COCACOLA MARKETING STRATEGY 2021

1 Introduction to the company a, Introduction to the company The Coca-Cola Company, American corporation founded in 1892 and today engaged primarily in the manufacture and sale of syrup and concentrate for Coca-Cola, a sweetened carbonated beverage In 1960, coca cola was first introduced in VietNam After that, coca-cola Indochina Pte Company was established officially in Vietnam in August 1995 With the orientation to become a comprehensive, consumer-oriented beverage company, the company is constantly improving and providing a wide range of quality and diversified beverages, including low-sugar and sugar-free product lines , at the same time diversifying models and expanding business coverage everywhere Coca-Cola's beverage brands in Vietnam include Coca-Cola, Coca-Cola Light, Coke Zero, Sprite, Fanta, Marketing goal: to establish the image and create public awareness about the presence of Coca-Cola Company in the Vietnamese market When customers have a good impression of the company, there will be Prioritize selection with products of the same type Objectives: Coca Cola aims to sustain its long term growth while keeping in mind its short term commitments The company aims to achieve long term sustained profitability and maximize return , b, Target customers of Coca Cola Age They target young people between the ages 12-30 That's why it mostly uses pop stars in their advertisements They arrange different campaigns in universities, colleges, schools, etc in acquiring contracts Geographical location Coca Cola's products are covered all over the country However, they change different strategies for each region Because the needs of target customers in each region are different due to climate, culture, customs and habits , For example, people in the south prefer sweetness to people in the north But the essential ingredients and process are the same Gender segmentation Coca -cola is aimed at both men and women However, there is a clear difference in preference and taste.For example, coca light is quite popular among women while stronger flavored coca zero is preferred by men This is also seen in product design and advertising The product design of coca zero mainly focuses on two main colors, black and red, more masculine than coca light => Target market The young generation mostly those who consume the drink on a daily basis It targets both male and females who are from the ages of 12-30 years, who love fun and entertainment Their lifestyles are busy, full of life and youthful c, Customer journey Customer behavior -Recommended - Caught advert TOUCH POINT -FB, Tiktok,you website, shopee WHAT SHOULD THE BUSINESS DO - Improve SEO -Advertisement communication - Covering on Tiktok platform with hashtags about products 2 Analysis a, Offline communication channels: (2-3 years) *Advertising Advertising is very important for coca-cola since it has a huge customer base globally To reach out to all its loyal customers with the new launches as well as to inform new customers about all its products coca-cola uses influential advertising techniques The slogans used in the coca-cola ads are so catchy that it creates a permanent impact on the viewers and encourages them to buy the product Company introduces different innovative themes and concepts to sell their product and advertises mainly in electronic media and out of home advertising These advertisements help in creating awareness as well as building brand image Objective: Coca Cola uses advertisement to + Do brand promotion + Contain brand loyalty + Contain brand awareness + Contain and increase demand - Media of advertising • • • Print media: Coca-cola ads can be seen in various newspapers and magazines When special offers are introduced or new products are launched then the company posts catchy ads on the entire cover page of the magazine or one full page of newspapers Therefore all those who read newspapers or magazines can never miss out any influential ads of coca-cola Point of purchase advertising: Posters and stickers are displayed in various stores on the coca-cola brands and new launches When customers come to buy some coca-cola products or any other products such posters and stickers catch their attention and may induce them to buy more products than what they had planned before seeing the posters Point of purchase advertising includes: Posters and Stickers, cooler, Freezers, Display racks etc Television commercials: Television is the most common platform which unites all the potential customers, partners, investors etc Therefore the ads aired on television will reach the • • maximum number of target audience, even more than other mediums of advertising Coca-cola has always aired attention seeking television commercials Social media advertising: Coca Cola’s social media accounts are used to connect with its fans and followers and for customer engagement There are more than 1,250 promotional videos of Coca Cola on its official YouTube channel As competition has kept intensifying in the soda industry, companies are focusing more than ever on their social image and reputation Outdoor advertising: Outdoor advertising involves posting ads on billboards and hoardings Coca cola is very much conscious about their billboards and hoardings The billboards and hoardings of coca-cola can be seen in every nook and corner Coca-cola makes sure that its hoardings and billboards are present in urban as well as rural areas * PR - Company is focused on initiatives that reduce environmental footprint, support active, healthy living, create a safe, inclusive work environment for associates, and enhance economic development So, the PR activities of Coca-Cola Company include social, humanitarian and environmental aspects - Social aspect: In 2021, Coca-Cola Vietnam Company has been conducting many support activities for affected communities in Ho Chi Minh City during the pandemic The company has donated more than 37,000 beverage products, thousands of medical and antiseptic products, masks as well as personal protective equipment to hospitals, isolation areas and communities Along with a donation of USD 400,000 through the Vietnam Red Cross, the Coca-Cola Foundation has contributed a total amount of up to VND 16 billion to support activities to prevent the spread of COVID-19 in Vietnam - Humanitarian aspect: New Year of the Rat 2020, Coca cola with the journey to connect the family This year, Coca Cola continues the tradition every year on Tet holiday to bring new joys to expatriates across the North and South In Hanoi and Ho Chi Minh City, Coca Cola has invited more than 3,000 people working far away from their hometown to join the family bonding parties Just for them to meet, get closer together in the New Year atmosphere At the same time, Coca Cola did not forget to give thousands of warm gifts to people across 19 provinces in North-Central-South - Environmental aspects: the Coca-Cola Company's strategy "For a world without waste" aims to be able to collect and recycle 100% of the bottles and cans sold by the company by 2030; at the same time, reduce the use of virgin plastic and use 100% recyclable packaging materials To achieve this, The Coca-Cola Company and The Ocean Cleanup nonprofit are officially working together to achieve a clear common goal: to prevent plastic waste from ending up in the ocean With the first approach of treating marine waste from rivers, the partnership is geared towards the implementation of solar-powered Interceptor river cleaning systems developed by the Dutch non-profit organization An Interceptor system was installed by The Ocean Cleanup in Can Tho, Vietnam *Sales promotion: Consumers: - Coca-Cola mainly organizes prize-winning programs to attract customers to participate and purchase products • 2021: Coke Studio "Bung giai dieu khoi" program Customers will scan the QR code on the product packaging and then enter the coupon code on the eyelet or bottle cap for a chance to win a Zing MP3 VIP account, and many different gifts Prizes include Code Zing MP3 VIP months (90820 prizes), Zing VIP week (272319 prizes), Portable speaker Sony SRS-XB23 (280 awards),T-shirts (2987 prizes),1 Billion VND (2 prizes) • 2019: “Hung khoi Viet Nam” program Customers will receive a code on the coca cola can and will send that code to the 8069 switchboard or send a message on Zalo Then the software will automatically dial the numbers to choose the winning codes for the daily and monthly prizes The total prize value of the promotion is up to 3.2 billion VND => Advantages: The organization of these promotions has both helped Coca Cola promote sales, attract customers who are interested in the brand especially young people when Coca Cola cooperates with Zalo, Zingmp3, In addition, these programs also help to promote the image of Coca Cola on social networks when posting information about winners on the company's fanpage => Disadvantages: The program's rules are quite complicated, so it mainly attracts young customers because they can understand and use technology easily Therefore, these promotions have not yet reached customers in the entire market - Besides, Coca Cola also reduces product prices when customers order products on ecommerce platforms such as Shopee, Tiki, and Lazada If customers buy a lot, they also get a discount code Trade: • • Discounts to retailers and stores Give gifts such as refrigerators, to retailers and shops or restaurants when they buy a large quantity of Coca Cola products • Give vouchers when buying in bulk such as when buying 30 boxes of Coca Cola worth 2,460,000 VND, customers will get voucher for any products of Coca Cola company worth 330,000 VND *Direct marketing (do they use letters, catalogue, TV shopping, telemarketing? why? Who are they targeting?) The brand utilises direct marketing in a variety of ways, through associating with different restaurants and movie houses to promote the Coca-Cola brand For example, in restaurants such as Mc Donald, the only available soft drink at the group is Coca-Cola brand, this entices the consumers to purchase a drink from the brand In this way Coca Cola pushes the competition out, and has shared gain for the brand over and over CocaCola also sponsors a lot of events around the world like cricket and football Consumers can also contact Coca-Cola through a helpline Direct Marketing Objectives Coca-Cola’s objectives are the following: • Consumers to increase consumption of their product • Offering their products at different outlets, retailers and being present in most stores in the world • To increase their brand, through fast food such as McDonalds • To more market research and finance on research and development • Providing low caloric products for consumers to meet the global health needs • Being transparent to consumers about how much sugar intake they are getting in their soft drinks • b, Online communication channels * SEO + website (traffic, engagement) Coca-Cola uses the internet to promote its products The company has its own website, which is user-friendly The website has various attractive features which encourage customer interaction, it allows customers to become interactive through various games, contests, shopping, and through a special section of the website that enables consumers to find out how they can help their community The customers are even allowed to give their feedback on various coca-cola brands and also their suggestic for improving the product - Traffic overview According to Ubersuggest, statistics show that: organic keywords are 1,765; organic monthly traffic are: 23,977… RANKING SEO TITLE Top searched seo titles are : Ai nhà sáng lập Coca Cola, Vì giới không rác thải, Coca Cola mắt chai tái chế từ rác thải nhựa giới,Trao vòng đời cho rác thải… show that Coca has been aiming for practical benefits for the community KEYWORD Top searched seo keywords are: blackpink coke, bts coke, show that Coca-Cola's customers are interested in popular music groups COMPARE TO PEPSI => Pepsi is better than Coca in organic monthly traffic, domain authority Coca is better than Pepsi in backlink * Social networks (volume - fan, follower, engagement, social listening (comments positive or negative) - On social platforms of coca cola get a lot of hits and followers like: • facebook: 104,862,765 followers • instagram: 2.7 million followers, • youtube : 3.6 million subscribers, videos have quite a lot of views over million views * Display Ad - Coca Cola uses social networking platforms to bring its images to customers such as facebook, instagram, tv, youtube, zalo,or public transport such as buses, For example: Coke Studio "Bung giai dieu khoi" program advertised on the youtube platform with 1.4 million views Evaluation a, SWOT analysis * Strengths - Strong brand identity: Coca-Cola is a highly popular brand with a unique brand identity Its soft drinks are the most-selling drinks in history - Extended global reach: It is sold in more than 200 countries with billion servings per day of Company products It has introduced more than 500 new products globally Some of these are variations of Coca-Cola beverages, like Coca Cola Vanilla and Cherry CocaCola Its brands are known to touch every lifestyle and demography - Greatest brand association and customer loyalty: Coca-Cola is considered one of US’s most emotionally-connected brands This valuable brand is associated with ‘happiness’ and has strong customer loyalty Customers can quickly identify their particular taste Finding its substitutes is difficult for them Moreover, Coca-Cola and Fanta have a huge fan following than other beverage names in the industry * Weaknesses - Hard for consumers to distinguish Coke from Pepsi - Both Coca and Pepsi have taste and color quite similar that make consumers confused and not have the distinction in their consumption - Consumers worry their health will be badly affected if they consume too many carbonated drinks It results in two grave health issues – obesity and diabetes Besides, health experts have prohibited misusing soft drinks It is a controversial issue for the company However, Coca-Cola hasn’t devised any health alternative or solution for this problem yet * Opportunities - Increase presence in developing nations : Many regions with hot climates have the highest consumption of cold drinks Thus, increasing presence in such locations can be excellent – Middle Eastern and African countries are a good example - Along with the development of digital technology, it is easy for the company to reach the right target customers of the company, spread the company’s communication messages - Healthy Products: It can start to produce healthier product lines with less sugar and calorie ingredients so that people don’t get the chance to boycott its drink for health reasons * Threats - Aggressive competition with Pepsi : Pepsi is the biggest rival of Coca-Cola Had it not been Pepsi, Coca-Cola would have been the clear market leader in the beverage Besides, many other companies are indirectly competing with Coca-Cola such as Starbucks, Tân Hiệp Phát, Tropicana, Lipton juices, and Nescafe, are the indirect competitors of CocaCola which can threaten its market position - Economic Uncertainty : The recent events have negatively affected business operations, supply and distribution chains, and devastated revenues of many global companies In Q2 of 2020, Coca Cola’s revenues declined drastically as restaurants, theaters, and other venues that contribute about half of its revenue remained closed due to the global crisis - Increasing Health-Consciousness: Consumers are increasingly adopting healthy lifestyles and avoiding products with unhealthy ingredients The increase in healthconsciousness can reduce Coca Cola’s sales and profits as customers migrate to healthier options offered by competitors b, Campaign Evaluation Coca-cola has successfully implemented all its communication strategies This has helped the company in gaining customers and also maintaining a good rapport with the potential customers c, Evaluation of the Advertising strategy Coca-Cola advertisements have been devised according to the messages they aim to convey to its target audience, and images, words and sounds featuring within them have been developed by marketing professionals in a perfect way, in order to serve the purpose of attracting maximum people Messages sent through images, words and audio materials promoting Coca-Cola are intended towards a happy life Coca-Cola helps to best satisfy the thirst, drinking Coca-Cola is stylish, and drinking Coca-Cola is part of a lifestyle.Through its advertising strategy, the company tries to communicate a message that this drink satisfies the thirst in the best possible manner and this encourages millions of people per day to consume coca-cola d, Evaluation of Direct marketing strategy The company has successfully implemented this strategy Its partnership with various theatres and restaurants has created this habit among the customers to drink coca-cola products often Mc Donald’s has contributed a lot in promoting coca - cola drinks to its customers, by offering only this brand with all its meal combos e, Evaluation of internet marketing strategy The internet marketing of coca-cola brands has succeeded in capturing the young population as well as other professionals who are mainly working online Coca-cola's website has enabled people to share their views and suggestions thus enabling the brand to modify their products as per customer needs and wants f, Evaluation of sales promotion Coca-cola offers attractive schemes during various seasons which help in gaining more customer support Such sales promotional activities increased sales to a greater extent g, Evaluation of public relation strategy Through this strategy coca-cola has succeeded in creating a public image All those who try a new product are so satisfied with the new launch that they encourage others also to try it through word of mouth However, Hard for consumers to distinguish Coke from Pepsi - Both Coca and Pepsi have taste and color quite similar that make consumers confused and not have the distinction in their consumption 4, Conclusion From the analysis of the marketing communication strategy of coca-cola, it can be concluded that the company has successfully implemented all its strategies efficiently and effectively and is thus accelerating its growth every year For any company to operate successfully and attract more and more customers it has to adopt the most efficient promotion mix This analysis shows that the company is using its promotional mix in an effective and efficient manner That is the reason why Coca-Cola has captured the global market and is one of the most valuable brands across the world Corporate Social Responsibility activities play a significant role in building up goodwill Coca-cola is efficiently performing all the activities directed towards corporate social responsibility ... company worth 330,000 VND *Direct marketing (do they use letters, catalogue, TV shopping, telemarketing? why? Who are they targeting?) The brand utilises direct marketing in a variety of ways,... of people per day to consume coca-cola d, Evaluation of Direct marketing strategy The company has successfully implemented this strategy Its partnership with various theatres and restaurants... by offering only this brand with all its meal combos e, Evaluation of internet marketing strategy The internet marketing of coca-cola brands has succeeded in capturing the young population as