COCA-COLA:

AN ANALYSIS OF CURRENT MARKETING

COMMUNICATION STRATEGY
AND A NEW STRATEGY SUGGETION

1
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.

Coca Cola uses Integrated Marketing Communications (IMC) in order to communicate

with its target customers/market. The communication plan is adapted regarding the
market, the society, the potential, the product positioning etc. Coca Cola’s efforts are
always pointed towards maintaining a good customer relationship- being close to its
consumers, to be part of their daily life, to become a kind of ritual attached to specific
moments; for that, they use social media and social marketing through social
responsibility for example, creating emotions and feeling of affiliation toward its
customers. For example, they raise funds for social causes like earthquake or hurricane.

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

The current communications organized by the firm are:

Advertising, direct marketing, interactive/ internet marketing, sales promotion, public

relations, personal selling, sponsorship marketing.

New marketing communication strategy suggestion:

Reinforcing advertisements- Coca-cola should focus more on reinforcing

advertisements stating nutritional facts supported by doctors and researchers. Because
consumers are health conscious and they do look for nutritional value.

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

2. Marketing communication strategy …………………………………………..8-11

3. Campaign evaluation…………………………………………………………….12-14

4. Conclusion ………………………………………………………………………………15

5. Budget……………………………………………………………………………….16-17

5. References ………………………………………………………………………….18-19

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Objectives
Marketing objectives:

Marketing strategy consists of elements relating to production, distribution, promotion

and pricing. Through its marketing activities a company aims at satisfying its potential
customers profitably which leads to an increase in their sales growth. Increase in sales
leads to more profits and more customers are attracted towards a profit making
company. Increase in the number of customers will add on to the company’s
reputation. There are several marketing strategies organizations adapt in order to enter
a market for the first time and to retain its consumer base. A marketing strategy can
also serve as a marketing plan for the organization.

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.)

 Growth of the company. Companies need to grow, but it must be profitable

growth. The ultimate goal of any company is profitable growth and thus tries to
perform their marketing activities in an efficient and effective manner so as to
accelerate growth. Every company directs its marketing activities in such a way
that the end result is achievement of maximum profit and sustainable growth.
Coca-cola has been accelerating its growth since many years.

 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):

 Creating brand awareness among target customers: Market communication aims

at creating awareness about the product among potential customers. Marketing
communications such as advertisements and direct marketing, sales promotion,
internet marketing etc can inform consumers about a company's products and
services. This creates an image in the minds of customers and motivates them to
purchase the product. Advertisements such as magazine ads are designed to
follow the AIDA, or attention, interest, desire, action, principle. Most companies
make catchy statements in its ads so as to capture customer attention and
induce them to buy the product. Coca-cola has adopted innovative advertising
strategies through which it has successfully captured the attention of a large
number of customers (Blatchford, 2013). Its slogans are always directed towards
happiness, enjoying life, sharing etc, which has attracted a large chunk of youth
population.

 Persuasion: Any marketing communication activity aims at persuading the

customers to try the product. Persuasion influences the attitudes, feelings and
beliefs of customers. Coca-cola has succeeded in influencing to a greater extent.

 Increase productivity: Effective communication with the customers, partners,

employees, investors etc helps in anticipating the problems and making
marketing decisions accordingly. It also helps in coordinating the workflow
without any communication gap among the superiors and subordinates; this will
thereby lead to smooth functioning of the marketing activities. Moreover
communication results in developing a good relationship with the customers and

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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).

 Informing Management and Executives: Some marketing communications are

designed to inform other managers or executives about happenings in the
marketplace. So that they will be able to direct and control the managerial activities
accordingly.

 Informing Investors: Marketing communication often involves creating corporate

brochures with the company's annual financial data for shareholders and investors.
The financial data will inform the investors about the company’s financial position-
its profit making ability. With the help of financial data the investors can judge the
company’s ability to make profits in the future and about the value of its shares. If
the investor gets a positive impression by analyzing the financial data then he/she
will invest in the company’s shares. Coca-cola has a lot of potential investors.

 Understanding the market condition: By communicating effectively with the potential

customers, partners, investors etc, a company can draw inferences on the present
market condition. This analysis will contribute in knowing various profitable
opportunities and also the market threats (competitors). The company can thus
manufacture products on the basis of the information available on the present
market scenario so as to minimize the loss and make maximum profits from new
opportunities in the market. The market analysis techniques of coca-cola are framed
in such a way that it helps the professionals in capturing the market information
without missing on any.

 Effective decision making: All the marketing communication activities ultimately

result in making effectively decisions for the successful functioning of the business.
Coca-cola is one best example in the beverage industry for making profitable
decisions.

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Marketing communications strategy

1. Advertisement

Advertising is a non personal form of marketing communication which creates

awareness among the potential customers about a company’s products and services. It
is a form of marketing communication which involves the use of mass media, for
example magazines, newspapers, billboards, radios, television and other forms of
media. Advertising is very important for coca-cola since it has a huge customer base
globally. To reach out to all its loyal customers with the new launches as well as to
inform new customers about all its products coca-cola uses influential advertising
techniques. The slogans used in the coca-cola ads are very catch that it creates a
permanent impact on the viewers (O’Reilly, 2014). The company uses such slogans
which hits the target audience emotionally and encourages them to buy the product.

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.

 Point Of purchase advertising: Posters and stickers are displayed in various

stores on the coca-cola brands and new launches. When customers come to buy
some coca-cola products or any other products such posters and stickers catch
their attention and may induce them to buy more products than what they had
planned before seeing the posters

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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:

 Discounts on buying two or more products

 Chance to meet celebrity
 Discount on other products on the purchase of coca-cola brands

b) Trade:

 Discounts to retailers and stores

 Return back allowances if excess
 Merchandising assets
 Free goods or free tours

5. Public relations

Public relation refers to non personal communications regarding an organization,

product, service or idea. It involves maintaining public image for high profile people,
renowned businessmen, reputed businesses and organizations etc.

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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 has successfully implemented all its communication strategies. This
has helped the company in gaining customers and also maintaining a good
rapport with the potential customers.

Evaluation of the Advertising strategy

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.

Evaluation of Direct marketing strategy

The company has successfully implemented this strategy. Its partnership with various
theatres and restaurants has created this habit among the customers to drink coca-cola
products often.
Mc Donald’s has contributed a lot in promoting coca-cola drinks to its customers, by
offering only this brand with all its meal combos.

Evaluation of internet marketing strategy

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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.

Evaluation of sales promotion

Coca-cola offers attractive schemes during various seasons which help in gaining more
customer support. Such sales promotional activities increased sales to a greater extent

Evaluation of public relation strategy

Through this strategy coca-cola has succeeded in creating a public image. All those who
try a new product are so satisfied with the new launch that they encourage others also
to try it through word of mouth.

Evaluation of personal selling strategy

A large number of sales representatives of the coca-cola company are successfully
creating a good relationship with its customers and motivating the customers to buy the
product again and again. Thus this strategy is contributing efficiently in increasing sales.

Evaluation of the success associated with the marketing communication

initiatives

Integrated marketing communication assessment criteria helps in assessing the efficient

implementation of the marketing strategies, it include customer loyalty, market share,
and the amount of sales revenue that was generated from the marketing campaign
(Aydin, Cetin and Ozer, 2007).

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.

The internet marketing campaigns can be evaluated by application of a different range

of assessment tools such as the total number of unique visitors to the website, length
of visit to the website, free search engine results, paid search engine results, total
number of feedbacks received through the website etc (Ge and Wang, 2007).

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

From the analysis of the marketing communication strategy of coca-cola, it can be

concluded that the company has successfully implemented all its strategies efficiently
and effectively and is thus accelerating its growth every year. Thus it can be said that

 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.

 Corporate Social Responsibility activities play a significant role in building up

goodwill. Coca-cola is efficiently performing all the activities directed towards
corporate social responsibility (The Coca-Cola Company, 2013).

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Budget (Boundless, n.d.; Paul, n.d.)

Budget category Amount (in billion $) (estimate)

Advertising 1.6

Advertising Specialties and Premiums 2.7

Merchandising 5.0

Publicity/Public Relations 7.2

Analyst Relations 2.3

Event support—Product Level 6.2

Event support—Corporate Mandate 2.2

Endorsements 3.4

Sales Incentives 5.5

Sales Support 6.8

Sales Training 6.0

Customer Service Support 8.2

Creative Services 6.5

Copywriting 9.0

Publishing/Printing 7.5

Fulfillment 2.5

Web Site Design 1.6

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Web Site Maintenance 3.4

Corporate Program Support 1.3

Product Design Services 4.5

Consulting Services 6.5

Other Marketing Services and Expenditures 1.5

Design and Packaging Services 3.5

Branding Support 6.5

TOTAL FUNDING REQUIRED 111.4

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