Sales Promotion Coca Cola Style

Prepared by : Cyril Scaria

Amazing Facts about Coca Cola

3.1% of all beverages consumed around the world are CocaCola products Coke makes so many different beverages that if you drank one per day, it would take you over 9 years to try them all Coca-Cola's $35.1 billion in revenue makes it the 84th largest economy in the world, just ahead of Costa Rica The Coca-Cola brand is worth an estimated $74 billion: more than Budweiser, Pepsi, Starbucks and Red Bull combined The red and white Coca-Cola logo is recognized by 94% of the world's population

Amazing Facts about Coca Cola Contd.

There are 33 non-alcoholic brands that generate over $1 billion in revenue. Coca-Cola owns a whopping 15 of them Around the world, the average person consumes a Coke product every four days Coca-Cola spends more money on advertising than Microsoft and Apple combined ($2.9 bn when compared to Microsofts $1.6 billion and Apples $691 million respectively Advertising budgets for the year 2010) It has been documented that Coca Cola is the 2nd most widely understood term in the world, after okay.

So why does Coke need to advertise and indulge in sales promotion activities ???
To continuously attract new customers and also to provide their existing customers incentives to purchase more of their product.

General Promotional Strategies followed by Coca-Cola

Trade Promotion : Incentives to retailers Free samples/Free bottles Seasonal Product Pricing Sales Promotion : Getting shelves Eye catching positioning at stores Promote impulse buying Contests/Prizes Free Gifts/Goodies Samples

Coca Cola and the First Coupon

1886 -Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia 1887-Asa Chandler, a druggist purchased the formula 1894-Free sample Coupon was introduced as a part of the companys advertising program The coupon entitled its holder to a free glass of CocaCola at his or her local soda fountain The company provided free syrup to soda fountains across the nation by the end of the original coupon program, 18941913, over 8.5 million free sodas had been claimed one in nine Americans had sampled the product.

Buy a Player Campaign UK (Jan 2007)

Objective :
Drive volume sales of Coca-Cola & Coke Zero. Increase awareness of the companys sponsorship of the Football League. Campaign: Football fans were given a chance to win a share of 10m transfer fund for their favourite club

Buy a Player Campaign UK (Jan 2007) Contd.

An individual prize of 10,000 was also up for grabs Unique codes printed on approx 45 million Coca-Cola and Coca- Cola Zero packs Consumers could either text of enter the codes online to find out how much they won for their club anything between 50p and 100,000

Buy a Player Campaign UK (Jan 2007) Contd.

100,000 prizes also generated a 10,000 entrant prize for the consumer Additional draw for one club to win 250,000 took place live on Soccer AM on Saturday 19th February 2007 Covered the 10 million of transfer funds for a one-off Fixed Fee solution including a bonus weekend during the promotion where prize values were multiplied by 10.

Buy a Player Campaign UK (Jan 2007) Contd.

Key success factors :
Highly Exciting Concept Relevant passion point Timing of the campaign Prior to the start of 2007 domestic football season Customer involvement Every fan had a chance of winning something for his/her club Massive promotions by the company and more importantly by the football clubs involved.

Bottle Bat Campaign Australia (Dec 2011)

Objective:
To increase purchase frequency amongst their low-medium households who on an average bought Coke only one to four times a year.

Campaign :
Targeted Backyard Cricket A very popular pastime Consumers simply purchased any two 2L bottles of Coke, and received a free Bat Handle

Bottle Bat Campaign Australia (Dec 2011)- Contd.

Results:
More than 400,000 bats were redeemed in six weeks, i.e. 800,000 Coke 2L bottles were sold. 2L volume grew by a massive 24% in Convenience Stores and Petrol Stations Independent Outlets saw volume jump 21% and in Licensed Outlets, volume growth was tripled

Bottle Bat Campaign Australia (Dec 2011)- Contd.

Key Success Factors:
Highly Innovative Idea Invention of a completely new product Supported by a creative, entertaining and appealing advertisement. Timing of Campaign Indias Tour of Australia 2011-12 Relevant Passion Point Cricket is unofficially regarded as the national sport of Australia

Characteristics of successful sales promotion campaign