Coca-Cola's "Open Happiness"

Campaign: SOSTAC Analysis

Sarvarbek Matsapaev 12214695

Begbutaev Rustam 12200279

Mukhtorbek Mukhammedov 12214691

Karimjanov Islom 12214714

Mambetzhanova Zhazaiym 12214718

Department of International Trade and Business

Digital Marketing

Professor Hong Ji Mi

November 26, 2023

 Table of Contents
Abstract.................................................................................................................................
Overview...............................................................................................................................
Situation Analysis.................................................................................................................
SWOT Analysis................................................................................................................
Objectives..............................................................................................................................
SMART Analysis of Digital Marketing Objectives:........................................................
Strategies...............................................................................................................................
Market and Product Development Strategies...................................................................
STP Strategies: Segmentation, Targeting, Positioning....................................................
Multichannel Distribution Strategies...............................................................................
Tactics & Actions..................................................................................................................
CRM Tactics....................................................................................................................
Web Experience Tactics...................................................................................................
Digital Communications Tactics......................................................................................
Outcomes & Control...........................................................................................................
Achieved strategic and tactical objectives.....................................................................
Possible improvements to increase results further.........................................................
Evidence of “Open Happiness”`s accomplishment........................................................
Marketing insights and ramifications from this instance...............................................
References...........................................................................................................................

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 Abstract

In today's fast-paced and increasingly connected world, individuals, particularly young

adults, seek meaningful connections and a sense of belonging. The transition to college life
can be especially challenging for freshmen, who often face social anxieties and loneliness due
to unfamiliarity with their new surroundings and peers. Coca-Cola recognized this need for
connection and sought to create an interactive campaign that would foster genuine
connections among freshmen.

The "Open Happiness" campaign, launched by Coca-Cola in 2009, garnered praise for its
creative approach and effectiveness in forging emotional connections with consumers.
Among the campaign's notable initiatives was the "Friendship Bottle" vending machine,
installed on college campuses during freshman orientation week. This innovative concept
tackled the often-overlooked challenge faced by freshmen – feelings of loneliness and
isolation during the transition to college life.

In a clever marketing move, Coca-Cola recognized the social anxieties often experienced by
freshmen on their first day of college. To address this issue and foster connections among
new students, Coca-Cola installed a unique vending machine on campus. This vending
machine dispensed drinks in specially designed bottles that could only be opened by two
people working together. This ingenious approach encouraged freshmen to interact with each
other, breaking the ice and initiating new friendships. As students shared their experiences
over a refreshing Coca-Cola, the awkwardness of the first day dissipated, replaced by a sense
of camaraderie and shared experiences.

This innovative campaign exemplifies Coca-Cola's commitment to its "Open Happiness"

philosophy, demonstrating the power of connection and shared moments to create positive
experiences. Let's delve into a detailed SOSTAC analysis of this successful campaign.
Overview

The Coca-Cola Company, which was founded in Atlanta, Georgia, is an international

corporation that is well-known for being the world's top manufacturer, distributor, and
advertiser of non-alcoholic drinks. Its diverse portfolio includes over 200 brands, including
popular brands such as Coca-Cola, Fanta, Sprite, Dasani, and Minute Maid, and it serves an
international customer base in more than 200 different nations and regions. Coca-Cola is one
of the most lucrative trademarks in the world, with its famous red and white logo easily
identifiable by people all over the world.

Situation Analysis
Customer analysis: Coca-Cola targets a diverse variety of consumers through demographic
and psychographic segmentation. The demographic segmentation of the firm targets teens,
young adults, middle-aged people, men and women, and people from various socioeconomic
groups. Coca-Cola engages with consumers who value positive emotions, relations with
others, and shared moments, so connecting its brand with active and optimistic people.

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 Coca-Cola's marketing efforts strengthen these ties by showing individuals enjoying its
drinks in gatherings and promoting happiness, community, and family values. Coca-Cola
products are enjoyed on various kinds of occasions, ranging from regular meals to special
events, and the firm has strong brand loyalty among customers who grew up with it.
Moreover, it has broadened its product offering to include healthier options in order to satisfy
health-conscious customers.
In terms of the initiative “Friendship bottle” within the “Open Happiness campaign”
customer analysis:
Demographic: College freshmen, primarily 18-22 years old
Psychographic:
 Socially anxious, feeling lonely and isolated on the first day of college.
 Seeking new connections and friendships
 Open to new experiences and receptive to innovative marketing campaigns

Competitors: Coca-Cola experienced intense competition from competitors in the industry

such as PepsiCo, Dr Pepper Snapple Group, Nestlé, and Kraft Foods in the late 2000s. These
firms competed with Coca-Cola in multiple fields, including product development, marketing
methods, and distribution routes. During this time, the beverage sector faced increased
rivalry, with all major competitors striving for market share.

SWOT Analysis
Strengths: Renowned for its strong brand recognition, extensive distribution network, and
proven marketing and advertising prowess, Coca-Cola has established itself as a global
beverage giant. Its well-established brand image and global reach allow it to create
meaningful relationships with customers all over the world, while its knowledge of
advertising keeps its products at the top of consumer awareness and attractive to a wide
audience.

Weaknesses: Coca-Cola had difficulties in the late 2000s as a result of its dominant focus on
sweetened beverages, which were being criticized for their negative health impacts. In
addition, some customers saw Coca-Cola as weak in new product innovation, and its position
in certain emerging regions was not as strong as in developed countries. These challenges
underlined the need for Coca-Cola to adapt to changing consumer demands and expand its
reach into new countries.

Opportunities: By strategically expanding into emerging markets, developing healthier

product options to align with evolving consumer preferences, and utilizing digital marketing
to enhance consumer engagement, Coca-Cola effectively addressed the challenges and seized
the opportunities, maintaining its position as a global beverage leader in the late 2000s.

Threats: In the late 2000s, Coca-Cola faced substantial risks such as rising competition from
rival beverage firms, shifting customer tastes toward healthier options, and prospective
government controls on sweetened beverages. These problems forced Coca-Cola to revise its
tactics and product offerings in order to keep its position as the world's leading beverage
company.

PEST Analysis
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Political Factors: Global trade agreements like NAFTA and the WTO cleared the path for
Coca-Cola to expand into new markets and lower trade barriers, opening up new horizons for
the company's growth and market access. At the same time, government regulations on food
safety, labeling, and advertising had a significant impact on Coca-Cola's product
development and marketing strategies, requiring the company to adapt and comply in order to
maintain its market presence and avoid potential legal or regulatory obstacles.

Economic Factors: The beverage industry saw increased rivalry and diversity in the late
2000s as new brands emerged in a range of niches and established global companies like
PepsiCo and Nestlé increased their market position. In order to maintain its market position,
Coca-Cola was forced by these economic forces to innovate and modify its strategy.

Social Factors: Coca-Cola faced major obstacles in the late 2000s as a result of changing
customer tastes for healthier beverages, social media's increasing power, and the rising
demand for non-alcoholic substitutes. Due to these considerations, Coca-Cola had to
diversify its product line and react strategically in order to maintain its dominant market
position.

Technological Factors: Coca-Cola navigated the possibilities and obstacles of the late 2000s
in order to keep its global leadership position in the beverage sector. The company adopted
innovation in packaging to adopt sustainable solutions and used digital marketing strategies
to successfully attract and reach consumers.

Coca-Cola initiated the "Open Happiness" digital marketing effort to address the
challenges and use the arising opportunities. The campaign's focus on happy feelings,
interpersonal relationships, and shared experiences was intended to breathe new life into the
brand. Coca-Cola aimed to strengthen its brand image and hold onto its position as the
world's most popular beverage by actively participating on digital platforms and establishing
a personal connection with customers.

https://docs.google.com/spreadsheets/d/1-bjghksrR9yrQMa4nbMprXdCbbIftPDLZLgNSUttxeU/edit#gid=841448936

Objectives

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The "Open Happiness" campaign from Coca-Cola set out on a revolutionary journey with the
strategic goal of going beyond the accepted limits of beverage marketing. The principal aim
was unambiguous: to establish Coca-Cola as a worldwide emblem of happiness and favorable
encounters, rather than just a beverage. The goal of this strategic vision was to forge deep
emotional bonds with consumers, especially millennials, to build brand loyalty and solidify
Coca-Cola's position as the world's most recognizable source of joy. The campaign was the
result of a thorough examination of Coca-Cola's environment, which included opportunities,
SWOT, PEST, competition, and customer insights. To set Coca-Cola apart from the
competition, it sought to deepen relationships with customers who value happy feelings.
While addressing flaws, it demonstrated a dedication to changing tastes and preserving a
universal appeal. Using global agreements, adjusting to regulations, innovating economically,
socially diversifying products, and adopting digital marketing were all guided by the PEST
analysis when making strategic decisions.

SMART Analysis of Digital Marketing Objectives:

Specific:
 Establish Coca-Cola as the universal symbol of happiness.
 Forge emotional connections with the millennial audience.
 Deploy a multi-channel strategy for widespread engagement.

Measurable:
 Increase website traffic.
 Amplify social media interactions.
 Achieve tangible growth in sales and market share.

Actionable:
 Introduce visually distinctive packaging.
 Execute experiential marketing through "Happiness Machines."
 Collaborate with brand ambassadors and influencers.

Relevant:
 Address evolving consumer preferences and industry competition.
 Leverage digital platforms congruent with market dynamics.

Time-related:
 Implement a phased approach with clear timelines for awareness, interaction,
and amplification.
 Set a specific timeframe for the campaign to facilitate timely evaluations.

Strategies

This article delves deeper into Coca-Cola's strategies within the 'Open Happiness'
campaign, emphasizing how the brand's meticulous approach across different strategic
dimensions contributed to its success in engaging consumers and establishing a strong market
presence. In the realm of iconic marketing campaigns, Coca-Cola's 'Open Happiness' stands
as a testament to the power of emotional connection and digital innovation. This campaign
was more than a mere advertising initiative; it was a strategic endeavor aimed at fostering
consumer engagement and loyalty while adapting to the evolving market dynamics. The
'Open Happiness' campaign was a masterful fusion of market and product development
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strategies, meticulous STP approaches, and a diverse multichannel distribution strategy,
setting a benchmark for successful brand campaigns in the digital age.

However, the core essence of the 'Open Happiness' campaign extended beyond
merely selling a product. It revolved around selling an emotion, a feeling, and a sense of
belonging—a testament to the enduring power of emotional connection in marketing. Several
strategies were pivotal in Coca-Cola's 'Open Happiness' campaign, including:"

Market and Product Development Strategies.

Coca-Cola's approach aligned closely with the Ansoff Matrix, encapsulating strategies for
market penetration, product development, and market expansion. The company sought to
intensify its market presence through various means:

Market Penetration: Coca-Cola sought to increase market share by focusing on

existing products (variations of Coke) and targeting different consumer segments through
various marketing channels. Engaging in promotional events and campaigns that highlighted
positive experiences associated with the brand. Forging partnerships with retailers and
distributors to enhance the visibility and availability of products. Implementing targeted
marketing based on consumer segmentation to attract new customers and boost consumption
among existing ones.

Product Development: Launching low-calorie and sugar-free options like Coca-Cola

Zero and Diet Coke to cater to health-conscious consumers. Introducing flavored variants
such as Cherry Coke and Vanilla Coke, broadening the product portfolio. Offering limited-
edition products to create excitement and attract enthusiasts. Adapting products to suit local
tastes and dietary requirements in various markets.

Market Development: Expanding into new markets, both geographically and

demographically, by customizing marketing approaches based on local tastes and
preferences. Venturing into developing markets where demand for soft drinks was growing.
Targeting specific consumer segments like millennials with tailored marketing and product
offerings. Adapting marketing messages and product packaging to resonate with local
cultures. Utilizing digital channels like social media to reach new audiences in emerging
markets.

STP Strategies: Segmentation, Targeting, Positioning.

Coca-Cola's segmentation, targeting, and positioning strategies played a pivotal role in the
success of the "Open Happiness" campaign:

Segmentation: The brand segmented consumers based on "Demographics and

Psychographics". Understanding different age groups, income brackets, lifestyles, and
emotional triggers enabled tailored marketing messages for specific audience segments.

Targeting: Employing "Mass targeting", Coca-Cola crafted a universal message of

happiness while simultaneously creating personalized appeals for specific demographics,
resonating with consumers across various segments.

Positioning: The "Emotional positioning" of Coca-Cola as a facilitator of joy,

bonding, and shared moments was central to the campaign. The brand went beyond merely
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selling beverages; it marketed an emotional experience, embodying the essence of "Open
Happiness."

Multichannel Distribution Strategies.

Coca-Cola's multichannel distribution strategies were crucial in ensuring widespread

accessibility and consumer engagement:

Click and Mortar: Expanding its online presence through websites, social media
platforms, and e-commerce allowed consumers to engage, purchase products, and participate
in the brand narrative conveniently. It actively uses online digital marketing platforms like
Facebook, Twitter, Instagram, YouTube, and Snapchat to post images, videos, and more. The
Coca Cola marketing strategy primarily includes SEO, email marketing, content marketing,
and video marketing

Partnering Strategies: Collaborations with influencers, strategic partnerships, and

affiliate programs extended Coca-Cola's reach and credibility, leveraging the audience and
influence of these partners.

Disinter-/Reinter-/Counter-mediation: The brand's balancing act between online

and offline channels ensure a seamless consumer experience. By engaging directly with
consumers and simultaneously maintaining relationships with traditional retailers, Coca-Cola
struck a balance between digital innovation and conventional sales channels.

Tactics & Actions

The Open Happiness campaign was executed in a phased approach, with each phase building
upon the previous one. The initial phase focused on establishing brand awareness and
generating excitement through traditional media and online presence. The second phase
emphasized user interaction and engagement through social media campaigns, interactive
content, and experiential marketing initiatives. The final phase focused on amplifying the
campaign's reach and impact through viral marketing, targeted online advertising, and
international expansion.

Coca-Cola deployed a multi-faceted set of tactics and actions to bring the "Open Happiness"
campaign to life across various touchpoints. In terms of 7Ps:

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Product: No changes were made to the core Coca-Cola product, but new packaging was
introduced featuring the "Open Happiness" logo and visual identity. Special edition
aluminum bottles and cans were produced featuring lyrics from the campaign anthem song.
Price: Coca-Cola maintained its premium pricing, positioning itself as an affordable treat.
Limited edition packaging was priced at a slight premium to the regular packaging.

Place: Coca-Cola sought to enhance availability and accessibility of its products through
exclusive vending machines called "Happiness Machines" installed in locations like colleges
and busy city centers. The machines featured interactive elements and dispensed free Coca-
Cola products.

Promotion: The integrated campaign made use of TV, print, out-of-home, digital, and
experiential channels. The focal point was a branded anthem TV commercial bringing people
together through shared moments of happiness. Print ads, billboards, branded sites and digital
content reinforced the theme.

People: Coca-Cola focused on building connections with the millennial target audience.
Brand ambassadors and influencers helped spread the campaign at brand-sponsored events
and through social media engagement.

Process: Campaign elements were designed to be interactive and participatory, such as the
"Happiness Machines" and digital content creation contests. This helped consumers co-create
experiences and become immersed in the branded happiness platform.

Physical Evidence: The "Open Happiness" visual identity, logo, and imagery provided a
unifying look and feel across all branded touchpoints, both physical and digital. The unique
campaign packaging also acted as a physical reminder about the branding.

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CRM Tactics
A key component of Coca-Cola's customer relationship management (CRM) strategy for the
"Open Happiness" campaign involved personalization. Through data analytics, the brand was
able to segment its audience and tailor marketing messages and offers to individual
preferences and behaviors (Kumar, 2018). This helped foster more meaningful connections
with consumers. Additionally, loyalty programs were introduced as part of the CRM
approach, with the aim of rewarding repeat customers for their continued engagement with
and purchases of Coca-Cola products over time. Examples included receipt-based promotions
and prize giveaways for frequent buyers (Coca Cola, 2023). Finally, Coca-Cola focused on
implementing robust feedback mechanisms to enable two-way communication with
customers. Surveys, social media interactions, and dedicated online platforms allowed the
brand to solicit customer input, feedback, and ideas, which could then be used to adapt and
refine marketing strategies based on evolving customer needs and desires (Investors, 2009).

Web Experience Tactics

The Coca-Cola website was given an extensive overhaul with the launch of the "Open
Happiness" campaign, redesigned to offer an immersive and interactive user experience. The
new site featured expansive visual storytelling, allowing users to explore a narrative around
the global connections and shared moments of happiness enabled by Coca-Cola (Investors,
2009). Interactive elements like games, quizzes, and contests encouraged participation and
engagement. Users could also generate and share their own stories and moments of happiness
through user-generated content features. Furthermore, recognizing the rapidly accelerating
shift to mobile, Coca-Cola prioritized mobile optimization for the campaign. The redesigned
website and all digital assets were engineered to deliver seamless user experiences across
mobile devices.

Digital Communications Tactics

Social media formed a pivotal pillar of the digital communications strategy for amplifying
and engaging audiences around the "Open Happiness" messaging. Major platforms like
Facebook, Twitter and YouTube were leveraged to create buzz and encourage consumer co-
creation through hashtag campaigns and user-generated content (Taylor, 2015). Influential
celebrities and internet personalities helped expand the campaign's reach and enhance its
credibility through sponsored social media posts and engagement. Additionally, Coca-Cola
incorporated email marketing through targeted campaigns aimed at reinforcing the emotional
brand connection while keeping consumers informed of new locally relevant activations and
events (Direct Marketing News, 2009). The integrated social, influencer, and email initiatives
helped sustain consumer relationships and momentum over the campaign period.

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 Outcomes & Control

Achieved strategic and tactical objectives.

The "Open Happiness" campaign had the deliberate goal of establishing a strong connection
of feelings between Coca-Cola and happiness. The main objective was to use this emotional
bond to support the brand's positioning as a provider of joy and optimism. Global reach and
resonance were key strategic considerations to make sure the campaign's message cut through
cultural divides and found an audience everywhere. Coca-Cola aimed to firmly establish its
brand as more than just a beverage by highlighting happiness as a universal emotion and
making it synonymous with positive experiences and shared moments around the globe.
By using a variety of media, the campaign aimed to increase customer involvement tactically.
By utilizing social media, video platforms, and other interactive methods, it intended to
provide content that promoted sharing and active engagement. A strong relationship between
the brand and happiness in consumers' perceptions was the campaign's goal, and the degree of
positive feeling it generated served as a gauge for success. Apart from short-term
engagement, the campaign also attempted to influence long-term brand recall and resonance
after the campaign's specified timeframe had passed. By using this tactical strategy, the
campaign was expected to leave a lasting emotional impression that persisted long after it
was officially over.

Possible improvements to increase results further.

To further improve marketing results, Coca-Cola, or any other brand, could investigate other
approaches. Strengthening the emotional connection with customers is still crucial from a
strategic standpoint. This can entail using sophisticated analytics to uncover subtleties in a
wide range of customer attitudes and preferences, enabling customized and emotionally
charged ads that resonate with individuals on a personal level.
Furthermore, personalization can benefit from a data-driven strategy. Customer loyalty and
engagement can be increased by using consumer data to create personalized experiences,
such as customized marketing messages or product offerings.
Moreover, the campaign's impact and reach may be increased by strategic alliances with like-
minded influencers or brands. Collaborations that complement the campaign's story and
values can reach a wider audience and use various media platforms to reaffirm the brand's
message.
A memorable audience interaction can be generated by adopting cutting-edge digital
experiences like interactive content and augmented reality (AR). Tech-savvy consumers will
find advertising that experiments with cutting-edge technology engaging and create buzz.

Evidence of “Open Happiness”`s accomplishment.

Sales data that shows increased revenue or market share both during and after the campaign
are tangible signs of Coca-Cola's "Open Happiness" campaign's effectiveness. Metrics that
measure customer interest and active participation with campaign content include increased
website traffic, amplified social media interactions (likes, shares, comments), and robust
video views.
Measurable proof of the campaign's effectiveness would be a rise in sales or market share
either during or after its duration. One way to show how the ad affected consumer behavior
would be to compare sales numbers from before and after.

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For example, Coca-Cola's 2010 financial report revealed some encouraging facts, reporting a
13% increase in net operating income and a 73% change in net shareholder income (Source:
Coca-Cola Annual Review 2010).
Overall, the company achieved a 5% increase in global sales volume and was ranked as the
world's leading brand according to Interbrand's 2010 100 Best Global Brands, with a brand
value of $70.452 million.

Marketing insights and ramifications from this instance.

Valuable marketing insights can be obtained from Coca-Cola's "Open Happiness" campaign.
It emphasizes how effective it is to create emotional connections with customers, going
beyond simple product promotion to arouse emotions and experiences. Coca-Cola
demonstrated the lasting power of emotional ties in marketing by focusing its message on
happiness, which appealed to a universal emotion. The success of the campaign also
highlights the value of maintaining a similar brand across cultural boundaries while
permitting localized modifications, demonstrating how to strike a balance between
international appeal and cultural sensitivity.
The campaign also emphasizes the importance of narrative in grabbing viewers' attention and
creating enduring impressions. Coca-Cola demonstrated the power of excellent storytelling in
marketing with its engaging stories and music that conveyed its message. Further
demonstrating the value of continued customer involvement is the campaign's capacity to
maintain engagement after its initial timeframe. This feature highlights how important it is for
brands to encourage ongoing consumer engagement in order to stay relevant and loyal to their
brand even after a campaign has ended. All things considered, the "Open Happiness"
campaign is proof of the value of persistent engagement, consistent branding, strong
emotional connections, and compelling storytelling in creating memorable marketing
campaigns.
The most important lesson that brands can take away from Coca-Cola's marketing and
distribution is that satisfying customers doesn't always mean changing the product's taste or
interface because people are more concerned with making their everyday lives easier than
they are with enjoying a fantastic cup of juice. Instead, it's about understanding your
customers' needs and coordinating your team to consistently meet those needs, which is the
idea that inspires and leaves a lasting impression on many.
Happiness is achievable; it can be found in the stories we tell and the small pleasures in life.
So, Taste the feeling. Taste the Coke.

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