The following essay shall discuss the importance of brand management and brand campaigning. The company chosen for the essay is “Coca-Cola”. In the first part of the essay we shall see how Coca Cola has retained itself as a top most brand in the beverage industry globally. Also a very important part of this essay is the brand proposal for Coca Cola- launching a new product, per se, snacks and how the company can add to its product lines and product mixes. How important is brand reputation and brand campaigning, has been explained in depth throughout the essay.
Critical analysis of the strategic and tactical approaches of coca cola
1. Critical analysis of the strategic and tactical approaches of Coca-Cola
By
Course Name
Professor’s Name
University Name
Department of Marketing
29th
December 2014
2. The following essay shall discuss the importance of brand management and brand
campaigning. The company chosen for the essay is “Coca-Cola”. In the first part of the essay
we shall see how Coca Cola has retained itself as a top most brand in the beverage industry
globally. Also a very important part of this essay is the brand proposal for Coca Cola-
launching a new product, per se, snacks and how the company can add to its product lines
and product mixes. How important is brand reputation and brand campaigning, has been
explained in depth throughout the essay.
Part One:
Introduction
The Coca-Cola Company, incorporated on September 5th
, 1919 is a well known
beverage company. The company has a ownership and licensing of brands and markets over
500 non-alcoholic beverages brands which usually consist of sparkling beverages but also a
varied number of still beverages like water , enhanced water , juice and juice drinks , ready to
drink teas and coffees and also many sports and energy drinks. For every industry who has to
spend reasonable time and effort in marketing, Coca Cola serves as a true inspiration (World
of Coca-Cola, 2015).When most of the company belongs to mature stage of the product life
cycle, and is operating in a competitive market with little product differentiation, the
company has been successful to grow in terms of strength as a brand and its marketing
techniques. (Cokecce.com, 2015)
Body
Coca-Cola has built a robust portfolio of assets which includes the color red, the
proprietary bottle shape,and its logotype which has managed to get the attention from the
customers after careful deliberation. Coke has been successful to maintain long term
3. dedication to its campaign and used various marketing platforms, for example the famous
show “American Idol”. Coke has used its logo for a long time and has the history of being
virtually unchanged since 1886.Coke has been effective to use its history which is used as a
compass and a leverage its past in the present times like reprising the famous “Mean Joe
Greene “ advertisement that has been used to launch Coke Zero. (Coca-colafemsa.com,
2014).”Happiness in a bottle “, this campaign has been a universal recognition for the
company that started during 2012 FIFA World Cup. From the happiness flag to the event
launched music, the brand has created an impact which has touched people emotionally in
terms of local and also in global scale.Coca-Cola’s Share a Coke campaign has also been
effective to create an everlasting impression among the young generation and has beautifully
used social media to enhance the real moments which have been shared by the fans.
Brand manifestations are an important aspect of promoting a new product in a market
as well as retaining the brand goodwill of existing products. A brand is not merely the logo
and slogan of a company or product, it is a sense of belonging that emphasizes on the bond
that is present between the company, employers, employees and the customers. In Wally
Olin’s concept of brand manifestations we see that he addresses a brand through a very live
example of a tribe. A brand needs a human touch, emotions and values are very crucial to a
company who wants to grow not just revenue wise but as a family rather. A company is
successful in the long run only when it is able to connect with its audience and customers
emotionally. (The Independent, 2014)Just like a tribe manifests its core ideas and values by
the way it functions, similarly a company is also perceived by the people the way it performs
– responsibly or the other way round. Every company must also have an aspect of
anthropology in it where it should be responsible corporate wise and goodwill wise as well.
Brand story telling is very necessary as a company’s product needs to say a story via
its products. Coca Cola’s core story has always been “Happiness”, sharing happiness has
4. been its main idea since inception. People associate stories and their friendships with this
brand, as any gathering, party, enjoyment is incomplete without a sip of coke. Thus brand
communication is very essential in terms of storytelling for a company as expressed by global
group content director of Coca Cola, Guy Duncan.(Marketingmagazine.co.uk, 2015)Recently
the company has involved in content marketing, after being famous as a “Vision Brand”.
Coca-Cola has engaged itself into the matter and substance of the brand engagement .It has
shifted from the approach of one way storytelling to dynamic storytelling .This has proved to
be very successful as the general consumers can interact and relate to the content as the story
revolves .This story telling has been constantly moving on from static to multifaceted,
engaged and spreadable techniques. Coca-Cola does not believe in 30 seconds advertisement
anymore .It has moved beyond it and has marked the end of such 30 second advertisement
.The company has been successful to move towards a genuine consumer collaboration model
which is effective to create a buzz and adopted a more iterative approach for the creation of
the content. (Investors et al., 2014)
However despite the widespread success of the share a coke campaign the results of
Q3 in the year 2013 has been disappointing .the reason was favour in terms of execution of
the marketing strategy in many markets especially our consumer marketing and commercial
strategies. (Coca-Cola GB, 2014).Massive recall of the advertisement campaign can lead to
tarnishing the brand and the image which can also lead to company to build a new brand and
identity to recapture the same place in the market. Another disadvantage of the company lies
in the undiversified product portfolio which has restricted the markets of the company. A
corporate reputation is extremely important for a company as it determines how the company
shall operate in the long run. Technological advancement and the internet have been playing
a major role in the maintenance of brand reputation in the modern day world. Communication
channels are diverse in today’s world which can either make or break a company’s brand
5. image in seconds’ time. In the words of Jeff Bezos, an American businessman, “a brand for a
company is like the reputation for a person. You earn reputation by trying to do hard things
well” also keeping in mind what Benjamin Franklin had once said, that “it takes many good
deeds to build a good reputation, and only one bad one to lose it”.
Coca-Cola has experimented with the shape which has been totally synonymous with
the brand .Customizable packaging has been successful as implemented in around 30
countries. Coca-Cola has been effective to implement their marketing strategies most of the
time .The idea of content marketing has been successful because the purpose of content
excellence is to create ideas which are so attractive and contagious that cannot be controlled
which is also referred to as liquid content (Anon, 2014).Coca Cola uses social web where
people are more likely to share their ideas, videos and photos on the networking sites
.Creation of the content which are more likely to be shared whether it is in the form of a
video, image or an article. (Furrier, 2013)
Coca-Cola uses price penetration to keep its profit levels at a reasonable level. Coca-
Cola’s popular saying which is- “when you drink don’t drive, drink Coca-Cola “is a reminder
for the customers to do something. That is an effective way to use advertisement by re-
enforcing the customers of the products existence in the existing market. (An evaluation of
marketing strategies undertaken by Coca Cola Company as a multinational corporation in
Nigeria, 2014)
Conclusion
Thus in today’s competitive market it has become very essential for a company to
make innovative marketing strategies which can be improvised as per the needs of the
company. The marketing strategy of Coca-Cola has been effective to create a brand for itself
and even maintain a lasting impression on the customers taking into consideration the plans
6. for expansion in the market share by the existing products. (Businesscasestudies.co.uk,
2014)Diverting itself from the usual mass marketing approaches, Coca Cola has adopted
effective strategies and tactics firstly to understand the needs of its target audience and
providing them with a benefit that is unique. Secondly to retain its consumer’s loyalty it has
adopted socially progressive and a sense of public good in its products and promises.
(Portnoy et al., 2015)
Part 2: Brand Proposal
Brand marketing is an essential pillar of strength for a company to flourish in the
future. In a global market, branding sets a company apart from other companies. A branding
strategy is essential for achieving long-term goals and it directly affects a business’s
operations and its consumers. There are a few requisites that need to be understood before
analyzing a brand strategy- what is the purpose of a brand? What is purpose of the
product? Who are its target audience? How is the company going to be benefitted in the
long run?
A brand should not just limit itself to the short run goals. Brand managers must be tactics
and strategy driven in their approach. (Aytm.com, 2014)Since the brand also depicts the way
the customers of the product perceive the company’s value and name, brand marketing and
brand strategy need to be regulated from time to time. A strong brand represents the company
and the product promises by the company.
A good brand strategy includes
A full audit of the product
Formulating the product’s brand vision and mission
Instilling internal proprietary
7. Brand tracking
Brand accountability
Branding proposals must be made in a way to increase revenues and maintain
customer loyalty. The company must perform its SWOT analysis and make
projections which are internally sourced. (The power of branding: a practical guide,
2015)Branding proposals must not just focus on the short term goals but attaining
long term commitments. Branding proposals must focus on adhering to its code of
conduct and ethical standings. Being accountable, integrity filled and consumer
benefits must be considered. (The Coca Cola Company, 2015)Branding strategies also
includes heavy advertising campaigns and external communication to reach the
masses. Nowadays in the generation of social media marketing, top companies must
communicate its promotions and products through various tools of media- social and
others. (Aytm.com, 2014). When we talk about the marketing strategies for a sports
and energy drink campaign, we need to answer certain questions-
What is the market size of the beverage industry?
What are the top brands?
Who is the target audience?
What is the current market situation in the beverage industry?
Who are the important rivals or competitors in the market?
What is the current market share of the chosen drink?
It is important to understand the concept of brand strategy as brand image does not mean the
product name, logo, website or the company’s name. The most important concept of branding
is how the customers and the target audience perceives the company and feels towards it.
8. What a company does beyond just the selling and gaining profit part is included in the
definition of a brand strategy.(Simply Measured, 2014)
1. Current situation analysis:
Coca Cola has maintained its brand image by being the most refreshing beverage for
people of all ages. It occupies the maximum share in the carbonated drinks industry.
Coca Cola has also emotionally connected itself with its customers all over the globe,
through various mediums especially the social media- Facebook, Tumblr, YouTube,
Twitter and Instagram.(Sorenson, 2014) Cultivating loyalty has also been an
extremely important strategy for the company. Coca Cola has become a household
name worldwide. People have an emotional connect with it, as any family gatherings,
social meets, parties and mere fun is attached with Coca Cola, which is a big
achievement for the company. Coca Cola has become aware of the health factor of its
customers and has developed such new products like the Coke Zero and Diet Coke,
making it a socially responsible beverage company. (Us.coca-cola.com, 2014)Coca
Cola has also shown immense efficiency in its operations and human resources
management, where its employees are its assets and lastly it has touched the global
market spreading across 200 countries. The company has various product lines and
product mixes which includes- soft drinks, diet drinks, juices, water, energy drinks,
sports drinks and cordials. (The Coca-Cola Company, 2014) It faces competition from
its rival PepsiCo as Pepsi is a more diversified brand with juices, drinks and snacks as
its product lines and product mixes. Coca Cola is a hit among the youth and even its
social media marketing strategies have shown this, like the Facebook. The main
critique here is the CSR factor, in which it lacks behind. It has not lived up to the
corporate social responsibility in the society as a whole.
9. 2. Purpose:
A brand campaigning proposal that is an extension of Coca Cola’s existing brand
image can be expanding its geographical base by developing strategic collaborations
and mergers with important countries or markets. Organic and low-caffeine raw
materials must be used to produce the beverages and soft drinks. Coca Cola can
strategize its pre-sale and after-sale services and build a stronger portfolio. As more
and more people are becoming health conscious and preferring less sugar filled, low
caffeine, non-carbonated soda drinks, especially the energy drinks, Coca Cola has to
be smart and sensible in this arena. Competitors are increasingly becoming aware of
this issue of organic ingredients and sugar- caffeine free soft drinks and beverages.
Reducing harmful environmental impacts by promoting more healthy living and also
enhancing its relationship with its bottling partners must be a priority of Coca Cola.
The purpose of coca cola has been to follow the SMART goals, namely stretching,
measuring, achievable, and realistic and time bound. The purpose of this company is
to retain its customers and target audience. It also needs to improve its CSR factor,
keep in check of its rivals, diversify its product lines and mixes and lastly expand its
business to more untapped markets to globalize its products especially in developing
countries like India.
3. Strategic References:
Responsible branding and long term commitment towards its customers and
employees are two major considerations in an ongoing branding strategy of a company.
Branding goes beyond the product and the profit earning motives of a company. Coca Cola is
a brand name that has reached the global arena. Coca Cola must also resort to careful
commercial advertising and who it needs to target. Quality must never be compromised and
strategies that enhance the quality of the products must be implemented. Corporate strategy
10. of Coca Cola must identify markets, products, geographical locations and its target
customers. (Us.coca-cola.com, 2014)The competition factor will always be present and so
will be the “risk” factor. Competitors shall keep on launching new products even
compromising on their quality in order to raise their profit that is inevitable. What shall hold
Coca Cola Company together is their story, their inception and content marketing. Coca Cola
faces major challenges from Pepsi and also other upcoming beverage brands but by
developing a business with an affordable and popular product Coca Cola shall be able to
achieve its long term goals. Thus an important factor is the direct relation between
profitability and the market share of Coca Cola. Coca Cola must strive to look beyond a
“ready and packaged liquid refreshments” identity by taking a standardized strategic
approach in branding.
4. Tactics:
Consumers are becoming health conscious with each passing day. Thus firstly Coca
Cola needs to improvise on its low calories and less caffeine contents of its products,
it can improve its strategic components. Coca cola needs to diversify its product lines
and launch some snacks variety. It needs to develop and strengthen its customer base
and target audience. To retain its reputation it really needs to work on its CSR
activities in developing countries where facilities are less but rate of growth and
development is high. India is a youth country and since Coca Cola has a majority of
youth as its target audience, it must invest in this country.
5. Evaluation
Coca Cola is a household name now, all over the world. It needs to focus on building
its brand image and especially with regards to its Corporate Social Responsibility
factor. Proper evaluation is necessary to implement business and corporate strategies
to retain and sustain its reputation as the largest shareholder in the beverage market.
11. Also, considering the health issues and using a more organic approach in its contents
and ingredients is necessary for Coca Cola to benefit its target customers. Responsible
marketing and content branding needs to be the priority of Coca Cola.
The power of branding is essential to the growth of a company, Coca Cola has
been successful in retaining its name as the most successful beverage brand in the
beverage industry. (The power of branding: a practical guide, 2015)The brand identity
and design standards of a product determine its long term value of goodwill. Brand
standards and brand proposals help the product to retain its quality and market share.
In a country like India, too Coca Cola has managed to stay at the top of its game.
(Coca-colaindia.com, 2015) Three things that are utmost essential for Coca Cola are –
its market, brand and its target audience. Keeping its brand image intact it is being
estimated that Coca cola shall become a game changer in the existing and future
generations, in the next 5 years to come. (Coca-Cola Zero Brand Identity and Design
Standards v1.0, 2015)
Coca-Cola with regards to its branding proposal can launch “Smart Snacks” in
schools and colleges, taking into considerations the nutrition standards and health factor of
the children. Instead of being just another snack brand and focussing just on the taste factor,
Coca Cola should focus more on the organic content of the raw materials that can be used in
the products. Often beverage and snack brands overlook the standards and health after
effects. Focussing on healthier food choices especially by the youth generation should be the
focal point of the company. For example,
Encouraging organic raw materials- lean protein, low fat dairy, oat meals, whole
grains, gluten-free ingredients and low cholesterol products.
Coca Cola must not produce another “Chips” brand, rather innovate healthier
alternatives to chips using fresh herbal ingredients.
12. Veggie chips are also a lucrative concept that can be tried by Coca Cola, instead of
using the usual potatoes the company can think of using sweet potatoes or even
squash and green leafy vegetables can also be used like cabbage, spinach or even
broccoli for making nutritional chips. The sky is the limit for introducing such
unusual yet healthy chips for Coca Cola, if used wisely it can be an instant hit.
Crackers and snack bars can also be introduced by Coca Cola, for its youth audience.
Healthier granola bars are as it is popular with the school and college going students.
Baked Tostitos reduced fat Tortilla chips, low fat crisps are also some very interesting
product lines that can be introduced by Coca Cola.
Avoiding trans-fat component is very necessary and if Coca Cola wants to sustain its
brand image it needs to prioritise few very minor yet crucial ingredient factors. These
trans-fat include hydrogenated fat oils which are very harmful for the body and often
goes unnoticed by other snack providing brands and local suppliers. Coca Cola can
emerge as an exception here.
It is essential for Coca Cola to know how to formulate a winning, seller-buyer pitch
standard. Motivation within the organisation and its buyers is crucial.
Social media marketing is extremely important, as nowadays “Social word of Mouth”
is an important tool of brand marketing since it allows the company to engage the
target audience more inclusively. A social sampling campaign using Twitter, Tumblr,
Instagram and Facebook can be useful to promote the new product lines introduced by
Coca Cola.
Snacks are being provided by innumerable suppliers- local and international. In order
for Coca Cola to become a hit in the market it needs strong and nutritional value
based products. This includes, focussing on the raw materials, organic ingredients,
13. low fat and low cholesterol alternatives, food packaging methods, high quality and
lesser side effects.
Other standard promotional strategies that can be used by Coca Cola are “display
marketing”, reasonable pricing and ensuring higher quality standards.
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