1. An Introduction the company: Coca-Cola
The Coca-Cola Company founded in 1892, is the world’s largest soft drink maker. It sells
more than 3,500 products worldwide.
The company owns or licenses and markets more than 500 non-alcoholic beverage
brands. Coca-Cola’s product portfolio mostly comprises sparkling or carbonated
beverages. It also includes still or non-carbonated beverages like bottled water, juices,
ready-to-drink teas and coffees, and energy and sports drinks.
Headquartered in Atlanta, Georgia, the company has over 130,600 employees working
across more than 200 countries.
Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John
S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at
soda fountains. He created a flavored syrup, took it to his neighborhood pharmacy,
where it was mixed with carbonated water and deemed “excellent” by those who
sampled it. Dr. Pemberton’s partner and bookkeeper, Frank M. Robinson, is credited
with naming the beverage “Coca‑Cola” as well as designing the trademarked, distinct
script, still used today.
The first servings of Coca‑Cola were sold for 5 cents per glass. During the first year, sales
averaged a modest nine servings per day in Atlanta. Today, daily servings of
Coca‑Cola beverages are estimated at 1.9 billion globally.
Prior to his death in 1888, just two years after creating what was to become the world’s
#1-selling sparkling beverage, Dr. Pemberton sold portions of his business to various
parties, with the majority of the interest sold to Atlanta businessman, Asa G. Candler.
Under Mr. Candler’s leadership, distribution of Coca‑Cola expanded to soda fountains
beyond Atlanta. In 1894, impressed by the growing demand for Coca‑Cola and the
desire to make the beverage portable, Joseph Biedenharn installed bottling machinery
in the rear of his Mississippi soda fountain, becoming the first to put Coca‑Cola in
bottles. Large scale bottling was made possible just five years later, when in 1899, three
enterprising businessmen in Chattanooga, Tennessee secured exclusive rights to bottle
and sell Coca‑Cola. The three entrepreneurs purchased the bottling rights from Asa
Candler for just $1. Benjamin Thomas, Joseph Whitehead and John Lupton developed
what became the Coca‑Cola worldwide bottling system.
Among the biggest challenges for early bottlers, were imitations of the beverage by
competitors coupled with a lack of packaging consistency among the 1,000 bottling
plants at the time. The bottlers agreed that a distinctive beverage needed a standard
and distinctive bottle, and in 1916, the bottlers approved the unique contour bottle. The
2. new Coca‑Cola bottle was so distinctive it could be recognized in the dark and it
effectively set the brand apart from competition. The contoured Coca‑Cola bottle was
trademarked in 1977. Over the years, the Coca‑Cola bottle has been inspiration for
artists across the globe — a sampling of which can be viewed at the World of
Coca‑Cola in Atlanta. Check out a preview of the latest art exhibit.
The first marketing efforts in Coca‑Cola history were executed through coupons
promoting free samples of the beverage. Considered an innovative tactic back in
1887, couponing was followed by newspaper advertising and the distribution of
promotional items bearing the Coca‑Cola script to participating pharmacies.
Fast forward to the 1970s when Coca‑Cola’s advertising started to reflect a brand
connected with fun, friends and good times. Many fondly remember the 1971 Hilltop
Singers performing “I’d Like to Buy the World a Coke”, or the 1979 “Have a Coke and a
Smile” commercial featuring a young fan giving Pittsburgh Steeler, “Mean Joe Greene”,
a refreshing bottle of Coca‑Cola. You can enjoy these and many more advertising
campaigns from around the world in the Perfect Pauses Theater at the World of
Coca‑Cola.
Coca-Cola (often referred to simply as Coke) is a carbonated soft drink produced by
The Coca-Cola Company of Atlanta, Georgia. Originally intended as a patent
medicine, it was invented in the late 19th century by John Pemberton.
Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing
tactics led Coke to its dominance of the world soft-drink market throughout the 20th
century. The name refers to two of its original ingredients: kola nuts, a source of
caffeine, and coca leaves. The current formula of Coca-Cola remains a trade secret,
although a variety of reported recipes and experimental recreations have been
published.
Advertising of Coca Cola
Coca-Cola's advertising has significantly affected American culture, and it is frequently
credited with inventing the modern image of Santa Claus as an old man in a red-and-
white suit. Although the company did start using the red-and-white Santa image in the
1930s, with its winter advertising campaigns illustrated by Haddon Sundblom, the motif
was already common.
Coca-Cola was not even the first soft drink company to use the modern image of Santa
Claus in its advertising: White Rock Beverages used Santa in advertisements for its ginger
ale in 1923, after first using him to sell mineral water in 1915.
3. Before Santa Claus, Coca-Cola relied on images of smartly dressed young women to
sell its beverages. Coca-Cola's first such advertisement appeared in 1895, featuring the
young Bostonian actress Hilda Clark as its spokeswoman.
1941 saw the first use of the nickname "Coke" as an official trademark for the product,
with a series of advertisements informing consumers that "Coke means Coca-Cola". In
1971 a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing",
produced by Billy Davis, became a hit single.
Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that
everyone on Earth drank Coca-Cola as their preferred beverage. This is especially true
in southern areas of the United States, such as Atlanta, where Coke was born.
Some Coca-Cola television commercials between 1960 through 1986 were written and
produced by former Atlanta radio veteran Don Naylor (WGST 1936–1950, WAGA 1951–
1959) during his career as a producer for the McCann Erickson advertising agency.
Many of these early television commercials for Coca-Cola featured movie stars, sports
heroes and popular singers.
Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She
filmed three commercials for the company. During 1994, to commemorate her five
years with the company, Coca-Cola issued special Selena coke bottles.[98]
The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting
Coke-product images into many of its films. After a few early successes during Coca-
Cola's ownership, Columbia began to under-perform, and the studio was sold to Sony in
1989.
Coca-Cola has gone through a number of different advertising slogans in its long
history, including "The pause that refreshes", "I'd like to buy the world a Coke", and
"Coke is it".
In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where
consumers earn points by entering codes from specially marked packages of Coca-
Cola products into a website. These points can be redeemed for various prizes or
sweepstakes entries.
In Australia in 2011, Coca-Cola began the "share a Coke" campaign, where the Coca-
Cola logo was replaced on the bottles and replaced with first names. Coca-Cola used
4. the 150 most popular names in Australia to print on the bottles. The campaign was
paired with a website page, Facebook page and an online "share a virtual Coke". The
same campaign was introduced to Coca-Cola, Diet Coke & Coke Zero bottles and
cans in the UK in 2013.
Coca-Cola has also advertised its product to be consumed as a breakfast beverage,
instead of coffee or tea for the morning caffeine.
Advertising Objectives of Coca Cola
Followings are the objectives of advertising in Coca Cola.
Broad Objectives:
1. To enhance organizational effectiveness. 2. To generate greater profits.
3. To improve competitive position.
Specific Objectives:
1. To increase sales.
2. To increase the level of awareness of a given product from current level. 3. To
generate responses.
Sub-Objectives:
1. To convey information.
2. To create desire.
3. To improve the image of product.
4. To offset the effects of a price variation.
5. Launch of New Products and Services:
6. Expansion of the Market to Include the New Users:
7. Announcement of a Product Modification
8. Announcement of a Special Offer:
9. Reminder Campaigns:
10. To Seek Dealer Cooperation and Motivation:
11. To Create Brand Preference:
5. Coca-Cola’s Ad Strategy:- Taste The Feeling
The tactics we will use include using 20-30 TV commercials so that we can build an
impression on our target audience as well as create an image of the Coca-Cola brand.
Our number one goal would be to advertise during Primetime television hours because
our target audience would most likely be watching during these hours. We would also
include early and late fringe TV so we can catch the younger audience of 18 years and
up.
For Broadcast TV, Coca-Cola will advertise heavily during Primetime television
hours because we are more likely to reach our target customer but also increase brand
awareness of the product to the masses. TV sitcom shows like NBC’s, Friends, ABC’s The
Bachelor, CBS’s CSI Miami, and FOX’s American Idol are shows that would reach our
target audience as well as many other people. We will also advertise during early fringe
hours because of the many mothers who have young children that come home from
school at this time and happen to watch some TV with their children. When the mothers
have time to watch their own shows, advertising on shows like The Oprah Winfrey Show
would reach this audience. Also advertising during late night TV would catch our
younger, adult audience of 18-25 year olds. This audience is most likely to stay up late
and watch shows like The David Letterman Show or The Tonight Show with Jay Leno.
The types of commercials that would be shown are 20-30 seconds and would
include young, fresh faces and celebrities and also, they would focus on people’s
emotions. Young, fresh faces are effective to show that drinking Coca-Cola will allow
our consumer to have a good time. Celebrities are currently being seen in TV
commercials such as actors Courtney Cox, Penelope Cruz, and rapper Missy Elliot.
These commercials are successful, so we would follow using this format. Concentrating
on emotions is also important because people already know the Coca-Cola product,
so we want to show how good Coca-Cola can make our consumer feel and how it
can fill anyone’s day with joy and fun.
For Print ads, we will mostly use one-page full ads. We think this is sufficient
because most people know the Coca-Cola brand name and using anything bigger
than a full page would be unnecessary. We will have colorful ads, mostly with red
backgrounds so people can associate the Coca-Cola red can with the ads. Red is also
attention grabbing and it would be great as a background to offset a group of smiling
people or a full bottle of Coca-Cola. Print ads offer many ways to be creative at a
lower cost than TV commercials. Another great idea is to use a full page ad on the
back of a magazine because this is good placement for getting attention.
The print ads would be inserted in the top 10 magazines that are read by our
target consumers. Examples of these would be Cosmopolitan, Glamour, and Redbook
for our target, women consumers. For men, Maxim, Sports Illustrated, and Surfer
6. Magazine would be used. These are all very popular magazines that are read by our
target consumers.
For Billboards we would most likely place them in heavily populated cities like Los
Angeles so that Coca-Cola could get as much exposure as possible. The billboards
would feature the Coca-Cola logo with the red background and a large bottle of the
product so that when people drive and see the signs, it will appeal to them.
As for Internet advertising, Coca-Cola would use the new types of pop-up ads to get
the most attention from people that may not pay attention to the TV commercials or
the other types of ads. These would also be good for the younger, teenage crowd who
spend a lot of time online. The pop-up ads would actually look like they are coming out
at you. For example, if you are checking your e-mail, a Coca-Cola bottle would appear
and then the bottle would open up and you would see the bottle being poured. The
Coca-Cola would look like it was actually pouring onto the screen. Other ways to use
the Internet would be to show a celebrity drinking the Coca-Cola or have the headline
inviting the consumer to visit the Coca-Cola website to get a coupon or some other
type of promotional deal.
Product Placement is very important because it can be a great impact for the product.
We would place Coca-Cola products in such shows as Friends and Will and Grace and
any other show that is popular with our target audience. The characters of these shows
would be using the product or the product would be placed throughout the set;
anywhere the audience could see it.
Effective Media of Advertising and Target Audience
Television advertising :- The first television ad created for The Coca-
Cola Company was produced in conjunction with a television special featuring Edgar
Bergen and Charlie McCarthy on Thanksgiving Day, 1950. The sponsorship of this
program and its advertising were both by the D'Arcy Agency of St. Louis. D'Arcy had
been the advertising agency for The Coca-Cola Company since 1906, when William C.
D'Arcy persuaded Coca-Cola to begin a newspaper campaign. From that modest
beginning developed a fifty-year relationship. For much of that time, Arthur (Archie) Lee
was the creative chief at D'Arcy who oversaw the account and created such
memorable slogans for Coca-Cola as "the pause that refreshes."
Television advertising was initially an experimental medium for The Coca-
Cola Company and D'Arcy. Both struggled to develop a strategy to reach consumers
effectively at a time when few cities had television stations. One approach was through
sponsored programs that offered the opportunity for The Coca-Cola Company to
expand relationships with performers from its radio programming. The initial Edgar
Bergen special was quickly followed by sponsorship of Walt Disney's television premiere
7. on Christmas Day, 1950, One Hour in Wonderland, and the next three years saw Coca-
Cola sponsor the Western genre program The Adventures of Kit Carson and Coke Time
with Eddie Fisher, a variety program.
In 1993, The Coca-Cola Company made a dramatic shift in its advertising by
introducing the "Always Coca-Cola" campaign, by Creative Artists Agency and later
Edge Creative. The campaign was a diverse one, with an initial run of twenty-seven
commercials designed to appeal to specific audiences. The ads ran around the world
and included a variety of innovative technical approaches, such as computer
animation. One such commercial, "Northern Lights," introduced what would become
one of the most popular symbols of Coca-Cola advertising: the animated polar bear.
Mr. Stewart enlisted the help of animation company Rhythm & Hues to bring the bears
to life. With advanced computers and state-of-the-art graphic programs, each ad
required some twelve weeks to produce from beginning to end.
Numerous other ads in the "Always Coca-Cola" campaign were introduced over the
course of the next seven years (1993-2000). Appealing to people's enjoyment of the
cola taste and the refreshment it provides, the commercials used a variety of
approaches—humor, music, stories, animation, and even Shakespearean parody—in
an effort to build on the emotional connection between Coca-Cola and its consumers.
Direct mail advertising
Coca-Cola has an ambitious plan for its Super Bowl ad. "Our goal is to inspire America
to become a collective force for positivity," Jennifer Healan, Coca-Cola's group
director of integrated marketing content, said Monday on the marketer's corporate
blog, which previewed the 60-second spot.
The ad, by Wieden & Kennedy, Portland, will "tackle the pervasive negativity polluting
social media feeds and comment threads across the Internet," the company stated. At
the end of the spot Coke will tout the hashtag, "#MakeItHappy," as "a call to action to
promote positivity both online and in the real world.
Signage and billboard advertising
8. Beyond Billboards: These Outdoor Ads Take Creativity to New Heights From the
painted wall signs of the 1890s, to neon spectaculars dotting some of the world’s most
majestic skylines, outdoor ads have always featured prominently in Coke’s marketing
mix. Billboards and other signage have only a few seconds (or less) to catch the
collective eye of motorists or pedestrians, which means brands must take bold,
envelope-pushing steps to make a lasting impression in an increasingly message-
saturated marketplace.
Take a look at the slideshow above for a few
of the most innovative outdoor ads TheCoca-
Cola Company has produced in recent years.
And be sure to post your favorites in the
comments section below.
Sponsorship advertising:-
Coca-Cola has a long history of sports
sponsorship including the Olympic Games, football, tennis and Special Olympics. Coca-
Cola has been involved with the Olympic Games since 1928. It has been sponsoring the
football World Cup since 1978 and is actively involved with the Wimbledon
Championships. Coca-Cola's support is at all levels.
In 1993, Coca-Cola became sponsors of The Coca-Cola Cup in England, with Scotland
following in 1994. Support is also provided for the English National Football Team and
the Scottish International Youth Teams with a grass roots programme for mini-soccer
with the Football Association Development Programme. The 'Always Coca-Cola'
campaign theme has been used worldwide to reinforce the universality of the brand
which is 'always' there. However, different advertisements are also made for each
market. This enables Coca-Cola to choose the most relevant advertisements for its
consumers and to choose how and when they should appear.
In Great Britain, for example, where football is a national passion, 'Eat Football, Sleep
Football, Drink Coca-Cola' is a massively successful advertising campaign reinforcing
the link between Coca-Cola and football while continuing the brand's support of the
game and fans.
Target audience of Coca Cola:-
9. The target demographic for Coca-Cola is extensive and broad due to product appeal
and popularity. Given careful consideration and after researching and analyzing
consumer age, household size, marital status, and income, the best target markets for
Coca-Cola, are 18-34 year-olds and those who live in households of 3 or more.
18-34 year-olds are chosen due to their high ranks and volume potential.
Considering the option of only targeting 18-24 year-olds is not a large enough target for
Coca-Cola due to the brand popularity and consumer base that is already established.
For this reason, taking the first two highest ranking consumer age groups and combining
them is the best option. Also, targeting households of 3 or more is an excellent option
due to the high rank (109) and very high volume potential (7,122,605) of this particular
demographic within the Household Size category.
Table One: Target Markets
Category
A
(‘000)
B
% of Users
D
Index
Rank
within
category
AxD
(VP)
Rank
within
category
18-24 17381 16.0 123 1 2,197,863 3
25-34 28605 26.4 114 2 3,260,970 1
3 Person or
more
65345 60.3 109 1 7,122,605 1
Within the age demographics, the combination of the first two categories gives
a larger target that best reflects the existing consumer market for Coca-Cola.
However, it is best to assign different weights to these two categories as follows: primary
target ages 25-34 at 70% due to its significantly higher volume potential (3,260,970) then
the 18-24 category (2,197,863). As a result, the 18-24 category will be denoted as the
secondary target age group at a weight of 30%.
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