Targeting Generation Z - Effective Youth Marketing Strategies

1
Bachelor’s studies
Field: Management
Specialization: Project Management
Karolina Demiańczuk
Student’s ID: 57251
TARGETING GENERATION Z –
EFFECTIVE YOUTH MARKETING
STRATEGIES WITH AN EXAMPLE OF
THE COCA-COLA COMPANY
Bachelor’s thesis written in
Institute of Management
under Scientific’s Supervision of
Katrzyna Bachnik, Ph.D.
Warsaw 2015

3
Table of Contents
Introduction.......................................................................................................................................... 4
CHAPTER 1 Generation Z ............................................................................................................. 6
1.1 How generations differ .............................................................................................................. 6
1.2 Generation Z Characteristics .................................................................................................... 9
1.2.1 Demographic Characteristics........................................................................................... 10
1.2.2 Family background .......................................................................................................... 10
1.2.3 Digitalization ................................................................................................................... 12
1.2.4 Presence in Social Media................................................................................................. 13
1.2.5 Influence from Peers........................................................................................................ 14
1.2.6 Globalization.................................................................................................................... 14
1.2.7 Liberty and Tolerance...................................................................................................... 14
1.2.8 Self Development ............................................................................................................ 15
1.2.9 Social and Environmental Consciousness ....................................................................... 16
1.2.10 Wellbeing....................................................................................................................... 17
CHAPTER 2 Youth Marketing .................................................................................................... 19
2.1 Marketing in the new Millennium............................................................................................ 19
2.2 Importance of Youth Marketing............................................................................................... 21
2.3 Youth Marketing Strategies ..................................................................................................... 22
2.3.1 Relationship Marketing.................................................................................................... 23
2.3.2 Digital marketing ............................................................................................................. 24
2.3.3 Social Media Marketing................................................................................................... 25
2.3.4 Customerization............................................................................................................... 27
2.3.5 Co-creation....................................................................................................................... 28
2.3.6 Viral marketing................................................................................................................ 29
2.3.7 Event and entertainment marketing ................................................................................. 29
2.3.8 Product Placement ........................................................................................................... 30
2.3.9 Influencer Marketing ....................................................................................................... 30
2.3.10 Environmentally and Socially Responsible Marketing ................................................. 31
CHAPTER 3 Coca-cola’s Youth Marketing................................................................................ 34
3.1 Company’s Profile................................................................................................................... 34
3.2 Branding .................................................................................................................................. 35
3.3 Marketing Research................................................................................................................. 37
3.4 Youth marketing communication............................................................................................. 39
3.4.1 Relationship Marketing.................................................................................................... 39
3.4.2 Digital marketing ............................................................................................................. 40
3.4.3 Social Media Marketing................................................................................................... 40
3.4.4 Customerization............................................................................................................... 42
3.4.5 Co-creation....................................................................................................................... 43
3.4.6 Viral Marketing................................................................................................................ 44
3.4.7 Entertainment and Event Marketing ................................................................................ 45
3.4.8 Product placement............................................................................................................ 46
3.4.9 Influencer Marketing ....................................................................................................... 47
3.4.10 Environmentally and Socially Responsible Marketing ................................................. 48
Conclusions........................................................................................................................................... 51
Bibliography......................................................................................................................................... 54
List of tables ......................................................................................................................................... 62
List of figures........................................................................................................................................ 62
Abstract
............................................................................................................................................................
63

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Introduction

The last decade of the twentieth century, characterized by demographic shifts, changes in
family models, the growth of technology and rapid globalization, has caused significant
transitions in people’s mindsets, lifestyles, motivations, and values. Growing up in the new
Millennium, young people were the most influenced by the social, environmental, and
technological changes, representing a completely unique generational segment: Generation Z.
Since Generation Z is unlike any other generation, they also act differently as customers,
affecting all the Ps of marketing mix: product, price, promotion and place. From this reason,
targeting today’s youth requires a complete change in the marketing thought proces.
Companies need to adjust and adequately modify their marketing strategies if they want to
appeal to younger generations and stay successful on the marketplace in the long-term.
Therefore, the purpose of this dissertation is to:
1. Identify Generation Z’s characteristics that are important from the point of view of the
marketers;
2. Present effective youth marketing strategies that should be used by brands targeting
Generation Z;
3. Describe how The Coca-Cola Company uses youth marketing strategies in order to
reach Generation Z.
The following hypothesis will be validated throughout the study:
Brands that use youth marketing strategies are more effective in attracting and building long-
lasting relationships with Generation Z, increasing the likelihood of staying successul on the
markeplace.
In order to achieve these objectives and validate the hypothesis, an in-depth secondary
research was conducted using following sources: books, research reports, government and

5
NGO statistics, magazines, journals, and the Internet. The author has also conducted primary
research, interviewing Aleksander Pawlak, The Coca-Cola Company’s Marketing Manager
and Bartosz Kajak, The Coca-Cola Company’s Energy Drinks Project Manager in April 2015.
The information collected through both primary and secondary research is provided in three
different chapters. The first chapter provides a brief description of the background and
characteristics of all of the current generations, in order to present generational differences
and the shifts in society, as well as a more in-depth description of Generation Z, as the main
focus of this paper. The author focuses mostly on the characteristics that have an impact on
customer behavior and are important from the point of view of marketers.
In the second chapter, the author describes marketing in the new Millennium, the factors that
have led to the changes in marketing practices and the importance of targeting the today’s
youth segment. In addition, the author provides a description of effective marketing strategies
that should be used in order to reach Generation Z.
The third chapter presents how The Coca-Cola Company targets today’s youth. The
description of the company’s profile, its branding strategy, previous marketing campaigns and
marketing research is also provided in order to present why The Coca-Cola Company,
referred to as “The King of Marketing” was chosen as an exemplary brand in practicing youth
marketing.

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CHAPTER 1 Generation Z

In order to effectively target chosen generational group, it is necessary to learn about its
characteristics, lifestyles and attitudes. A response to a marketing message is influenced by
psychological and personal traits, motivatons, attitudes and beliefs, which are different for
each demographic segment1
and even inside the generation, “the interests, attitudes, tastes and
buying habits are different, therefore an in-depth research into each segment is necessary for
success”2
.
Therefore, the purpose of this chapter is to briefly describe the background and characteristics
of current generations, in order to provide the reader with better understanding of generational
differences and shifts in society. Since Generation Z is the main focus of this dissertation, the
chapter contains its more in-depth description, focusing mostly on the characteristics that
have an impact on customer behavior and are important from the point of view of marketers.
How generations differ
1.1
It is vital to define a generation before moving to describing Generation Z. We can assume
that “a generation is the aggregate of all people born over roughly the span of a phase of life
who share a common location in history and, hence, a common collective persona”3
.
Generation is formed by demographic shifts, societal factors (historical events, economic
situation, aspects of their upbringing), and parenting style, what leads to different mindsets,
separating different generations from each other4
. Like a person, a generation is mortal - in
time all members of the generation age and die, and are replaced by younger generations. It
considerably changes the entire society's behavior, what enables the society to evolve over
time.5
1
D. Chaffey, Internet Marketing: Strategy, Implementation, and Practice, Financial Times Prentice Hall,
Harlow 2000, p44
2
“Consumers of Tomorrow”, Grail Research, 21 May 2015, http://www.grailresearch.com/
pdf/ContenPodsPdf/Consumers_of_Tomorrow_Insights_and_Observations_About_Generation_Z.pdf.
3
N. Howe and W. Strauss, Millennials Rising: The next Great Generation. New York, 2000.
4
"The First Generation Of The Twenty-First Century", Magid Generational Strategies, 26 May 2015,
http://magid.com/sites/default/files/pdf/MagidPluralistGenerationWhitepaper.pdf
5
N. Howe and W. Strauss, Op. cit.

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Each generation has unique history, demographics, lifestyles, motivations, expectations and
values, what makes each generation different when it comes to their customer behavior. From
that reason, it is necessary for companies to distinguish and understand main differences
between the generations. According to sociologists, today’s society is divided into six
generational segments. Table 1 gives brief description of them.
Table 1. Generations and their current age spans
Source: "Generations X, Y, Z and the Others...Social Librarian Newsletter - WJ Schroer Company", Social
Marketing, 25 May 2015.
Table 1 presents current generations with the time span of their birth years and ages. From the
marketing point of view, it is important to learn about generations and their characteristics,
since each generation’s lifestyles, motivations, values, and behaviors are shaped by social and
historical events, demographics, and technological innovations, and therefore, different
marketing strategies should be applied for different generations. Below, the author briefly
describes the most important characteristics of each generation.
Traditionalists. Traditionalists were born between the turn of XX century and the end of
World War II. Historical and societal events that shaped this generation include World War I
and World War II, the Roaring Twenties, the Great Depression, and the Korean War, which
shaped their hardworking and patriotic character6
„They became America’s leading civil-
rights activists, rock and rollers, antiwar leaders, feminists, public-interest lawyers, and
mentors for young firebrands”7
.
6
L. Lancaster and D. Stillman, When Generations Collide at Work: Traditionalists, Baby Boomers, Generation
Xers, Millennials. Who They Are. Why They Clash. How to Solve the Generational Puzzle at Work,
HarperCollins, New York 2002.
7
N. Howe and W. Strauss, Millennials Rising: The next Great Generation. New York 2000.
Generation Year born Age now (2015)
Generation Alpha 2010-2015 <5
Generation Z 1995-2009 6-20
Generation Y 1977-1994 21-38
Generation X 1965-1976 39-50
Baby Boomers 1946-1964 51-69
Traditionalists 1900/24-1945 70-115

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The values that describe this generation are “dedication and sacrifice, hard work, conformity,
law and order, respect for authority, duty before pleasure, adherence to rules, and honor”,8
however, the one word that best describes Traditionalists is loyalty.9
Baby Boomers. Baby Boomers were born between 1946 and 196410
. They have experienced
war in Vietnam, Watergate, the women’s and human rights movements, recession, and the
invention of the television, as the most influential one11
. It attracted them to the culture-
related professions, such as teaching, religion, journalism, marketing, and the arts12
.
The key word for Boomers is optimistic. They grew up in a world full of opportunities - the
postwar economy was booming with the availability of jobs, GI loans, production of goods,
and a good education for all13
. They "grew up as indulged youth during an era of community-
spirited progress”14
, but had to compete for nearly everything against their peers, what gave
them a label “Me Generation”15
.
Generation X. Members of this generation were raised during the boom of technology. Their
childhood was revolutionized by the inventions of different media, with personal computer as
the most life-changing one.16
They grew up in the world full of violence - the sexual
revolution, the rise in divorce, an R-rated popular culture, crime, teen pregnancy17
, AIDS,
crack cocaine, child molesters and drunk drivers18
.
Seeing nearly every major institution called into question, this generation is characterized by
skepticism – Gen X-ers learned to rely only on themselves and do not hold false hopes that
any person or institution would save them from reality19
.
8
R. Zemke, C. Raines and B. Filipczak, Generations at Work: Managing the Clash of Veterans, Boomers, Xers,
and Nexters in Your Workplace, AMACOM, New York 2000.
9
L. Lancaster, and D. Stillman, When Generations Collide at Work: Traditionalists, Baby Boomers, Generation
10
R. Zemke, C. Raines and B. Filipczak, Op.cit.
11
L. Lancaster, and D. Stillman. Op.cit.
12
N. Howe and W. Strauss, Op.cit.
13
14
15
16
Ibidem.
17
18
L. Lancaster, and D. Stillman, Op.cit.
19
Ibidem.

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Generation Y. Known also as the Millennials and Echo Boomers, this generation is shaped
by technology, globalization and diversity. This is the first generation with boys and girls
raised as equals and with the acceptance for differences in race, gender, ethnicity, and sexual
orientation20
.
Generation Y children have had access to cell phones, personal pagers, and computers since
they were born and with the use of the Internet they have been able to access any information
on demand21
. When entering the workplace, they choose large institutions and government
agencies, want to work in teams, and care about solid work–life balance22
. The word that best
describes this cohort is “realistic”.
Generation Z. The description of Generation Z is provided in the next section of this chapter.
Generation Alpha. Generation Alpha or Google Babies are being born after 2005, in the
digital age of wireless connectivity. “The massive technological changes will make
Generation Alpha the most transformative generation ever”.23
This generation will be affected
by the shifts in global population and is the first generation raised in a world where for the
first time in history the average age of first marriage is older than the average age of the first
birth24
. Google Babies are predicted to have entrepreneurial spirit, to be highly educated, tech-
savvy, prepared for big challenges, and to communicate in person less than previous
generations.25
Generation Z Characteristics
1.2
Generation Z notably differs from previous generations, being the first generation to be fully
raised in a digital world. Therefore, if marketers want to create marketing strategies that
20
L. Lancaster and D. Stillman, When Generations Collide at Work: Traditionalists, Baby Boomers, Generation
21
Ibidem.
22
N. Howe and W. Strauss, Millennials Rising: The next Great Generation. New York, 2000.
23
C. Sterbenz, "Generation Alpha Is Coming And It Will Change The World Forever", Business Inside,
Business Insider Inc., 25 July 2014, 24 May 2015, http://www.businessinsider.com/generation-alpha-2014-
7#ixzz3aWqfQo4M
24
"What Comes after Generation Z? Introducing Generation Alpha", The McCrindle Blog, 24 May 2015,
http://mccrindle.com.au/the-mccrindle-blog/what-comes-after-generation-z-introducing-generation-alpha.
25
"5 Predictions For Generation Alpha", Millennial Career and Workplace Expert Speaker NY Times Bestselling
Author Dan Schawbel, 24 May 2015, http://danschawbel.com/blog/5-predictions-for-generation-alpha/.

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appeal to this raising in power generational segment, first they need to understand and learn
about their unique characteristics, demography, family situation, and environment that have
shaped their motivations, attitudes, lifestyles and values, affecting their customer behavior.
Demographic Characteristics
1.2.1

Generation Z is the cohort of people living in Western and First World cultures that follows
Generation Y. The opinions about the birth year of the earliest members of Generation Z
differ, ranging from 1990 to 2001, however a majority of experts claims about 1995.26
“They
grew up during the most profound changes in a century and represent the watershed
generational shift of our era”27
.
Several other names that refer to this population group include „Plurals”28
, since they are the
most ethnically diverse generation ever, and both „iGeneration”29
and “Digital Natives”30
,
since they are the first generation to be born into a completely digital age and have never
known a world without the Internet and smartphones31
.
According to the research by agency Sparks & Honey, Generation Z makes up the largest
population demographic in the US – 26.9%, becoming a significant target group for
marketers.32
Family background
1.2.2
The family model and parenting style play a critical role in shaping the individual mindset.
Members of Generation Z were born in times in which the total number of births per woman
26
L.G. Stambler, Literacies For The Digital Age To Teach In The K-12 Classroom, The Pier Institute, Jul. 2013.
27
"Meet Generation Z" RainmakerThinking Inc. 24 May 2015. http://rainmakerthinking.com/wp-meet-
generation-z-second-generation-within-giant-millennial-cohort/.
28
"The First Generation Of The Twenty-First Century", Magid Generational Strategies, 26 May 2015,
http://magid.com/sites/default/files/pdf/MagidPluralistGenerationWhitepaper.pdf
29
"Meet Generation Z", Op.cit.
30
"Gen Z in the Workplace - TalentCulture", TalentCulture, 28 Oct. 2011, 24 May 2015,
http://www.talentculture.com/social-biz/gen-z-in-the-workplace-thoughts-after-tchat/.
31
"Meet Generation Z”, Op.cit.
32
"This Gen Z Infographic Can Help Marketers Get Wise to the Future", AdWeek, 24 May 2015,
http://www.adweek.com/news/advertising-branding/gen-z-infographic-can-help-marketers-get-wise-future-
159642.

11
equaled less than 2. They have fewer siblings and older mothers33
, and according to US
Census Bureau, children today have been growing up with two parents less often than in the
past.
An important characteristic of Gen Z’s parents (Gen X) is their protectionism, which they
brought to a higher level than their predecessors34
. Referred to as ‘Helicopter parents’, they
protect their children from any harm and risk, seek to maintain the blissful state of childhood,
and are ready to intervene in the child’s interest.35
In consequence, today’s children are rarely
permitted to play outdoors alone, out of sight of watchful, worried parents - they are more
likely to stay inside playing video games or browsing the Internet. Parents have been
proactively encouraging this sort of behavior as a way of protecting their children36
. As a
result, children have become less connected to nature and less free.37
As a result of increased protectionism, both mothers and fathers have increased their time
spent parenting. According to Pew Report (2014), since 1985 the number of hours tripled for
fathers and increased by 60 percent for mothers. These increases have been particularly
pronounced among college-educated parents.38
They try to teach their children traditional
values, emphasizing on old-fashioned notions such as work ethic, etiquette, resilience, and
taking responsibility for self39
. In addition, parents hold more control over the decisions that
their kids make and influence almost every aspect of their lives40
. They put pressure on
children to focus on careers during high school. According to “High School Careers Study”
conducted by Millennial Branding and Internship.com, 55% of high school students say that
their parents are putting pressure on them to gain professional experience.41
33
M. McCrindle, The ABC of XYZ: Generations Defined, UNSW Press, 2011.
34
"Introducing the Homeland Generation (Part 1 of 2)", Forbes, Forbes Magazine, 24 May 2015,
http://www.forbes.com/sites/neilhowe/2014/10/27/introducing-the-homeland-generation-part-1-of-2/.
35
D. Mann, The New Kids on the Block Have Arrived, London: Happen, 2014.
36
Ibidem.
37
Ibidem.
38
15 Economic Facts about Millennials, The Council of Economic Advisers, Executive Office of the President
of the United States, 2014
39
"Children of the Tech Revolution", The Sydney Morning Herald, 24 May 2015,
http://www.smh.com.au/news/parenting/children-of-the-tech-revolution/2008/07/15/1215887601694.html.
40
H. Peterson, "Millennials Are Old News - Here's Everything You Should Know About Generation Z",
Business Insider, Business Insider Inc., 25 June 2014, 24 May 2015, http://www.businessinsider.com/generation-
z-spending-habits-2014-6#ixzz3YEe2ZAfp.
41
"The High School Careers Study", Millennial Branding GenY Research Management Consulting Firm, 24
May 2015, http://millennialbranding.com/2014/high-school-careers-study/

12
As a consequence of today’s parenting, today’s kids and teens spend significantly more time
at home, what is significant from the point of view of companies and marketers. They are
used to spending time at home on their digital devices and focus more on developing their
individual passions and hobbies, and feel the pressure to achieve big things. All these aspects
significantly affecting today’s youth marketing.
Digitalization
1.2.3
As mentioned before, Generation Z is the first generation to be fully raised in a digital world
and they do not know the world without smartphones and the Internet. Today, there are
almost two billion devices connected to the Internet and it is predicted that with the
development of the ‘Internet of things’, this number will reach 50 billion by 2020. Almost
everything will be automated, controllable and trackable42
. Generation Z is already the most
savvy and most information-intensive generation of all time, and technology is considered to
be almost as equally important in shaping their personality as their family environment43
.
Electronic devices not only provide young people with entertainment or information, but they
also play significant roles in their everyday life. Teenagers are constantly connected,
multitask across at least five screens daily and spend 41 percent of their free time with
computers or mobile devices, compared to 22 percent 10 years ago, according to the Sparks &
Honey report. Gen Z kids often prefer digital entertainment to social interaction44
and even
regular conversation is often substituted by technology. More than a third of children admit to
using technology to communicate with family members in the same house45
and according to
a study by Ipsos MediaCT, kids 6–12 prefer playing their favorite video game than spending
time with their favorite people46
.
Being connected is not only critical in everyday lives of young people47
, but also as
University of Maryland study in 2010 found, 79 percent of them displayed symptoms of
42
43
44
"Data Point: Gen Z Immersed in Technology", JWTIntelligence RSS, 21 Sept. 2012, 24 May 2015,
http://www.jwtintelligence.com/2012/09/data-point-gen-immersed-technology/#axzz3XXkIS1fg.
45
S. Singh, Generation z: rules to reach the multinational consumer, India: SapientNitro Gurgaon, 2013.
46
"Data Points: Wired Child", AdWeek, 24 May 2015, http://www.adweek.com/news/technology/data-points-
wired-child-143732.
47

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emotional stress when kept away from their personal electronic devices.48
According to a
study “Digital in Their DNA” conducted by JWT, 90% of young American and British
respondents would be reluctant to give up their Internet connection, 78% - mobile phone, and
76% - texting friends. They attached more importance to digital connections than to money,
various material goods, and real-world activities like going to the movies or eating out49
. In
addition, in many households, turning off the WiFi by the parents is the biggest punishment
for their kids50
.
Since digitalization and emotional connection to the Internet and digital media are extremely
important characteristics of young people, they will choose and better recognize brands that
are visible online. Therefore, targeting Generation Z, an online presence is a must.
Presence in Social Media
1.2.4
As much as important for Gen Z-ers is being connected to the Internet, they are also
emotionally connected to social networks – almost 8 in 10 teens belong to some kind of social
network51
. They are empowered to connect with people, and will be the first generation to
have an active online profile throughout their lifetime52
. They rely on social networking sites
not only for socializing, but also for school, shopping and finding information. 44% of high
school students reported using social media to gather impressions and information about
colleges, and for half of them it had an effect on their decisions about where to apply to
college53
and according to Sparks & Honey's data, 52 percent uses social media for typical
research assignments, and around a third works with classmates and watches lessons online54
.
Chatting has already become the second most common mode of communication, almost
surpassing SMS.
48
The World Unplugged, College Park: University of Maryland, 2014.
49
"April Trend Report Examines the Digital World of Gen Z", JWTIntelligence RSS, 23 Apr. 2012, 24 May
2015, http://www.jwtintelligence.com/2012/04/april-trend-report-examines-digital-world-
gen/#ixzz3YLAyGkCU.
50
51
J. Walter Thompson, Gen Z: Digital in Their DNA, J. Walter Thompson Intelligence, Apr. 2012.
52
D. Mann, Op.cit.
53
„Trends for 2014”, Lawlor Trends, 26 May 2015, http://clients.thelawlorgroup.com/Lawlor_Trends_2014.pdf.
54
159642.

14
This implies that young people want to be constantly updated, communicated and entertained
through social media, therefore brands that are active and create communities for the users are
more attractive and appealing.
Influence from Peers
1.2.5
Social media have created a new trend that appeared among Gen Z-ers, which is the
emergence of ‘digital celebrities’. Today, teens are influenced not only by their authorities
and idols, but also by their peers. They read blogs, watch YouTube videos and follow
Instagram profiles of people of their age or even younger. Through social media, people offer
advices and teach each other new skills. Teenagers want to watch, follow and inspire each
other, which should be remembered by brands in their online marketing activities.
Globalization
1.2.6
Because of the development of the Internet, social platforms and digital celebrities, children
have grown up hearing the views of and communicating with people from all around the
world, what has created their global perspective. They are culturally accepting, and have
large, mixed-culture friendship groups and continuously interact with peers from different
countries and cultures. As found in Millward Brown Survey conducted in Europe, Asia and
the United States, 25 percent of Digital Natives interact daily with people from abroad.55
In
addition, Gen Z child will have travelled on average to eleven countries by 16-years-of-age.56
59 percent of the respondents in the global survey conducted by Happen Agency cited
‘worldly’, when they were asked about the characteristic that Gen Z displayed more than the
children of their generation. That is why, in order for brands to be considered attractive
among young people, they should present to them their open mind and global perspective.
Liberty and Tolerance
1.2.7
Globalization has made Gen Z-ers more tolerant and accepting the differences. The market
research firm, Frank N. Magid Associates, states in their report that Generation Z is currently
55
56
Ibidem.

15
the most ethnically, racially and religiously diverse generation in the United States57
. Since
Generation Z teens are virtually present and well networked in social media, they are exposed
to diversity from their youngest years58
. They reflect a new way of looking at diversity. Not
only would they like their social circle to become more diverse59
, but they also want to mix
different points of view and components of identity, and create their own personal identity.60
That is why Generation Z holds great understanding for differences and fights for equality.
Teenagers are liberal and support same-gender marriages, transgender and other human
rights. 55 percent of teenagers in the United States stated their opinion that anyone should
have a right to become American citizen with no regards of how he or she came to the US.61
What is more, there is even bigger move towards women rights. According to Magid report,
the women's liberation movement of the 1970s and 1980s has created a generation where girls
want to have power. Children and teens observe blurred gender roles within their families,
with crossing lines of responsibility between parents62
. Research shows that girls in
elementary and middle school are more interested than boys in earning a college degree,
having good grades, and getting feedback from parents and teachers to help them do better in
school63
. According to a White House “Women in America” report, the number of men and
women attending college is almost equal, but it is predicted that younger women will surpass
men when it comes to college or graduate degree.64
Since Gen-Zers are the most liberal and tolerant generation, they will choose brands that
emphasize equality and tolerance and present understanding of differences in their activities.
Self Development
1.2.8
Generation Z is not only the most tolerant and liberal, but also the most formally educated
57
"Generational Strategy", Magid Strategies, 24 May 2015, http://www.magid.com/capabilities/generational-
strategy.
58
59
"The First Generation Of The Twenty-First Century." Magid Generational Strategies. Web. 26 May 2015.
60
61
"What If Gen Z Switches Off?", Financial Review, 19 Nov. 2014, 24 May 2015,
http://www.afr.com/technology/gadgets/what-if-gen-z-switches-off-20141119-11q3wm.
62
"The First Generation Of The Twenty-First Century." Magid Generational Strategies. Web. 26 May 2015.
63
M.H. Winograd,"A New Generation Debuts: Plurals", The Huffington Post, 24 May 2015,
http://www.huffingtonpost.com/michael-hais-and-morley-winograd/plurals-generation_b_1492384.html
64
"Women in America: Indicators of Social and Economic Well-Being", The White House, The White House, 24
May 2015, https://www.whitehouse.gov/administration/eop/cwg/data-on-women.

16
generation in history. They started school younger, and projected to stay in education for
longer than ever.65
The results of the study by Millennial Branding and Internships.com also
show their entrepreneurial spirit – 72 percent of high school students want to start a business
someday and 61 percent would prefer be an entrepreneur than an employee when they
graduate college.66
As mentioned earlier, their parents are putting pressure on them to gain professional
experience during high school. Today’s teens also have an access to a wide variety of
mentors, who can be found not only in their schools or organizations, but also online. “The
internet has given them unprecedented access at such a young age to get in touch with
mentors”67
–they read their blogs, watch YouTube videos, and contact them directly by e-mail
and social media.
Therefore, brands should provide young customers with opportunities for both self-
development and the development of their passions and interests, such as workshops, events
were they could acquire knowledge about chosen topics, meetings with professionals or
contests in which they could present their talents.
Social and Environmental Consciousness
1.2.9
Generation Z deeply cares about the development of the self, but also about the development
of the world, society and environment. Not only is being ‘ecofriendly’ and ‘green’ popular,
but it is also embedded in young people’s minds from the youngest years. Growing up in a
time of environmental crisis, they consider a product’s environmental impact68
and are
attracted to ‘green’ products, such as LED lighting, hybrid cars and solar batteries69
.
Besides choosing products and services that do not harm the environment, Generation Z also
wants to make an impact on the world. Almost one in four teens in the United Stated engage
65
66
67
"Why 'Gen Z' May Be More Entrepreneurial Than 'Gen Y'", Entrepreneur, 03 Feb. 2014, 24 May 2015,
http://www.entrepreneur.com/article/231048.
68
H. D. Wayne, and D.J. MacInnis, Consumer Behaviour: A Marketer's Tool, Cengage Learning India, New
Delhi 2010.
69

17
in volunteering70
. With the increase of voluntary sectors in organizations, the notion of
needing to sacrifice for community appeared. Altruism will become “something that is
unacceptable not to do”71
. The study by Sparks & Honey showed that 60% of teens want to
change the world, compared to 39% of Generation Y72
. They have even bigger ambitions - 40
percent want to invent something that changes the world73
.
They are also concerned about the economy, terrorism, wars around the world and
cybercrime. However, they are mostly concerned about world hunger and man's impact on the
planet (75 percent)74
. In its communication with the youth, brands should therefore emphasize
their social and environmental actions and encourage young customers to help and change the
world for better.
Wellbeing
1.2.10
Since Gen Zs are attached to their electronic devices, and spend most of the time digitally,
their interaction with physical environment has diminished75
. According to the Sparks &
Honey report, for 66 percent of kids aged six to eleven online gaming is the biggest source of
entertainment. They are connected to their friends and acquaintances digitally, but have less
contact in physical world76
, what has an effect on their health. Professionals from Thales
Training & Consultancy believe that Generation Z may prove to be very unhealthy and
overweight77
- teen obesity has already tripled between 1971 and 201078
what should be an
alarm for the parents and organizations. That is why companies should prove that they care
about the wellbeing of their customers and promote healthy lifestyle in their marketing
strategies.
70
71
72
H. Peterson., Op.cit.
73
"The Most Entrepreneurial Generation Yet", Inc.com, 24 May 2015, http://www.inc.com/christine-
lagorio/entrepreneurial-generation-z.html.
74
Ibidem.
75
76
Ibidem.
77
"Managing Generation Z" I-L-M. 24 May 2015. https://www.i-l-m.com/Insight/Edge/2013/April/managing-
generation-z.
78
H. Peterson, Op.cit.

18
In conclusion, as a result of social, environmental and technological changes, Generation Z
has been growing up in a completely different world. Overprotected by their parents from
their youngest years, today’s teenagers are emotionally attached to their electronic devices
and social media, and spend most of their free time digitally. They focus on self-development
and the development of their passions and interests, wanting to achieve big things. Moreover,
they are not only the most ethnically, racially and religiously diverse demographic, what
makes them the most tolerant and accepting of differences generation of all time, but they also
deeply care about the world, society and environment. All these characteristics have a
significant influence on the marketing practices brands should be using in order to appeal to
the digitalized, globalized, and constantly connected Generation Z.

19
CHAPTER 2 Youth Marketing

Since Gen-Zers are notably different previous generations, they also act differently as
customers. Internet, smartphones and digital technologies have significantly changed their
buying behavior79
. Young people embrace different lifestyles, values and needs from their
predecessors, and have different attitudes towards technology, communication and what is
considered social, affecting all the Ps of marketing mix: product, price, promotion and place.
Therefore, youth marketing is unlike any other part of marketing and requires a complete
change in the marketing thought process80
. “While mass marketing techniques might have
worked before, there is now a need for market communication that stands out”81
and
marketers must appropriately adjust their strategies to successfully sell to young, technology-
dependent, and globalized multitaskers82
.
This chapter provides the description of the factors that have led to the changes in marketing
practices and the importance of targeting the youth segment in today’s world. In addition, the
author describes effective youth marketing strategies that help the brands to reach Generation
Z.
Marketing in the new Millennium
2.1
The last decade of the twentieth century has significantly redefined the concept of
marketing.83
The Economist magazine described the trends of the new Millennium already in
1998, emphasizing the growth of technology, rapid globalization, and rising costs of
traditional media channels, which have increased the importance of the Internet and direct
marketing. 84
“Explosive advances in computer, telecommunications, information,
transportation, and other connecting technologies has had a major impact on the way
companies bring value to their customers”, who are more demanding than ever85
. Many
79
Generation Y and Z: Is Marketing to the Young All about Technology?, Spire Research and Consulting Pte
Ltd, 2010.
80
81
A. Parment, Generation Y in Consumer and Labour Markets, Routledge, New York 2012, p71
82
Generation Y and Z: Is Marketing to the Young All about Technology? Op.cit.
83
J. O'Connor and E. Galvin, Marketing in the Digital Age, Financial Times Prentice Hall, Harlow 2001, p.3
84
"Battle of the Brand", The Economist, The Economist Newspaper, 13 June 1998, 24 May 2015,
http://www.economist.com/node/135019.
85
P. Kotler and G. Armstrong, Principles of Marketing. Prentice Hall, Englewood Cliffs 1991.

20
marketers are now connected globally to their customers what has given them new ways to
learn about and communicate with them, as well as to create, advertise and distribute products
that meet their needs.86
Therefore, the key word describing marketing in the twenty-first century is connectedness87
and the most influential force driving the connected age is the Internet. In contrast with the
push media, such as television and radio, Internet allows consumers to choose which content
to view. Being an interactive one-to-one (or many-to-many) communication model, it also
helps to build long-term relationships with the users.88
“In fact, the Internet transports people
back to the days when a market was defined by people gathering and talking amongst
themselves about a buyer’s reputation, seller’s reputation, product quality and prices.”89
Table
2. presents the main differences between the old and new media:
Table 2. An interpretation of the differences between the old and new media
Source: D. Chaffey, Internet Marketing: Strategy, Implementation, and Practice, Financial Times Prentice Hall,
Harlow 2000, p17.
86
P. Kotler and G. Armstrong, Principles of Marketing. Prentice Hall, Englewood Cliffs 1991.
87
Ibidem.
88
D. Chaffey, Internet Marketing: Strategy, Implementation, and Practice, Financial Times Prentice Hall,
Harlow 2000, p.20.
89
J. Kourdi, The Marketing Century: How Marketing Drives Business and Shapes Society, Wiley, Chichester
2011, p79
Old media New media Comment
One-to-many
communication
model
One-to-one / many-to-
many communication
model
In theory, the Internet is a many-to-many medium, but in
the communication it is best considered as one-to-one
Mass Marketing
Individualized marketing
or mass customization
Personalization becaome possible because of the
development of technology monitoring preferences and
tailoring content
Monologue Dialogue
Dialogue is an indicator of the interactive nature of the
Internet, and allows feedback
Branding Communication
Communication provides increased customer engagement
in defining brand characteristics and oportunities for
adding value to a brand
Supply-side
thinking
Demand-side thinking Consumers became more important
Customer as target Customer as partner Customers have more input into products
Segmentation Communities
Compenies target like-minded consumers rather than
arbitrarily defined segments

21
Another important aspect of today’s marketing is that it is customer-driven. Globalization, or
‘McDonaldization’ (a term first used in 1993 by an American sociologist G. Ritzer), has led
to the changes in consumer needs and behaviors91
, making customers more demanding and
sophisticated.92
“Customers have more control over the nature and timing of messages they
choose to send and receive”93
. Their behaviors have become unified and uniformed, putting a
pressure on companies to copy western organizations94
. “Marketing is no longer about
Product, Place, Price and Promotion but about Experience, Everyplace, Exchange and
Evangelism”95
and “understanding, creating, communicating, and delivering customer value
and satisfaction are at the very heart of modern marketing thinking and practice”.96
Importance of Youth Marketing
2.2
Social, environmental and technological changes in the new Millennium have caused
significant shifts in today’s marketing, forcing companies to adjust and adequately modify
their strategies. However, if they want to stay successful on the marketplace in the long-term
they also need to appeal to and gain loyalty of younger generations.
According to the research by agency Sparks & Honey, Generation Z makes up the largest
population demographic in the US – 26.9%, becoming a significant target group for
marketers.97
In 2002, American kids aged four to twelve were personally spending between
$11 billion to $30 billion, and teens aged thirteen to eighteen – between $94 and $153 billion.
Adding both groups together, the economic powerhouse of youth spending their own personal
money ranged from $105 billion to $183 billion.98
Since that time the purchasing power of
both groups has significantly increased, with teens alone spending $208.7 billion, according
to the 2014 Trend Insight Report from FONA International.99
91
W. Smid, Marketing pod presją globalizacji, Agencja Wydawnicza Placet, Warsaw 2002, p.27.
92
J. O'Connor and E. Galvin, Marketing in the Digital Age, Financial Times Prentice Hall, Harlow 2001, p.20.
93
Parment A., Generation Y in Consumer and Labour Markets, Routledge, New York 2012, p.70.
94
W. Smid, Op.cit.
95
Sadowski M., Rewolucja Social Media, Helion, Gliwice 2012.
96
Kotler P., and Armstrong G., Principles of Marketing. Prentice Hall, Englewood Cliffs 1991, p.70.
97
159642.
98
Sutherland A. and Thompson B., Kidfluence: The Marketer's Guide to Understanding and Reaching
Generation Y--kids, Tweens, and Teens, McGraw-Hill, New York 2003.
99
2014 Trend Insight Report. Geneva: Fona International, 2014.

22
Except from a considerable purchasing power, there are other reasons why Generation Z is an
appealing demographic segment. Older kids are, they are more independent in their buying
decisions, what can be seen in the Roper Youth Report. In the soft-drinks industry, only 36%
of the kids aged six can choose a drink independently. At the age of eight the number
increases to 73%, and at the age of thirteen – to 92%.100
Brands should therefore start
communicating with customers at an early stage of their independence in order to build long-
term relationships.101
With an increasing age, consumers increase their knowledge and
develop their attitudes towards specific brands, which after that are more difficult to
change.102
Targeting younger segments, brands can cultivate strong, loyal relationships into
the future, since “it is easier to retain a customer than it is to recruit a new one”103
.
These are the reasons why youth marketing is important not only for brands like Barbie or
Lego developing products and services specifically for kids and teenagers, but also for brands
targeting a wider audience, such as Hulu or Coca-Cola.104
As a consequence, companies have
increased their youth marketing budget, spending today around $17 billion annually,
compared to $100 million in 1983.105
Youth Marketing Strategies
2.3
If brands want to appeal to this enormous and powerful youth demographic, they need to
understand that marketing targeting “Digital Natives”106
is notably different than traditional
forms of marketing targeting other generations107
and the expansion of online platforms has
caused a notable increase in marketing expenditures108
. Companies have to put more focus on
relationships, digital world, customization, co-creation, entertainment and CSR activities if
they wish to attract Generation Z.
100
Generation Y--kids, Tweens, and Teens, McGraw-Hill, New York 2003, p.142.
101
Parment A., Generation Y in Consumer and Labour Markets, Routledge, New York 2012, p.77.
102
Ibidem.
103
Marketing to Today's Youth, 4Imprint, 2011.
104
Ibidem.
105
"Resources: Marketing To Kids", CBSNews, CBS Interactive, 24 May 2015,
http://www.cbsnews.com/stories/2007/05/14/fyi/main2798401.shtml.
106
107
"Resources: Marketing To Kids", CBSNews, CBS Interactive, 24 May 2015,
http://www.cbsnews.com/stories/2007/05/14/fyi/main2798401.shtml.
108
Gordon J. and Perrey J., "The Dawn’s of Marketing’s New Golden Age", McKinsey Quarterly: Marketing
New and Improved, 1 (2015), p.31.

23
Relationship Marketing
2.3.1
An average American teenager will have seen around 20000 television commericals by the
age of 7109
and 75000 marketing messages by the age of 15 . Therefore, young people are
characterized by very critical mindsets, are extremely aware of brand names and labels, and
are able to determine if an advertisement tries to manipulate them110
. In addition, only 34%
trust advertising.111
That is why the goal is not to inform them about the brand or a product,
but to get them pay attention, get their trust, and create a relationship.112
As a consequence, companies should shift from finding new consumers to keeping and
building long-term relationships with current customers113
, based on superior customer
satisfaction and value.114
From the psychological point of view, satisfaction is a positive
emotional experience, created due to achieving a goal115
and is the only true value that must
be provided by every product, service, distribution, sale or promotion. Products should help
customers to meet their goals and aspirations, and the customers should benefit and feel the
pleasure of buying and using the products.116
A key factor in building the relationships with teenagers is understanding the differences
between content and context. While content is the product itself (the ‘what’ people buy)
driven by logic, context is the feeling (the ‘why’ people buy) driven by emotion. Young
people are not regular customers, but they are fans, talking about products, reviewing them,
and sharing their opinions with wider audience. They choose brands that fit their lifestyle and
are able to feel a sense of attachment117
to with a brand. They do not only buy a product, but
they buy what it provides them with – the feeling and the emotion. These factors together lead
to a brand love which is greatly associated with positive word of mouth, brand loyalty and
forgiveness of the brand failures.118
That is why companies must identify their teenage
customers’ emotional drives behind buying the product and lead their marketing efforts with
109
Generation Y--kids, Tweens, and Teens, McGraw-Hill, New York 2003, p.61.
110
Ibidem, p.72.
111
112
Ibidem.
113
Kotler P., and Armstrong G., Principles of Marketing. Prentice Hall, Englewood Cliffs 1991, p.667
114
Ibidem, p.27.
115
W. Smid, Marketing pod presją globalizacji, Agencja Wydawnicza Placet, Warsaw 2002, p.127.
116
Ibidem, p.128.
117
118
Batra R., Ahuvia A., Bagozzi R.P, "Brand Love", Journal of Marketing, 76.2 (2012), p.1-16.

24
context.119
The companies have to provide „a feeling of belonging while generating strong
feelings of love”120
and create brand personality, which is one of the fundaments of the youth
marketing121
. The authentic DNA (Distinctiveness, Novelty, Attributes) is a basic element
that distinguishes the brands from each other and gives them their own character while
providing customers with feelings and emotions. Marketing programs which involve frequent
updating and interaction, such as creating brand communities in social media has been proven
to be very effective in creating feelings towars a brand122
. Also, a powerful tool influencing
people’s emotions is the slogan, which should be dynamic, create positive associations with a
brand, and encourage customers to ‘do it’123
.
Digital marketing
2.3.2
For teenagers, ‘relationship’ is the synonym of ‘connection’. “Maintaining a connection with
an ever-changing target audience requires an understanding of both the available technologies
and the changing habits and preferences that new technologies make possible”.124
Targeting
Generation Z, the companies should use a combination of media rather than one single
medium. Teenagers and young adults use multiple screens (for example tv, laptop and
smartphone) simultaneously, what requires a single, integrated conversation across all these
devices.125
Marketing experts believe that “brand names, assurances of product quality and performance,
will lose much of their importance in the interactive marketing environment”.126
Younger
generations trust electronic word of mouth more than traditional advertising127
and opinions
that appear in online customer reviews are considered to be highly credible and influential.
119
120
"April Trend Report Examines the Digital World of Gen Z", JWTIntelligence RSS, 23 Apr. 2012, 24 May
2015, http://www.jwtintelligence.com/2012/04/april-trend-report-examines-digital-world-
gen/#ixzz3YLAyGkCU.
121
Kotler P., Kartajaya H., and Setiawan I., Marketing 3.0: From Products to Customers to the Human Spirit,
Wiley, Hoboken 2010, p.51.
122
Batra R., Ahuvia A., Bagozzi R.P, "Brand Love", Journal of Marketing, 76.2 (2012), p.1-16.
123
Murdoch A., Modern Advertising, Szkoła Główna Handlowa, Warszawa 2005, p83
124
Alpert J., The Mobile Marketing Revolution: How Your Brand Can Have a One-to-one Conversation with
Everyone, McGraw-Hill, New York 2012.
125
"Coca-Cola's Wendy Clark Defends 'Crucial' Social Media", Advertising Age CMO Strategy RSS, 24 May
2015, http://adage.com/article/cmo-strategy/social-media-matter-marketing-coca-cola/240444/.
126
Ho-Dac, N., Carson S. J. and Moore W. L., "The Effects of Positive and Negative Online Customer Reviews:
Do Brand Strength and Category Maturity Matter?", Journal of Marketing, 77.6 (2013), p.37-53.
127
You Y., Vadakkepatt G. and Joshi A. M., "A Meta-Analysis of Electronic Word-of-Mouth Elasticity",
Journal of Marketing, 79.2 (2015), p.19-39.

25
„These paths give weaker brands a way to compete other than through traditional marketing
communication, which typically favor strong brands”. According to the research by
eMarketer (2013), 92% of customers read online reviews before the purchase, and 67% of
consumer good’s sales are influenced by user generated content.128
Companies should
therefore focus on a strong online presence. A key step towards positive online customer
reviews is capturing consumer excitement and establishing brand communities in which
customers can share their reviews129
.
Another significant technological upgrade in the last decades besides the Internet was the shift
toward cell phones, which changed the ways of people’s communication130
- on average,
Americans send 5 billion text messages each day, significantly exceeding the number of
phone calls.131
Mobile phones in a convenient way satisfy young people’s needs of being
social, connected and informed. Reaching them through text messages, mobile applications,
gaming, and location-based networks is an effective marketing strategy.132
Social Media Marketing
2.3.3
Wireless internet and the trasition of regular mobile phones into smartphones has
revolutionized the use of social media133
. Today, people are more conscious of the power of
their voice134
and more than one bilion people are active on social media135
. It is estimated
that every day 2.3 billion posts are posted on Facebook, 190 million tweets on Twitter , and 1
million hours of videos on YouTube.136
Since Generation Z outnumbers the adults twice in
social media137
, building a strong social media presence of not only the brand, but also a
product, is a vital part of youth marketing.
128
Tang T., Fang E. and Wang F., "Is Neutral Really Neutral? The Effects of Neutral User-Generated Content on
Product Sales", Journal of Marketing, 78.4 (2014), p.41-58.
129
Ho-Dac, N., Carson S. J. and Moore W. L., Op.cit.
130
Alpert J., The Mobile Marketing Revolution: How Your Brand Can Have a One-to-one Conversation with
Everyone, McGraw-Hill, New York 2012.
131
Ibidem, Introduction XI
132
133
M. Sadowski, Rewolucja Social Media, Helion, Gliwice 2012, p.23.
134
Ibidem, p.21.
135
Ibidem, p.16
136
"YouTube Statistics", Statistic Brain RSS, 26 May 2015, http://www.statisticbrain.com/youtube-statistics/.
137
„Study Finds Media Addiction Prevalent among College Students”, ABC News, 12 Apr. 2011, 24 May 2015,
http://www.abc12.com/story/14429773/from-digital-trends.

26
„The effects of social interactions between consumers on buying behavior and the
opportunities to exploit these interactions have increased”138
. More than 50 percent of users is
connected to at least one brand through the social media and 35% of all social media users
share posts connected with brands139
. They rely more often on social media to learn about
unfamiliar brands and perceive user generated content as more credible and trustworthy140
.
Another important aspect of social media platforms is that they allow companies to target and
communicate with customers directly. In the last decade of the twentieth century, marketing
experts have emphasized the importance of direct marketing, referring it as the „marketing
model of the next millenium”. They envisioned a future in which all buying and selling will
require direct connections between firms and consumers.141
Social media allow companies to
target carefully selected submarkets or even individual consumers directly142
and 2012,
almost 83 percent of Fortune 500 companies were active on social media platforms in order to
connect with customers143
.
However, it is important to understand that customers do not want to be connected to the
brand, but they want a brand to help them connect to each other.144
In youth marketing, it is
not the company that owns the brand, but it is the audience and the most successful brands do
not tell their stories, but help the audience tell their own145
. Brands should let digital “Digital
Natives” to have a voice146
, share their ideas and let them co-create. „Young audiences have a
need to see themselves—their interests, hopes, dreams, likes, dislikes, abilities, stories,
photos—reflected in their on- and offline experiences”147
, therefore they should create and
modify stories on social media by themselves148
, so that the message is relevant to their lives
and benefits them while sharing with others. It not only creates a discussion and interaction,
138
H. Risselada, P.C. Verhoef and T.H. Bijmolt, "Dynamic Effects of Social Influence and Direct Marketing on
the Adoption of High-Technology Products", Journal of Marketing, 78.2 (2014), p.52-68.
139
140
R.W. Naylor, C.P. Lamberton and P. M., West, "Beyond the “Like” Button: The Impact of Mere Virtual
Presence on Brand Evaluations and Purchase Intentions in Social Media Settings", Journal of Marketing, 76.6
(2012), p.105-20.
141
P. Kotler, H. Kartajaya, and I. Setiawan, Marketing 3.0: From Products to Customers to the Human Spirit,
142
Ibidem, p.26.
143
R.W. Naylor, C.P. Lamberton and P. M., West, Op.cit.
144
145
Ibidem.
146
„World Youth Mobile Culture, Data and Research Insights”, MobileYouth, 24 May 2015,
http://www.mobileyouth.org.
147
Ibidem.
148

27
but it also lets the company to validate new ideas and get feedback from consumers before a
new idea is implemented149
. Therefore, since Generation Z are becoming ‘fans’ of a brand,
before establishing a social media strategy, it is necessary to understand what they do, what
they love, how the product can help them tell their stories and how the brand can help them
connect to each other.150
Customerization
2.3.4
As already mentioned, targeting youth, marketers need to focus on their individual desires
rather than on sales pitches.151
‘Customerization’ allows companies to provide products that
match individual customers’ needs152
and „customerization encompasses more activities and
functions than mass customization”.153
It provides them with more control in the choice
process, but companies still have an influence on their decision making by limiting the choice
options— which elements of the product can be customized. Brands should provide relevant
information, and make it easy and interactive for customers to customize the products.
„Customerization is driven by a firm’s desire to redefine its relationship with customers” and
is usually dependent on Internet due to economical implementation.154
Table 3. „Differences between Personalization and Customerization”
Personalization Customerization
Locus of Control Customer/Firm Customer
Customer co-design Low High
Prior data about customers Low Moderate
Links to production/suppy systems Low High
Links to customer systems Low High
Build-to-order systems No Yes
Source: J. Wind and A. Rangaswamy, "Customerization: The next Revolution in Mass Customization", Journal
of Interactive Marketing, 15.1 (2001), p.13-32, p.16.
149
Marketing to Today's Youth, 4Imprint, 2011.
150
151
Ibidem.
152
H. Cavusoglu and S. Raghunathan, "Selecting a Customization Strategy Under Competition: Mass
Customization, Targeted Mass Customization, and Product Proliferation", IEEE Transactions on Engineering
Management IEEE Trans. Eng. Manage, 54.1 (2007), p.12-28.
153
J. Wind and A. Rangaswamy, "Customerization: The next Revolution in Mass Customization", Journal of
Interactive Marketing, 15.1 (2001), p.13-32, p.16.
154
Ibidem.

28
As can be seen in the Table 3, customerization is more customer-focused and gives customers
more freedom. Main advantage of the customerization is increased customer satisfaction and
creating unique products for customers.156
No other generation desires such products as much
Generation Z. The ability to create unique items allows teenagers to express their sense of self
by choosing the unique features.157
Therefore, companies should not forget about the rise in
individualism and let young customers create their own, customized products.
Co-creation
2.3.5
As much as teens want to have individualized experience with the products, they also want to
take part in the creation of the content, products or advertisements. Co-creation is a new
attitude to innovation.158
It has implications not only for the participating customers, but also
for the broader market. „Common design by users indeed enhances consumers’ perceptions of
a firm’s innovation abilitiy with respect to product outcomes that result from this practice – an
innovation effect of user design”159
. It can also strenghten the relationship between the
consumer and the company. „Asking consumers to provide advice enhances empathy between
the consumer providing the advice and the focal company and increases the likelihood that
consumer will transact with this company in the future”160
. Similarly, „inviting consumers to
participate in the customization of product features and design can under certain conditions
improve product satisfaction”.161
Customers most often generate the concept, which the company then produces, but sometimes
they also create the advertisements by themselves which are then distributed online or
broadcast on television. One way to engage teens is to encourage them to actively participate
in the ad creation or other creative process by the means of competitions. Such competitions
156
N. Arora, X. Dreze and A. Ghose, "Putting One-to-one Marketing to Work: Personalization, Customization,
and Choice", Mark Lett Marketing Letters, 19.3-4 (2008), p.305-21.
157
"Rising Individualism and Growing Wallets Among Teens and Tweens - GfK NOP Announces Results of
Annual Youth Report", Prnewswire, 24 May 2015, http://www.prnewswire.com/news-releases/rising-
individualism-and-growing-wallets-among-teens-and-tweens---gfk-nop-announces-results-of-annual-youth-
report-55019172.html
158
P. Kotler, H. Kartajaya and I. Setiawan, Marketing 3.0: From Products to Customers to the Human Spirit,
159
M. Schreier, C. Fuchs and D.W. Dahl, "The Innovation Effect of User Design: Exploring Consumers'
Innovation Perceptions of Firms Selling Products Designed by Users", Journal of Marketing, 76.5 (2012), p.18-
32.
160
D.V. Thompson and P. Malaviya, "Consumer-Generated Ads: Does Awareness of Advertising Co-Creation
Help or Hurt Persuasion?", Journal of Marketing, 77.3 (2013), p.33-47.
161
Ibidem.

29
provide „valuable customer insights, generate authentic content, and increase engagement
within targeted segments” and more importantly, „solicited, contest-based ads enable
consumers to participate in the process while giving firms freated control over the brand
message”.162
Viral marketing
2.3.6
Growing popularity of social media platforms has fueled the trend towards viral marketing
among teenagers. It allows companies to benefit from additinal trust and attention while
remaining in control of the message content163
, however it is important to understand that
viral marketing campaigns cannot always be planned. When it comes to youth marketing,
marketers not only need to understand the latest trends, but they need to understand why these
trends appear. Young people do not buy the ‘design’, but the experience. When they visit
social media platforms, they seek fun, excitement, and a feeling of connectedness with others
through interactions and content164
. „They must be engaged in a way that allows them to share
and to contribute – with the brand and with each other”, but „they are going to share things
that only make them look better”165
. Therefore, brands should enable users to talk about and
share content about the brand or products by engaging them online.
Event and entertainment marketing
2.3.7
While entertainment marketing reaches teens through their favorite activities and provides
entertainment, event marketing involves a face-to-face contact between brands and consumers
at special events, such as shows, concerts, parties, or sporting events. It allows for targeting
specific individuals and groups at gathering spots, in their participatory and willing position.
The key is to create a positive experience by interacting and building favorable impressions,
and the most successful campaigns generate a buzz long after the event is over.166
Therefore,
162
D.V. Thompson and P. Malaviya, "Consumer-Generated Ads: Does Awareness of Advertising Co-Creation
Help or Hurt Persuasion?", Journal of Marketing, 77.3 (2013), p.33-47.
163
C. Schulze, L. Schöler and B. Skiera, "Not All Fun and Games: Viral Marketing for Utilitarian Products",
Journal of Marketing, 78.1 (2014), p.1-19.
164
Ibidem.
165
"Coca-Cola's 4 Keys to Viral Video Success", Ragan, 24 May 2015,
http://www.ragan.com/Main/Articles/CocaColas_4_keys_to_viral_video_success_44753.aspx
166
"Event Marketing | What Is Event Marketing?", Marketing-Schools, 24 May 2015, http://www.marketing-
schools.org/types-of-marketing/event-marketing.html.

30
brands should be present at young people’s favorite happenings, so that they can reach them
directly.
A segment than can be reached effectively through event marketing are students, who are
characterized by open-mindness and usually develop their own attitudes and values during the
student years. It caused the brands to appear more often at university events. Not only is it
easier to change their attitudes at this stage of life, but companies can reach them at lower cost
through different campus activities, organizing university events or supporting student
organizations.167
Product Placement
2.3.8
Movies and television shows also have a strong impact on wants and desires of young people.
With the development of digital recording, that allows the audience to skip commercials,
advertisers were forced to find other ways of being noticed increasing the importance of
product placement.168
„Product placement is an intentional act of placing of a brand product in a verbal and/or visual
form in cinema production or a similar type of a carrier, such as TV in exchange of which the
party which wants its product place promises to fulfill the conditions specified in the
agreement.”169
Since ‘Digital Natives’ spend a significant amount of their free time watching
television and films, brands should place their products in their favorite tv shows and movies.
Influencer Marketing
2.3.9
Just like entertainment, TV shows and movies, popular icons also affect customer behaviof of
its fans. It has been proven that young people are more influenced by messages coming from
a person with whom they have a sense of similarity. The message is better understood if the
needs, targets, lifestyles and interests of the sender and a receiver are similar, which explains
167
A. Parment, Generation Y in Consumer and Labour Markets, Routledge, New York 2012.
168
T. Leonard, "Thirsty, Simon? Or Are You Trying to Sell Us Something? How Product Placement Is about to
Transform British TV", Mail Online, Associated Newspapers, 24 May 2015,
http://www.dailymail.co.uk/news/article-1349936/Simon-Cowells-American-Idol-Coca-Cola-product-
placement-transform-UK-TV.html#ixzz3anXTfIUb.
169
A. Murdoch, Modern Advertising, Szkoła Główna Handlowa, Warszawa 2005, p.117.

31
why commercials often choose peers or someone from the target group to represent their
products.170
Except from engaging a representative from the target group, an effective influencer
marketing strategy is celebrity endorcement. Globalization and modern media have
significantly increased popularity of celebrities, who are now „expemplary figures because
they are seen to have created the clear, coherent, and powerful selves that everyone seeks”.171
More than a fifth of the commercials in the United States feature popular celebrities who are
rewarded with millions of dollars for recommending the products.172
When the fans of a
celebrity see a celebrity endorsing a product, they begin to associate that celebrity with the
product.
Environmentally and Socially Responsible Marketing
2.3.10
Companies must understand that customers are human beings who consist of four elements -
physical body, mind capable of independent analysis and thinking, heart capable of emotions
and a soul or philosophical centre of existence173
, and in order to reach their minds, hearts and
souls companies must identify their problems and desires174
. As a result of globalization,
young people today put more focus on social causes and their desire is to make their local
community, and the world in general, better.
The research by Cone has shown that 85% of American citizens have positive opinions about
the brands that are socially responsible and even in difficult times, half of the respondents
expect that the firms will engage in social causes.175
Young generations care about social
causes more than ever and according to research by Cone, 90 percent of youth customers
would swich to an ethical brand if price and quality were comparable.176
170
A. Murdoch, Modern Advertising, Szkoła Główna Handlowa, Warszawa 2005, p.117.
171
Ibidem, p.112.
172
Ibidem, p.111.
173
174
Ibidem, p.58.
175
Ibidem, p.136.
176
"Five Surfire Ways To Reach The Youth Market", CBS News, 26 May 2015,
http://www.bnet.com/blog/entrepreneurs/five-surefire-ways-to-reach-the-youth-market/945.

32
An important element of corporate social responsibility are environmental efforts, which
reflect a commintment to the well-being of the economy, society, and environment”177
. Green
and fair-trade products are currently a top ten global consumer trend178
and customers are
„interested in products that cause less polution, use fewer natural resources, and are less
harmful to the environment overall”179
. They are increasingly willing to pay a premium for
such products180
- as shown in a study by European Commision (2013), 77 percent of
respondents living in EU would pay more for the products if they are confident that they are
environmental-friendly. Many companies have responded to customer’s environmental
preferences and have started to introduce products consisting of materials that lessen
environmental impact181
. It is predicted that US firms will spend on sustainable projects and
developing environmental friendly products $44 billion by the end of 2017.182
Since „the concept of ‘marketing for good’ (…) can address a range of issues including
smoking, sexual health, blood donation, community development, obesity and climate
change”183
, brands have a wide range of issues they can get involved into, making positive
change in the world and in people’s mindsets, at the same time fostering their positive brand
image.
In conlcusion, technological changes, development of the Internet and rapid globalization
have completely redefined the concept of marketing and companies should therefore
adequately adjust and modify their marketing strategies, appealing to the rising in economic
power Generation Z. Both changing environment and changing society have forced brands to
integrate the Internet, digital media and social platforms into their campaigns. Marketers
should not forget about the importance of co-creation and customerization, as well as social
and environmental involvement. Brands could also appeal to teenagers by providing them
177
M.C. Olsen, R.J. Slotegraaf and S.R. Chandukala, "Green Claims and Message Frames: How Green New
Products Change Brand Attitude", Journal of Marketing, 78.5 (2014), p.119-37.
178
Ibidem.
179
A. D. Gershoff and J. K. Frels, "What Makes It Green? The Role of Centrality of Green Attributes in
Evaluations of the Greenness of Products", Journal of Marketing 79.1 (2015), p.97-110.
180
K. White, R. Macdonnell and J.H. Ellard, "Belief in a Just World: Consumer Intentions and Behaviors
Toward Ethical Products", Journal of Marketing, 76.1 (2012), p.103-18.
181
A. D. Gershoff and J. K. Frels, Op.cit.
182
M.C. Olsen, R.J. Slotegraaf and S.R., Chandukala, "Green Claims and Message Frames: How Green New
Products Change Brand Attitude", Journal of Marketing, 78.5 (2014), p.119-37.
183
J. Kourdi, The Marketing Century: How Marketing Drives Business and Shapes Society, Wiley, Chichester
2011, p.243.

33
with fun through entertainment, events, competitions, communities, or viral actions, and by
engaging popular people or placing their products into movies or tv shows. All these
strategies are ment to create long-lasting relationships and attachment to the brand, what is the
essence of youth marketing. An example of the company that stands out in targeting young
people is The Coca-Cola Company.

34
CHAPTER 3 Coca-cola’s Youth Marketing

Since youth marketing today is unlike any other form of marketing, brands should
appropriately adjust their strategies in order to reach Generation Z. Coca-Cola, referred to as a
“King of Marketing”, is an exemplary brand that constantly adjusts to the changing
environment and society.
In 1886, when the product was invented by dr. John S. Pemberton, he gave out coupons for
free drinks in order to increase the interest. When Asa Candler purchased and incorporated
Coca-Cola in 1892, his original advertising budget equaled $11,000 and the first advertising
items included “calendars, soda fountain urns, painted wall signs, napkins, pencils and clocks
to advertise Coca-Cola”.184
In 1900, Coca-Cola endorsed its first celebrity – Hilda Clark, and
in 1904, the annuals sales exceeded 1 million gallons for the first time.
Today, Coca-Cola is one of the most powerful brands in the world and still grows in power.
As described in its 2020 Vision, the company wants to double its revenue to $200 billion, as
well as its servings to more than 3 billion per day by 2020, which, in other words, means
doubling what it took 125 years to create185
. That is why company’s marketing, escpecially
youth marketing, has notably increased in importance and in order to accomplish its 2020
Vision goals, Coca-Cola focuses on the youth market more than ever. Successfully reaching
young people through its marketing strategies, Coca-Cola is an exemplary brand for any
company that wishes to appeal to Generation Z.
Theferore, the purpose of this chapter is to provide an insight in the Coca-Cola Company’s
youth marketing strategies, in order to present how to effectively reach young people in
today’s digitalized world.
Company’s Profile3.1
Coca-Cola is currently the fourth most valuable brand in the world, valued at $56 billion186
184
"The Evolution Of The Coca-Cola Brand", Investopedia, 15 Oct. 2012, 24 May 2015,
http://www.investopedia.com/financial-edge/1012/the-evolution-of-the-coca-cola-brand.aspx#ixzz3aoRU82ds
185
“Just How Does Coca-Cola Reinvent Itself In A Changed World”, Forbes, Forbes Magazine, May 2015,
http://www.forbes.com/sites/avidan/2013/10/07/just-how-does-coca-cola-reinvent-itself-in-a-changed-world/.
186
"Powerful Brands", Forbes, Forbes Magazine, 24 May 2015, http://www.forbes.com/powerful-brands/.

35
and with the market capitalization of $175 billion187
. The company is active in more than 200
countries188
, being the global largest beverage company189
with over 70% of its profits earned
abroad. Its portfolio consists of more that 500 sparkling and still brands including Coca-Cola,
Coca-Cola Zero, Coca-Cola Light, Sprite, Fanta, Powerade, Burn, Cappy, Kropla Beskidu and
many more. Through the company’s largest in the world distribution system, consumers enjoy
more than 1.8 billion servings of the beverages a day. 190
Coca-Cola’s mission is:191
• “To refresh the world”
• “To inspire moments of optimism and happiness”
• “To create value and make a difference”
Branding3.2
Resulting from its mission statement, Coca-Cola’s branding strategy is “based on the
principle that Coca-Cola should be associated with fun, vitality and happiness”192
. The
company had become a significant part of the popular culture of the United States already by
the 1920193
and the secret, in which the original ingredients of a product were kept, was
considered as a key to success. In 1930s, the brand popularized the happy image of Santa
Claus and the song „I’d Like to Teach the World to Sing” from 1971 taught the American
how to be happy in a turbulent times.1980s was the time when the brand become a symbol of
American happiness194
. Today, the company still focuses on delivering joy and happiness to
its customers, which can be seen in the campaigns “Open Happiness”, “Coca-Cola is it”,
“Coca-Cola Enjoy” or “Always Coca-Cola”.195
In order to understand how Coca-Cola has created its image of optimism and happiness, it is
187
188
P. Kotler and G. Armstrong, Principles of Marketing. Prentice Hall, Englewood Cliffs 1991, p.32.
189
Ibidem, p.32.
190
“Just How Does Coca-Cola Reinvent Itself In A Changed World”, Op.cit.
191
"Mission, Vision & Values”, The Coca-Cola Company, 27 May 2015, http://www.coca-
colacompany.com/our-company/mission-vision-values.
192
T. Riggs, Encyclopedia of Major Marketing Campaigns, Gale Group, Detroit 2000.
193
P. Kotler and G. Armstrong, Op.cit., p.338.
194
195
T. Riggs, Op.cit.

36
useful to look back at some of the previous marketing campaigns:
Holiday Advertising – with slogans “Thirst knows no season” and “The pause that refreshes”
Coca-Cola has created associations of its products with favorite times of the year – holidays.
The company has introduced its famous Santa Claus, which “joined Coca-Cola in standing for
all things American and had become known as the classic Santa throughout the world.”196
Customers have begun to associate the products with holidays, vacations, and family time,
what in turn created strong positive emotions towards the company.
“Have a Coke and Smile” - before 1970 Coca-Cola was challenged by the Federal Trade
Commission; environmentalists, company’s bottlers, and other events that caused the decline
in market share.197
In order to save its image, the company launched a campaign “Have a
Coke and Smile” with a belief that nothing better captured positive feelings than smile. Since
that time Coca-Cola started to symbolize “a positive all-American outlook on life” and
customers linked the product, Coca-Cola, with a smile.198
“Always Coca Cola” – In 1993 Coca-Cola’s image become outdated, so that the company
created 26 television commercials, each catered to the sensibilities of different demographic
group and broadcast during TV shows favored by that group. “Always Coca-Cola” was the
first campaign that targeted different groups with different pitches. “No media strategy ever
before has been designed with such depth and care for the individual consumer”.199
Coca-
Cola began to appeal to teenagers and young adults, who were before ceded to Pepsi. In this
way Coca-Cola has not only increased its market share to 20%, cutting in Pepsi’s profits, but
it has also built lifelong relationship with the youth.200
Such powerful branding, marketing, positioning and targeting has made the company one of
the most successful brands of the history. “A single share of Coca-Cola stock purchased for
40$ in 1919 would be worth $4,847,000 today”.201
196
P. Kotler, H. Kartajaya H and I. Setiawan, Marketing 3.0: From Products to Customers to the Human Spirit,
197
Ibidem, p.321.
198
Ibidem, p.322.
199
Ibidem, p.322.
200
Ibidem, p.324.
201

37
Marketing Research3.3
Without an in-depth marketing research and knowledge about the target customer’s needs,
motivations, lifestyles, or backgrounds the company would not be able to achieve such a
legendary success. Coca-Cola has “one of the largest, best-managed, and most advanced
marketing research operations in America” and “good marketing research has kept the
company atop the rough-and-tumble soft drink market for decades”.202
In order to understand
the phenomenon of Coca-Cola’s marketing research, the author has conducted an interview
with Aleksander Pawlak, The Coca-Cola Company’s Marketing Research Manager. All the
information provided in this subchapter were collected during the interview.
The Coca-Cola Company uses Censydiam tool in order to better understand human
motivations. According to Censydiam, there are two dimensions of motivation: extrovert-
introvert and individual strength-social support. Coca-Cola introduced their own four
dimensions, creating eight different motivation segments:
Figure 1. Coca-Cola’s Human Motivation Framework
Source: An Interview with Aleksander Pawlak
202
Fun/
Excitement

Connecting/
Bonding

Core/
Comfort

Tranquility/
Relaxation

Control/
Stability

Distinction/
Individuality

Status/
Mastery

Vitality/
Energy

38
Figure 1. presents how Coca-Cola divides customers on a basis of their motivation. The
company’s strategy is to provide products that appeal to each of the eight segments of
motivation with each of the company’s brand appealing to different motivation segment. For
example, consumers who look for control and stability will choose brand that appears in this
segment, which, in case of The Coca-Cola Company, is Kropla Beskidu. Coca-Cola brand is
the brand targeting customers looking for fun and excitement, therefore teenagers.
Since teenagers and young adults are target group for Coca-Cola, the company regularly
conducts comprehensive research inside this segment in order to discover their customer
behaviors, lifestyles, and motivations. According to the Coca-Cola, teens and young adults
aged 12 to 24 can be further divided into three different segments based on their lifestyles,
behaviors and marketing practices needed to reach them. Due to the ethical beliefs, Coca-Cola
does not target children below 12 years old.
Table 4. Coca-Cola’s target segments
Age What Stage Marketing communication
12-15
Homemade beverages, dairy, juices,
sparkling sodas
Consumption in
households
Attraction through “household
consumer managers” (parents)
16-19
Ready-to-drink tea, energy drinks,
sport drinks, low-calorie drinks
Experimentation,
consumption outside
of home
Recruitment
20-24 More beer, water, tea and coffee Established choice Retention
Source: An Interview with Aleksander Pawlak
As presented in the Table 4., teenagers aged between 16 and 19 years old, are the most
valuable customers for Coca-Cola since they are most willing to experiment with their
choices, and change their values and attitudes. This group more often consumes food and
drink products outside of home and chooses the products by themselves, in contrast with the
younger segment (aged 12-15), that consumes mostly at home and accesses their products
through their parents. Therefore, Coca-Cola’s strategy is to attract tweens aged 12-15 through
“household consumer managers”, recruit teens aged 16-19 by increasing the frequency of
marketing communication and building relationships, and retain young adults above 20 years
old by fostering these relationships.

39
Youth marketing communication3.4
Both marketing research and human motivation framework prove that the youth demographic
is an essential segment for Coca-Cola and the company’s success depends on its ability to
“grow and connect with teens, the generation of tomorrow".204
Company knows that it cannot
assume that teenagers already know the brand, so that it could stop communicating to them.
„Every six years there's a new population of teens in the world and by 2020, one-third of the
global population, or 2.5 billion people, will be younger than 18”205
. It is consistent with
company’s marketing research and proves that teens are the most important target segment for
Coca-Cola and in order to accomplish the targets described in the 2020 Vision and to double
its business, it is essential to create longlasting relationships by constantly reaching them and
attractig their attention.
Relationship Marketing3.4.1
Since relationships with teenagers are vital for Coca-Cola, the brand focuses on transmitting
feelings and emotions, “touching their hearts and finding a place for the brand at the core of
who they are”206
. Targeting youth, the company not only ‘promotes happiness’, but also
‘provokes happiness’207
, delivering interactive experiences and fostering deep connections
with the young segment. Coca-Cola creates associations with happiness, fun, excitement,
joyfulness, and love, which are the things young people desire.
Coca-Cola promotes ‘happiness’ and “optimism” message in all of its campaigns. The latest
campaign “Kiss happiness” appeals to young people’s emotions by literally connecting the
brand to the feelings of love. The campaign “Share a Coke” encouraged people to share a
product with a friend, by replacing Coca-Cola’s logos on cans and bottles with popular names
among young people. In the campaign “Where Will Happiness Strike Next”, Coca-Cola
placed vending machines all over the world that gave out to customers not only free Coca-
Cola bottles, but also flowers, cakes, pizzas and prizes.208
All of Coca-Cola’s campaigns
204
"Coca-Cola Launches Global Music Effort to Connect With Teens", Advertising Age Global News RSS, 24
May 2015, http://adage.com/article/global-news/coca-cola-launches-global-music-effort-connect-teens/149204/.
205
Ibidem.
206
"Coca-Cola and Relationship Marketing." They Dont Love You. N.p., 10 June 2014. Web. 24 May 2015.
207
208
"Three Reasons Why Coca-Cola Is The King of Marketing - IMC Thoughts", IMC Thoughts, 01 Mar. 2015,
24 May 2015, http://www.imcthoughts.com/three-reasons-coca-cola-king-marketing/.

40
emphasize the importance of relationships between people and create a moment of happiness,
at the same time generating positive feelings and emotions towards the brand.
Digital marketing3.4.2
Coca-Cola understands the importance of the Internet and digital media in young people’s
lives, therefore it constantly launches new, innovative digital-campaigns that allow constant
communication and interaction, helping to create long-lasting relationships.
Since teenagers use multiple screens in a single session, the company uses integrated
marketing strategies209
so that it can reach them through their free-time, online activities.
According to Bartosz Kajak, The Coca-Cola Company’s Energy Category Project Manager,
its campaigns Coca-Cola integrates videos, music, fashion and gaming, and often takes part in
cross-promotion with music or gaming platforms, such as providing additional points in a
game by purchasing a can of Coca-Cola. One example of the company’s successful teen-
focused digital campaigns is the “Ahh” campaign, which involved integration of 61 websites,
GIFs, games, and videos. It encouraged teens to enter its microsite www.ahh.com, and invited
them to “explore the world of ahh” by playing an online game with the Coca-Cola drink as
the main focus. Every website, depending on the number of the ‘h’ letter in the world ‘ahh’,
contained different content and a different game. All games were fun and entertaining and in
an interactive way linked Coca-Cola with the feeling of pleasure and refreshment.210
The ‘Ahh’ campaign was the first digital-only campaign a company has ever launched, but
Coca-Cola incorporates the Internet and online world to nearly all of its campaigns, often with
the use of social platforms.
Social Media Marketing3.4.3
Social media marketing is the heart of Coca-Cola’s engagement program and allows teens to
“express themselves and connect with the brand in different ways.” Through social platforms,
the company reaches an enormous audience (more than 90 million followers only in
company’s Facebook timeline), with whom it shares powerful and shareworthy stories that
209
"Coca-Cola's Wendy Clark Defends 'Crucial' Social Media", Advertising Age CMO Strategy RSS, 24 May
2015, http://adage.com/article/cmo-strategy/social-media-matter-marketing-coca-cola/240444/.
210
"Aahhhh! Coke Launches 61 Unique Websites For Teen-Focused Campaign", Advertising Age Digital RSS,
24 May 2015, http://adage.com/article/digital/aah-coke-launches-61-web-sites-teen-focused-campaign/241047/.

41
provoke positive customer experiences.211
Coca-Cola is active in most of the important social
platforms, including Facebook, Instagram, Twitter, Tumblr, Youtube, Pinterest, Google+, and
Snapchat. Coca-Cola’s social media presence is extremely strong, and the list of its activities,
such as creating live-chats, organizing online contests, posting funny memes or posting viral
videos, is endless.
In its social media-strategies, Coca-Cola never forgets that ‘social’ means a two-way
conversation, so the company always encourages customers to create their own content. For
instance, despite of the enormous number of mentions, 83% of all Coca-Cola’s monthly
tweets on Twitter in 2014 were direct replies to its customer’s comments, opinions, requests,
compliments and complaints. By directly communicating with the audience, it allows the
users to ‘be heard’, enhancing the customer relationship. Also on Facebook, Coca-Cola does
not create their own stories but wants visitors to create their own.
One of the effective social media campaigns was Coca-Cola Covers, in which the company
encouraged teenagers to upload videos of them performing cover versions of popular songs to
MuchMusic website. The songs were then rated by other users, and the winner received an
award of recording own music video and a record deal with Sony Music Entertainment. The
inaugural Covers program generated more than two million page views, 330,000 unique
visitors to the microsite, 1,200 videos uploaded, and 52 hours of content created, what all
together has earned the program a Gold award for Brand Integration at AToMiC Awards.212
When it comes to Coca-Cola’s account on Pinterest, a photo sharing platform, only two
boards relate directly to the brand - ‘Coca-Cola Merchandise’ and ‘Olymic Games Moments’,
depicting Coca-Cola’s sponsorship, while the remaining boards focus on other themes, such
as ‘Together’, ‘Playtime’, ‘Be Giving’, ‘In the Moment’, ‘Explore’ or ‘Seasonal’. Despite of
the fact that only little photos include Coca-Cola’s logo or bottles and most of them are
pinned from the public and Flickr platform, the company creates positive associations,
picturing on its boards real, happy and beautiful moments of its customers.213
To provide
customers with more interactive experience on its Pinterest profile, Coca-Cola created a
211
212
"Youth Marketing That Pops." Strategy. N.p., n.d. Web. 24 May 2015.
213
"How Coca-Cola Uses Facebook, Twitter, Pinterest and Google+", Econsultancy, 24 May 2015,
https://econsultancy.com/blog/62548-how-coca-cola-uses-facebook-twitter-pinterest-and-google.

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