of adaptations taking place. Although the company may strive for a completely standardised strategic approach, drawing on the associated economies of scale, in reality they are following the Integrated Adapt Stand approach as
advocated by Vrontis (2003).The company’s effectiveness and profitability is
well supported by their strong competitive position and market share in their primary product market – Coca-Cola. The company is thriving as it is both effective (doing things right)and efficient (doing the right thing). Cultural Leadership. To stay relevant in a marketplace that is being reordered by Millennials, it has engaged itself in active conversations with the generation. And sometimes those conversations can be awkward, but they are important to take on. Like, for example, the subject of obesity. Coca Cola has been carrying out responsibility strategy since many years. The Responsible Marketing Strategy is a set of principles that guides the entire approach to marketing and establishes firm rules for what they should and shouldn't do. They use independent auditors to check that they are complying with the principles set . Some highlights from the Responsible Marketing Charter •
They don't market any drinks to children under 12 because they believe
parents should choose the drinks that are right for their families. They help parents make informed choices through better consumer information •
They have anticipated to work with an independent consultancy to
constantly monitor TV ad placement. •
They do not have direct commercial agreements with primary schools
and are only in secondary schools by invitation. •
They have decided to not associate themselves with cinema films where
the core audience is under 12. •
They have also decided to associate themselves responsibly with the
online marketing
They have launched Responsible Marketing Network online with the International Business Leaders - a network that brings together marketing practitioners to share best practice and solve issues. Talking with our consumers In order to to ensure we keep delivering a wide variety of great quality drinks CocaCola has de3cided to have one- to – one conversation with the consumers and other stakeholders. In order to reinvent itself in the changed world, Coke has undertaken few steps. •
Consumer Provocation
•
The heart of Coke’s engagement program is social platforms that
provokes experiences through stories that are sufficiently powerful and share worthy . •
Coca-Cola relaunched its light cola variant Coke Zero as an “edgier”
brand with marketing that looks to soften its blokey image as it looks to establish the drink as “an icon to a new generation”.
Last year Coca-Cola launched a UK TV ad campaign and extended its Responsibility Deal commitments to highlight the action it was taking to help solve the global obesity problem by reminding viewers to watch their calories when managing their weight and consider switching to no calorie alternatives like Coke Zero.
•
A still-f rame from the forthcoming ‘Just Add Zero’ Coke Zero ad.
•
Coke Zero, or “Bloke Coke” as it was often referred to, was relaunched
on 13 January with an integrated marketing campaign and a new visual identity that featured a red circle icon, appearing across all marketing touch points such as outdoor, POS, digital and limited edition packs. •
The campaign had been created for a “new demographic” of young
people who have emerged out of challenging times but have a positive outlook and hope to lead richer lives. The activity, created by Publicis , centred around a TV ad which showed a man in a series of situations where he experiences more by “adding zero” •
such as adding zero to his two sisters to produce 20 attractive friends and transforming a party of 100 people into 1,000 festival goers. •
It then takes a twist when the protagonist’s love interest turns one
attractive man into 10 - which Coca-Cola says demonstrates its efforts to broaden Coke Zero’s launch target market of men to appeal to women too.
So what can we learn from Coca Cola’s new marketing strategy?
Lesson 1: Create Liquid Content The purpose of content excellence is to create “Ideas” so contagious that they cannot be controlled this is what is called “liquid content”.
On a social web people can easily share ideas, videos and photos on social networks such Facebook. So create content that begs to be shared whether that be an image, a video or an article. Lesson 2: Ensure your Content is Linked The next part of the equation is to ensure that these ideas create content that is innately relevant to •
The business objectives of your company
•
The brand
•
Your customer interests
This is “Linked” content…. Content that is relevant and connected to the company’s goals and brand.
Ensure that the content communicates your message that is congruent with your mission and values. Lesson 3: Create Conversations Coca Cola has realized that the consumer creates more stories and ideas than they do so the goal is provoke conversations and then “Act” and “React” to
those conversations 365 days of the year. The new “Distribution Technologies” of Twitter, YouTube and Facebook
provide greater connectivity and consumer empowerment than ever before. Don’t just publish but interact with your audience and tribe.
Lesson 4. Move onto Dynamic Story Telling On traditional media in the past, storytelling was static and a one way street. Television and newspapers shouted at you with no means of interaction. Coca Cola has come the realization that to grow their business on the social web they need to move on from “One Way Story Telling” to “Dynamic Story Telling”
This means you need to allow the story to evolve as you interact and converse with your customers. You need to converse with your customers in many media formats and social networks. Storytelling has moved on from static and synchronous to multifaceted, engaged and spreadable. Lesson 5: Be Brave and Creative with Your Content Creation Part of the new Coca Cola content strategy is applying a 70/20/10 Investment principle to creating “Liquid content“.
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70% of your content should be low risk. It pays the rent and is your
bread and butter marketing (should be easy to do and only consumes 50% of your time) •
20% of your content creation should innovate off what works.
•
10% of your content marketing is high risk ideas that will be tomorrow’s
70% or 20%, be prepared to fail This provides a blueprint regarding moving on from just developing white papers, to trying some content that is more visual, courageous and engaging in web world that has embraced multimedia and interactive content. The 30 Second TV Ad is no Longer King
Coca Cola has come to the conclusion that the world has moved on from the 30 second TV ad. So has the Old Spice brand and many other businesses who are embracing social media as part of their marketing strategy. We need to move towards a genuine consumer collaboration model that builds buzz and adopts a more iterative approach to content creation. Learning how to fuel the conversations, act and interact has never been more important. Consumers’ ideas, creativity and conversations have been set free with the
evolution of social networks, learning to leverage and wrangle those conversations to increase your brand visibility is now a vital part of your marketing. Conclusion
This analysis led to some interesting insights. For a start, the image of the brand must be consistent not only with its identity, but with the value system of the target segment. It is, in fact, the complexity of the value system of the target segment of Coca Cola that allows for such a contrast in advertising styles. Furthermore, the race for prime position involves a well thought out strategy with clear cut roles for each of the brands in a portfolio. Advertising is indeed both an art and a science. The shift from information to image displays the rich potential of the advertising space. The exhilarating pace of evolution
