Unit 1: Evolution of Digital Marketing
Assignment 1
Student Name........................ Daniel Del Toro Suarez
Student Number..................... 76128441
Introduction
Coca-Cola’s Extended Marketing Mix
Task 1
Product
Coca-Cola UK is offering more than 80 different drinks across 20 different brands, the diversification of their products - From Coca-Cola to water or juice, etc-, is an answer to attend not only their customers' needs but also their wants and demand.
Since Coca-Cola opened for first time in Atlanta 127 years ago, their bottles remain the same with a slightly variation in the shape and brand letters. Therefore, Coca-Cola marketing strategy over the years wasn't to improve their original product but to keep it and expand the business through a diversification of their products.
One of the Coca-Cola strengths is their branding, always playing with colours and keeping the red and white colour as a sign of Coca-Cola's identity together with the brand name and the font used. The design and marketing strategy of Coca-Cola is made in a way that consumers would easily recognise their brand just by watching the first letter "C" or associating the colours with the brand.
 |
| Image 1 – Coca-Cola product line in the UK, Coca-Cola UK is currently offering more than 80 drinks across 20 different brands. |
 |
| Image 2 – Coca-Cola bottles over these 127 years with different colours and labels but without major changes in shape. |
 |
| Image 3 – Coca-Cola product in. different format and label colour. |
 |
| Image 4 – Coca-Cola Zero Sugar range is bringing new opportunities to the company that is reacting to the trending changes demanded by customers and governments that already have implemented a “Sugar Tax” likewise the UK. |
Price
Coca-Cola has followed a price strategy based on competitiveness among other brands offering a similar product in the same market.
Since 6th of April 2018, the UK Government has implemented the Sugar Tax which has had an impact on Coca-Cola's prices and forcing customers to choose the Zero Sugar option. (HM Treasury, 2018)
To diversify the prices, the product can be found in the market in different bottles and cans formats and with different capacity. The company is also selling the product by units or in multipack, this also helps to reduce selling prices and make it more affordable for consumers. Coca-Cola is also offering to its customers different promotions all year around.
 |
| Image 5 – Some of the Coca-Cola original product in different formats available in the market. |
 |
| Image 6 – Coca-Cola Zero Sugar Multipack offering 3 additional free drinks. |
 |
| Image 7 – Piece of the Makro’s catalogue with Coca-Cola products, in this image it is clear the price different between the original product and the Zero version, this is because of the sugar tax implemented in 2018. |
Place
Coca-Cola is selling its products in more than 200countries around the world across 6 main operating regions including Europe, Latin America, North America, Pacific, Eurasia & Africa. (Coca-Cola Company, 2019)
To achieve this, the company works with a distribution and packaging system on location and in partnership with local distributors. This strategy allows the company to reach a bigger number of customers by distributing their products in remote regions and reaching more retailers and venues that will provide their products to final consumers.
Coca-Cola also distributes its products directly to customers through vending machines. Only in Japan, the company has 3.8 million vending machines and in the company's home country, U.S.A, they have 6.9 million vending manchines in total. (Coca-Cola Company, 2019)
At the moment, the company has only 3 stores where they sell directly to customers, these stores are located in the company's birth city Atlanta, Las Vegas and Orlando -All these cities in the US-.
 |
| Image 8 – Coca-Cola Distribution Centre in Sidcup, United Kingdom. |
 |
| Image 9 – Coca-Cola’s first ever fully automated, coin-operated cooler. |
 |
| Image 10 – Coca-Cola Store in Orlando, US. This store was open in July 2016 at Disney Springs |
 |
Image 11 – Interior of World of Coca-Cola, an exhibition centre and museum the company has in their birth city Atlanta in US. Inside of World of Coca-Cola there is one of the three stores the company has worlwide.
|
Promotion
Coca-Cola is currently offering a huge range of products to its customers focusing on an extensive target market with different ages, gender and cultural background, but also those customers with different needs demanding healthier products low in sugars and calories.
Although this company has a global reputation, the soda industry is having an intense competition, therefore, Coca-Cola spends much on advertising to drive higher sales and revenue.
Coca-Cola Christmas ad is one of the classical in the TV around the world, their Christmas ad has a great expectation from consumers and professionals in the field. Click here to watch Coca-Cola Christmas advert 2019
Their advertisement campaing in sport events is also remarkable, especially after their campaing in the Football World Cup in South Africa 2010 starring by famous singers in English and Spanish language such as K'naan and David Bisbal, the strategy of joining both languages in a single ad it was a strong betthat potentially reached more than 900 millions of people around the world if we count the native speakers of both languages. The success of this campaign removed prominence to the official song of the event sung by the international Colombian singer Shakira. Click here to watch Coca-Cola South Africa 2010 Advert.
 |
| Image 12 - Holidays are Coming… The iconic Coca-Cola Christmas truck tour will be back for 2019 in the UK. |
 |
| Image 13 – Controversial sign made from Coca-Cola Hungary to support the LGTB community in the country with the message “#LOVEISLOVE - Zero Sugar, Zero Prejudice”. |
 |
| Image 14 - Coca-Cola bottle drunk by Will Ferrell in ELF, 2003. |
 |
Image 15 – A customer posting on Twitter a customised bottle of coke launched by Coca-Cola with the tittle “Share a Coke”.
|
 |
| Image 16 – Coca-Cola Arena inaugurated in 2019. The Coca-Cola Arena, Dubai is the first and largest fully air-conditioned, multipurpose indoor Arena in the Middle East and the only Arena to operate year-round in the region. |
Physical Evidence
Physical evidence is essential for Coca-Cola, although the company owns different brands in different countries - Only in the UK Coca-Cola have 20 different brands-, all the company's effort and the biggest expenditure in marketing is for Coca-Cola, this include vending machines, sign boards, trucks, etc. Although Coca-Cola is not a necessary product to cover humans basic needs, consumers expect to find this product in supermarkets and stores of all the sizes and hospitality venues. Therefore, Coca-Cola's physical evidence is the product itself distributed around the world and all the marketing campaigns that surround the brand.
 |
| Image 17 – Coca-Cola Display at Tesco forming a heart shape with multipack products, published in Twitter by a customer. |
 |
| Image 18 – Photo took in February 1989 in Dublin where we can observe the company’s effort to be everywhere. |
 |
| Image 19 – Real Madrid - Santiago Bernabeu Stadium with Coca-Cola logo in its front, Madrid, Spain. |
 |
| Image 20 – Coca-Cola lights at Picadilly Circus in London. This sign has been in Picadilly Circus since 1955. |
 |
| Image 21 – First Coca-Cola Sign at Picadilly Circus, London, in 1955. |
Process
The process that Coca-Cola use is determined by the nature of the business, being a company that serve a huge range of soft drinks, their process will be found in the manufacture and product bottling.
“The Process: The production cycle starts with sugar, fruit juices, flavours and concentrate or beverage base. The finished products will be packaged in PET or glass bottles, metal cans, bag in box or kegs.
Water Treatment:The water used in the production process is subjected to special treatments that ensure the microbiological safety and the correct concentration of naturally dissolved salts, in compliance with specific compositional and sensory characteristics.
The Syrup:Thisis prepared in special tanks by dissolving sugar in the treated water, then filtering the water to remove any impurities. Only after this, this “simple syrup” is mixed with “concentrate” or the various “basic preparations” used for the various drinks, thus becoming “final syrup”.
A flash pasteurisation thermal process ensures that even the most sensitive products will not alter their sensory characteristics during their shelf life.
A flash pasteurisation thermal process ensures that even the most sensitive products will not alter their sensory characteristics during their shelf life.
Filling and Packaging:The treated and cooled water is mixed with the final syrup and, for sparkling drinks, with the carbon dioxide that gives the product its characteristic effervescence.
The drink is then ready to be packaged: every hour, tens of thousands of perfectly clean containers are filled, hermetically sealed, labelled, coded and tested in modern automatic plants. The glass bottles are placed in boxes, while the nonreturnable glass bottles, PET bottles and cans go into various multi-packs.” (Coca-Cola Italy, 2020)
 |
| Image 22 – Coca-Cola bottles during the manufacturing process. |
 |
Image 23 – Coca-Cola cans during the packing process. (Coca-Cola Italia, 2020)People
According to the specialised website statusta.com, Coca-Cola is currently employing 86,200 workers worldwide. (Statista, 2020)
The company is continuously investing in equality and diversity which has led them to obtain different awards across the world and in different countries and continents.
|
 |
Image 24 – Women working at Coca-Cola manufacturing centre.
Task 2
Introduction
When it comes to marketing, promotion could be one of the most important parts of it, an article from the specialised blog www.marketingmix.co.uk explains that “Promotion is the part of marketing where you advertise and market your product, also known as a promotional strategy. Through it, you let potential customers know what you are selling.In order to convince them to buy your product, you need to explain what it is, how to use it, and why they should buy. The trick in promoting is letting consumers feel that their needs can be satisfied by what you are selling.”
Taking this definition into consideration, it can be appreciated that promotion is a fundamental part of marketing, this is where companies such as Coca-Cola have the opportunity to show their products to potential buyers, increase its revenue and make real profits out of it.
An overview of Coca-Cola’s promotional strategy
Through this research, it was identified how Coca-Cola promotes its products focusing on three key elements; advertising, sales promotion E.g. reduced price, 2x1, etc. and visual merchandising.
Its products are promoted openly in busy areas with a large amount of potential consumer such as public boards or large screens like in Piccadilly Circus in London or Times Square in New York.
|
 |
| Image 25. Coca-Cola 3D boar in Times Square – New York City.
Their presence in busy areas and stores from all sides make this business one of the more well knows brands in its industry and world-leader. Their strategy is not only focus on their reputation but aim to persuade consumers to buy their products.
Sales promotion is also a widely-used tactic, specially since the new sugar tax implementation in some countries like the United Kingdom that forced their original product to increase the price in the market.
The effectiveness of Coca-Cola’s strategy
when thinking about Coca-Cola as one of the brand leaders in its industry, this is certainly because of their promotional strategy success and the way their approaching to its market target. This is also reflected on the company’s revenue which reported an increased sales revenue of 7b USD between the years 2009 and 2019 having this year a total revenue of 37.27b USD.
According to Investopedia, the sales revenue increase in the company makes sense since Coca-Cola has been spending an average of 4 billion dollars every year from 2015 to 2019.
How Coca-Cola has evolved its promotional strategy over time
Coca-Cola aims to leave its presence in every major event where its product is traded, concerts, sport events, local festivities, etc. Consumers are constantly watching at Coca-Cola’s advertising boards or screens even when they don’t realise about this.
This way, the company ensure that they reach bigger audiences and prompt them to buy their products. They define their brand playing with the red and white colours and the shape of their bottles where a consumer can easily identify their brand just for watching a bottle with the red lid.
This company is certainly giving us the feeling of being consuming a traditional drink that every year surprise us with a new TV spot for Christmas and always use the same colours to identify their brand, however, they also developed the way they deliver their ads, through modern screens, vendor machines that are tactile, or messages that correspond with current situations that a country or a community might be living in that moment.
|
Reference
Coca-Cola UK, 2019. [Online]
Available at: https://www.coca-cola.co.uk/stories/5-ways-were-helping-you-enjoy-less-sugar
[Last Access: 24 November 2019].
Available at: https://www.coca-cola.co.uk/stories/5-ways-were-helping-you-enjoy-less-sugar
[Last Access: 24 November 2019].
Heartland Coca-Cola, 2019. [Online]
|
Available at: https://heartlandcocacola.com
[Last Access: 24 November 2019].
[Last Access: 24 November 2019].
Coca-Cola Company, 2019. [Online]
Available at: https://www.coca-colacompany.com/stories/less-is-more-small-packages-mean-big-win-for-coca-cola
[Last Access: 24 November 2019].
Available at: https://www.coca-colacompany.com/stories/less-is-more-small-packages-mean-big-win-for-coca-cola
[Last Access: 24 November 2019].
Coca-Cola Company, 2019. [Online]
Available at: https://www.coca-colacompany.com/stories/introducing-orange-vanilla-coke-and-orange-vanilla-coke-zero-sugar
[Last Access: 24 November 2019].
Available at: https://www.coca-colacompany.com/stories/introducing-orange-vanilla-coke-and-orange-vanilla-coke-zero-sugar
[Last Access: 24 November 2019].
HM Treasury, 2018. [Online]
Available at: https://www.gov.uk/government/news/soft-drinks-industry-levy-comes-into-effect
[Last Access: 24 November 2019].
Available at: https://www.gov.uk/government/news/soft-drinks-industry-levy-comes-into-effect
[Last Access: 24 November 2019].
Marketing Week, 2018. [Online]
Available at: https://www.marketingweek.com/coca-cola-great-britain-marketing-director/
[Last Access: 24 November 2019].
Available at: https://www.marketingweek.com/coca-cola-great-britain-marketing-director/
[Last Access: 24 November 2019].
www.fairprice.com, 2019. [Online]
Available at: https://www.fairprice.com.sg/product/13149003
[Last Access: 24 November 2019].
Available at: https://www.fairprice.com.sg/product/13149003
[Last Access: 24 November 2019].
My-leaflet, 2019. [Online]
Available at: https://my-leaflet.co.uk/Makro-offers/catalogue-8538-6
[Last Access: 24 November 2019].
Available at: https://my-leaflet.co.uk/Makro-offers/catalogue-8538-6
[Last Access: 24 November 2019].
Coca-Cola Company, 2019. [Online]
Available at: https://www.coca-cola.co.uk/faq/how-many-countries-sell-coca-cola-is-there-anywhere-in-the-world-that-doesnt
[Last Access: 24 November 2019].
Available at: https://www.coca-cola.co.uk/faq/how-many-countries-sell-coca-cola-is-there-anywhere-in-the-world-that-doesnt
[Last Access: 24 November 2019].
Flickr, 2015. [Online]
Available at: https://www.flickr.com/photos/dgeezer/21425049896
[Last Access: 24 November 2019].
Available at: https://www.flickr.com/photos/dgeezer/21425049896
[Last Access: 24 November 2019].
Coca-Cola Company, 2019. [Online]
Available at: https://www.coca-colacompany.com/stories/16-things-you-didnt-know-about-vending-machines-in-japan-and-around-the-world
[Last Access: 24 November 2019].
Available at: https://www.coca-colacompany.com/stories/16-things-you-didnt-know-about-vending-machines-in-japan-and-around-the-world
[Last Access: 24 November 2019].
Coca-Cola Company, 2019. [Online]
Available at: https://www.coca-colacompany.com/stories/16-things-you-didnt-know-about-vending-machines-in-japan-and-around-the-world
[Last Access: 24 November 2019].
Available at: https://www.coca-colacompany.com/stories/16-things-you-didnt-know-about-vending-machines-in-japan-and-around-the-world
[Last Access: 24 November 2019].
TreyVeal, 2019. [Online]
Available at: http://www.treyveal.com/new-page-2
[Last Access: 24 November 2019].
Available at: http://www.treyveal.com/new-page-2
[Last Access: 24 November 2019].
World of Coca-Cola, 2019. [Online]
Available at: https://www.worldofcoca-cola.com/explore/explore-inside/explore-loft/
[Last Access: 24 November 2019].
Available at: https://www.worldofcoca-cola.com/explore/explore-inside/explore-loft/
[Last Access: 24 November 2019].
Coca-Cola Company, 2019. [Online]
Available at: https://www.coca-cola.co.uk/stories/keep-on-trucking
[Last Access: 25 November 2019].
Available at: https://www.coca-cola.co.uk/stories/keep-on-trucking
[Last Access: 25 November 2019].
LGTB Nation, 2019. [Online]
Available at: https://www.lgbtqnation.com/2019/08/coke-released-cute-gay-ads-now-right-calling-boycott/
[Last Access: 25 November 2019].
Available at: https://www.lgbtqnation.com/2019/08/coke-released-cute-gay-ads-now-right-calling-boycott/
[Last Access: 25 November 2019].
Pinimg.com, 2015. [Online]
Available at: https://i.pinimg.com/originals/87/78/4d/87784d538ddcb4d6977b1983e208e043.jpg
[Last Access: 25 November 2019].
Available at: https://i.pinimg.com/originals/87/78/4d/87784d538ddcb4d6977b1983e208e043.jpg
[Last Access: 25 November 2019].
Econsultancy.com, 2019. [Online]
Available at: https://econsultancy.com/digital-marketing-campaigns-coca-cola/
[Last Access: 25 November 2019].
Available at: https://econsultancy.com/digital-marketing-campaigns-coca-cola/
[Last Access: 25 November 2019].
World New Observer, 2019. [Online]
Available at: https://worldnewsobserver.com/bookmyshow-coca-cola-arena-dubai-deal/
[Last Access: 24 November 2019].
Available at: https://worldnewsobserver.com/bookmyshow-coca-cola-arena-dubai-deal/
[Last Access: 24 November 2019].
Twitter, 2015. [Online]
Available at: https://twitter.com/Tesco/status/566645278850416640
[Last Access: 25 November 2019].
Available at: https://twitter.com/Tesco/status/566645278850416640
[Last Access: 25 November 2019].
Flickr, 1989. [Online]
Available at: https://www.flickr.com/photos/48073612@N04/13009600785
[Last Access: 25 November 2019].
Available at: https://www.flickr.com/photos/48073612@N04/13009600785
[Last Access: 25 November 2019].
www.nuevatribuna.es, 2014. [Online]
Available at: https://www.nuevatribuna.es/articulo/sociedad/pasara-real-madrid-llamarse-coca-cola-futbol-club/20140213125432100854.html
[Last Access: 25 November 2019].
Available at: https://www.nuevatribuna.es/articulo/sociedad/pasara-real-madrid-llamarse-coca-cola-futbol-club/20140213125432100854.html
[Last Access: 25 November 2019].
Campaignlive.com, 2019. [Online]
Available at: https://www.campaignlive.co.uk/article/hyundai-put-name-piccadilly-circus-lights/1073511
[Last Access: 24 November 2019].
Available at: https://www.campaignlive.co.uk/article/hyundai-put-name-piccadilly-circus-lights/1073511
[Last Access: 24 November 2019].
Coca-Cola Company, 2019. [Online]
Available at: https://www.coca-cola.co.uk/stories/the-piccadilly-sign-how-coca-cola-found-a-home-at-one-of-the-most-famous-advertising-spots-in-the-world
[Last Access: 25 November 2019].
Available at: https://www.coca-cola.co.uk/stories/the-piccadilly-sign-how-coca-cola-found-a-home-at-one-of-the-most-famous-advertising-spots-in-the-world
[Last Access: 25 November 2019].
Coca-Cola Italy, 2020. [Online]
Available at: https://it.coca-colahellenic.com/en/our-activities/plants-and-processes/production-processes/
[Last Access: 12 April 2020].
Available at: https://it.coca-colahellenic.com/en/our-activities/plants-and-processes/production-processes/
[Last Access: 12 April 2020].
Coca-Cola Italia, 2020. [Online]
Available at: https://it.coca-colahellenic.com/en/our-activities/plants-and-processes/production-processes/
[Last Access: 12 April 2020].
Available at: https://it.coca-colahellenic.com/en/our-activities/plants-and-processes/production-processes/
[Last Access: 12 April 2020].
Statista, 2020. [Online]
Available at: https://www.statista.com/statistics/254562/coca-colas-number-of-employees-worldwide/
[Last Access: 12 April 2020].
Available at: https://www.statista.com/statistics/254562/coca-colas-number-of-employees-worldwide/
[Last Access: 12 April 2020].
Coca-Cola, 2020. [Online]
Available at: https://www.coca-colacompany.com/shared-future/people-values
[Last Access: 12 April 2020].
Available at: https://www.coca-colacompany.com/shared-future/people-values
[Last Access: 12 April 2020].
Marketingmix.co.uk, 2012 - 2020. www.marketingmix.co.uk. [Online]
[Last Access: 19 Jun 2020].
[Last Access: 19 Jun 2020].
INC.com, 2020. [Online]
Available at: https://www.inc.com/kayla-matthews/coca-cola-used-1760-led-screens-to-create-this-ad-.html
[Last Access: 19 Jun 2020].
Available at: https://www.inc.com/kayla-matthews/coca-cola-used-1760-led-screens-to-create-this-ad-.html
[Last Access: 19 Jun 2020].
Statista, 2019. [Online]
Available at: https://www.statista.com/statistics/233371/net-operating-revenues-of-the-coca-cola-company-worldwide/
[Last Access: 20 Jun 2020].
Available at: https://www.statista.com/statistics/233371/net-operating-revenues-of-the-coca-cola-company-worldwide/
[Last Access: 20 Jun 2020].
Investopedia, 2020. [Online]
Available at: https://www.investopedia.com/articles/markets/081315/look-cocacolas-advertising-expenses.asp
[Last Access: 20 Jun 2020].
Available at: https://www.investopedia.com/articles/markets/081315/look-cocacolas-advertising-expenses.asp
[Last Access: 20 Jun 2020].
Adage, 2020. [Online]
Available at: https://adage.com/article/cmo-strategy/coke-puts-social-distancing-message-times-square/2245631
[Last Access: 20 Jun 2020].
Available at: https://adage.com/article/cmo-strategy/coke-puts-social-distancing-message-times-square/2245631
[Last Access: 20 Jun 2020].
No comments:
Post a Comment