Marketing Excellence maglcal ablllty to connect people no matter who they are or how they live. Andy Warhol said it best, “A Coke is a
>>Coca-Cola

 

 

 

 

 

 

 

 

When it comes to mass marketing,perhaps noonedoes it better than Coca-Cola. Coke is the most popular and best-selling soft drink in history.With an annual marketing budget of nearly $3 billion and annual sales exceeding

$30 billion,the brand topsthe lnterbrand rankingyear after year.Today,Coca-Cola holds a current brand value of

$68 billion and reaches consumers in over 200 countries, making it the best-known product in the world. In fact, Coca-Cola is such a global phenomenon that its name is the second-most understood word inthe world (after okay). The history of Coke’s success is astonishing. The drink was  invented in 1886 by Dr.John S. Pemberton,

who mixed a syrup of his own invention with carbonated water to cure headaches. The company’s first president later turned the product into a pop culture phenomenon by introducing it to pharmacists and consumers around the world and handing out clocks, posters, and other paraphernalia with the Coca-Cola logo.

Coca-Cola believed early on that to gain worldwide acceptance,the brand needed to connect emotionally and socially with the masses,and the product needed to be “within arm’s-length of desire.” So the company fo­ cused on gaining extensive distribution and worked hard at making the product loved by all. In World War II,it d&­ clared that “every man in uniform gets a bottle of Coca­ Colafor 5 cents,wherever he Is, andwhatever It costs the company.•This strategy helped introduce the soft drinkto people around the world as well as connect with them posltlvely In atimeof turmoll.

Why is Coca-Cola so much bigger than any other competitor? What Coke does betterthan everyone else is create hlghlycurrent, upllfHng globalcampaigns thattrans­ late well into different countries,languages, and cultures. Coke’s advertising over the years has primarily focused on the product’s ablllty to quench thirst and the brand’s

Coke and no amount of money can get you a better Coke than the one the bum onthe comer Is drinking.”

One of Coca-Cola’s most memorable and successful commercials was called “Hilltop” and featured the song, “I’d Ilkato buy the world a Coke.” Launched In 1971,the adfeatured young adults from all over the world sharing a happy, harmonious moment and common bond (drinking a Coke) on a hlllslde In Italy.The commercial touched so many consumers emotionally and so effectively showed the worldwide appeal of Coke that the song became a topten hit slngle later that year.

Coca-Cola’s television commercials still touch upon the message of universal connection over a Coke,often In a llghthearted tone to appeal to a young audience.In one spot, agroupof young adults sit around a campfire, playing the guitar,laughing,smiling,and passingaround a bottle of Coke.The bottle reaches a sllmy,on&-eyed alien who joins in on the fun,takes a sip from the bottle, and passes it along.When the next drinker wipes off the slime

In disgust. the music stops suddenly andthe groupstares at him in disappointment. The man hesitantly hands the bottle back to the alien to get re-slimed and then drinks from It, and the music and the party continue In perfect harmony.

Coca-Cola’s mass communications strategy has evolved over the years and today mixes a wide range of

media including television, radio, print, online, in-store, digital, billboard,public relations,events, paraphernalia, and even Its own museum.The company’s target audi­ ence and reach are so massive that choosing the right media and marketing message is critical. Coca-Cola uses big events to hit huge audiences; It has sponsored the Olympics since 1928 and advertises during the Super Bowl. Red Coke cups are placed front and center during top-rated televlslon shows llke American Idol, and the company spends over $1 billion a year on sports spon­ sorships such as NASCAR and the World Cup. Coca­ Cola’s global campaigns must also be relevant on a local scale.In China,for example, C.oca-Cola has given its r&­ gional managers control over its advertising so they can

Include appropriate cultural messages.

The delicate balance between Coca-Cola’s local and global marketing is crucial because, as one Coca-Cola executive explalned,”Creating effective marketing at a lo­ cal level in the absence of globalscale can lead to huge

inefficiencies.• In 2008, for example, Coca-Cola ran two campaigns during the FIFA World Cup as well as several

local campaigns. In 2010,the company ran asingle cam­ paign during the same event in over 100 markets. Executives at C.oca-Cola estimated that the latter, more global strategy saved the company over $45 million in efficiencies.

Despite Its unprecedented success over the years.

Coke is not perfect. In 1985,in perhapsthe worst product launch ever,Coca-Cola introduced New Coke-a sweeter concoction of the orlglnal secret formula. Consumers instantly rejected it and sales plummeted.Three months later; Coca-Cola retracted New Coke and relaunched 1he or1glnalformula under the name Coca-Cola Classlc, to the delight of customers everywhere. Then-CEO Roberto Goizueta stated,”The simple ta.ct is that all 1hetime and money and sklll poured Into consumer research on the new Coca-Colacould not measureor reveal the deep and abiding emotional attachmentto original Coca-Cola fett by so many people.”

Coca-Cola’s success at marketing aproduct onsuch a global,massive scale is unique.No other product is so unlversally avallable, unlversally accepted, and unlversally loved.As the company continues to grow, it seeks out new ways to better connect with even more individuals

 

 

Questions

  1. What does Coca-Cola stand for? Is it the same for everyone? Explai
  2. Coca-Cola has successfully marketed to billions of people around the world.Whij is it so successful?
  3. Can Pepsior acy other company fN0r surpass Coca­ Cola?Why or Ylny not? What are Coca-Oola’sgreatest risks?

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