Coca Cola Marketing project Essay Example

brands with specific objectives in mind.

Innovation is driven by leveraging existing brands as well as introducing new flavors and packages in specific markets. The organization expands existing brands into new markets and revitalizes them when needed as part of their innovation process.

Several product innovations have been introduced in response to the increased number of adults in the consumer base. Coca-Cola Zero was introduced in 2008 as a no-calorie beverage, which has gained popularity among adults. It is currently available in 20 out of 28 markets. Over time, the calorie content of Fan, Sprite, and Nested has been reduced by up to 30% compared to their 2010 versions. This gradual process allows consumers to adjust to lower sugar content. The average calorie content of their beverages now stands at 31 Kcal/mall, which is a 16% decrease since 2011 and reflects their commitment towards promoting healthy lifestyles. They are also exploring the use of natural sweeteners like Steven, an extract with zero calories. Switzerland launched Sprite with Steven in 2012 primarily for use in the Nested range that is available in 12 markets. Bottles and cans clearly display nutritional information on their fronts. In Europe since 2009, they have been pioneers in using Guideline Daily Amounts (GDA) on front-of-pack labels, providing absolute values and percentages for calories, sugar, fat, saturated fat, and salt contents per serving as well as proportions for a healthy diet - crucial for weight control purposes.
The clear labeling of no- and low-calorie beverages can be attributed to the voluntary framework known as EX.Regulation on Food Information to Consumers. Twelve companies, including the one mentioned here, have joined this framework. The packaging of

products also plays a significant role in meeting consumer needs, along with the content and origin of the products themselves. Packaging represents approximately 22% of the cost of goods sold and efforts are being made to reduce this percentage by minimizing raw material usage. The main focus is on reducing packaging through "light-weighting" and increasing the amount of recycled and renewable content in cans and bottles. Collaborating with suppliers to increase recycled content further helps reduce the carbon footprint. Metal and glass recycling is already well established, with roughly half of the materials used in cans and bottles coming from recycled sources. However, there is a primary emphasis on increasing the recycled content of PET bottles, which experienced a 23% growth in usage in 2013. Additionally, refillable packaging makes up 10% of volume.The Coca-Cola Company is committed to advancing plant-based packaging innovation within its system while also utilizing recycled materials.One example is their development of plant-based PET - Bluebottles - which was the first fully recyclable PET bottle made with up to 30% plant-based material.This innovation was utilized for Doran's bottle in Romania.
The core principles that guide marketplace execution in Coca-Cola's marketing strategy are availability, affordability, acceptability, activation, and attitude. Availability means making products easily accessible through appropriate packaging, location, and timing. Affordability aims to offer high-quality products at the right price for different occasions. Acceptability focuses on meeting quality standards in each country to enhance consumer acceptance. Activation involves improving product availability and attractiveness at the point of purchase and building brand strength in local markets to motivate consumers to choose Coca-Cola products. Attitude refers to the behavior displayed by sales representatives in their

interactions with customers to meet their needs.

To become the preferred supplier of choice and improve customer satisfaction, Coca-Cola has established customer care centers as a single point of contact between customers and the company. They also track customer satisfaction through an external organization called SGF and enhance execution in the marketplace through daily meetings known as Hellenic Good Morning! meetings where sales teams set targets and review results while rewarding top performers.

The Coca-Cola Company focuses on executing marketing promotions and merchandising at the point of sale to develop strong customer relationships.The Coca-Cola Company conducts regular customer satisfaction surveys and creates visuals and sales aids for customers. They also conduct market analyses to understand unique shoppers and purchase occasions in different trade channels, which helps in developing all non-alcoholic ready-to-drink beverage categories at every point of sale. Additionally, the company sponsors significant sporting, cultural, and community activities across all countries, striving to integrate consumer marketing and sponsorship activities with retail promotions.

In addition to their long-standing global sponsorship of the Olympic Games since 1928, The Coca-Cola Company engages in various promotions. They greatly benefit from their association with international sporting events like the Olympics, the Football European Cup, and the Football World Cup as these events offer exceptional marketing opportunities due to being among the largest and most prestigious in the world.

Joe Tripod, the Chief Marketing and Commercial Officer of The Coca-Cola Company explained how they approach brand reinvention and target "Millennial" consumers. Millennials refer to individuals born between the early 1980s and early 2000s who have grown up with easy access to digital technologies dominated by the Internet. These millennials have high expectations for unlimited choice,

personalized experiences, and fast delivery through various channels. They also seek to change the world based on a new set of values.Modern technology allows ideas to spread quickly, giving individuals the power to influence opinions and even overthrow governments. To remain relevant, brands like Coca-Cola must constantly innovate and adapt by being agile and progressive while sharing values that resonate with Millennials. Coca-Cola is focusing on innovation in five specific areas: Packaging, Partnerships, Products & Equipment, Consumer Provocations, and Cultural Leadership. These efforts enable the scaling of good ideas globally. Despite challenges presented by its multinational corporation status with a market cap of $175 billion, achieving this is possible. Tripod emphasizes that creativity, courage, risk-taking, and reinvention are vital for driving innovation at Coca-Cola beyond just their market strategy. It requires reimagining the company's structure and networking both internally and externally. The ability to adapt and lead in culture will help accomplish business goals outlined in the 2020 Vision plan – aiming to double Coca-Cola's business by the end of the decade; an equivalent achievement that took 125 years to reach! Packaging has always played a significant role in Coca-Cola's branding strategy as evidenced by the iconic contour-shaped Coca-Cola bottle celebrating its 100th anniversary in 2015.Coca-Cola has experimented with various packaging innovations in the past, but it faced a decline in sales and brand equity in Australia. However, they found success with the bold idea of customizable packaging, where they replaced the "Coke" branding with popular Australian teen names like "Mike," "Dave," or "Suez." This successful strategy spread to 30 countries, including Japan, where Coca-Cola partnered with Sony to offer free songs based on customers'

birth year. Coca-Cola values its partners as co-creators and valuable assets, recognizing the importance of maintaining a full pipeline for future growth.

Their focus on innovation is evident through the introduction of over 500 new beverage products worldwide. The innovative Freestyle machine is one such example that allows for more than 100 flavor combinations. Additionally, a new mobile app has been developed to allow consumers to save their favorite blends for easy access at any Freestyle machine.

By leveraging user feedback and closely monitoring the performance of the Freestyle machine, Coca-Cola gains valuable insights into product performance, consumer engagement, and identifies opportunities for new dispensers. This real-time consumer co-creation holds immense potential in opening up entirely new markets for the company.Coca-Cola's strategies not only involve packaging and innovation but also aim to actively promote happiness among consumers. This engagement program utilizes social platforms to create powerful stories and stimulate conversations. Recognizing its global cultural presence as the most recognized brand, Coca-Cola engages in conversations with Millennials, despite potential awkwardness. One such conversation addresses the issue of obesity, which is tackled through a comprehensive Engagement Plan encompassing low and no calorie beverages, transparent nutrition information, well-being inspiration, support for physical activity programs, and a commitment to not advertise to children under 12. The manager advises marketers against being solely captivated by technology; instead, they should focus on creativity and compelling storytelling to establish strong connections.Coca Cola can spread their brand globally and stay relevant by using innovative tools and storytelling techniques. They classify customers into segments based on their needs, characteristics, and likely purchasing behavior in order to analyze the market, identify opportunities, and gain a competitive advantage.

Coca Cola segments the global market geographically, with divisions for each major region reporting to the parent company. Each division is given autonomy to manage operations.

The market for Coca-Cola is segmented based on where the beverage is consumed, distinguishing between on-premises consumption (such as bars, restaurants, cinemas) and home consumption. They also segment the market further based on the type of products purchased - cola or non-cola products. Currently, most of Coca-Cola's revenue comes from its cola products but there is an increasing proportion of non-cola products.

Market segmentation is also done based on age and income. Coca-Cola primarily focuses on young people aged 12 to 25 years old as their primary target market in terms of advertising and targeting specific segments. However, they include people aged 5 to 40 in their secondary target market. Cola products are aimed at those who prefer a strong flavor while Diet Coke and its variants target health-conscious individuals.Coca-Cola offers a range of non-cola beverages that cater to health-conscious individuals. Specific products like Sprite target teens and college students, while others like Lima target the young working population. Overall, Coca-Cola positions its products as refreshing and thirst-quenching, bringing joy and happiness to everyday life. They are marketed as consistent and high-quality options for consumers.

In Romania, Coca-Cola HOB Romania serves as the largest company in the non-alcoholic beverage industry under a franchise agreement with The Coca-Cola Company. Coca-Cola HOB Romania started operating in Romania in 1991 and had a turnover of 410 billion Euro in 2013. They employ 1,700 people and own three bottling plants and 14 distribution channels across the country.

Coca-Cola HOB Romania's extensive product portfolio includes renowned brands like

Coca-Cola, Fan, and Sprite, as well as local brands such as Doran, Doran Saviors Alb, and Piano Negro. They also offer licensed brands like Nested and Lily.

To revive consumer interest, Coca-Cola introduced their "Share a Coca-Cola" campaign for the first time in Australia in 2011. This initiative resulted in a significant increase of 7% in consumption among young individuals. The campaign was subsequently expanded to over 80 countries including Romania in 2013. Consumers were able to purchase personalized bottles of Coca-Cola featuring popular names like Andrei, Ana or MariaFurthermore, variations such as "Share a Coca-Cola with a gamer" or "Share a Coca-Cola with a biker" were introduced, incorporating words like "lover", "your half", "the sexy girl", PM", "Diva", 'Star" to describe someone. Coca Cola continued the personalized bottles concept in 2014 with the "Say it with a song" campaign, integrating music elements. During the summer months, their logo was accompanied by famous song lyrics on the bottles. These labels featured CRY codes that could be scanned, allowing customers to listen to parts of their chosen songs and share them with friends. The initiative also included a smartened application that enabled consumers to connect with others nearby who shared the same musical preferences. In July 2013, Coca-Cola launched the Banner Duet Campaign, recognized as one of last year's most innovative digital campaigns. This campaign allowed users to record personalized digital duets with Dad Despot from the rock band Vita e Vie. Users were invited to call Dad Despot through internet banners on their phones. After making the call, the banner acknowledged it and Dad Despot offered to sing "Para De Stele" in a duet with the

user. Using their phones as microphones, users recorded their singing voices for a personal duet experience with Dad Despot. Additionally, users had an opportunity to win tickets to BEEFIEST and have a meet and greet session with Dad Despot at this significant music event in Romania.
In the second stage of the campaign, participants who recorded duets were rewarded for their efforts. The best voices received personalized Youth videos of their duets. MET integrated the voices of these recorded users into the official clip of "Para De Stele." At B 'STIFFEST, Dad Despot performed on stage along with all recorded voices, using them as his chorus to bridge his fans from digital platforms to live events.

The beverage brand's "Let's eat together" campaign (2013) aimed at helping people rediscover joy in sharing meals together. Coca-Cola Romania partnered with MR.Worldwide to help Romanians rediscover the joy of sharing a meal together by incorporating live tweets into their ad. The ad featured a text bar displaying tweets from fans using the hashtag #Lithographers, with up to seven tweets shown each time the ad aired. Many of the tweets invited friends to have a meal together and enjoy each other's company.

This creative fusion of traditional advertising with social media resulted in over 1 million social media impressions and an increase in Coke's Twitter following in Romania. Additionally, Coca-Cola Romania developed "Radar For Good," a mobile platform that uses location data to identify nearby volunteering opportunities as part of their "Crazy for Good" initiative.Managed by McCann, this campaign led to the recruitment of over 21,000 volunteers in Romania. "Radar for Good" has seen participation from more than 130 organizations, resulting in

a noteworthy increase of up to 50% in their volunteer numbers. As part of its corporate social responsibility efforts, Coke closely monitors water sources at its bottling plants and has successfully implemented water-saving technologies in production lines. In Romania, two new sustainability-focused technologies have been introduced: dry lubrication technology replaces water consumption by using gel on PET production lines, while unionized air technology washes PET bottles without the need for water. These advancements are the outcome of a longstanding partnership with "The Green Danube" and the International Commission for the Protection of the Danube River. Together, they engage in conservation and awareness-raising activities across Romania and nine other countries within the Danube River basin. Annual celebrations like Danube Day attract tens to hundreds of thousands of participants. Notably, "Tasteless Social" and "Maim Mull Verve" organizations organized a significant reforestation event in Avatar Doreen and a cleanup along the Sires riverbanks from Avatar Doreen to Galatia involving nine cities in 2008 and 2009.

Additionally, multiple training sessions were conducted for 200 children from 65 high schools focused on volunteering, civic responsibility, leadership skills, project management abilities, survival skills awareness, and first aid knowledge.The comprehensive training program, lasting 50 hours, was made possible by the dedication of volunteer specialists and public figures such as Marcel Lures, Dad Mile, and Catalina Sustenance. These efforts were aimed at enhancing the river banks cleanup organized by SMUTS' mobile emergency service for resuscitation and extrication led by Roman. In addition to this cleanup, volunteers also provided first aid and survival training. The impact of these activities extended to 2,500 teenagers who participated in them.

To expand their conservation initiative "Adopt a

river from its spring," SMUTS established a "Water Educational Center" at their former plant in Doran Cinderella. This center serves as a platform for local teenagers to learn about biodiversity, pollution control methods, responsible tourism practices, and best practices in volunteering. Collaboration between SMUTS, the Romania Ministry of Environment and Forests, Calamari National Park,and Tasteless Social organization made these endeavors possible. Along with various ecological campaigns within the Doran Cinderella area.SMUTS actively contributes to long-term preservation of natural resources as well as water sources where their mineral waters originate.

The successful implementation of the integrated program called "Adopt a river from its spring to its mouth" has resulted in impressive outcomes.From bottling mineral waters in the north of the country to the Danube Delta,various initiatives have been implementedThe actions taken to protect the environment include planting 32,500 trees, collecting 70 tons of waste, securing 2.5 million euros for sewage systems and filtering stations in Doran through involvement from local authorities. Additionally, a law against industrial fishing has been passed and an urbanism plan has been adopted in the Danube Delta.

In terms of energy and climate protection, efforts are being focused on areas with high energy consumption such as bottling plants, fleet management, and cold drink equipment. To improve energy efficiency in bottling plants, combined heat and power units are being constructed. Energy-saving programs are also being expanded.

The fleet is exploring hybrid vehicles and alternative fuels while implementing changes to driver behavior through the Safe and CEO-Driving program. The new energy-efficient cold drink equipment emits up to 50% less CO emissions compared to 2004.

To minimize the environmental impact of packaging throughout its lifecycle, an integrated approach is

being taken. This includes reducing packaging usage, increasing recycled content, promoting recycling and recovery.Coca-Cola HOB Romania organizes sports and fitness activities that draw around 1,900 participants each year. One of these events is the Red Bike contest and tour, which is supported by Coca-Cola HOB Romania, Green Revolution, Bucharest City Hall, and the Romania Cycling Federation. This event serves as a platform to promote the Active Lifestyle principles that align with the company's commitments towards people and the environment. The "Go green with the Red Bike!" event aims to encourage a healthy lifestyle among citizens of Bucharest. Over two years, more than 1,200 Bucharest citizens have gathered in Savior Park to take part in the largest amateur cycling tour called the "Red Bike." This event holds significance beyond just promoting a product; it encompasses stories, memories, associations, and human connections carefully crafted by skilled marketers throughout numerous board meetings. Coca-Cola has excelled in this area over its century-long existence. While it is possible for someone to replicate their production process and create a drink that tastes exactly like or even better than Coca-Cola's secret recipe, what sets Coca-Cola apart is the unique memories associated with their brand and people's connection to it. This intangible asset combined with tangible assets creates financial brand equity.The value of a brand is determined by consumers' willingness to pay a higher price for it and their resistance to using alternatives. Just like the Tiffany bracelet, well-known brands are able to command higher prices due to the emotions and sense of identity that accompany them. Companies have carefully cultivated these sentiments over many years. Coca-Cola is a prime example, having always

focused on linking happiness, positivity, and the good life to its products. Initially known as "The National Temperance Beverage" in the 1900s, they later transitioned to the more optimistic slogan "I'd like to buy the world a Coke" in the 1970s. Although not an official slogan, it was incredibly successful and remains beloved today.

Coca-Cola's success can be attributed to their emphasis on storytelling, memories, connections, positive associations, and positive experiences. Without these elements, a brand would simply be one among many choices available. Coca-Cola has captivated audiences with marketing campaigns that they view as a collaborative effort aimed at meaningfully engaging consumers. A recent example of this is their 'Share a Coke' campaign which sought to promote positive relationships between individuals with Coca-Cola at its center.According to Coca-Cola data, the campaign achieved positive results in increasing sales volume, household reach, and brand affection ratings. The primary goal of brand equity is to establish a brand that generates conversations and becomes closely associated with its product, giving it a distinct advantage over competitors.