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Coca-Cola: An Analysis of Current Marketing Communication Strategy and A New Strategy Suggetion
Coca-Cola: An Analysis of Current Marketing Communication Strategy and A New Strategy Suggetion
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Executive summary
The Coca-Cola Company was first established in 1886 by John Styth Pemberton. Today,
the company is world’s leading manufacturer of beverages, operating in more than 200
countries across the world with its head office located in Atlanta, USA. Coca-Cola
produces more than 500 beverage brands and over 1.06 billion drinks are consumed
per day all over the world.
Also, it always focuses on fun and entertainment as the message to be delivered. Their
messages to the target market are always based on the same values: sharing,
happiness, fun, tradition of coke. Some of the catchy slogans are “Open happiness”,
“Enjoy life”, “Life begins here”, “Life tastes good” etc
Thus by using different types of media, the message will be delivered to the whole
target customers, who don’t necessarily have the same attitude toward the brand and
toward communication. Some people are involved on TV while others more on Internet
and others are willing to share an experience with the brand.
Cokes uses a lot interaction with its consumers throughout PR and social media
advertising.
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Contents
1. Objectives …………………………………………………………………………….4-7
3. Campaign evaluation…………………………………………………………….12-14
4. Conclusion ………………………………………………………………………………15
5. Budget……………………………………………………………………………….16-17
5. References ………………………………………………………………………….18-19
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Objectives
Marketing objectives:
Marketing objectives define what the company wants to achieve through its various
marketing activities (Blakeman, 2007). The following are the main marketing objectives
of Coca-cola (The coca-cola company, n.d.)
Market share. The only way of gaining market share is to improve the customer
base, more number of customers implies huge market share. Companies aim to
attract as many customers as possible. But more market share often results in
picking up more unreliable customers. Therefore it would be smarter to focus on
nurturing loyal customers. Analyzing the needs of these potential customers of
the company will give an in depth understanding about their demands and will
thus help the company in catering to their needs. In this way the loyal customers
of the company can be retained. Coca-cola has successfully earned the trust of
its potential customers and is always aiming at satisfying their needs in a
profitable manner.
To achieve sales target. Achieving the sales target will help in increasing profits.
Every company sets a certain target which it has to achieve within stipulated
time. Therefore the marketing activities are performed in such a way that the
target is achieved before the deadline. The sooner the sales targets are
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achieved, more number of customer needs can be catered. More coverage of the
market will again add on to the market share and profitability. Coca-cola sets its
targets in such a manner that it is able to achieve its set targets on time
efficiently.
Goodwill. Companies should strive for goodwill (Bloch, 2011). A company’s main
reputational goals should be: to be (1) the supplier of choice to customers, (2)
the employer of choice to employees, (3) the partner of choice to distributors,
and (4) the company of choice to investors. This will enable the company in
earning a higher return than the cost of capital. The more efficiently a company
a company caters to the needs of its, customers, employees, partners and
investors, the better will be its reputation in the market. All the marketing
activities are thus directed towards gaining the trust of customers, employees,
partner and investors in order to earn a good reputation in the market and
maintain the same. Coca-cola has so far managed to maintain good reputation in
the market even after being critically evaluated many a times (Dudovskiy, 2012).
The company values its critics and improves accordingly and maintains its
goodwill.
Global customers. Efficient and effective marketing helps in gaining the trust of
customers across the world. Coca-cola through its effective marketing techniques
has so far been successful in gaining and retaining the global customer base.
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Communication objectives:
Communication enables a company to reach out to its customers and interact with
them. Maintaining a good rapport with the customers by maintain communication
connection with them helps in promoting products and services and building brand
awareness. Communicating with the customers on a regular basis will help in retaining
customer base. Marketing communication is all about staying in touch with its potential
customers and conveying the message about its products and services to them
(Kennaugh, n.d.). Communication objectives define what the company wants to achieve
through its various advertising and promotional programs. The main objectives of
communication are (Kotler, 2009):
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to promote the products in an influential manner. All these ultimately results in
increase in productivity. Coca-cola has adopted effective communication
techniques which enable the company to accelerate its productivity (Blatchford,
2013).
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Marketing communications strategy
1. Advertisement
Company introduces different innovative themes and concepts to sell their product and
advertises mainly in electronic media and out of home advertising. These
advertisements help in creating awareness as well as building brand image.
Big celebrities of film industry as well as sports stars mainly become the brand
ambassadors of the Company. Throughout the years, the slogans of the Coca-Cola have
been memorable.
Mediums of advertising
Print media: Coca-cola ads can be seen in various newspapers and magazines.
When special offers are introduced or new products are launched then the
company posts catchy ads on the entire cover page of the magazine or one full
page of newspapers. Therefore all those who read newspapers or magazines can
never miss out any influential ads of coca-cola.
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Point of purchase advertising includes: Posters and Stickers, cooler, Freezers,
Display racks etc.
Television commercials:
Television is the most common platform which unites all the potential customers,
partners, investors etc. Therefore the ads aired on television will reach the
maximum number of target audience, even more than other mediums of
advertising. Coca-cola has always aired attention seeking television commercials.
Outdoor advertising:
Outdoor advertising involves posting ads on billboards and hoardings. Coca cola
is very much conscious about their billboards and hoardings. The billboards and
hoardings of coca-cola can been seen in every nook and corner. Coca-cola makes
sure that its hoardings and billboards are present in urban as well as rural areas.
2. Direct Marketing
Coca-Cola uses direct marketing in many ways. The company has partnership with
various theatres, restaurants, multinational organizations etc.
Therefore, when a customer orders a drink, the only brand the restaurant offers is
Coca-Cola, which forces them to buy a drink from that brand (Zhang, Jiao and Ma,
2011). By doing this, Coke forces out other competition, and keeps the restaurants, or
other businesses, purchasing their product over and over again. E.g. McDonald’s.
Also in many Multiplexes coke is the only brand available, so the people are left with
only one option and in this way coca-cola succeeds in making the customers try out all
its new launches.
Various MNCs call meetings on a regular basis, and the companies having a tie up with
coca cola offers the same brand to the delegates during the meeting, this is another
way of promoting coca-cola brands.
Coca Cola also sponsors various sporting events around the world in events like Cricket,
Football, and Motor Racing etc.
3. Internet Marketing
Coca-Cola uses the internet to promote its products. The company has its own website,
which is user-friendly. The website has various attractive features which encourage
customer interaction, it allows customers to become interactive through various games,
contests, shopping, and through a special section of the website that enables
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consumers to find out how they can help their community. The customers are even
allowed to give their feedbacks on various coca-cola brands and also their suggestions
for improving the product.
Also in the modern era of communication and social networking, the company uses
various social networking sites like Facebook, YouTube, and Twitter to connect with the
consumers. There are coca-cola communities which also posts new launches of its
products, so the attention of a large group of young audience are captured though
internet advertising.
The internet marketing thus helps to reach to those consumers who can’t afford to
spend time on T.V and are always busy online for official or other purposes. So while
doing their work, ads are flashed on various websites, which informs them about the
product.
4. Sales promotion
Sales promotion is used to boost up sales quickly and gain huge customer base. Sales
promotion helps in boosting up the sales quickly for a limited period of time, this is
done by offering attractive schemes so that more people are encouraged to buy the
product. Coca-colas sales promotion is oriented towards consumers and trade.
a) Consumer:
b) Trade:
5. Public relations
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The company has succeeded in creating a public image. For instance, when Coke
launches a new product and someone on their lunch break purchases that new product,
and enjoys it, and then they will definitely promote the product by telling others in the
office about how great the new product is (O’Reilly, 2013). This will motivate others to
purchase the product, resulting in increasing in sales of the company.
Public relation is a function of the management, it evaluates public attitudes and beliefs,
identifies the policies and procedures of an individual and organization with public
interest, and on the basis of these understanding, it frames plans and executes a
program of action to satisfy the needs of target customers or organizations to earn
public understanding and acceptance (Ferrell, Freidrich and Ferrell, 2009).
Coca-Cola has developed its website in such a way so that it can address law suits,
rumors, stories, new products, and activities efficiently. There is also a section of the
website devoted to investors. Here, current, or future, investors can access financial
statements and understand the financial position of the company, this will help them in
making correct investment decisions.
6. Personal selling
Coca-Cola has many salespersons. These are the representatives of the company who
reach the customers and create awareness among them about a new product or service
and sell the products to the customers. These salespersons build a relationship with the
customer, so that if the customer is satisfied with the coke product can contact those
sales persons again to buy the product.
These salespeople promote their product to different customers within their regions,
and once they sustain a customer, they sell their products to them and service them
many times per week, if required.
Thus these individuals form close relationships with the customers in order to continue
business with them.
Thus though minimum, the company also thus have many sales people for personal
selling.
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Campaign Evaluation
Coca-Cola advertisements have been devised according to the messages they aim to
convey to its target audience, and images, words and sounds featuring within them
have been developed by marketing professionals in a perfect way, in order to serve the
purpose of attracting maximum people.
Messages sent through images, words and audio materials promoting Coca-Cola are
intended towards a happy life. Coca-Cola helps to best satisfy the thirst, drinking Coca-
Cola is stylish, and drinking Coca-Cola is part of a lifestyle.
Through its advertising strategy, the company tries to communicate a message that this
drink satisfies the thirst in the best possible manner and this encourages millions of
people per day to consume coca-cola. However, a range of scientists cast a doubt about
the ability of Coca-Cola to satisfy the thirst efficiently, and argue that ‘thirst’ for Coca-
Cola has been created by company marketing professionals in the first place and it is
not similar to the natural thirst for water (Moenart and Souder, 1992). They thus are in
a way trying to point out that the advertising strategies of coca-cola are misleading.
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The internet marketing of coca-cola brands has succeeded in capturing the young
population as well as other professionals who are mainly working online (Marxt and
Hacklin, 2005). Coca-cola website has enabled people to share their views and
suggestions thus enabling the brand to modify their products as per customer needs
and wants.
When evaluated on the basis of customer loyalty Coca-Cola marketing strategies can be
considered to be highly successful. There are millions of people worldwide who
consume Coca-Cola on a regular basis.
The extent of efficiency of Coca-Cola marketing strategies can also be evaluated on the
basis of its market share. The company is selling its products in more than two hundred
countries .
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If the efficiency of company marketing campaign is to be evaluated from the viewpoint
of profitability it can be seen that partially as a result of effective integrated marketing
communication strategy Coca-Cola was able to generate $8.2 billion from operations
during the year of 2009.
Hence the evaluation of each marketing campaign proves that the campaigns are very
efficient and are contributing to the achievement of the ultimate aims and objectives of
Coca-cola.
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Conclusion
For any company to reach operate successfully and attract more and more
customers it has to adopt the most efficient promotion mix.
This analysis shows that the company is using its promotional mix in an effective
and efficient manner.
That is the reason why Coca-Cola has captured the global market and is one of
the most valuable brands across the world.
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Budget (Boundless, n.d.; Paul, n.d.)
Advertising 1.6
Merchandising 5.0
Endorsements 3.4
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Sales Support 6.8
Copywriting 9.0
Publishing/Printing 7.5
Fulfillment 2.5
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References
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Blakeman, R. (2007) Integrated marketing communication: creative strategy from idea to
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colacompany.com/stories/coke-lore-slogans
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Ferrell, O.C., Fraedrich, J. & Ferrell, L. (2009) Business Ethics: Ethical Decision Making
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