Coca Cola Case Study (NSAC - Boston University)

1886 First Coca-Cola ad in the Atlanta Journal 1894 1950 1930’s First Coca-Cola T.V. First sold in Image of red and white 1885 6 oz. bottles ad created Logotype created 1916 Santa Claus is promoted 1966 “Hobble-skirt” bottle in ads for the first time “Things go better design introduced with Coke” campaign Brand Timeline 1928 First sponsor in the Olympics in Amsterdam

1979 “Have a Coke and a Smile” campaign 1993 1978 “Always Coca-Cola” Coca-Cola sponsors FIFA for campaign features polar the first time with its “Coke bears for the first time adds life...” campaign 2008 Our Campaign 2000 “Coca-Cola. Enjoy” ? international campaign 1971 “I’d Like to Buy the World a Coke” campaign: one of the best 2006 campaigns in history “The Coke Side of Life” campaign

Executive Campaign goals 1. Increase consumption by 3 percentage points in the 13-24 year old target market. Summary 2. Increase brand health by 3 percentage points in the specified target market. The key benefit of Coca-Cola Classic for our target is taste.7 Our campaign focuses on this tangible benefit as Coca-Cola Classic is the world’s most valuable1 and most a gateway to the Coke Side of Life concept. Essentially recognized brand.2 In 2006, global consumption of trade- Coca-Cola Classic provides happiness through its refresh- mark Coca-Cola products rose 3%,2 yet in the United States, ing taste. the birthplace of the brand, sales have faltered.3 While the secret formula has not changed, consumer taste is shifting At the intersection of taste and happiness is the away from Coca-Cola Classic. It is time to refresh the brand tongue. Our creative strategy is to reach Dynamics with amid changing consumer preferences. a slightly irreverent look at everyday life, focusing on the tongue as an expression of the happiness found in the 13 to 24 year olds are the key to reviving the brand. Bans on Coke Side of Life. We’re sensitive to the fact that tongues selling to younger consumers4 restrict the company’s ability are potentially polarizing for certain demographics outside to reach youth and health concerns stifle consumption as of our target market but inside Coca-Cola Classic’s cus- consumers age. The company’s future success hinges on tomer base our executions are very targeted and tasteful its ability to reach 13 to 24 year olds now. to reflect this concern. Our target market is actively connected. Through We employ public relations strategies and strategic more than 1200 surveys, 20 in-depth interviews and 3 partnerships to complement the campaign’s executions focus groups, we learned that through technology, they and maximize their effectiveness. Through guerilla keep up with the latest social trends, and each other. events and alliances with key brands like the Nintendo Wii, Many are in school and rely financially on their parents, we will create and sustain buzz in the social, technology- while some are young professionals. They enjoy cola, savvy target market. but are not overly brand loyal, flexible when choosing refreshment. We call them the Dynamics. Non-traditional media are key to reaching the target. Executive Summary Multi-tasking, channel surfing, and ad-skipping character- ize our distracted target. Our media plan utilizes a multi- channel, technology-centric approach to reach and stick BusinessWeek Top 00 Brands 2006; hTTp://BWnT.BusinessWeek.com/ Brand/2006 with the target market. 2 2006 coca-cola annual reporT, pg 8 Beverage digesT 2006 Top 0 Brands; hTTp://WWW.Beverage-digesT.com/pdf/ Top-0_2007.pdf The beverage world has changed. Now is the time for american Beverage associaTion school Beverage guidelines; hTTp://WWW. Coca-Cola Classic to make a leap forward to match it. ameriBev.org case sTudy, pg 8 7 campaign survey

BaCkground C onTenTs Beverage Industry Trends 2 Coca-Cola Brand Overview 3 Competition 4 Research Methods SWOT Analysis 6 posiTioning and TargeTing Key Target Insights 7 Target Market Definition 9 Target Market Profiles 10 Positioning Strategy 12 CreaTive sTraTegy Creative Strategy 13 Creative Palette 14 Creative Execution 1 Promotions and PR 20 media sTraTegy and inTegraTion Media Plan 21 Media Rationale 23 Budget 27 Cooperative Partnership 28 evaluaTion Evaluation 29 Conclusion 30 Contents 1

B everage indusTry Annual Percentage Growth Rate CSD vs. Energy Drinks Trends In the past few years, there has been a steady decline in the carbonated soft drink (CSD) category’s beverage market share.8 Key drivers of this sales downturn include: • “HealTH smarT” Consumers - Consumers are educating themselves about the health implications of their consumption choices. This knowledge is causing a shift in market share from regular to diet soft drinks as consumers make an effort to be healthy.9 The health smart trend continues with a steady increase in the market share of diet sodas. • populariTy of funCTional drinks – The market share of enhanced bottled water, sports drinks and energy drinks is also experiencing growth at the expense of Examples of Short-lived CSD regular soft drink consumption. Demand for these drinks is increasing as con- Brands sumers look for a physical uplift from a “healthy” beverage. We expect this trend to continue. Functional drink sales are predicted to grow 27% at current prices from 2004-2009.10 • a flood of sHorT-lived Brands - Short-term variations of popular sodas, such as Dr. Pepper Red Fusion, increase clutter in the soft drink marketplace. The Coca- Cola Company released 84 new brands in 2006 alone.11 The new drinks flood the market with temporary products, distracting consumers from Coca-Cola Classic’s brand messages. 2002-2004 2002-2004 Background 8 Case Study, pg 6 9 Case Study, pg 6 10 Mintel Report, Functional Drinks 2 2004-200 2004-2007 2006-2007 11 2006 Coca-Cola Annual Report, pg 33

Brand overview Coca-Cola Classic experienced a 2% sales decrease from 200-2006.16 • sTruggling wiTH negaTive media aTTenTion - International coverage of incidents in India and Colombia is affecting the brand image. In the U.S., adverse publicity about obesity in children also contribues to declining public perception of CSD brands. • negaTive HealTH perCepTions - In 200, regular sodas began disappearing from U.S. In 200, Coca Cola chose to use schools in accordance with an agreement by the three largest beverage companies to promote a health smart lifestyle.12 88% traditional media • puBliC response To “THe Coke side of life” - Coca-Cola successfully integrates itself to reach 13-24-year-old consumers into the daily lives of its consumer in an active, mobile and digital world.13 Though each day 1.3 billion global Coca Cola customers quench their thirsts with a Coke product, sales of its flagship brand continue to fall.14 • TradiTional Branding TaCTiCs - Coca-Cola Classic’s decade-long (1997-2006) ab- sence from the Super Bowl is indicative of the brand’s recent avoidance of major branding opportunities, especially in non-traditional placements.1 Until 2007, Coca-Cola had been absent from Super Bowl marketing opportunities for 10 years Background 12 American Beverage Association School Beverage Guidelines; http://www.ameribev.org 13 The Coca Cola Company 2006 Annual Review pg 16 14 “Soft Drink Hard Sell,” The Observer, July 9,2006; http://observer.guardian.co.uk/magazine/ story/0,,1813839,00.html 1 Atlanta Jounal-Constitution Online, Ajc.com - http://www.ajc.com/business/content/business/ coke/stories/2007/01/24/0124bizcokead.html 16 Beverage Digest 2006 Top 10 Brands; http://www.beveragedigest.com/pdf/top-10 2007.pdf 3

C ompeTiTion Coca-Cola Classic is a well-recognized brand worldwide. Unfortunately, domestic sales do not reflect Coca-Cola Classic’s true marketing potential. Due to newly introduced beverages and the growing popularity of the competition, Coca-Cola Classic sales continue to decline. Coca-Cola’s Competitors: direCT CompeTiTion: Cola flavored sodas: Pepsi, RC Cola, store brand colas Other brands of cola-flavored soda provide the same experience as Coca- Cola Classic. Non-loyal cola drinkers cannot even taste the difference between brands. 17 Pepsi RC Cola Diet Sodas indireCT CompeTiTion: Other carbonated drinks: Dr. Pepper, Mountain Dew, 7-Up, Diet Sodas Other flavors of carbonated drinks can substitute Coca-Cola Classic. They have the same texture and are consumed with similar foods: pizzas, burgers, snacks. All of these sodas provide the same benefit to the consumer: an Lemon-Lime Other Energy easily accessible drink that will complement any food. Sodas Sodas Drinks Functional drinks: Energy Drinks, Enhanced Water/Sports Drinks, Teas Functional drinks are rapidly growing in popularity among teenagers and young adults. They provide a more concentrated dose of caffeine, vitamins or nutrients for the students and athletes who are in need of energy. With an overlapping of target market and similar key benefits of providing energy, functional drinks are taking market share from Coca-Cola Classic.18 Enhanced Sports Drinks RTD Coffee Tea non-soda CompeTiTion: Other beverages: Any brand of unfortified juice, water or milk There is a wide range of drinks available to quench thirst or to complement a meal or snack. Water, milk and all other drinks compete to satisfy the consumer’s next wave of thirst. Background Bottled Milk Juices Water 17 Campaign Focus Group 18 Mintel Report, Functional Drinks 4

R esearCH meTHods researCH oBjeCTives • Which aspects of Coca-Cola most attract the target market? Focus Group Pullouts: • What are psychographic and behavioral characteristics of the target market? • What is the target market’s perception of CSDs and Coca-Cola Classic? “I buy soda not only because it • What are the CSD purchase trends among the target market? tastes good but because it keeps • What are common lifestyle trends within the target market? me up.” - Analuz Vizarretea, 19 • What is the media consumption of the target market? primary researCH • We conducted an extensive survey with more than 1,200 responses of 13-24 year we ColleCTed over olds across the U.S. to gauge the role of Coca-Cola in the target’s lifestyle and to collect demographic information. • We held one-on-one interviews with 20 members of the target market for a more 1200 surveys, in-depth, personal look at Coca-Cola’s role in the target’s life and their daily media usage. ConduCTed 20 inTerviews • We conducted three focus groups consisting of members of our target market, asking questions about their soda drinking habits, components of their purchase decisions and perceptions of Coca-Cola and Pepsi. and Held 3 foCus groups. “Coca-Cola is an older, conserva- seCondary researCH: tive brand. Pepsi is young and hip.” For information on the CSD industry, the Coca-Cola Company and the target market, re- - Brittany Nardone, 16 search was taken from: • Online databases (Mintel) • Books (For God, Country, and Coca-Cola: The Definitive History of the Great “[Advertising] should be visually American Soft Drink and the Company That Makes It - Mark Pendergrast) attractive. It needs to have a young • Trade publications (Ad Age, Adweek) image, putting in things that we • Coca-Cola Classic Case Study Background like.” - Jorge Noriega, 19

SWOT Analysis • opporTuniTies Many tangible product benefits • Non-traditional media avail- sTrengTHs able to reach • More charitable organizations • Well-recognized, trusted fit with brand values; can brand name19 team up with new chari- • Established company19 ties • Consistent product • Brand-loyal customer base20 • Successful past advertising21 • Easily accessible product weaknesses • Ignores non-traditional advertising • Does not effectively reach 13-24 years olds22 • Declining sales23 • Target perceives it as an THreaTs “old” brand”24 • Positioning based on • Health smart trend intangibles erodes market share • Potential for more negative media coverage • Popularity of functional drinks persists Background • Increasing new competition in the market 19 Coca-Cola Corporate Website, http://www.thecoca-colacompany.com/ourcompany/awards_recognition.html 20 Campaign Focus Group/Surveys 21 Coca Cola Television Advertising 22 Campaign Case Study, pg 13 23 Beverage Digest 2006 Top 10 Brands; http://www.beverage-digest.com/pdf/top-10 2007.pdf 6 24 Campaign Focus Groups

K ey TargeT insigHTs Achieving our Research Objectives Which aspects of Coca-Cola most attract the target market? Taste. Taste was the top response no matter how we segmented the data. All data subgroups represent the importance of taste. } out of those who show no strong brand loyalty, Out of general survey population } out of undergradu- ates who respond to sarcasm, } out of females who Brand image Other Energy Taste had watched ABC No response Thirst-quencher in the last week. Just a drink that comes with other food Positioning and Targeting What are the psychographic and behavioral characteristics of the target audience? The target audience invests much of its time in social activities. They feel most comfortable when around others, and they use multiple forms of communication to keep in touch with others. The target audience values friends highly and prefers to do activities as a group rather than as individuals. What is the target market’s perception of Coca-Cola Classic? Social, conservative and fun are a few words that the target uses to describe the Coca-Cola Classic brand. They see Coca-Cola Classic as a solid brand that will always be around, though it may not always adapt well to current trends. The target audence says that Coca-Cola Classic does not put enough emphasis on what is interesting to them. 7

K ey TargeT insigHTs What are CSD purchase trends among the target market? Segmenting through media purchases • 23% of the target market is generally loyal to brands but has not yet made a defi- nite brand choice for soft drink consumption. These customers are ready to make Aware of the benifits of segmenting the market, a brand choice but are waiting for a brand that connects with them. we looked for a divide delineating the target • The target market is health-conscious and thus has increased its consumption of into two psychographic groups throughout our non-soda drinks; however, it has not given up soft drinks entirely. primary research process. We found no such distinct divide. In fact, we What are common lifestyle trends within the target market? • Health has become a major concern for the target market. It is, however, a matter see the younger half of the target attempting of perception. While 96% of respondents consider themselves healthy or some- to emulate the older half, aligning with their what healthy, only 26% watch their calorie intake. Therefore, while being healthy world views and preferences. is trendy, few follow a strict diet. Instead, they make their consumption decisions based on perceptions of healthiness. With no discernable difference in outlook within the target, any division of the target aCTions of people wHo Consider THemselves into primary and secondary sub-groups HealTHy or somewHaT HealTHy would be completely arbitrary. I watch calories and what I eat I watch calories Yet, though their underlying preferences I watch what I eat may be similar, a high school student Neither lives in a very different world from a college student or a young professional. • The target is generally receptive to advertising; it is less annoyed by advertising In order to best connect with their than the older population. everyday experiences, we plan to Positioning and Targeting • 13-18 year olds look to advertising for current trends. They consider both adver- segment through media channels, tising and their friends the strongest influences when purchasing the right prod- allowing us to tailor executions to ucts. the specific life experiences most • Dynamics primarily drink soda in social settings with friends and family. relevant to the audience while still maintaining the underlining message among the target. What is the media consumption of the target market? • 91% of the target audience considers itself to be at least somewhat connected to major news and world events. The target audience spends much of their time on the computer, and sees it as a valid source of information. 8

T argeT markeT definiTion Introducing the Dynamics Our target audience is the Dynamics, 13-24 year old non-loyal beverage drinkers seeking convenience in their active, busy and connected lives. Dynamics engage in several activities that involve the use of multiple communication media at the same time. How are THey dynamiC? Positioning and Targeting Non-Loyal - Dynamics Active - Dynamics are Busy - Dynamics are either Connected - Dynamics are brand loyal, but have physically active, interest- working, in school, or utilize lots of technology not yet decided on a soft ed in fitness and health. both. During their chaotic to maintain their social drink loyalty. days, they socialize with connections and stay others. connected to the world around them. 9

T argeT markeT profiles nour shahaB uri magen-david age: age: 2 middle school sTudenT invesTmenT Banking analysT perCepTion of life: She likes to live life to the fullest. perCepTion of life: Life brings you unexpected things. You lifesTyle: Her days are packed with school and homework, must always be prepared for its surprises. but every night she tries to fit in a couple of hours to lifesTyle: Extremely busy. He was busy in college, but now life’s watch TV and go online. absolutely crazy. He wakes up at 8 in the morning, goes to favoriTe weBsiTe: MySpace. work, eats lunch, goes back to work, works out, and goes back weekend plans: She likes to have fun; she goes to the mall to work. He takes little breaks at the office, though, mostly by and spends time with her family. Every once in a while, she playing games online. goes to parties, where she likes drinking Coke. favoriTe weBsiTe: addictinggames.com. Positioning and Targeting perCepTion of CoCa-Cola ClassiC: It is not her favorite soda online aCTiviTies: Check e-mail, the news, facebook, stocks, but she still likes to have it every now and then. However, and do work-related stuff. He probably uses the Internet it must always be bubbly – never flat. around 14 hours a day. perCepTion of CoCa-Cola ClassiC: Sometimes he’s at the office until 2, even 3 in the morning. On those late days, he drinks Coke beause it gives him the energy to keep going. He also drinks Coke with lunch and sometimes dinner, especially with pizza or burgers. It’s the only soda he drinks; he likes its taste. He started drinking it as a kid and will probably drink it when he’s old. 10

maria fe razeTTo Tricia paTTerson age: 2 age: 8 college senior college freshman perCepTion of life: She tries to enjoy moments to the fullest, perCepTion of life: Her life is changing. She is trying to fig- espeically now that she is graduating in a few months. ure out what she wants to do with the rest of her life. She lifesTyle: Ever since she started college she started exercising thinks life is what you make it, so she tries to enjoy it and a lot more – working out became a huge part of her busy life. keep herself active. During the week, she goes to class, does homework, works lifesTyle: One of her favorite things to do is socialize. She out, and hangs out with her friends if she has time left - they likes to meet different kinds of people and listen to their are a huge part of her life; they’re like her family. experiences. She spends lot of time with people on her online aCTiviTies: Whenever she is short on time, she keeps in dorm floor, over the phone, and online. She spends around Positioning and Targeting touch with all her friends online - through AIM, MSN messen- hours a night online, simultaneously doing homework, ger, e-mail and facebook. She goes online for about three or talking on the phone, and watching TV. four hours every night, mostly for schoolwork. favoriTe magazines: Vogue, Teen Vogue, the New Yorker perCepTion of CoCa-Cola ClassiC: She used to be addicted to and the Economist. Coca-Cola when she was younger. She still drinks it, especially perCepTion of CoCa-Cola ClassiC: She likes drinking Coca- when she’s up doing schoolwork, but she’s also trying to drink Cola every now and then, but mostly when she’s at the water and other [healthier] stuff. beach because it is refreshing. 11

PosiTioning sTraTegy To Dynamics, Coca-Cola Classic is the ice-cold taste that refreshes life by providing a physical & emotional uplift. Positioning and Targeting Coca-Cola Classic is synonymous with the color red and tradition. Our new Coca-Cola Classic market strategy refocuses the “Coke Side of Life” campaign back on Coke’s key benefit: taste. Coca-Cola Classic will turn the act of sticking out your tongue into another trademark of Coca-Cola and establish it as the gateway to “The Coke Side of Life.” 12

C reaTive sTraTegy BaCkground oBjeCTive: To rekindle interest in the Coca-Cola brand and The “Coke Side of Life” campaign entertains au- to refresh the “Coke Side of Life” campaign diences with its abstract animated vending ma- chine and video game commercials, but strays too far from the brand’s socially connected core and the product’s functional benefits. TargeT: The Dynamics, 13-24 year-old socially connected, multicultural youth “The Coke Side of Life” campaign needs more than computer animation to connect with young- audiences. It needs to express youthfulness CompeTiTive frame: Coke’s crisp, classic taste through online media, images of young people and more edgy, authentic concepts. From bottom to top, our campaign integrates key message: The crisp, refreshing taste of Coke will make with Coca-Cola’s current brand positioning. We maintain the brand’s optimistic, happy core. The your tongue tingle and make you want to brand voice remains refreshingly honest, speak- smile ing directly to the target in its own language about authentic situations. Our campaign builds on the “Coke Side of Life” concept currently in supporT poinTs: Povides a physical and emotional uplift, use, offering a new way to express the happiness quenches thirst and is associated with in the taste of Coke by sticking out one’s tongue. social occasions We are aware that this act is potentially polarizing; however, within our target market we find it enhances the viral nature and youthful edge of Creative Strategy our key message. personaliTy: Optimistic, Fun and Creative 13

CreaTive paleTTe THe logo & TTagline Our creative palette shows the elements that are reinforces the Coke Side of Life campaign. present in all of our creative executions, BuBBles ensuring an integrated are dynamic and add vitality campaign. and energy to the executions. They reflect the Dy- namics’ active lifestyle. Bold Colors represent the intensity of positive emotions as presented in the Coke Side of Life. smiles spread happiness and represent connectedness among Dynamics. friends make life exciting. The interaction of friends in social The tongue Creative Strategy settings represents the viral is the element that connects characteristic of the campaign. Coca-Cola’s key benefit, taste, with the happiness represented by the brand. riBBon Tongue expressions are a The ribbon provides consistency viral communication of the in the campaign with the brand 14 Coke Side of Life. and its heritage.

prinT C reaTive exeCuTions Creative Strategy 1

C reaTive exeCuTions online inTernal www.myCoke.Com/Tongue Tongue Twister Videos Myspace Layouts & Mosaic Coke Monster Games Video Sharing Tongue Expression Guide myspaCe mosaiC Visitors can submit photos of themselves sticking out Creative Strategy their tongues. Appropriate photos are compiled into a photo-mosaic. The mosaic is inserted into a Flash wid- get that participants can then place on their MySpace page, and the mosaic zooms into a photo of the partici- pant. This execution reinforces the tongue imagery of the campaign through the social networking medium. 16

C reaTive exeCuTions online exTernal Banner ads Headline The tongue twister uni- fies and reinforces the campaign, and its simplicity and uniqueness attract web surfers. image Body Copy logo & Tagline The tongue monster is The purpose of the ban- The final segment of the from the Coke webgames ner ad is to have people banner ad shows the Coke on mycoke.com/tongue. visit mycoke.com/tongue. Side of Life logo twirling In the ad, the monster Tongue twisters and and flying across the banner swallows the headline. games introduces the fun and landing in the center. features of the site. weB games Creative Strategy Bubble Mania Spin the Bottlecap Coca-holic 17

CreaTive exeCuTions ouT-of-home TransiT prinT ads Headline Call To aCTion Creative Strategy The silly nature of tongue The website, which is load- logo & Tagline twisters causes people to ed with games, sweepstakes laugh and smile. Our Coke and downloads, allows peo- tongue twisters emphasize ple to learn more about the the benefit of Coke’s crisp, re- “tongue” campaign. freshing taste while focusing on our tongue campaign. 18

CreaTive exeCuTions ouT-of-home movie THeaTer ad Shown before Feature Film Tongue expressions BookleT sTreeT arT inTeraCTive displays Creative Strategy This video execution, shown prior to films in movie theaters, leads audiences through pre- movie stretches, ending with the exercise of the most impor- tant muscle - the tongue. 19

P romoTions and pr P “sTiCk your Tongue ouT for a Coke” - viral Campaign Today more than ever, promotions and public There will be a 0-foot-long red car- relations are a key part of pet in the shape of the Coca-Cola any WORD-of-MOUTH red ribbon on the floor at different advertising strategy. locations. Lining the carpet will be red poles to make it appear like a movie premiere’s entrance. At the end of the carpet will be Coca-Cola Tongue press release spokespersons from the target age Press releases will group wearing specially designed be sent to various Coke t-shirts. The spokespersons publications with will ask participants to stick out their interesting infor- tongues for a free bottle of Coke. They will also receive a Tongue mation about the Expressions guide and, at select locations, a free t-shirt. tongue and the sense of taste. They will contain scientific information about its importance and what stimulates taste buds, tying in the texture and flavor of Coca-Cola Classic. sTiCk iT ouT for THe polar Bears The classic Coca-Cola polar bears are in danger. In July, the company will donate a portion of the sales of com- Creative Strategy memorative Coca-Cola Classic pack- ages to the World Wildlife Foundation to protect the polar bears. We have set aside $1,000,000 in our budget to cover this donation. We will support this effort with promotions on our website. 20

M edia plan The plan integrates both traditional and non-traditional media, focusing on operating between interactive plat- forms to successfully reach oBjeCTive the target consumer. • Increase cola consumption and brand rating among 13-24 year old non-loyal beverage drinkers and loyal Coca-Cola customers seeking convenience in their active, busy, and connected lives. • Obtain both high reach and frequency, focusing on nontraditional and new media. an offensive approaCH wHo wHere • Dynamic cola drinkers who have no brand preference • The strategy will take place in Dynamic Cities (list or who prefer Coca-Cola will be encouraged to pur- on page 23) with a focus on the top ten metropoli- chase Coca-Cola Classic. tan areas in the country with the highest percentage population of young people between the ages wHaT of 18-24. • Messages delivered in areas of high opportunity and • The campaign will also focus on the 10 largest non- large target population. Pepsi affiliated university campuses. How wHen • Obtain optimal levels of both reach and frequency • Launch in January through the following media: Media Strategy and Integration • One-year campaign Internet Outdoor • Continuous scheduling on interactive level Search Marketing Transportation • Non-interactive media will be alternated throughout Banner Ads Street Art the year, focusing on the summer and holiday months. Video Ads Guerilla Marketing Targeted E-mails Campus Newspaper Movie Theaters Interactive displays Magazines Shopping Malls Newspapers Video Games 21

M edia flow CHarT Media Strategy and Integration for raTionale, please see “media raTionale” on pages 2-27. 22

M edia raTionale Known for their ability to multitask, Dynamics are highly connected individuals who are not afraid to try new forms of technology and are receptive to new marketing ideas. To reach this dynamic target, we have compiled a marketing plan that consists of highly interactive advertising spanning many media channels. Top 25 dynamiC CiTies 26 Metropolitan areas ordered by population of 1-24-year-olds online neW york los angeles chicago Banner/video ads dallas Selections: Popular social networking (facebook, philadelphia MySpace), Online Video (TV networks, YouTube), and housTon Sports (ESPN, CBSsportsline) sites WashingTon dc Timeline: all year, varies by outlet miami aTlanTa Rationale: As Dynamics spend much of their time deTroiT online, banner and video ads reinforce the brand im- BosTon age in the target market’s mind. These ads allow people phoenix to interact with the images, ultimately driving them to san francisco MyCoke.com/tongue. san diego minneapolis seaTTle sT. louis BalTimore Tampa searCH markeTing Media Strategy and Integration denver Selections: Google, Yahoo!, MSN scramenTo Timeline: all year piTTsBurg Rationale: Search engine marketing only displays cincinnaTi san anTonio ads related to users’ searches, directly connect- porTland ing the target with ads relevant to their needs. Campaign keywords (i.e. “taste,” “tongue” and “puzzles”) will trigger Coca-Cola ads at the top of search results of all major search engines. 25 sTrauss, willam and neil Howe. millenials and THe pop CulTure. 2006. 26 us Census Bureau, 2005 populaTion esTimaTes 23

Media raTionale TargeTed e-mails Selections: Users of MyCoke.com and MyCokeRe- wards.com, Mailing Lists from Guerilla Events Top 25 dynamiC Colleges 27 Timeline: One e-mail per quarter Non-Pepsi-affiliated universities, ordered by enrollment Rationale: Targeted e-mails provide new branding opportunities to better connect with current custom- universiTy of minnesoTa ers. The e-mails provide customers already familiar ohio sTaTe with the brand with a direct link to MyCoke.com/ universiTy of Texas - ausTin arizona sTaTe tongue, effectively generating a high yield. Texas a and m michigan sTaTe weB games pennsylvania sTaTe Selections: Popular gaming sites: newgrounds universiTy of florida com, addictinggames.com, albinoblacksheep.com universiTy of Wisconsin universiTy of illinois - urBana Timeline: all year universiTy of michigan Rationale: As games become more popular among purdue universiTy universiTy of souTh florida - Tampa the target, placing Coke games on websites dedi- neW york universiTy cated to Internet gaming is a cost-effective way of indiana universiTy reaching the target. universiTy of arizona universiTy of california - la prinT universiTy of WashingTon ruTgers universiTy magazines Media Strategy and Integration universiTy of maryland Selection: Entertainment and gaming magazines Wayne sTaTe universiTy targeted to Dynamics universiTy of housTon florida sTaTe Timeline: all year, varies by specific outlet universiTy of georgia Rationale: Almost half of all teens read at least one magazine a month, with boys gravitating toward gaming magazines and girls preferring magazines featuring celebrities.28 By targeting executions to the magazine’s specific demographic, we can effectively reach key segments within the target. 27 naTional CenTer for eduCaTion sTaTisTiCs, 2004 enrollmenT ranking 24 28 Bps media, HTTp://www.BpouTdoor.Com/ arTiCle.pHp?arTiCle=youTH_wasTe

ouT of Home Media raTionale guerilla inTeraCTive mall displays Selections: Top 2 Dynamics Cit- Selections: Top 2 Dynamic Cities ies and College Campuses Timeline: May through September Timeline: 2 days spans in January, Rationale: These interactive floor pro- May, and September jections, placed in highly-visible, high- Rationale: The guerilla aspect of traffic areas in malls, will be rolled out this campaign aims to generate in the summer to introduce the cam- word of mouth among the target paign during a time when the target through a unique execution. The is away from school and has more free guerilla events take place in malls time. in the top cities and on the side- walks of the top campuses. sTreeT arT Selections: Top 2 Dynamic College Campuses newspapers Timeline: Two weeks prior to Media Strategy and Integration Selection: Top 2 Dynamics Col- Guerilla campaign lege Campuses Rationale: To prepare campuses Timeline: Academic Year for the arrival of our guerilla Rationale: Campus newspapers campaign, street art sticker ads are often students’ main source for provide a unique way of gener- campus news, with 44% of under- ating word of mouth in a cost graduates reading them 2+ times effective manner. The ads will be per week. By supplying the content of the newspaper 29 placed in highly-visible, high- puzzle section, we will reach a large percentage of col- traffic areas around campus, such as the student center lege students in a unique and cost-effective manner. and food court. 29 y2m media and markeTing group, www.y2m. Com/researCH/files/readersHipsurvey06.pdf 2

Media raTionale ouTdoors ConT. ads sHown prior To fea- TransporTaTion Ture films Selection: Top Selections: Top 2 Dy- 10 Cities namic Cities Timeline: Febru- Timeline: Summer and ary - March Holidays Rationale: Our Rationale: Young adults bus ads focus make up more than half on specific of the movie-going audi- routes that pass ence and are more likely through areas with high population densities to attend movies at least of Dynamics. The ads reinforce the early brand once a month than older messages from other media channels in an urban adults.30 Theater ads placed before appropriate films reach the environment, generating high recall.31 target in a non-multitasking environment with focus completely on the screen. Considered BuT noT reCommended With a budget of only $17 million and the need to balance the media plan to fit the multi-tasking, multi-channel usage patterns of Dynamics, it is impossible to purchase space on every media channel. Below are media that we considered in our research efforts, but ultimately decided not to recommend: Media Strategy and Integration radio Television BillBoards The radio is filled with clutter, at- Given the short attention spans and Given the busy lifestyles of Dynam- tracting many advertising dollars technical proficiency of Dynamics, ics and their geographic distribu- to this inexpensive medium. Given your money is better spent on me- tion, billboards are easily ignored the limitations of the broadcast, it is dia that offers a more immersive, ac- and are not highly targeted. We also difficult to create an interactive tive (more cost effecive) experience. chose to use mall, movie theater experience, reducing the media’s Coca-Cola will still have a presence and street art as more targeted, im- effectiveness. in this medium as a part of its over- mersive, interactive approaches to all strategy, including the American reach Dynamics. 30 aCCording To a 2005 movie aTTendanCe Idol sponsorship and traditional sTudy By mpa worldwide markeT researCH and analysis Holiday commercials. 31 Clear CHannel ouTdoor, HTTp://ClearCHan- 26 nelouTdoor.Com/produCTs/Bus_TransiT.HTm

Promotion T-Shirts B udgeT Guerilla Production Tongue Expression Guide Save The Polar Bears Partnership & Promotion Total Budget Crossword Puzzle Maker Website Redesign Other Evaluation Production Media Strategy and Integration Media Buys Promotion Media Buys Search Marketing Banner/Video Ads Mall/Movie Theater Interactive Displays Transportation Movie Theater 27

C ooperaTive parTnersHip ninTendo wii parTnersHip wii demos aT sporTing evenTs Objective: Increase brand health through more active sponsorship. We propose a strategic partnership with The Nintendo Corporation’s Execution: Set up booths where specta- Wii brand to improve the market position of both brands. Our target tors can try out the Nintendo Wii. We are market and brand values align with those of the Wii, a game console targeting Coca-Cola-sponsored regional that offers a more social and physically interactive gaming experience. NCAA basketball championships. faCeBook wii giveaway Rationale: This Objective: Take advantage of viral method of trends in social networking to raise promotion is a awareness of the campaign. more aggressive Execution: Create a sponsored group way to reach the on facebook.com to announce a give- target at sport- away of ten Nintendo Wiis to eligible ing events. participants. Entrants are required to Locations: stick out their tongue on their profile men’s 2008 division 1 BaskeTBall pictures and to join to group in order Charlotte Bobcats Arena – Charlotte, NC US Airways Center – Phoenix,AZ to be considered. Ford Field – Detroit, MI Rationale: While promoting the Wii, Reliant Statdium – Houston, TX Alamodome – San Antonio, TX this execution strengthens campaign women’s 2008 division 1 BaskeTBall awareness using the social networking medium. By requiring partici- Greensborough Colloseum – Greensborough, NC New Orelans Arena – Louisiana pants to change their profile photos, we expose their friends to the Ford Center – Oklahoma City Media Strategy and Integration campaign. Spokane Veterans Memorial – Spokane, WA CoCa-Cola minigames Objective: To increase campaign awareness and brand health using an alternative medium. Execution: Provide several Coca-Cola-themed minigames with new Wii consoles. Rationale: Games are an extremely effective medium for reaching the target. Minigames provide an opportunity to strengthen campaign images while maximiz- ing the reach of the branding effort. Coke Catching Under Pressure 28

E valuaTion The integrated marketing campaign we have just presented is aimed at accomplishing the campaign goals: increasing both consumption and brand health by three percentage points each. While it has been designed with the utmost attention to detail in research, strategy and execution, the campaign is not perfect. To ensure effectiveness of your marketing dollars, throughout the year-long campaign, we will carry out extensive evaluation and testing. The evaluation will consist of both ongoing and periodic elements to constantly gauge the market’s response to the campaign. We take your investment in our campaign seriously and will utilize these evaluation procedures to reach our goals more effectively. ongoing QuanTiTaTive: Observational methods via online games, such as the use of Internet cookies to identify web users Urchin Analytics web server traffic data Conversions from search placement ads and targeted e-mails QualiTaTive: Online message boards Feedback from contact link on site Response to guerrilla campaign Media coverage of the campaign periodiC QuanTiTaTive: An online survey placed on www.coca-cola.com Surveys distributed at guerilla events QualiTaTive: Usability testing of website Interviews conducted via telephone and in person where promotions and public relations take place. Evaluation Focus groups of target members. Creative copy testing 29

1200 Surveys, focus groups, interviews and secondary research ConClusion Coca-Cola Classic stands on the edge of a crisis. In spite of health concerns per- vading public opinion about soda, an aging loyal customer base, and new limits Dynamics are 13-24 year old non- of marketing to children, the company has an opportunity to capture the attention loyal beverage drinkers seeking of a new group: the Dynamics. They are a target who, at 13-24 years old, has yet convenience in their active, busy to make up its mind as to its soft drink brand loyalty and for whom health has and connected lifestyles. more of a cosmetic than medical nature. Capturing the market share of these Dynamics will not be easy. Our campaign utilizes cutting-edge, non-traditional media coupled with a a focus on technology to capture the minds and tastes of the active, connected Dynamics. The tongue, To Dynamics, Coca-Cola Clas- the gateway to taste and the “Coke Side of Life,” serves as the youthful, uninhib- sic is the ice-cold taste that ited gesture of happiness inherent in a Coca-Cola Classic. refreshes life by providing a physical and emotional uplift. We look forward to being able to serve The Coca-Cola Company with our unique solution to the current market situation. Evaluation 30

COMave aCknowledgemenTs Krystina Baldwin Diana Freedman Elizabeth Fong Brendan Marrese speCial THanks To: Professor John Verret We believe in our clients. Professor Geoffrey Klapisch We believe in finding great solutions to even greater problems. Professor Julie Beck We believe in combining function and emotion. Professor Carolyn Clark We believe in integration. Professor Tom Fauls We believe in being out of the ordinary. Professor Susan Parenio in creating brands with a powerful personality. Professor Richard Perreault in dynamic ideas that adapt to our constantly changing world. Professor Michael Rodriguez in simplicity. Professor Jay Zagorsky Dean Tobe Berkovitz And in the middle of it all, we have a good time. Dean Kenneth Elmore Because we do what we love. Anand Chopra-McGowan Larissa Hayden Neil Dhandhukia Jason Kahn Illana Fried Da-Hae Oh Executive Director Account Creative Creative Jonathan Kim Karla Diaz Account Mariam Shahab Dmitriy Karfagenskiy Account Director Creative Creative Kathleen Kim Evaluation Lynn Chung Account & Media Zeny Huang Caitlin Supka Creative Director Creative Creative Lynn Chen Account & Media 31

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Coca Cola Case Study (NSAC - Boston University)

by Mariam Shahab on Dec 25, 2009

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Coca Cola Case Study (NSAC - Boston University) — Presentation Transcript