According to food and drug administration (FDA), Coca Cola falls under the food category because of its non – alcoholic nature and government had implemented strict rules, if they do not meet a standard of laws.
There is instability in laws and regulations, such as new tax laws (web.ics.purdue.edu, 2009).
The world is changing at a high pace. After the 9/11 incident there is a continuous instability around the world. At present also recession of 2007 has affected the world economy (Ibid).
Nowadays, people are becoming health conscious and worried about the obesity in developed countries, mainly in United States and now in Europe. Doctors and other medical specialists, and media are discouraging people in having high calories soft – drinks (Ibid).
Coca Cola is making the best use of the Internet for product developments by offering fun activities to teenagers such as ‘Real Coke Rush’ in the United Kingdom.
Use of cans and disposable bottles has helped Coca Cola to increase their sale because customers feel comfortable and stylish in carrying them (Ibid).
SWOT Analysis for Coca Cola
It is a technique of examining strengths, weaknesses, opportunities, and threats of the company in its Industry.
Coca Cola is a very old (since 1886), well known and reputed brand in the beverage industry.
It is one of the companies that understand the customer loyalty.
It has a highly skilled and talented workforce
It maintains good relations with suppliers, distributors, and partners, for example in UK it has been working in strong partnership with Coca – Cola enterprises Inc.
It operates on large scale and highly innovative (coca-cola-remodel.tripod, 2010).
In Europe, say for example in United Kingdom, around 20% of the products are not consumed at home, by ‘impulse buy’.
Negative publicity by media (Ibid).
It is one of the biggest brands that have partnerships in many sports events.
It spreads environment awareness by developing awareness programs.
Coca Cola is also in partnership with movies Avatar, and Warner Bros, when they released the series of ‘Harry Porter’.
It has also big hands in developing health educational programs.
In United Kingdom, Coca Cola had introduced the Coca Cola ware, considering the urban style (Ibid).
It’s being more than a century, Coca Cola has introduced in the market and might be consider as an old – fashioned brand by most of the young population.
There is a ‘Cola war’, it has to face.
Customers are becoming health conscious and worried about obesity and this leads into lower consumption of the brand (Ibid).
Coca Cola 2020 Mission and Vision
The roadmap of Coca Cola starts with their mission-
To refresh the world with their new refreshing products.
To inspire the moments of optimism and happiness among their new and existing customers.
To create product value to their customers and make a difference in the beverage industry.
Their vision provides them a framework and guideline for their roadmap to achieve business goals with sustainable growth in the market.
People- To make a better place to work where employees can give their best and enjoy working.
Portfolio- Develop a best suitable portfolio of products for customers with special focus on quality to satisfy them with customer’s desires and needs.
Partners- Creating a massive network of suppliers and distributors to reach customers and ensuring value.
Planet- Help the planet through innovation and technology.
Profit- Making more of profits without making a difference in responsibilities.
Productivity- Large scale operation with highly effective and lean production.
Culture- Act like local in the country of operation to win the culture (Coca-Cola, 2009).
Coca Cola was recognized as a 1st ranking best global brand in the world in 2008 and 2009 (Interbrand, 2010) and 7th top super brand in the UK in 2009/10 (news.bbc, 2009). Coca Cola is keep developing their portfolio in many different ways (coke corporate responsibility, 2010):
Coca Cola has some defined Marketing communication objectives:
Product awareness – The main objective is to increase the awareness of brand among the people by 5% in coming six months. The target population for awareness includes all group of age (except population under 12 years of age). It is a difficult job to increase awareness about the brand by this percentage because it is already very famous in the United Kingdom.
To make efforts in providing differentiated products from its customers such as Pepsi and to increase differentiation awareness by 20%. It has different taste from other brands (Coca Cola, 2009).
Giving special attention on brand value, in 2006 it was £1 billion in UK (Intangible business, 2010).
To make the brand younger and fun – Coca Cola was found in 1886 and can be considered as out-fashioned brand by young people, in this way it can lose its position.
Maintaining brand preference – It is very important for Coca Cola to maintain its brand preference among new and existing customers to being leader in the beverage market.
The Communication Strategy
There was a time (1995-2000) when females were consuming more of this brand than men. However, today’s situation is not same as before, because females have become more conscious about their health and fitness.
Consumption of Coca Cola among population between 25-35 and 45-54 of ages has increased this year and there is a fall in sales under the age group of 15-24. So, now company is trying to increase sales through Marketing Communication under 15-24 age group because they can be their future customers and for women company has launched calories free products such as Coca Cola zero, which is now well established in the UK market. Their short term target consumers are 45+ age group.
Targeting the Youths
Coca Cola is using Celebrities as a Marketing Communication strategy for young youths. Coca Cola is offering many famous young celebrities such as Avril Lavigne, David Backem as their Brand ambassadors. Currently they signed Simon to represent coke in X-Factor program.
Targeting the Males
It has been observed that men are more sports lover then women. Coca Cola is well known for its sports sponsorships. This is one of the best ways to reach large population. Since 1928, Coca Cola is supporting the Olympic Games and one of the 1st ever supporters. This time also Coca Cola is supporting the London 2012 Olympics games. It is a fantastic opportunity for them to market themselves. This way they can cover and reach millions of audiences, and also they are likely to promote recycling of products. In United Kingdom, football, tennis, and rugby are the most attractive sports. Coca Cola sponsors these sports and conducts their advertising campaign by putting their brand logo banners all around the stadium. They have also painted the ground/ grass with their brand name to take the attention of large number of viewers. In stadium entrance they put stalls to sell their products and offers free goodies such as caps, T-shirt, key rings, flags, etc. with their logo on it.
Coca Cola is also use to sponsor football cups and trophies and will play an important role in football 2010 world cup. On 15th of May Coca Cola is going to launch a multimillion pound United Kingdom element of its global football world cup advertising campaign.
Targeting Young Adults
Coca Cola has strong marketing communication strategies. To target young adults who go for parties in clubs or pubs, and like to have alcohol individually or in a group of friends, Coca Cola has developed joint ventures with whiskey brands such as Clan Campbell, J & B, etc to promote its products in big cities like London, Manchester, Cardiff, Birmingham, etc in the UK. Also, it has joint venture with McDonalds, Domino’s, and movie theater companies to increase their sales by selling to families, couples, and friends.
Targeting Large Audience
The best way to target large audience is through TV and cinema commercials, and Coca Cola spends large portion of its advertising budget into these commercials.
Coca Cola has decided to develop 3 TV advertisements set to run globally, out of which 2 ads will only display online in the United Kingdom and all these three ads are based on their current theme that is ‘OPEN HAPPINESS’. All these commercials are developed by the famous advertisement agency Santo.
1st advertisement of Milla will display in all countries where Coca Cola is running business, and has already launched in some of these markets such as in Latin America.
2nd advertisement is called as “Border Crossing” is developed to run on Television/cinema in 37 markets of operation.
3rd advertisement is called as “Quest”; it’s an animated ad in which an African boy is doing adventure activities. For now it will be displayed on internet and later on TV. Quest has a massive partnership with the most famous digital website ‘You Tube’. This ad will also be run in cinemas (Guardian, 2010). All these commercials in UK will run on itv1 because Coca Cola has partnership with them.
Coca Cola has partnerships with moviemakers all around the world and these moviemakers use Coca Cola to help tell their stories. Movies like wild hogs, the ultimate gift, reign over me, and series of Harry potter have partnership with Coca Cola (the coca cola company, 2010).
It is using polar bear ads since 1993, during spring and summer time both school and university going students have holidays and they plan their vacation and this is the time when Coca Cola takes advantage and introduces polar bear commercials on TV. In these commercials, polar bear are enjoying their holidays while drinking Coca Cola and children love these commercials. Moreover, it has a great impact on sales of soft toys of polar bear. Coca Cola also sponsors film awards.
Targeting Elderly people
To target both young and old customers, Coca Cola is advertising on press. It has been observed that men read more of newspaper and women read more of magazines. Women in twenties read fashion magazines such as “Hello”, “ok!”, and older people read health magazines.
Coca Cola publish their advertisements in such magazines for product awareness. It has started Coca Cola Santa Claus magazines advertisements in 1931 featuring St. Nilk as a kind, jolly man in Santa’s dress which is still going (Ibid).
Coca Cola invests large sum of marketing budget in newspaper campaigning. It continues to advertise their smaller serving size of “Coca Cola mini”, where it has been compared with eating biscuits. In this advertisement mini coke has treated itself to a cup cake. Newspaper has 80% more impact on increasing the sales than TV ads (the newspaper works, 2010).
For elderly people Coca Cola has developed family commercial (http://www.cokezone.co.uk/home/catalogue/category/Coca-Cola) in which family is enjoying happy moment together with coke.
Coca Cola also has big hands in banner campaigning. The most visiting and famous attraction point “Piccadilly Circus” in central London has big digital banner for Coca Cola and it is the most expensive banner in terms of rent. It continues putting banners on public places, buses, sports events stadiums, buildings, etc.
Almost every company is performing online promotion. Official website of Coca Cola UK has many features such as music, entertainment, lottery, charity, games and fashion. It offers people to participate in such activities and win movie tickets, holiday packages and cash; they just need to enter the code. These features are developed mainly to spread awareness and to keep good will of the company among people. Coca Cola is also promoting its products on social networking websites such as Twitter, Facebook, Orkut, etc (secure cokezone, 2010).
A most famous online shopping website ‘e-bay’ also promotes Coca Cola products like vending machines, etc (shop ebay, 2010).
Coca Cola has halted advertising on vending machines in school of United Kingdom because of growing childhood obesity, but it continues setting up vending machines in Universities, hostels, etc.
Coca Cola run their commercials on radio also. It has a deal with ‘RadioVille’ that makes 10% of all the United Kingdom radio advertisements (radioville, 2010). Radio stations bbc5 live sports extra, big city radios have tie up with Coca Cola in promoting products.
To gain positive publicity, Coca Cola donates some amount of profit in charity. It has introduced “WE ARE THE WORLD 25 FOR HAITI” and developed website www.WORLD25.org , where people can download the song and can donate and support people in Haiti who are suffering from earthquake.
Coca Cola will share the message “WE ARE THE WORLD 25 FOR HAITI” by connecting with 25 million people through following ways:
Coca Cola digital network (CDN) – this message will display from 9pm on Friday until midnight Saturday on 29 electronic banners located in 20 major cities. This is to remind people to visit www.world25.org and to view and download the song or buy the DVD.
Time square spectacular- same as CDN.
My coke rewards- Coca Cola will send texts and emails to 15 million members of my coke rewards to remind them to view and download the song.
Coca Cola fan page on facebook- It has more than 5 million members on fan page and same message will display (look to the stars, 2010).
Coca Cola is also making donations to ‘Rain Charity’ to help in bringing clean water to Africa.
Coca Cola started first mobile marketing for its product Coca Cola Zero and now doing same for every product (mobile marketer, 2010).