Coca-Cola 2016 Christmas Marketing Campaign

Coca-Cola 2016 Christmas Marketing Campaign
It is almost impossible to visit a Supermarket or Newsagent in the world that isn’t bombarded by an
aray of Coca-Cola products. For over 130 years now, Coca-Cola has stood as one of the worlds
leading non-alcoholic beverage corporations (J. Staff, 2016). Founded by pharmicist John Pemberton
who progressed from humble begginings of selling nine servings of Coke a day, to the present where
that number has rocketed to 1.9 billion servings (The Telegraph, 2017). Hence, it comes as no
surprise that the red and white Coca-Cola logo is recognised universally by 94% of the world’s
population (Coca-Cola Company, 2016).
FIGURE 1
Strengths
Company valuation – One of the most valuable
companies in the world is Coca-Cola, valued at
around 79.2 billion dollars (Hitesh Bhasin, 2017).
Vast global presence – Coca cola is present in
200 countries across the world (Coca-Cola
Company, 2016).
Distribution network – Coca-Cola has a very
large distribution network as the demand for its
products is vast.
Largest market share – There are only 2 Big
competitors in the beverage segment – Pepsi and
Coca-Cola. Out of these two, Coca-Cola has the
largest market share.
Customer Loyalty – Due to their name being
widely recognised and having such a strong
product range, it is expected that Coca-Cola has a
lot of customer loyalty.
Marketing strategies – Coca-Cola tends to focus
more on winning over the hearts of their
costumers unlike Pepsi who focus more on
staying on trend. Coca-Cola maintains a steady
demographic with people of all ages whereas
Pepsi’s target is frequently changing, and is
mostly targeted towards millennials.
Weaknesses
Competition with Pepsi – Coca-Cola’s major
competitor is Pepsi. The competition between
these two soft drink brands is very intense as
they race to become the clear market leader.
Absence in health beverages – There has been
an increasing concern for obesity and diabetes
associated with soft drinks. Carbonated
beverages are responsible for a considerable
amount of fat intake. Coca-Cola have received a
lot of pressure to provide healthier alternatives
but haven’t yet addressed or found a healthier
solution.
Opportunities
Diversification – by creating new products or
diversifying their current offerings Coca-Cola
could improve the range of offerings to their
customers. They could begin by targeting
products in areas that haven’t been developed by
Pepsi, such as in the health food sector. This way
they branch out from soft drinks.
Developing nations – Although Coca-Cola already
has a significant presence across the globe, there
is still potential to increase their opportunities in
Threats
Raw material sourcing – Coca-Cola has been
suspected of using pesticides in their water or
using an excessive amount of water. However,
factors such as climate change mean that water
is also becoming increasingly scarce.
Considering Coca-Cola requires a considerably
quantity of water to maintain their soft drink
empire, they could be in trouble.
Should water be restricted or regulated, Coca-
Cola could experience a major downfall in their
revenue and capacity of distribution. However,

Coca-Cola 2016 Christmas Marketing Campaign
developing countries. Coca-Cola could place
more emphasis on developing countries with
humid temperatures as these countries are still
being introduced to the delight of carbonated
drinks and soft drinks, they will embrace Coca-
Cola’s products in a way developed countries,
may not.
this will also apply to their rivals, Pepsi
(Randeep Ramesh, 2014).
Indirect competitors – There is a rise in the
demand for smoothies, healthy tonics, and
coffee chains like Starbucks, Costa coffee.
Despite not being a direct competitor, products
like these challenge the livelihood of
carbonated drinks within the beverage market,
as consumers are turning to healthier
alternatives with less sugar.
From looking at this comprehensive SWOT analysis, we can deduct several key qualities about Coca-
Cola. Ranging from their longtime opposition with Pepsi and recent competition with alternative
beverage markets to having a dominating market share and global presence, yet facing ridicule
about the healthyness of their products. Most notebly however, is the Marketing Strategies put
forth by Coca-Cola. Whilst this may have been concluded as a strength in the SWOT analysis, this
positioning can be scrutinised using one of Coca-Cola’s largest marketing stunts, the 2016 ‘A Coke for
Christmas’ campaign.
“Following a very successful campaign, we’ll continue the momentum with our biggest Christmas
campaign in five years. Taking some firm fan favourites like the Coca-Cola Christmas Truck Tour and
combining with social media and live video, keeps the campaign fresh and bang up to date.”
- Aedamar Howlett, Marketing Director for Coca-Cola UK, (Tony Connelly, 2016).
As emphasised in the statement above, the Marketing team at Coca-Cola UK were persistent to
expand their capabilities and gain further recognition with their 2016 Christmas campaign.
The primary method used by Coca-Cola to achieve such marketing success stems from the notion of
Emotional Branding. “Successful companies sell through emotions and connect with their audience
on an emotional level which creates a strong bond” (Dave Meier, 2016). Since the launch of their
first winter advertisement in 1920, Coca-Cola has been responsible for igniting the festive cheer
country-wide. For many it is even the brand that comes to mind when getting into the holiday spirit
and has become as much a part of the festivities as decorating the Christmas tree or cooking
Christmas dinner. Thus, it is understandable that Coca-Cola’s consumers have developed an
emotional attachment to the campaign.
Nevertheless, Coca-Cola’s dependence on Emotional Branding to gain consumer loyalty, eventually
backfired during their 2016 Campaign. Consumers became too attached and emotionally involved in
the traditional features of the ‘Holidays Are Coming’ commercial. Whilst the advert has not changed
significantly over the years, it seems that people were quick to notice a minute but specific detail
missing. “It used to feature an animated Santa - the same one who has featured in Coke ads for
decades - winking at a sad little boy from the back of a truck,” (Olivia Waring, 2016).

Coca-Cola 2016 Christmas Marketing Campaign
This level of sensitivity attached to the marketing campaign, as is evident in the tweets above,
subsequently inhibits Coca-Cola’s ability to evolve their marketing content and exhibit progression.
Coca-Cola’s use of Emotional Branding in their 2016 Christmas campaign also correlates with the
Experiential Marketing methodology. The premise behind Experiential Marketing centres on the
multi-sensorial features of consumption, and the hedonic needs causing consumer behaviour.
Theorists of this approach such as the founders Holbrook & Hirschman (1982), stray away from
conventional thinking of the consumer as a problem solver, who plainly seeks to capitalise from the
benefits of their consciously thought out and rational decisions. Instead, they take a more modern
approach which sees the consumer as an ‘Experience Seeker’. Expert David Moth, effortlessly sums
up the process of Experiential Marketing as one which “creates a closer bond between the consumer
and the brand by immersing them in a fun and memorable experience,” (Christopher Ratcliff, 2014).
Coca-Cola achieved this with their extravagant 2016 Truck Tour stop, accomplishing all 4 stages of
the Consumption Experience put forth by Arnould et al (2005):
Figure 2
1) the pre-consumption experience is achieved as
the iconic truck has been featured heavily in
Coca-Cola’s commercials since November
1995. Customers were also able to track the
Christmas truck on route to each of its 46
destinations across the country on the Coca-
Cola website. This creates immense
excitement and anticipation in which
consumers can develop their imagination.
2) the purchase experience occurs when the
consumer initially arrives at the Christmas
Truck. They are welcomed by a host of Coca-
Cola representatives, dressed in festive
costumes and spreading the joy as they hand
out a selection of free Coke products for
consumption.