The CocaCola Company is the worlds number one maker of soft drinks, selling 1.3 billion beverage servings every day. CocaColas red and white trademark is probably the bestknown brand symbol in the world. Headquartered since its founding in Atlanta, CocaCola makes four of the top five soft drinks in the world, CocaCola at number one and Diet Coke, Fanta, and Sprite at numbers three through five. The company also operates one of the worlds most pervasive distribution systems, offering its nearly 400 beverage products in more than 200 countries worldwide. Nearly 70 percent of sales are generated outside North America, with revenues breaking down as follows:
MARKETING Report The Coca Cola Company Lecturer: Mai Quynh Anh Class: 47K01.1 Student: Tran Thi Giang Le Thi Hong Hoai Nguyen Vo Thao Nhi Ho Le Phuong Nhu Nguyen Thi Kieu Oanh Nguyen Van Tam Tran Diem Uyen Content Overview of the Coca Cola Company Mission and Vision Needs, Wants and Demands Market Segmentation Marketing Management Orientation 11 Differences between Coca Cola and Pepsi 15 Product and Service Decisions 17 Product Mix Decisions 32 Pricing Strategies 40 Marketing Channels 44 Promotion Mix 54 Digital Marketing 62 Green Marketing 66 Overview The Coca Cola Company The Coca-Cola Company is the world's number one maker of soft drinks, selling 1.3 billion beverage servings every day Coca-Cola's red and white trademark is probably the best-known brand symbol in the world Headquartered since its founding in Atlanta, Coca-Cola makes four of the top five soft drinks in the world, Coca-Cola at number one and Diet Coke, Fanta, and Sprite at numbers three through five The company also operates one of the world's most pervasive distribution systems, offering its nearly 400 beverage products in more than 200 countries worldwide Nearly 70 percent of sales are generated outside North America, with revenues breaking down as follows: North America Africa Latin America 10% 5% 30% 24% SALE Asia 31% Marketing Report Europe and Middle East Among the company's products are a variety of carbonated beverages, including the aforementioned brands and many others, such as Fresca, Barq's, etc Moreover, the company holds the rights to the Schweppes, Canada Dry, Dr Pepper, and Crush brands outside of North America, Europe, and Australia CocaCola's development into one of the most powerful and admired firms in the world has been credited to proficiency in four basic areas: consumer marketing, infrastructure (production and distribution), product packaging, and customer (or vendor) marketing Overview of the Coca Cola Company How To Create Values? MISSION Refresh the world in mind, body, and spirit, to inspire moments of optimism and happiness through their brands and actions, and to create value and make a difference CORE VALUE The company’s core values include “Collaboration, leadership, passion, accountability, diversity, integrity and quality” For a global company, it’s not just about survival but also about consistency to stay at the top position worldwide They need to have a strong cultural value within the company Marketing Report VISION Offering the world a portfolio of drinks brands that anticipate and satisfy people's desires and needs Partners: Nurturing a winning network of partners and building mutual loyalty Planet: Being a responsible global citizen that makes a difference by helping to build and support sustainable communities Profit: Maximising long-term return to shareholders, while being mindful of our overall responsibilities Productivity: Being a highly effective, lean and fast-moving organisation Mission and Vision Needs Consumers need the drink to satisfy their thirst, consumers also desire Coca-cola as a pleasure drink People in developed countries often take cola to satisfy their thirst whereas in the developing world people satisfy their thirst by taking water, this is a clear indication that coca-cola is a want and a need at the same time Marketing Report Wants The company rethink some of their beverage recipes to reduce sugar, and invest to make the next generation of zero-calorie sweeteners The goal is to give people the low and no-sugar drinks they want without having to give up the great tastes they know and love Demands The company’s multifaceted approach to meet changing tastes and needs includes reducing sugar and calories across many brands; offering new drinks that provide health benefits like hydration and nutrition; expanding the availability of smaller, more convenient packages to help people control sugar more easily; and providing clear, easy-to-find calorie information to help people make informed decisions without the guesswork For example, the company developed Coca-Cola Life to satisfy consumers' demand for greater choice It contains 35 percent less sugar and is a 35 percent kilojoule reduced formulation compared to normal coke “The new formulation is what consumers have been looking for Coke Life isn’t simply a new product from Coca-Cola – it’s another great choice for people who want a delicious Coca-Cola to fit their lifestyle There is a Coca-Cola option for everyone,” Coca-Cola South Pacific marketing director Lisa Minn says Needs, Wants and Demands MARKET SEGMENTATION Marketing Report Marketing Report Digital Marketing 62 Marketing Report Report Marketing Because Coca-Cola is a long-standing and extremely famous brand, besides it is in the fast-moving consumer goods industry, Coca-Cola focuses mainly on customer interaction through social networks, so the brand will not pay attention to SEO & SEM, Email Marketing and Mobile Marketing Social media Coca-Cola has an interesting strategy on social networks like Facebook, Twitter, and Instagram.Coca-cola maintains a number of profiles on different social networks The Happiness Machine campaign, for example, was a huge success with social media audiences Coca-Cola does not merely use their social profiles to amplify their existing content but has a strategy tailormade for each network and geographical location Coca-Cola's four-point digital transformation plan includes enhancing customer experience and business transformation to stay on top of disruption Let's deep dive into the digital marketing success of CocaCola and analyze the unique strategies of the brand Digital Marketing 63 Personalized Customer Experience Tweet with hashtag #CokeMyName to have your name & a unique fact about it star on a billboard in Times Square After the triumph of the clever drinkable billboard for Coke Zero, Coca Cola’s recent outdoor campaign, lets you tweet to have your name splashed on a big screen, in Times Square Here’s to taking out-of-home advertising to a whole new level! Taste the Feeling In 2016, Coca Cola rolled out the integrated ‘Taste the Feeling’ campaign – an update to its previous ‘Open Happiness’ tagline With a number of international agencies working on the campaign, it involved 10 TV commercials, digital, print, out-ofhome, and shopper initiatives Overall, the theme was to offer an insight into the everyday moments and feelings that surround drinking Coca Cola, as well as to show the diversity of people around the world who enjoy it 64 Marketing Report Direct Engagement With Fans Coca-Cola’s #VerdaderoAmigo ad campaign celebrates true friendship, unity, teamwork and happiness by redesigning its iconic wavy ribbon into the “fist bump” symbol The extensive campaign focuses on friendship by framing it against its opposite - the cruelty, loneliness and isolation that can be worse than ever nowadays because of cyberbullying The campaign suggests that shared moments offer a sense of identity and belonging The campaign calls for teens to show not just friendship but “true friendship”.The insight is that a true friend is the most valuable commodity at a time when cruelty is everywhere Digital Marketing 65 Green Marketing 66 MarketingReport Report Marketing The Coca-Cola Company has advanced its core sustainability priorities – from water replenishment to sugar reduction to diversity and inclusion – in 2020 despite unprecedented challenges presented by a global pandemic, natural disasters, social unrest and more In addition to long-term business growth, Coca-Cola is also actively focused on its environmental, social, and governance commitments in Vietnam In 2018, The Coca-Cola Company announced an industry-pioneering sustainable packaging goal to help collect and recycle the equivalent of every bottle or can it sell globally by 2030 The company is working hard to deliver on this commitment in Vietnam As part of its vision of a “World Without Waste”, the company is teaming up with non-governmental organizations (NGOs), civil society, recyclers, and other like-minded companies to create long-term and scalable sustainable packaging solutions promoting a circular economy model Green Marketing 67 SUSTAINABLE PACKAGING The Coca-Cola Company’s World Without Waste strategy remains focused on three pillars: Design, Collect and Partner “We are striving to make packaging part of the circular economy Our goal is to create closed loop systems, extracting the maximum value from materials and products while in use, and then recovering and recycling them.” Currently, 88% of the company’s packaging is 20% recyclable, and 20% is made from recycled material In May 2020, Coca-Cola Vietnam proudly introduced local consumers the first beverage bottle made from 100 percent recycled plastic (Dasani 500ml) Recently, Coca-Cola Vietnam has transitioned its iconic Sprite bottles from green to clear PET plastic to make them easier to recycle and to accelerate local collection rates Consumers can now also find a prominent “Recycle Me” message on the package labels of Coca-Cola Vietnam’s products to encourage recycling after thoroughly enjoying the drink Together with industry partners, Coca-Cola has also helped to establish Packaging Recycling Organization (PRO) Vietnam, a voluntary alliance to accelerate progress towards a local circular economy In addition, it supports an array of local community initiatives to raise broader awareness and action on recycling including ongoing partnerships with UNESCO Vietnam and Green Hub 68 Marketing Report Coca-Cola’s step towards a sustainable brand image Recently, Coca-Cola announced that its first paper bottle was being prototyped However, this version of the paper bottle is not just the tree material, as the model consists of a paper shell that encases a lining and closure of plastic This has been coca cola’s much-needed step towards sustainable marketing and packaging of their product Moreover, many brands will now follow the footsteps of coca-cola and begin their journey towards a sustainable and environmentally friendly marketing environment Green Marketing 69 CLIMATE AND SUSTAINABLE AGRICULTURE In 2019, the company reported a 24% reduction of the carbon footprint of the “Drink In Your Hand” compared to a 2010 baseline A new science-based target aims to reduce the company’s absolute carbon emissions by 25% by 2030, against a 2015 baseline, in line with the Paris Agreement Goals Environmental impact reduction Coca-Cola is launching a marketing campaign that aims to remind people its bottles are recyclable and encourage them to recycle The campaign, titled ‘Round in Circles’ and created by agency Recipe, will appear in print and outdoor, with a focus on transport hubs Launched to coincide with Recycle Now’s Recycle Week, it will also see the Coca-Cola London Eye turned green The campaign is part of wider plans by Coca-Cola to improve the sustainability of its packaging in a strategy first unveiled in 2017 Actions include ending the use of plastic shrink-wrap on its multipack cans in favor of cardboard, changing its Sprite bottle from green to clear to make it easier to recycle and moving its Glaceau Smartwater brand to 100% recycled plastic 70 Marketing Report COMMUNITY ENGAGEMENT & EMPOWERMENT In Vietnam Coca-Cola remains unwavering in its support to local communities across the country With support from The Coca-Cola Foundation, the global philanthropic arm of The Coca-Cola Company, CocaCola has contributed more than $2.58 million to community development programmes in Vietnam between 2018 and 2021 This includes providing free and clean drinking water to local communities via 12 EKOCENTERs nationwide, setting up clean drinking water filtration systems in schools in Hanoi and Danang, as well as improving livelihoods for farmers through its community water programmes in the Mekong Delta In addition, Coca-Cola has carried out many programmes and activities to support Vietnam’s COVID-19 response and recovery Together with the Vietnam Red Cross Society, the American Chamber of Commerce in Vietnam (AmCham), Women’s Union, Tuoi Tre newspaper, and many other organizations, Coca-Cola has donated more than VND16 billion ($695,650), medical and hygiene supplies, more than 37,000 food and beverage packs, masks, and personal protection equipment for healthcare workers, frontliners, and vulnerable communities throughout Vietnam Green Marketing 71 Racial Equity And Social Justice Coca-Cola has developed a Global Social Justice Framework focused on four main pillars: listening, leading, investing and advocating This multi-year effort includes addressing internal policies; supporting inclusive legislation (such as the hate-crime bill in Georgia, which was signed into law); committing to spending at least $500 million with Black-owned businesses in the U.S over the next five years; and awarded $1 million to The Equal Justice Initiative to support communities marginalized by poverty and discouraged by unequal treatment 72 Marketing Report Women's Empowerment The company is on track to achieve its 5-by-20 goal to support the economic empowerment of million female entrepreneurs by 2020 The program impacted more than 1.3 million women in 2019 alone “Given the scale of unemployment and the challenges to our key customers in away-from-home channels, we see an opportunity to expand our economic empowerment strategy in the post-2020 period, engaging in broader industry platforms that collaboratively transform the livelihoods of women, youth and additional vulnerable populations by promoting retraining, upskilling and entrepreneurship.” Green Marketing 73 Marketing Report 78