MKTG 4150Coca Cola on Facebook Case Study Heather Newton November 2011
“learning that could be applied at global scale with local relevance”. Michael Donnelly Social Media Strategy Evaluation and Recommendations
Starbuck’s Strategy One of our main competitors “it’s largely about deals, pure and simple” (Deighton and Kornfeld, 2011) Starbuck’s main social media strategy draws its fans by offering regular offers or deals on their country (local)Facebook pages. http://www.facebook.com/Starbucks
Pros Main reason for fans for visit brand pages is to get deals or discounts (Deighton and Kornfeld, 2011) 44% on Twitter 37% on Facebook and MySpace Fans ‘like’ global Facebook page as well as their country specific Facebook page. Easy to see social media activity into actual sales with the use of discounts or deals that can be tracked.
Cons Harder to have a global message when discounts or other incentives are used as they need to be local Starbucks currently has 20 different pages to manage (Choueke,2010) While their is a global page fans have to ‘like’ a second page in order to get more relevant posts to them and also get the offers that Starbuck’s is popular for. My Starbuck’s idea Worked well in US and Canada hasn’t been implemented in all countries. Not all Starbuck’s Fans get the same opportunities. Offerings should be someone uniform across different country pages for it to be fair to fans. http://www.starbucks.ca/coffeehouse/community/mystarbucksidea While successful for gaining fan quantity incentives shouldn’t be main focus of fan engagement. Quality fans – engage with brand more then just printing off coupons or getting discount codes. Company shouldn’t ‘buy’ fans. Not getting as good representation of those that truly ‘like’ your brand as some may only be attracted by the offers. Starbuck’s move to SM came about from loss in revenue and stock value – Focus is to boost sales – immediately – not long term brand awareness
Coca Cola’s Strategy Has an older and more widely known reputation then that of Starbucks or some of the other major brands on social media – this means it could potentially have a wider fan base to reach globally and across age ranges “relationship based on a non-promotional foundation – for brief times and particular places” We want to empower those who you want to buy your product Create a relationships with fans based on their experience with the brand Vending machine that required friends to help each other to get 2 cans for the price of one our customers shared their experience with the vending machine and it further developed out happinesss element. People were more attracted to the experience then the actual product Easily relatable around the world http://mashable.com/2011/04/29/coke-friendship-machine/ Brand page on Facebook was actually designed by two fans – collaboration with these fans developed it into existing page.
Pros Easier to ensure our goal of maintaining real conversations with our fans. Want real engagement beyond a fan visiting our page simply to get an offer or a coupon. More then a visit or simple like – we want posts or comments. http://www.marketwatch.com/story/coke-is-it-facebook-fans-like-coca-cola-best-according-to-covario-social-media-study-of-top-10 Collaboration Page was started by two fans themselves and then has been taken on by Coke in collaboration with two fans. More open to fans have a creative input into our brand. Use social media for a global conversation Expedition 206 – integrated across different social media (Facebook, Flickr, YouTube) Find what makes people happy – not just about product – relatable globally. http://www.thecoca-colacompany.com/dynamic/press_center/2010/12/expedition-206-finale.html Way ahead of direct competitor - Pepsi Better in engagement Better insight into fans perception of brand Fans continually engage Can see what experiences and perceptions fans have of brand Mentos and Diet Coke video, (Deighton and Kornfeld, 2011) How fans use our product
Cons Fans go to brand social media pages to get discounts. Not getting what they expect from other brand pages. Have to use other tactics to encourage traffic to brand page. Less control over what users are saying in a social media environment Can’t censor fans. Negative comments reacted to but not removed. Other fan pages exist created by fans themselves. Not all Coke fans are engaged in our fan page. Harder to gauge how their brand awareness in social media is translating into actual sales. Common with much of social media activity by companies Social media still fairly new and improvements to how its measured are being developed.
Recommendation - Other Brand Examples Nutella (http://www.facebook.com/Nutella) Similar strategy to Coke’s current strategy One Global Facebook page Some more local posts (Holiday memories from around the world. Ongoing conversation – fans share experience with product Has been one of most popular Facebook pages in the past Let fans create their own conversations Subway don’t post as regularly on their Facebook but their fans still post many times daily. (Romeo,2011)
Recommendations – Other Considerations The role of CSR The issue of CSR has become more important in recent years and this could be used in combination with social media to foster better relationships with fans. Pepsi (http://www.facebook.com/pepsi?sk=app_269511906412644) Campaign with Feeding America Donation for each purchase product Campaign to fund community ideas (http://www.refresheverything.com/) Coca Cola already engaging in CSR and social media separately Coke’s can going white in an effort to save polar bears, an iconic part of their brand image) http://www.forbes.com/sites/eco-nomics/2011/10/27/in-first-coca-cola-cans-go-white-for-polar-bears/ Location Based Social Media Foursquare Sponsored check ins Can be with brands that have physical stores or with brands that are simply carried by other stores. Pepsi previously partnered with Foursquare to offer their location base social media Purely mobile – engage with fans all the time. Pepsi – own app to check in to receive deals.
Recommendations Building a relationship with consumers is key to getting continual engagement and brand awareness. This cannot be fostered by simple discount sharing Need to foster engaging relationships with fans Connect with global fans through posts, events, campaigns that relate to all but can still have local elements. E.g. Nutella’s holiday memories from around the world. Has to be some value for fans to engage with us on social media – not necessarily discounts or deals but some perceived value for interacting with brands Those that consume the brand should be involved in what the brand does in terms of production or design Getting fans involved in social media environment can mean insight into what they want out of our products Should be a combination of these different strategies in order to be competitive with other brands Discounts or deals could be introduced as part of social media but not the main focus or draw to our page. Location based social media is more mobile and 24/7 connection with fans. Other considerations that haven’t been done by all major brands yet More CSR related social media to attract more fans to our page. Integrate Coke existing CSR activity on social media to gain more awareness of brand, its social media presence, and its CSR activity CSR can be on local or global scale E.g. Polar Bears – more a global issue vs. Pepsis – Feeding America more specific to location
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