Minggu, 05 April 2009

Integrated Marketing Campaign - Coca Cola





INTEGRATED MARKETING CAMPAIGN
OF THE COCA COLA COMPANY




OVERALL IMC OBJECTIVES

The objectives are very important in marketing campaign, so that the company can have a clear vision. They are:
1. Market share objective: to gain 60% of the market for soft drink industry by September 2007.
2. Profit objective: to achieve 20% return on capital employed by August 2007.
3. Promotional objective: to increase awareness of the product in the market.
4. Objective for survival: to survive the current market war between competitors.
5. Objective for growth: to increase the size of the worldwide Coca-Cola enterprise by 10%. 6


PUBLIC RELATION STRATEGY AND TACTICS
For countries in Asia, Coca-Cola company focused their P.R. campaigns on social problems, such as reconstruction of areas that are affected by disasters. The strategy is about sponsoring the needs of local people in that area. It can develop organization’s credibility. In Coca-Cola case, the strategy can develop social responsibility credibility. Local people became very aware to what the Coca-Cola Company did.
The image, that Coca-Cola tried to build, sent to the society very well. Coca-Cola Company made associations with other foundation and also gave fund donations. It made Coca-Cola company has an image as a social company. Public Relation mix activities to develop organization’s credibility.
• Ocean tsunami of December 2004 and earthquake in Pakistan in October 2005.
 Coca-Cola Company collaborated with local governments and International relief and development agencies, including the International federation of Red Cross and Red Crescent Societies, UNICEF, and International Medical Corps, to provide financial and material support. Coca-Cola Company gave a cash donation alone $8 million.
 Coca-Cola Company distributed drinking water, food, medicine, blankets and tents, to the local people.
 Coca-Cola Company has a short-term planning and long-term planning. As the short-term planning, they helped to recovery the reconstruction of areas that are damaged by tsunami and earthquake. This includes cash contributions, employee donations, and a loan for Asia manager of United Nations development program for one year to give a help in many regions. As a long-term planning, Coca-Cola Company planned to rebuild local people’s lives and livelihoods.
 Together with government agencies and NGO, Coca-Cola Company built schools and houses. In Indonesia, Coca-Cola Company built 11 schools in Aceh, also provided vehicles and communication tools. In Sri Lanka and India, it built schools and houses too. In Pakistan, Coca-Cola Company built 100 homes with local NGO SAHARA for life Trust.
 Together with the United Nations foundation and the United Nations Development Program, Coca-Cola Company made a water system and sanitation reconstruction in regions that are affected by tsunami, such as Thailand, Sri Lanka, Indonesia and the Maldives. For example, in Thailand, Coca-Cola Company began to do water resources management activities with The United Nations Foundation and waste water treatment program with The United States Agency for International Development (USAID). In Indonesia, Coca-Cola Company supported for the technical specialist who help to conduct a hydrological survey to send freshwater resources in Aceh.
 In Thailand, Indonesia and India, Coca-Cola company also donated fishing boats to families who don’t have jobs anymore because of the disasters. In Thailand, they supported for a revolving microfinance loan program and a community e-learning center. In Indonesia, it helped to maintain a ceramic workshop. Besides, they helped people by providing pushcarts and kiosks in Thailand and Indonesia too.
• China Case Study
Coca-Cola company supporting in rural education, youth health development, e-learning, environmental protection, rainwater harvesting and HIV/ AIDS prevention, won some awards from Chinese government, nongovernmental organisations and the media, such as:
1. China’s Best Corporate Citizen-China’s Ministry of Civil Affairs.
2. Model Corporate Citizen-China Charity Federation, the largest and most influential foundation in China.
3. Environmental Protection Award for Corporate Citizens-Amcham Shanghai.
4. 2005 China Philantrophy Award-China Charity Federation.
5. China’s Best Corporate Citizen Conduct Award-21st Century business Herald
Besides their social activity, Coca-cola Company also sponsored few sport events. The Coca-Cola Company and FIFA, football’s world governing body, announced the extension of their long-time association. The partnership extension was announced by Joseph S. Blatter, president of FIFA, and E. Neville Isdell, chairman and chief executive officer, The Coca-Cola Company, in Cape Town, South Africa, host country for the 2010 FIFA World Cup. Mr. Blatter and Mr. Isdell disclosed details of the first global “FIFA World Cup Trophy Tour by Coca-Cola,” which has visited 31 cities in 28 nations, began in early January 2006. The three-month Trophy Tour, which kicks off in Accra, Ghana, will bring the one-of-a-kind, solid-gold emblem of world football supremacy to fans in Africa, the Americas, Asia and Europe.

Mr. Isdell unveiled a new global football marketing platform for brand Coca-Cola, “We All Speak Football,” which was launched through 2006 FIFA World Cup consumer programs in scores of countries around the world. From this global brand marketing platform launched in 2005, The Coca-Cola Company has developed an array of 2006 FIFA World Cup activities using "We All Speak Football" as the common theme for drawing people together, to make the world a little bit better.
The Coca-Cola Company is one of the longest-standing corporate partners of Fédération Internationale de Football Association (FIFA), with a formal association since 1974 and an official sponsorship of FIFA World Cup that began in 1978. Coca-Cola has had stadium advertising at every FIFA World Cup since 1950. The partnership extension is for 16 years (eight years with an automatic eight-year renewal, subject to certain conditions), from 2007 until 2022.

The Coca-Cola Company is the world's largest beverage company. Along with Coca-Cola, recognized as the world's most-valuable brand, the Company markets four of the world's top five soft drink brands, including Diet Coke, Fanta and Sprite, and a wide range of other beverages, including diet and light soft drinks, waters, juices and juice drinks, teas, coffees and sports drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1.3 billion servings each day.

In Indonesia, Coca-Cola Company also promoted few events which involved a large number of people. Few of them are:
 Coca-Cola Indonesia held a sport event called “Piala Coca-cola 2006” at 5th of August 2006. Many high school in Indonesia involved in this football championship. There was a same program held in 2005, and it was very successful. 7
 Another product of Coca-cola Company, Sprite, held a dangdut singing competition called “Ajang Sensasi Dangdut Plong” (ASDP) in several part of Java Island. Dangdut music is very popular in Indonesia, so it was also very successful. 8

ADVERTISING STRATEGY AND TACTICS
Advertising strategy and tactics are very important too. Making waves in communications to make understanding between the product and the consumers. Advertising strategy and tactics consist of two-stage advertising campaign and make sure that advertising can reach all of outlets through television, radio, billboards, newspapers, magazines, and the internet.
The first ads were created to make consumers awareness, whereas the second ads focuses on what the brand is all about. Ads were placed at the same time on the major networks before the launching. On the launching time, consumers can access via internet and clips of the television commercials. Also, we can give several of products in the bottle shape for the samples at specially events. Although advertising is usually very expensive, it is the most accuracy and effective way of exposing potential customers to Coca-Cola products. Coca-Cola also make use of line promotions, such as competitions or contests, coupons or vouchers, and free samples.
Coca-cola advertising has a quite big impact on human culture, especially American culture. Coca-cola also invented an image of Santa Claus as a big old man with red and white clothes, just like Coca-cola’s characteristic.
Advertising for Coca-cola company products for now almost can be seen anywhere.

MARKETING STRATEGY AND TACTICS
Marketing strategy and tactics consist of:
A. 4P’s
1. Product
Product consists of the core product, the actual product and the augmented product. The core product means what the product will do for you. It is also called as a consumer benefit. Coca-Cola products can fulfill our physical and social needs. We can fulfill our needs of thirst and also a social drink that we would have when we have a good time. The actual product means what inside the product. It is known as a product benefit.
The augmented product means the satisfaction and the service that company could give. Coca-cola Company offers a customer service to help any complains from the consumers who are not satisfied with the product. If we talk about the packaging, Coca-Cola provides many options of size, taste and flavors. Coca-cola Company has 400 brands including soft drinks, bottled waters, fruit juices, and sport drinks, in over 200 countries.
The first creation of Coca-Cola is classic hourglass bottle, but now Coca-Cola products come with a dark label on the standard contour bottle using the Coca-Cola wave. The appearance of the product is eye catching with the bright red colour. It has a unique bottle shape design that fits in our hand with the futuristic look. The bottles are light, with flexible packaging, so they won’t easily break and are not too heavy to walk around with. The cans are also light and save.
Product life cycle is the consumer’s awareness to the company that affects the volume of sales. It tends to the process of development, introduction, growth, maturity, and decline. Coca-Cola Company is in the maturity stage by the fact that they have a large market and the loyalty of stable consumers, because people have already admitted their existence globally. Furthermore, they have a high market share but low market growth.

2. Price
Until now, Coca-Cola has used the penetration pricing which means the price is set up as a special offer price. As a way to increase market share, encourage purchases, and so get into the market. Coca-Cola slowly raise the price of their products so their price is the most expensive in the market. The reason Coca-Cola Company does that, is to have a larger market share and to have some technology edge, but still Coca-Cola company tries to achieve customer satisfaction. By the expensive price, people not just buying the product itself, but also the image and the fact that it has a better quality for sure. Price shows the quality of the product. This is what we call as value-based pricing.

3. Place
Coca-Cola product are located in supermarkets, convenient stores, many sport stadiums and shopping malls.

4. Promotion
Promotional mix is about the benefit of the product to support the increasing of sales and profits. Four methods of promotional mix are advertising, personal selling, public relation and sponsorship, and sales promotion. Coca-Cola Company uses a little personal selling but lots of public relation and sponsorship to create awareness of the product. Coca-Cola sponsors many events, such as sport events and educational activities.

B. STP
1. Segmentation
Coca-Cola Company segmented their market by using the psychographic section which used values and attitudes of their market. They are shown to be a more outgoing and group orientated image, so they picked what kind of group segmentation that they can enter based on this image. They segmented their market using differentiated marketing broadways. Why? It is because they have a range of product, such as Fanta, Sprite and Coca-Cola, with the various markets. Each product satisfies a certain group of people.

2. Targeting
The market of soft drink consumers is very large, so we have to segment the groups of consumers whom we think we can deliver the right product. It also can be productive and successful because the target is matched with the products. As we know that Coca-Cola company has many products with different usage of each products, from the healthy diet consciousness through Diet Coke. Coca-Cola company focused on all age groups match with the product they offer. Children usually like the sweet and red-colour of Fanta. Sometimes, women uses Diet Coke to support their diet program. By the different characteristics of each Coca-Cola products, they can reach almost all age groups. We can say that this way is based on demographic (age) segmentation.
3. Positioning
For the advertisement, Coca-Cola always create the advertisement that show the freshness of the product, and the new advertisement that they launched is about fun together with their product. With advertising, they create knowledge of the product. Through the message of Coca-Cola products as a refreshing drink and sponsoring many events, Coca-Cola has a brand positioning in the mind of the consumers. People have a positioning about the brand of Coca-Cola products which is fun and sociable. Over the time, Coca-Cola company has spent million of dollars promoting their brand name, so that Coca-Cola becomes the most recognized trademark by 94% of the world population. The trademark itself is Coca-cola’s colours which red and white. Coca-Cola company uses the individual brand strategy which giving their own brand product names, such as Fanta, Sprite, Coca-Cola operate under the name of Coca-Cola. The design and the changing of the package can be also the promotional strategy to increase the sales.


C. SALES AND PROMOTIONAL ACTIVITIES
• Make advertisements in many versions on TV.
The advertisements according to Coca-Cola Company’s concept which is fun together.
• By personal selling.
It is made up for P.R. and corporate image.
• Coca-Cola company uses the pull strategy, so that they know what customers want and they will buy the product.
• Coca-Cola company sponsors a lot of events including sports
(for example, football matches in Indonesia, The Olympic Games, The FIFA World Cup, Rugby World Cup, etc), and educational activities.
• Coca-Cola Company uses competitions in providing instant prizes to encourage consumers buying the products.
• Coca-Cola Company made a campaign which told that their products has the best taste and the most popular product by its large range of market share.
• Stocking up the products to the retailing stores, supermarkets, convenient stores, even in many sport stadiums and shopping malls.
• By stocking up the products everywhere, it’s not difficult to make the purchases.
The Coca-Cola logo is displayed on T-shirts, hats, etc. People who wear it, indirectly promote Coca-Cola itself.



RESULT FROM THE CAMPAIGN

Based on the objectives, that Coca-Cola Company has made, we haven’t get the results yet, because the campaigns are on going. The objectives are planned until 2007. However, so far, the campaign through sponsorship, exposing on media, billboards, and personal selling, Coca-Cola Company has gain an image as a sociable company. Besides, Coca-Cola is also identical with its fun-theme products.


CONCLUSION

Coca-Cola is a famous company in the world. Besides, it includes one of the biggest soft drinks company over the world. As others, Coca-Cola company also have Intergrated Marketing Campaign (IMC) objectives and strategy.
The objectives of Coca-Cola campaign are to make it be more motivated. They are:
1. Market share objective: to gain 60% of the market for soft drink industry by September 2007.
2. Profit objective: to achieve 20% return on capital employed by August 2007.
3. Promotional objective: to increase awareness of the product in the market.
4. Objective for survival: to survive the current market war between competitors.
5. Objective for growth: to increase the size of the worldwide Coca-Cola enterprise by 10%.

Marketing campaign strategy consists of public relation strategy, advertising strategy and marketing strategy. Public relation strategy is used to establish a mutual understanding and create a good image or credibility from the company with its customers. It can be achieved by sponsorsing many events, such as sport or charity events. Those are what Coca-Cola company do too.
Advertising strategy is usually done through media, either print media (like newspapers, magazines,etc), broadcast media (like TV and radio) or digital media (like internet). It aims to tell the information about the product to community.
The strategy, that relate with the sales is marketing strategy. This talks about the right product, price, place, and promotion in order that people buy the product and satisfy with it. Coca-Cola produces the right product with many options of sizes and taste; sets the right price with more expensive price than others (because of the good quality and values of Coca-Cola’s products); definites the right place with stocking up products in supermarkets and retailing stores; and uses the right promotion with sales promotion. Marketing tactics are also done by right segmentation. Coca-Cola company produces many kinds of product. Each product satisfies a certain group of target market. Its target markets are usually teenagers.



PROMOTION MATERIAL


Poster:

Flyer:
Brochure:


BIBLIOGRAPHY

1. http://www2.coca-cola.com/citizenship/packaging_what_we_are_doing.html
2. http://www2.coca-cola.com/citizenship/disaster_relief.html
3. http://www2.coca-cola.com/oucompany/aroundworld.com
4. http://www2.coca-cola.com/brands/index.html
5. http://www.monash.edu.au/lls/llsonline/writing/business-economics/marketing/3.4.2.xml
6. http://www.echeat.com/essay.php?t=29328
7. http://www.coca-colabottling.co.id/ina/asdp/index.php
8. http://www.coca-colabottling.co.id/ina/news/index.php?act=detail&select_month=06&select_year=2006&id_sort=6&p_id=163&sm=06


Bibliography for the poster, leaflet and flyer:

http://www2.coca-cola.com/heritage/cokelore_santa.html
http://www2.coca-cola.com/heritage/chronicle_birth_refreshing_idea.html
http://www.virtualvender.coca-cola.com/ft/index.jsp
http://www.coca-colabottling.co.id/ina/ourcompany/dsp_wherewe_detail4.htm
http://www2.coca-cola.com/citizenship/fifa_wc_trophy_tour.html
http://www.coca-colabottling.co.id/ina/news/index.php?act=detail&p_id=190
http://www.coca-colabottling.co.id/ina/ourcompany/index.php?act=wherewe
http://www2.coca-cola.com/ourcompany/mission_vision_values.html

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