E 164 - Analyzing Coca-Cola's Business Marketing Communications

This report provides an in-depth analysis of Coca-Cola's business marketing communications strategies. It begins with a company overview, detailing Coca-Cola's history, product range, and market share. The report uses the STP model to profile the target market and explores various modes of mar...Read More

E 164 Iuliana Frumuzache Business
Marketing Communications

Table of Contents
Introduction:....................................................................................................................................3
Task 1:.............................................................................................................................................3
Task 2:...........................................................................................................................................11
Task 3.............................................................................................................................................16
Conclusion.....................................................................................................................................20
Reference List................................................................................................................................22

Introduction:
In the research work, the researcher will try to describe different types of marketing strategies of
a chosen enterprise. In order to do so, the researcher will select Coca-Cola as the brand and
describe its products range and will critically evaluate different method of marketing. In
continuation to that, to identify the external risks, PESTLE analysis has been carried out. AIDA
model has been described in order to justify the strategies taken up by Coca-Cola. A marketing
communication strategy has been formed in order to understand the importance of
communication process which has been described further. In continuation to that the marketing
communication strategy of NIKE during “PyeongChang 2018 Olympic Winter Games” has
chosen in order to contrast and evaluate the effectiveness.

Task 1:
Company Overview:
In the year 1886, Atlanta pharmacist “Dr. John S. Pemberton” composed flavoured syrup and
mixed it with carbonated water. This was the creation of the legendary brand in beverage
industrial history of humanity, named by Mr. Frank M. Robinson, as Coca-Cola. The sales
average during the first year was 9 servings per day. Today Coca-Cola makes a serving of 1.9
billion per day worldwide. `The branding of Coca-Cola has always been in focus and a
distinctive beverage needs an idiosyncratic packaging as well. Thereafter, in the year 1977, the
contoured bottle got trademarked. In terms of advertising and marketing, Coca-Cola has always
been at the top of their games. From the beginning of the branding, they have used friends,
family and happiness as their keywords as their key points for advertisement. Considering the
current days, this gigantic brand has 48.6% of market share with the closest competitor brand
hovering at around 25%.
Range of products and services:
The brand deals with soft drink products including “beverage concentres” and syrups with a
major focus to beverages. There are more than 300 brands including the major brand “Coke”,
“Fanta”, “Lift”, “Sprite”, “Odwalla”, “Coca-cola freestyle”, “ciel” and “mello yello”. The
packaging and pricing of the products varies depending on geographical conditions such as
different prices and packaging for different countries. Coca-cola packages its beverages of 2
liters, 600ml and 300ml bottles into plastic and contoured glass bottles. Drinks are also available
in 375ml cans and the containers are trademarked and globally recognized by 94% of world
populations.

Analysis of specific products and profiling of target market (segmenting, targeting,
positioning):
Amongst all the remarkable products of Coca-cola, the focused brands are very limited and they
are Coke itself, and “Fanta”, “Lift”, “Sprite” and “Frutopia”. Coca-cola uses significant STP
model in order to profile the target market. The STP model includes segmenting of the market,
selection or targeting of potential segment and product positioning for targeted segment. The
STP model of Coca-cola for the prime brands is mentioned below.
Segmenting:
Segmenting procedure of the leading beverage brand is not single market centric but they use a
multi-segment focused procedure, which implies that the brand has all around characterised
market selection (Tanner & Raymond, 2015). This imposes a portrait of blending for each
portion. In order to do so, the brand produces 400 discrete product lines and 3,500 item blend.
Targeting:
In terms of targeting of the prime brands, Coca-cola does not have any specific segment. On the
contrary, Coca-cola adapts the marketing strategies in order to address the needs of consumers of
different segments (Shao & Bao, 2015). The brand “”Coke” is targeted to 12-30 years of
consumers, which is the youth despite of any gender discriminations. Moreover, the brand target
everyone as potential customers but the most potential customers as per Coca-cola is the age
segment from 18 to 25 years. The reason is that this age group covers the 40% of total age
segment. Combining all the prime focused segments, it can be concluded that for Coca-cola the
most lucrative segment to target is the youth, mobile generation.

Positioning:
Coca-cola has successfully positioned the brand amongst the 200 countries and succeeded to
maintain the same image worldwide by adapting to a core statement of “think global, act local”.
This motto helped the brand keeping the core product “Coke” well positioned worldwide and
addressing the needs of different localised demands. Coca-cola has been successful in
positioning the brand in the targeted segment by connecting the product with the emotions of the
consumers by using unique selling proposition such as “Live the coke side of the life” which is
related to happiness (Urde & Koch, 2014). The customers connect the brand with a happy
emotion and become loyal to the brand, making the purchase almost automated.
Different modes of marketing communication:
Coca-cola being the biggest brand in beverage industry, indulge themselves into a robust
marketing communication plans in order to keep the market presence prominent. The prime
marketing communication modes chosen by Coca-cola is “advertising”, “public relation”,
“personal selling”, “sells promotion” and “direct marketing” (Habibi, Laroche & Richard, 2014).
Coca-cola has used a unique personal selling strategy in history using coupons which was a
newly introduced method. In present days the brand has also used digital coupons in to conduct a
sales promotion. Personal selling has been in the target of the brand as they hire independent
sales persons to communicate with the retail stores to make the sale (Schlegelmilch, 2016). The
use of direct marketing is also present there in Coca-cola as they allow the customers to connect
with the company by providing a link on their official website using which the customers can
send feedback mails (Jackson & Ahuja, 2016).

The prime focus of Coca-cola’s marketing communication is advertising. Coca-cola has many
best in class advertisements in their profile sins the beginning which is appreciated worldwide.
The best advertisement of Coca-cola is considered to be the “world’s most famous television
AD”, showed a camera panning across the hilltop and showcasing people from all the ethnics
sing the pop song made by Coca-cola (Gillespie & Riddle, 2015). The advertisement coasted
$250,000, considered to be the most expensive advertisement of the time. Coca-cola has used
every aspect of advertisement such as “radio”, “magazine and newspaper”, “outdoor media”.
The second important mode of marketing communication for Coca-cola is public relation. In
terms of that aspect, Coca-cola is using social media as the medium such as twitter and Facebook
for public communication marketing. Coca-cola has two twitter accounts “@CocaCola” and
“@CocaColaCo” in order to communicate with the public in a two way communication and
educate them of the ongoing events (Sheth, 2017). The prime focus of Coca-cola for public
relation marketing communication mode is social media using iconic campaign like “Polar Bear”
with association with “WWE” during the “Super Bowl”. This allowed the brand to integrate
social media with the public relation CSR plan.
PESTLE factors affecting the consumer behaviour related to Coca-cola:
The company follows strict guidelines and cutting edge technology in order to serve the public a
bottle of soda. However, the operational parts are dependent on some macro factors for the
brand. PESTEL analysis has been conducted in order to figure out the factors.
PESTLE ANALYSIS

Political factors
Change in rules and legislations of FDA
Change in labour laws in UK
Modification in tax charges
Economic Factors
The majority of business comes from beverage
industry
Roughly income of 70% comes from business
outside of UK
Different tastes and preferences around the glob
Social Factor
Social awareness of health rejecting drinks with
more sugar in UK
Effective CSR activity and educating the people
about health
Dependency on sugar based product is getting
rejected by socity.
Technological Factor
Use of top notch technology to produce massive
number of drinks with best quality
Using social media technology to connect with
people
Usage of technologically advanced billboards
Legal Factors
Change in legal laws in UK post Brexit might
change the patent criteria
Environmental Factor
In case of any climatic changes, accessibility to
water will cause losses as the products require
water to be produced
Humid weather boosts up the sales figure as
public consume more o soft drinks in order to cool
themselves down
Non-adherence of environmental laws can affect
the brand heavily.

AIDA model (Attention, Interest, Desire and Action):
The AIDA model is the best marketing model accepted worldwide. Coca-cola has adopted and
applied AIDA model with ease. The basic structure of AIDA modle has been described below:
Attention: This part of the model is about generating attention amongst the people about any
upcoming product. Coca-cola organized a campaign prior to Diet Cock in order to gain attention
from the customers (Ireland & Ashton, 2017).
Interest: In continuation to attention part, comes the interest generating part in the customers so
that they go ahead and start looking further into the product once you have got their attention.
Coca-cola arranged a digital coupon program to distribute free samples of their upcoming
beverage (Athavale, 2015).
Desire: This section is about moving your customers from liking it to wanting it by connecting
certain emotions of the public with the product in case of Coca-cola through their advertisement
where they connected the public emotions with the products (Schneider Hahn, Scherer, Basso &
Brachak dos Santos, 2016).
Action: In continuation to the entire previous step, this is the final stage when the customer goes
and purchases the products.
Marketing communication theory:
In the contemporary era, customers are very cautious about the way of communication as they
want to learn about the product from the communication made. Coca-cola use different theories
and strategies in order to make the communication interesting and informative.

In the social media marketing of two-way theory it is important that the communication the
company is making should get a response in the form of feedback and the communication should
not be broadcast is nature (Baker & Saren, 2016). In regards to that Coca-cola has conducted a
strategy based on the theory which has been stated below.
Children Policy (2008): In the year 2008 Coca-cola has developed a policy based on “Two-way
marketing communication theory” stating that they will not target any children as customer
below 12 years of age and will also not promote their products where the density of children
below 12 years is on the higher side (Stuckler, Ruskin & McKee, 2018). This was a response to
the public request where parents have responded that kids are getting addicted to the products at
very early age of their lives. This kind of marketing communication strategy made Coca-cola
looked like a concerned corporation about the development of young generation and brought the
brand closer to its consumers.
Consumer buyer decision process:
This process is mainly consists of the stages a customer go through before making the purchase
decision. This consists 5 stages as mentioned below.
Problem or need generation: At the preliminary stage the buyer feels the recognition of a
particular problem or need without which a purchase cannot take place. The need might generate
by internal stimuli such as hunger or thrust or external stimuli such as advertisement or word of
mouth (Karimi, Papamichail & Holland, 2015).
Information search: In continuation to that, buyer starts to look out for the needed object once
the need has been located. Buyer starts to do research from his or her end in order to find the best
fit product or service needed in order to address the need of problem generated at the first step.

The buyer may rely on “print”, “visual”, “online media” or “word of mouth” in order to gather
information.
Evaluation of alternatives: Followed by the second stage, the buyer starts to evaluate the
available alternatives in order to choose the product or service. The buyer decides based on
certain criteria on which the purchase will take place
Purchase decision: This is the penultimate step where the buyer makes the decision of buying a
product or service from a vendor or survice provider after analyzing all the previous steps.
Pose-purchase behaviour: Surprisingly the process does not end after the consumption of the
product. Depending on the consumption of the product the buyer evaluates if the product or
service has sufficiently addressed the need of the buyer or not. If did not do so, then the buyer
will take needed action. At this point, the buyer might influence other potential buyer whether to
buy the product or not (Karimi, Papamichail & Holland, 2015).

Task 2:
Developing marketing communication strategies
In the contemporary era, UK based customers are more aware of health conditions and switching
to healthier habits and products day by day (Petersen, Kushwaha & Kumar, 2015). In order to
address the demands of the changing market scenario, Coca-cola has introduced healthy product
range including “Fuze Tea” and “Powerade Zero”. The online marketing strategy will be
developed in the coming steps as mentioned below:
Selection of target audience:
Targeting the audience is the first and very important step in order to build a successful strategy.
Coca-cola has never faulted their business by narrowing down the targeted customer. In context
to that, these products will be targeted for everyone as consumption of these products would not
harm or cause any health related issue. Thereafter, the targeted audience will be from every age
segments.
Communication objectives:
To educate the customers about importance of being healthy
To let the customer know the benefits of fruit based drinks
To provide knowledge about choosing a healthier product
To letting the customers know that Coca-cola’s social responsibilities towards a healthier
tomorrow.

To inform the public about the new products that Coca-cola has came up with
Developing advertisement contents:
As the advertisement will be based on healthier products, Coca-cola would focus on the healthy
benefits of the products they are launching that is “Fuze Tea” and “Powerade Zero”. As the
platform of the advertisement is social media, Coca-cola will go for video contents in order to
connect with people with a tag line of “Drink Healthy, Stay healthy” which adheres to the
communication adjective of letting the customer know the benefits of choosing healthier
products. The advertisement will contain visual images of the fruits out of which the drinks are
composed. The video will focus on how Coca-cola has changed their focus only from beverages
towards healthy products in order to portrait the social responsibilities of the brand. The newly
launched sub-brands will use athletes as the face of the product in order to convey the benefits of
being healthy to its consumers.
Selecting the social media platform:
In order to make the most out of the strategy, Coca-cola needs to select the proper social media
platform. This is the only way in which maximum number of consumers can be targeted. The
most of the young generations, which is 40% of the target audience are connected to online
social networking. Hence, “Facebook”, “Twitter” and “Instagram” has been chosen as the social
media platform as it covers the maximum number of population connected to social media. Apart
from this, Coca-cola will use their official website in order to convey the message the
advertisement campaign contains.
Communicating with the potential customers:

Probably the most important step of developing the marketing strategy is to get in touch with the
customers and the potential customer through the advertisement campaign. The advertisement
content will be posted on social media and consumers will leave their comment or questions
regarding the products. Coca-cola will assign a spoke person in order to communicate with the
consumers to get to know their reactions and needs better based on the advertisement.
Evaluate consumers’ feedback :
The last but the most important step of Developing marketing communication strategies in to
evaluate the customer feedback given on social media after the 3 months long campaign in order
to get to know that what is the opinion of the customers on the newly introduced products which
are “Fuze Tea” and “Powerade Zero”. The future of the launched product will depend on the
feedback of the customers. The feedbacks will discover mainly weather the products has meet
the needs of the customers or not. If it did so, then Coca-cola will focus on development of this
kind of products and if not then further study will be conducted of what is the need of the
customers and that will be addressed.
2.2 Importance of understanding the marketing communication processes :
In order to understand the marketing communication process, it is very important to know that
the person who practices “advertising,”, “branding”, “marketing”, “promotion”, “publicity”,
“sales” and etc are branded as marketing communicators. The communication process is
consisting of “sender-encoding-transmission” and “receiver-decoding-transmission”. There are 6
important reasons because of which understanding the importance of marketing communication
process is important while developing a strategy. The reasons are stated below.

Developing Strategic Vision:
The prime function of marketing strategies is to look out for new opportunities and create
strategies in order to make use of them as the advantages over the competitor brands. Marketing
communication process can discover exciting new emerging markets while targeting the
consumers and develop strategies to sell the product for the growth of the organization
(Tomczak, Reinecke & Kuss, 2018). Over the years, Coca-cola has developed many strategies
such public relation strategies on social media to look out for new opportunities.
Creating Brand Awareness:
In order to make a purchase, the consumer must be aware of the existence of the company and
what the company has to offer. “Advertising” and “promotions” are steps of “marketing
communication process” which spreads the awareness about the brand and the products. In order
to success, the organization should use the “marketing communication process” wisely in order
to figure out that what demographic groups are needed to be targeted and invest in marketing
expenditure in social media which targets that group (Huang & Sarigöllü, 2014). Coca-cola has
used the advertisement and promotion strategies with ease in order to create brand awareness in
150 countries across the globe.
Expressing Competitive Advantage:
“Marketing communication process” includes strategies using which the company imposes an
image of being superior of other brands available in market or the competitors (Windrem et al.,
2014). In order to do so the marketing messages are designed is such a way so that they convey
the benefits of obtaining the products or services. In continuation to that, “Marketing

communication process” reveals the weakness or shortcomings of the competitor brand in order
to make then the superior brand.
Fostering Goodwill:
“Marketing communication process” also comes in handy when a company needs to impose an
image of socially responsible corporate citizen. In order to publicize the charitable events of the
company, which is dedicated solely for the society, is one way this can be accomplished by
“Marketing communication process”. The marketing communicators also look out for the
national and international events in which the company can participate to generate goodwill. For
example, companies purchase sponsorship to sports even which provides them with the exposure
in national television. Coca-cola has used the strategy by opening 5 education centers which
hosted 11000 students in 2005.
Attracting Talent:
When the company is growing, it needs workers best in class in order to work with the
organization. It is the “Marketing communication process” which attracts potential talents to
work with the organization by convening the message that the company is a good place to work
with. Companies invest a lot of time to design a large section of their website to highlight the
reasons why one should work with them. Annual awards are being given to the companies
which are good to work with and it is up to the marketing team to make sure that the company
name stays in the award list. In contrast to that, Coca-cola has a large section in their web page
named as “Career” in order to let the young talents know about the company work culture.
Informing Investment Communities:

Marketing communicators releases news about the performance of the company such as reaching
sales target which attracts investors in the company. The team often organizes massive events
such as “Joint Venture” or introducing new products in order to get the attention of investors.
Task 3
In the contemporary era, the aspirations and demands of the consumers are changing at an
alarming rate. The traditional approach of reaching the target market is becoming obsolete with
the advent of social media and internet adding more complexities into the marketing mix. It is
critical for Nike to utilise an integrated marketing communications approach during the 2018
Winter Olympic Games. IMC takes active participation in reaching the consumers and also
stimulates awareness, creates trial usage and assists in achieving brand loyalty in the competitive
market (Dwivedi & McDonald, 2018). An applicable IMC approach emphasizes on creating a
stronger brand through constant messaging strategy. Messaging continuously automatically
avoids confusion and takes active participation in reinforcing the brand in a successful manner.
In the contemporary era, enhanced competition and various ways of connecting with the
consumers have made the situation challenging for organizations to cater the target market.
Proper application of IMC approach not only reduces the cost of transaction but also increases
the awareness and experience level of consumers within every touch point.
An example of a firm which messages consistently is Nike with its “Just Do It” campaign. The
campaign has its existence across all forms of media since its origin in the year 1988. While
implementing the marketing communications strategy in the 2018 winter Olympic, Nike took
active participation in consistently messaging across all forms of communication platforms. The

innovative marketing communication strategy allows them to higher price demands and revenue
generation (Kent et al. 2018). Nike is recognised as a prestige brand and plays a key role in
adding value to the products. Image is particular important in the market of sporting goods as the
company faces stiff competition from Reebok and Adidas. Unlike the competitive brand Reebok,
which has changed their branding messages numerous times, Nike has persisted on continuous
brand messaging which indeed helped the company to gain supremacy in the competitive market.
The Winter Olympics held in Pyeongchang is over and the winners are Samsung, Intel and Ralph
Lauren. While Korea held the Sixth Spot in regards to the medals during Winter Olympics, their
branding of Flagship holds the first position. While Samsung was leading the race, Intel received
bear about 52% Olympics oriented digital content, with Nike generating 39% of the digital
content engagement.
Figure: Brand associated with Olympics

(Source: Lin et al. 2018)
Nike Sponsored team USA in the 2018 winter Olympics. Nike takes active participation in
selling a lifestyle, by tapping into the emotional quotient of the consumers willing to stay healthy
and identify their own greatness. Despite the fact, social media played a integral role in the year
2012, it is perhaps the most effective and anticipated medium for brands for showcasing its
participation. This situation was picture perfect for Nike, as it is one of the most Instagrammed
brands across the globe, having nearly 50 million followers as compared to 10 million for
Adidas. While sponsoring US team, the company initiated several creative contents in their
Facebook Pages which generated a lot of likes (Schmidt & Redler, 2018).
Nike reflects upon a relevant example of a company which utilises various types of
communication during their promotional activities. The marketing communication of the firm is
easily viable in the market through its exclusive marketing and social media campaigns. The
same approach was initiated during the 2018 Winter Olympics. The company also invested
heavily on endorsing the athletes being a sports brand. During the 2018 Winter Olympics, the
objective of the firm was to consider athletes of different ages and skill levels to the utmost
potential. The unlimited marketing communication campaign of Nike motivates and inspires an
athlete to break through the limits. So Nike went all out to engage their athletes during the 2018
Winter Olympics. Nike took active participation in closing the gap between the athlete and the
elite (Toscani & Prendergast, 2018). The basic ideology of the intense marketing communication
strategy was to serve the athletes and develop a personalised connectivity with them. Connection
is initiated by giving access to the routine of training and the equipment the Olympians are
utilising.

Nike took active participation in looking at the Olympic Games in a way so that they could
create the most affectionate personal connection. Through its marketing communication strategy
Nike tailors the products and services according to the aspirations of the athlete. Nike thrives for
taking the consumers on for a personal journey which is the highlight reel of their marketing
communications strategy. The strategies involved identifying the constraints that restricts the
athletes from performing to the utmost level. Nike has eschewed the status of Official
Sponsorship for global events such as the Winter Olympics 2018. However, Olympics stand out
to be one of the most banking areas of marketing communications for the brand. Olympics 2018
presented a huge opportunity to Nike for showcasing their innovation of Nike at the global stage
by allowing the athletes to perform at their best level by wearing Nike Products, thus
communicating their advantages in a successful manner (Kent et al. 2018). Ultimately, the
objective of the company is to address the perceived needs and demands of customers of all
types and Olympics was perhaps one of the most unique moments for inspiring the company in a
proactive manner.
On the contrary, the main goal of Nike is to attain the large populations of its target market with
definite impact. Nike is very much active in Facebook, Twitter and Instagram for developing a
personalised communication with the consumers. There is no doubt regarding the fact that Nike
has put a lot of money and time to meet the perceived needs and demands of their consumers.
However, none of their investments were actually in support for the Olympic Games. For
instance, the play Russian Campaign showcases the hopefuls of Olympics and athletes of Russia
showcasing the ways they can deal with the harsh conditions of winter seasons that would push
them to relatively new limits. The fan took active participation in sharing their special moments
of sport on the site in alignment with the # play Russian Hash tag in social networking websites.

Nike jumped deeper into the space of entertainment with their new music video launch of 2018
Winter Olympics. Titled Run it, it featured Jay park snowboarding amongst the snow covered
cars that are abandoned by nature. It was an exclusive part of the campaigned named “Impossible
to ignore” which takes active participation in celebrating for the individuals running in their own
path.
Conclusion
In context to the above conducted research, it can easily be concluded that marketing
communications does not only have the impact on the success of the products but has an overall
influence on the success of the company itself. It helps in finding new opportunity for the
company. In case of Coca-cola, The strong and profound marketing strategies have helped build
its public image in order to maintain and accelerate exponentially its business. In case of Nike,
the company is successful in developing a personalised connection with their target market
through extensive Integrated Marketing Communications Strategy

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