Coca-Cola's Sugar Problem: Crisis Communication Perspective Analysis

This report provides an analysis of Coca-Cola's sugar problem from a crisis communication perspective. It examines the challenges faced by the company due to the high sugar content in its drinks and the resulting impact on public health and brand reputation. The report delves into the company's initial responses, including the negation of medical evidence and the emphasis on personal responsibility. It also explores how the company addressed the crisis through various communication strategies, such as seminars, meetings, and the introduction of healthier alternatives like Diet Coke. The analysis considers the role of advertising, consumer behavior, and the influence of external factors like government regulations. The report concludes by evaluating the effectiveness of Coca-Cola's crisis communication efforts in restoring trust, loyalty, and dependence from its customers.

Running head: MANAGEMENT
Management of “Sugar problem” by Coca-Cola
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Table of contents
Introduction of the situation.......................................................................................................2
Analysis of the situation from Crisis Communication Perspective...........................................2
Concluding statements from Crisis Communication perspective..............................................3
References..................................................................................................................................4

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Introduction of the situation
One of the world’s most valuable brands, Coca-Cola came out with the confession
that they are encountering issues with the sugar content in the drinks. This is because it is
adding to the obesity rates amidst the customers. This issue attached negative parameter to
126 years of hard earned reputation. Many of the critics negated the medical reports
regarding the use of correct ingredients in the drinks by pointing to the additives like caffeine,
cocaine and teeth rotting acids, which have proved harmful for the health of the clients and
the customers (Theguardian.com 2019).
It is the advertising, which has influenced the purchasing decisions of the customers.
This affectation has gone to such an extent that president David Cameron himself alarmed the
“House of Commons” about the challenge of stopping his children from excessive
consumption of Coca-Cola. In the revelations of 1903 by The Guardian, about the new
advertisement, it was found that the drinks consist of nine spoonfuls of cocaine and sugar.
This led to talks and conversations on obesity (Theguardian.com 2019).
Analysis of the situation from Crisis Communication Perspective
From the perspective of Crisis Communication, the issue of sugar problem contradicts
the aspect of protection and defending in case of the customers. This is because of the
worsened health condition, which they have experienced in the form of obesity. Delving deep
into the perspectives of Kumar and Reinartz (2018), communication seems to resolve any
kind of crisis. However, upon establishing contacting with the company, the customers got to
know that drinking more calories than burning off would help them in gaining more weight.
According to the arguments of Nyadzayo and Khajehzadeh (2016), consumption as a result of
this advertisement reflects brand loyalty, obliterating the aspect of consumer wellbeing in

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case of the business operations of Coca-Cola. This obliteration compelled the brand to
encounter customer turnover, assisting brands like Pepsi to enjoy competitive advantage due
to the servings of Diet Pepsi, which has less calories (Dini et al. 2017).
Concluding statements from Crisis Communication perspective
The brand was prepared for such an issue, which is reflected from the negation
towards the medical evidences regarding the contents of the drinks and the calorie intake.
Seminars with the scientists and the dieticians reflect the consciousness gained towards the
alarming situation of increased obesity rates. Reports regarding the increased risk of diabetes
and cancer through excessive consumption of sugar make the initiatives realistic. On the
other hand, the brand is also aware of the hesitant approach of British Food Corporation
towards curbing the appetite cravings of the public (Theguardian.com 2019). Meetings with
the dieticians, scientists, Food Corporations resulted in the planning towards displaying
traffic light signals on the labels of the drink bottles. This seemed beneficial in addressing the
queries of the customers regarding the health benefits of the drinks. This initiative proved
fruitful in terms of restoring the lost reputation, loyalty, trust and dependence from the clients
and the customers. This was through the means of feedbacks, which proved effective in terms
of introducing drinks Diet Cokes for regulating the health of the customers.

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References
Dini, L., Bittar, A., Robin, C., Segond, F. and Montaner, M., 2017. SOMA: The Smart Social
Customer Relationship Management Tool: Handling Semantic Variability of Emotion
Analysis With Hybrid Technologies. In Sentiment Analysis in Social Networks (pp. 197-209).
Kumar, V. and Reinartz, W., 2018. Customer relationship management: Concept, strategy,
and tools. Springer.
Nyadzayo, M.W. and Khajehzadeh, S., 2016. The antecedents of customer loyalty: A
moderated mediation model of customer relationship management quality and brand
image. Journal of Retailing and Consumer Services, 30, pp.262-270.
Theguardian.com 2019. Coca-Cola sugar problem. Available at:
https://www.theguardian.com/lifeandstyle/wordofmouth/2013/jan/18/coca-cola-sugar-
problem [Accessed on 12th Jan 2019]