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920502-T240
930118-3571
930406-1477
910418-T350
920321-4037
900401-T244
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Franke
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Johansson
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Paavo
Jonathan
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Jonrye-2
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Course Code:
M0014N
Course name:
International Marketing
Group name:
Coca-Cola – Light the World
Document type:
Final project – Marketing report
Assignment number:
2
Date:
2015-03-29
Please staple and put the work in a plastic cover!
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ERASMUS
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ERASMUS
Executive Summary
Light the World is a sustainability effort by the world´s largest beverage company Coca-Cola.
As part of their vision to create social value and make a positive difference for the consumers
and communities it serves, the idea is to bring ecologically friendly solar bottle light into
underprivileged homes in Brazil. Coca-Cola will leverage on their worldwide partnership with
the Rio 2016 Olympic Games by launching the campaign in connection with the event.
Revenues from every litre regular Coke sold on the U.S. soft drink market during the 16 days
of the Olympic Games will be donated to Myshelter Foundation, the foundation responsible
for the already existing open source movement installing plastic solar bottles to communities
around the world living without electricity.
A comprehensive analysis of the internal resources and capabilities, as well as the business
and marketing environment in the United States and Brazil, made it possible to identify
internal weaknesses and strengths and external opportunities and threats. On the basis of the
current market situation, a fully integrated marketing campaign is estimated to successfully
sell a minimum of 7,7 million litres regular Coke during the 16 days time span of the
Olympic Games. And the revenues are estimated to help light up 192,500 homes in the
Brazilian favelas.
The marketing efforts will be aimed towards generation Y (age 18-29), families (adults age
30-49 + children age 5-17), and adults without children (age 30-49). These market segments
account for the majority of the carbonated soft drink consumption in the U.S.. They are brand
loyal and more active on social networks than the rest of the population. Therefore, a lot of
marketing will be done on social networks such as Facebook, YouTube and Instagram.
The campaign will primarily use an emotional appeal, evoking a feeling response that will
direct the purchasing behaviour of the customers. It will mainly be communicated through
design and colour, music and tonality, as well as videos and pictures. The taste and price of
the product will not be changed, and the existing distribution network and bottling partners in
the U.S. will be used. The marketing channels that are expected to achieve great impact are
television commercials and social medias, and there will be sales promotions such as free
giveaway t-shirts and bags connected to them. A special web page will provide pictures and
information about the project and real time statistics about the current progress.
All in all, Light the World will contribute to the growth and prosper of Coca-Cola, increasing
the sales and strengthen the brand image among stakeholders and other interested parties.
Sustainability is at the heart of the business, and the campaign will communicate to the world
that Coca-Cola care about the people in the developing world.
Table of Contents
1! Introduction .......................................................................................................................... 1!
1.1! Dare to Care ................................................................................................................... 1!
1.2! Global Marketing ........................................................................................................... 1!
1.3! The Idea ......................................................................................................................... 2!
1.4! Liter of Light ................................................................................................................. 3!
1.5! Coca-Cola and the Olympic Games .............................................................................. 5!
2! Situation Analysis ................................................................................................................ 7!
2.1! Industry Analysis ........................................................................................................... 7!
2.1.1! Strong Threat of New Entrants ............................................................................... 7!
2.1.2! Strong Threat of Substitute Products ...................................................................... 8!
2.1.3! Moderate Bargaining Power of Buyers ................................................................... 9!
2.1.4! Low Bargaining Power of Suppliers ..................................................................... 10!
2.1.5! Strong Rivalry Among Competitors ..................................................................... 10!
2.2! Market Environment .................................................................................................... 11!
2.2.1! Social and Cultural Environment .......................................................................... 11!
2.2.2! Hofstede’s Framework .......................................................................................... 16!
2.2.3! Marketing’s Impact on Culture ............................................................................. 19!
2.2.4! Economic Environment......................................................................................... 19!
2.2.5! Political and Legal Environment........................................................................... 20!
3! Segmenting and Targeting.................................................................................................. 23!
3.1! Market Segmentation ................................................................................................... 23!
3.1.1! Geographic Segmentation ..................................................................................... 24!
3.1.2! Demographic Segmentation .................................................................................. 24!
3.1.3! Psychographic Segmentation ................................................................................ 25!
3.1.4! Behaviour Segmentation ....................................................................................... 25!
3.1.5! Benefit Segmentation ............................................................................................ 25!
3.1.6! Identified Segments............................................................................................... 26!
3.2! Targeting ...................................................................................................................... 26!
3.2.1! Primary Target Group ........................................................................................... 26!
3.2.2! Secondary Target Group ....................................................................................... 28!
3.2.3! “Spill Overs” ......................................................................................................... 28!
3.2.4! Total Size of Target Groups .................................................................................. 28!
3.3! SWOT-Analysis........................................................................................................... 30!
3.3.1! Strengths ............................................................................................................... 30!
3.3.2! Weaknesses ........................................................................................................... 31!
3.3.3! Opportunities......................................................................................................... 32!
3.3.4! Threats................................................................................................................... 33!
3.4! Marketing Objectives................................................................................................... 34!
4! Marketing Strategy ............................................................................................................. 37!
4.1! Product ......................................................................................................................... 37!
4.1.1! Brand ..................................................................................................................... 37!
4.1.2! The Different Levels of a Product......................................................................... 37!
4.1.3! Labeling ................................................................................................................ 38!
4.2! Price ............................................................................................................................. 39!
4.2.1! Good-Value-Pricing .............................................................................................. 40!
4.2.2! Psychological Pricing............................................................................................ 41!
4.2.3! Costs of the Implementation of Solar Bottle Lights ............................................. 42!
4.3! Place............................................................................................................................. 42!
4.3.1! Value Chain........................................................................................................... 43!
4.4! Promotion .................................................................................................................... 45!
4.4.1! Social Media ......................................................................................................... 47!
4.4.2! Web Page .............................................................................................................. 48!
4.4.3! Radio Commercial ................................................................................................ 49!
4.4.4! Public Relations .................................................................................................... 49!
4.4.5! Sales Promotion .................................................................................................... 50!
5! Implementation and Control............................................................................................... 51!
5.1! Marketing Activity Plan .............................................................................................. 51!
5.2! Control ......................................................................................................................... 52!
6! Summary and Discussion ................................................................................................... 54!
6.1! Summary ...................................................................................................................... 54!
6.2! Discussion .................................................................................................................... 55!
7! References .......................................................................................................................... 56!
7.1! Literature...................................................................................................................... 56!
7.2! Images .......................................................................................................................... 56!
8! Appendices ......................................................................................................................... 57!
1
Introduction
The first section will introduce the mission of the project including the marketing idea itself. It
does also cover a brief introduction to global marketing and the partners involved in
campaign.
1.1 Dare to Care
As part of the course International marketing at Luleå University of Technology, the mission
with the project Dare to care was to come up with a marketing idea that will make the world a
better place. It goes beyond the simple objectives of increasing corporate profits and
providing executive perks. The marketing effort shall generate revenues, but the majority
must be used for actual difference making somewhere in the world.
1.2 Global Marketing
The world economy is more integrated and interdependent than ever. There is an on going
merging of historically distinct and separate national markets into one huge global
marketplace. And multinational corporations such as Coca-Cola and McDonald´s, offering the
same basic products worldwide, help facilitate the converging of local tastes and preferences
into some global norm.1 But the global marketplace is very competitive, and the shrinking of
the world through information and transportation technology has made it easier for companies
to reach global markets. As Keegan & Green, 2015 expresses it, “a management team that
fails to understand the importance of global marketing risks losing its domestic business…”2.
Within this highly competitive marketing environment, corporate social responsibility has
become increasingly important. It is defined as “a company´s obligation to pursue goals and
policies that are in society’s best interest”, and can distinguish a company from its industry
peers3. In a world were 20% of the population uses 80% of the resources, the pressure on
corporations increases in creating social, economic and environmental value for the countries
they operate in4.
1
L.Hill, C.Wee, K.Udayasankar (2012), p. 6-7
Keegan & Green (2015), p. 26
3
Keegan & Green (2015), p. 563-564.
4
Keegan & Green (2015), p. 564
2
1
1.3 The Idea
It started with the interest in an on-going project called Liter of Light. It was launched by
MyShelter Foundation in the Philippines 2011 and brings eco-friendly bottle light to
communities living without electricity (further described in section 1.4). The project is reliant
on volunteers and donations, and since the bottles used were recycled Coca-Cola and Pepsi
bottles, the idea was born. By leveraging on Coca-Cola’s strong brand and financial power,
the project could be implemented in other parts of the world. Coca-Cola is one of the
worldwide official partners of the Rio 2016 Olympic Games in Brazil, a 16 days sport event
that present a great opportunity to reach out to billions of people across the world gathering in
front of computers and TV screens. And Brazil has major slum areas around the bigger cities
where almost 27% of the total population live5.
The marketing campaign will be called Light the world and launched in the United States
during the time period of the Olympic Games. Parts of the revenues from the sales of regular
Coke will be donated to MyShelter Foundation in Brazil that will install solar bottle lights
into homes in the favelas. Favela is another word for the slum areas in Brazil and will be
further used when referred to the areas that the campaign aims to help.
The campaign will be a win-win situation for both Coca-Cola and MyShelter Foundation.
Increased sales volumes and a better brand image for Coca-Cola, and more publicity and
increased donations for MyShelter Foundation, thereby being able to install more solar bottle
lights. As mentioned in section 1.2, corporate social responsibility and sustainability is
becoming increasingly important. And sustainability is one of the core competencies of CocaCola; something that they do better than their competitors6. Light the World is another way to
further strengthen that position.
It is important to work with global marketing for a multinational corporation such as CocaCola. Almost 75% of their operating income and two-thirds of its operating revenue are made
on markets outside the U.S. Light the World will contribute to a better brand image of CocaCola across the world, and particularly in Brazil, one of Coca-Cola’s key developing
markets.7 And the campaign is not only expected to generate more sales in the short run. The
5
http://data.un.org/Data.aspx?d=MDG&f=seriesRowID%3A711 2015-02-08
Keegan & Green (2015), p. 548
7
http://www.forbes.com/sites/greatspeculations/2015/02/12/cautiously-optimistic-on-coca-colas-future-growthprospects-even-as-2014-revenues-fall/ 2015-03-11
6
2
stronger brand image will influence the buying behaviour strongly even after the Olympics,
thereby generating higher sales in the future.
The U.S. market is chosen for several reasons. The U.S. soft drink market is the fourth largest
in the world considering annual per capita consumption of soft drinks from Coca-Cola.
Americans consume 403 servings per year (Worldwide: 94 servings).8 Coca-Cola was
originally founded in the U.S., and the company holds the second strongest corporate
reputation among the nation´s 60 most visible companies9. Besides Burma, the U.S. is the
most generous country in the world, according to the 2014 World Giving Index10.
Furthermore, the Americans have a great interest in sports. An average of 70% of the U.S.
population watched the Beijing Games 2008 and London Games 201211.
1.4 Liter of Light
Liter of Light is a global open source movement launched by MyShelter Foundation. The
objective is to provide an ecologically friendly, inexpensive, and free-of-cost source of
interior light into underprivileged households with no electricity and without natural light
sources during the day.12
The device, invented by Alfredo Moser and based on research by students from the
Massachusetts Institute of Technology (MIT) in 2011 is simple. The things you need are the
following:13
•
Recycled transparent plastic bottle
•
Water
•
Chlorine
•
Glue
•
Basic working tools
8
http://www.coca-colacompany.com/annual-review/2012/pdf/2012-per-capita-consumption.pdf 2015-02-16
http://www.ajc.com/news/business/coca-cola-no-2-in-corporate-reputation/nfkWS/ 2015-03-29
10
https://www.cafonline.org/pdf/CAF_WGI2014_Report_1555AWEBFinal.pdf 2015-02-14
11
http://www.nielsen.com/us/en/insights/news/2008/beijing-olympics-draw-largest-ever-global-tv-audience.html
http://www.adweek.com/news/television/nbc-has-last-laugh-olympics-strike-gold-142706 2015-02-26
12
http://en.wikipedia.org/wiki/Liter_of_Light 2015-02-07
13
http://aliteroflight.org/about-us/ 2015-02-18
9
3
Figure 1 illustrates how the device is installed.14
Figure 1 - Operation mode of a solar bottle light
Source: https://afritekt.files.wordpress.com/2012/01/liter-of-light-detail.jpg 2015-02-08
The liquid inside the bottle refracts sunlight during daytime, capturing and diffracting the
light to all parts of the room equal to a 55-watt bulb. Chlorine is needed to ensure the water
stays clean and to inhibit algal growth that makes it green. Glue is used to bond and seal the
bottle to the roof and the sustainability of the device is up to 5 years. The project is a zero
carbon-emitting alternative since the plastic bottle, which is made of oil, will be recycled after
it has served its purpose.15
In addition there has been an extended version of this project with a small solar panel device,
which charges during the day and automatically provides a small bulb with electricity when
the sun is down. This makes the device useful during the night as well, but on the other hand
brings new costs to produce each unit. Light the World will install the daylight version, the
ones without a solar panel. The main reason is the lower costs, which makes it possible to
help more people for less money.16
The project started up in the Philippines 2011 and by now it has been introduced in 53
countries. Within four years charity organizations and helpful people has installed at least
14
http://literoflightswitzerland.org/idea.php?l=en 2015-02-07
http://en.wikipedia.org/wiki/Liter_of_Light 2015-02-18
16
http://revolution-green.com/liter-light-night/ 2015-02-18
15
4
350,000 daytime lights and around 15,000 night lights.17 The aim is to have at least one
million bottled lights installed around the world by 201518. Therefore MyShelter Foundation
is reliant on attentiveness, volunteers and donations to spread this global grass-roots
movement where it’s needed.
1.5 Coca-Cola and the Olympic Games
The Coca-Cola Company is the world's leading manufacturer, retailer and distributor of nonalcoholic beverage concentrates and syrups. They are headquartered in Atlanta, U.S., but have
local operations in more than 200 countries around the world. They offer more than 500
brands, primarily carbonated beverages but also a variety of still beverages such as waters,
enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and
sports drinks.19 While The Coca-Cola Company only produces and sells syrup concentrate,
various bottling partners make the final products. The company is best known for its flagship
product Coca-Cola (Coke), invented in 1886 by pharmacist John Pemberton. It is the most
famous soft drink worldwide, and sales revenues from the product reached $11 billion in
201320.
Coca-Cola has worldwide brand recognition and the regular Coke commands 25,6% of the
global soft drink market21. They have a long history of heavy advertising and are the fourth
most valuable brands in the world. And the company has been one of the most valuable
brands for many years.22
Sustainability and corporate social responsibility is of fundamental importance to Coca-Cola.
It is considered critical in order to maintain a competitive advantage, and some of the ongoing projects are the donation of life-saving medicines to African countries, replenishment
of drinking water to communities and the help of restoring the wild life in Africa.23
17
http://www.independent.co.uk/life-style/gadgets-and-tech/features/liter-of-lights-solarpowered-diy-lampmade-from-a-plastic-bottle-is-transforming-lives-9993728.html 2015-02-14
18
http://aliteroflight.org/about-us/ 2015-02-07
19
http://www.coca-colacompany.com/investors/2013-annual-report-on-form-10-k 2015-02-08
20
http://www.trefis.com/stock/ko/model/trefis?freeAccessToken=PROVIDER_a7d862b382360a61a7b96617623
c8976d19a2dab 2015-02-10
21
http://www.trefis.com/stock/ko/model/trefis?freeAccessToken=PROVIDER_a7d862b382360a61a7b96617623
c8976d19a2dab 2015-02-10
22
http://www.forbes.com/fdc/welcome_mjx.shtml 2015-02-26
23
http://assets.coca-colacompany.com/77/4c/2a44a5234a3ca65d449d174a0ded/2013-2014-coca-colasustainability-report-pdf.pdf 2015-03-21
5
Another reasons for Coca-Cola’s major success in brand image and reputation has been their
association with the Olympic Games since 1928. They have the longest continuous
relationship with the Olympic Movement, and through 2020 Coca-Cola is the exclusive nonalcoholic beverage provider to the Olympic Games refreshing athletes, volunteers, officials
and spectators.24
24
http://www.olympic.org/sponsors/coca-cola 2015-02-06
6
2
Situation Analysis
The following chapter will identify internal and external forces that may influence the
campaign´s performance. It will cover the internal and external environment of Coca-Cola
and the countries involved to understand the business environment, and the customers and
competitors within. It is the foundation of the SWOT-analysis, which may influence the choice
of strategies.
2.1 Industry Analysis
In order of making Light the World a success, analysing and understanding the competitors is
critical. Porter´s Five Forces model is a business strategy tool used to explain competition in
an industry, thereby determining the value and attractiveness of the market25. The industry
analysis is focused on marketing efforts similar to the project and other charity work within
low-cost green technology. But it will also include a less comprehensive analysis of the U.S.
soft drink industry since the campaign will be financed by sales of regular Coke in the U.S.
Threat of
new Entrants
Bargaining
power of
Suppliers
Competitive
Rivalry
Bargaining
power of
Buyers
Threat of
Substitutes
Figure 2 – Porter’s five forces
Source: Keegan & Green (2015), p. 511-515
2.1.1 Strong Threat of New Entrants
The presence or absence of barriers of entry determines the extent of threat by new industry
entrants. The easier it is for new companies to enter the industry, the more competition there
25
Keegan & Green (2015), p. 511
7
will be26. Liter of Light is a global open-source movement, meaning anyone could potentially
replicate the project. There are no fixed costs involved and the material needed is cheap and
easily accessible all over the world. The threat of other companies or non-profit organizations
(NPO) doing similar marketing efforts and charity projects is therefore considerer strong.
The threat of new entrants opposed to the U.S. soft drink industry is another story. The
industry is highly dominated by Coca-Cola and PepsiCo, together generating 72% of the U.S.
market volume. They have significant power and benefit from scale economies, strong
brands, and a diverse range of products. As mentioned in the introduction, Coca-Cola has a
long history of heavy advertising, enjoying strong customer loyalty and brand recognition all
over the world. Coca-Cola spent $565 million on advertising in the U.S. and $3,3 billion on
advertising globally in 2013, making it virtually impossible for new entrants to match this
scale of share.27
2.1.2 Strong Threat of Substitute Products
The threat of a substitute is the level of risk that a company faces from being switched to a
competitive product or service28. There are both profit and non-profit organizations around
the world offering a solution on how to provide light to poor communities. Some examples
are Stiftung Solarenergie, Pollinate and LUTW. These are considered to be the some of the
primary competitors since they offer a nearly identical product or service. Cheap sun panels
and LED-lights are the most common ones, although all of them are several times more
expensive than the solar bottle bulb. And the materials needed are not as easily accessible
around the world. Secondary competitors to the project are those profit and non-profit
organizations offering other solutions within the range of low-cost green technology, such as
rainwater harvesting systems and wind generators. Substitutes are products and organizations
focusing on helping the people in the developing world. And especially those operating in the
Brazilian slum areas.
However, the organizations above do not raise any major concerns from a marketing
perspective. Most of them are globally too unknown without the capital needed for massive
advertising. The biggest threat to Light the World is other multinational corporations
launching major marketing campaigns, such as Procter & Gamble`s Thank You, Mom
26
Keegan & Green (2015), p. 512
http://www.forbes.com/fdc/welcome_mjx.shtml 2015-02-17
28
Keegan & Green (2015), p. 513
27
8
campaign during the London Olympics 2012 and Sochi 2014.29 It did not benefit a non-profit
organization, but honoured moms of great kids around the world. It provided a hearty dollop
of authenticity and emotions, and managed to interact with people from all over the globe.
Such a campaign might hijack publicity, undermining the project. Sustainability and social
development has become a very important concept for the Olympic Games, and Rio 2016 is
no different.30 The numbers of cause-related marketing campaigns are therefore likely to
increase.
Regular Coke does also have an enormous amount of competitors and substitutes in the U.S.
beverage industry, such as other carbonated soft drinks, water, sport drinks and tea. The
switching costs for the consumers are low, and the growing health concerns in U.S. and
Europe are causing a shift towards more natural and healthier beverages such as juices and
functional drinks.31
2.1.3 Moderate Bargaining Power of Buyers
The bargaining power of buyers is about the impact the consumers have on the success of the
marketing campaign32. Coca-Cola generates most of its revenue from the production of
concentrates, which are sold to bottling companies. Some bottlers are independent, but most
of them are either owned or heavily controlled by Coca-Cola. With that in mind, the food and
beverage retailers are arguably the more significant buyers to the soft drink industry, having
the biggest influence on the marketing campaign.
The most important distribution channels for Coca-Cola in the U.S. soft drink industry are
supermarkets and hypermarkets, accounting for 77% of the total market value.33 Big
supermarket chains with large order quantities such as Wal-Mart are constantly demanding
better service and shorter order-to-delivery cycles. Although it might strengthen the power of
the consumers, the bargaining power is also lessened due to the strong end consumer brand
loyalty. The food and beverage retail market feel obliged to stock certain products to meet
their customer’s preferences.
29
http://news.pg.com/press-release/pg-corporate-announcements/procter-gamble-brands-unite-kick-sochi-2014olympic-winter- 2015-02-23
30
http://www.rio2016.com/sites/default/files/parceiros/sustainability_management_plan_aug2013.pdf
2015-02-23
31
http://www.trefis.com/stock/ko/model/trefis?freeAccessToken=PROVIDER_a7d862b382360a61a7b96617623
c8976d19a2dab 2015-02-23
32
Keegan & Green (2015), p. 513
33
Market line. September 2014. MarketLine Industry Profile - Soft Drinks in the United States, p.13. Ref. code:
0072-0802. Report
9
What may raise some concerns are the health and wellness trends in the soft drink industry.
Consumers in the U.S. and Europe are shifting towards more natural and healthier beverages
such as juices and functional drinks.34 Coca-Cola has a wide range of soft drinks and other
beverages that could capitalise on these trends, but the source of finance to Light the World
are the sales of the regular Coke. Fewer sales mean a smaller scale of the campaign, which
has to be taken into consideration.
2.1.4 Low Bargaining Power of Suppliers
Bargaining power of suppliers means how much pressure suppliers are able to put on the
business or the campaign. If they have a large impact on the outcome of the campaign or the
companies’ margins and volumes, they hold a substantial power35. Light the World does not
have any suppliers that raise any larger concerns. The plastic bottles needed are collected and
recycled from Coca-Cola´s daily operations, and chlorine is easily accessible all over the
world with numerous alternative suppliers.
The bargaining power of suppliers required for the production and distribution of regular
Coke is also low. The ingredients needed such as natural and synthetic sweeteners,
concentrates, and color, are highly undifferentiated, meaning Coca-Cola have several
alternative suppliers if necessary. And there are usually many substitutes available.
Furthermore, Coca-Cola have integrated backwards into producing some of their own raw
materials, negating the need for suppliers.
The close ties between Coca-Cola and its bottling partners put the bottlers in a position with
little or no bargain power. However, there is growing demand for environmentally friendly
packaging, putting some of the operators in a slightly better position.36 They could use the
publicity of the campaign to negotiate higher prices for more eco-friendly packaging,
reducing the profit margins for Coca-Cola.
2.1.5 Strong Rivalry Among Competitors
The rivalry among competitors describes the intensity of competition between existing firms
in an industry37. It is an important factor of understanding the cost of competition and the
return the campaign or business is likely to earn. Light the World will face strong competition
34
http://www.trefis.com/stock/ko/model/trefis?freeAccessToken=PROVIDER_a7d862b382360a61a7b96617623
c8976d19a2dab 2015-02-23
35
Keegan & Green (2015), p. 514
36
Market line. September 2014. MarketLine Industry Profile - Soft Drinks in the United States, p.18. Ref. code:
0072-0802. Report
37
Keegan & Green (2015), p. 515
10
in every aspect of the project. With billions of people watching the Olympics, organizations
and corporations from every corner of the world launch their marketing campaigns to gain
visibility and competitive advantages. As mentioned in section 1.5 Coca-Cola and The
Olympic Games, Coca-Cola is a Worldwide Olympic Partner, earning the exclusive right of
all marketing and sales of non-alcoholic beverages connected to the Olympics. But
McDonald´s, Procter & Gamble, Visa, and Samsung are official partners too38. And all of
them have a history of extensive global marketing campaigns during the Olympics.
Not only official partners use the Olympic Games in an attempt to reach out to people across
the world. PepsiCo is one of those, and their relationship with Coca-Cola is known as being
one of marketing´s biggest rivalries. There are numerous examples of PepsiCo trying to hijack
publicity from Coca-Cola´s Olympic Games and FIFA World Cup sponsorship during the last
10 years.39 And as mentioned earlier in 2.1.1 Strong threat of new entrants, their power
struggle continues in the U.S. beverage industry.
The rivalry between existing profit and non-profit organizations offering a solution on how to
provide light to poor communities is low. Most of them are operating on a small-scale basis in
specific geographic areas such as parts of India, Costa Rica, Peru and Kenya.
2.2
Market Environment
The overall attractiveness of a country as a potential market does not only depend on the
competitors and the specific industry itself. It is interrelated with the country´s political,
economic, legal, and cultural system, which will be covered in the next coming sections.
2.2.1 Social and Cultural Environment
An important aspect to have in mind when creating a marketing campaign or launching a
product in a international market is culture. The culture of one region differs from other
regions and is the foundations of the values within a group of people. Wild & Wild describe it
as “culture is the set of values, beliefs, rules and institutions held by a specific group of
people”40.
Figure 3 - Components of culture shows the components of culture according to Wild & Wild.
Furthermore each element will be analysed and connected to the project.
38
http://www.rio2016.com/en/more-information/partners 2015-02-23
http://www.marketingmagazine.co.uk/article/1315611/history-Coke-vs-pepsi-war-3-1-2-minutes 2015-02-23
40
Wild & Wild (2012), p. 66
39
11
Aesthetics
Physical &
Material
Environme
nt
Values &
Attitudes
Components
of culture
Education
Personal
communic
ation
Manners &
Customs
Social
structure
Religion
Figure 3 - Components of culture
Source: Wild & Wild (2012), p. 69
2.2.1.1 Aesthetics
Every culture has its own sense of what is beautiful and what is not, for example music,
paintings, dance, architecture or packaging. Things such as colours have various meanings to
different cultures. Studies found out that, for example the colour red is often associated with
“active”, “hot”, “vibrant” or “emotional”. Therefore it can be concluded, that red has a
positive connotation in many societies.41
While the colour red associates “good taste” in the U.S., Coca-Cola will keep the design of
their standard bottle with the red label and white letters. To characterize that it is a special
edition, they will print the logo of the Olympics, as well as the logo of A Liter of Light at the
bottles, with a short description of the project. The marketing campaign will also have to be
designed according to the U.S. audience taste.
2.2.1.2 Values & Attitudes
Values and attitudes is one of the central components of a culture. It is defined by Wild &
Wild as ”Ideas, beliefs and customs to which people are emotionally attached”42, and have a
big importance to the success of the campaign. Coca-Cola has been operating in the U.S.
since 1892, and has become a natural part of millions of people’s daily life. They have
influenced people´s drinking habits, and billions of people around the world can relate to the
41
42
Keegan & Green (2013), p. 104
Wild & Wild (2012), p. 69
12
brand and their products. Values and attitudes towards a charity project is most likely going to
be accepted in the U.S. since they are people who historically value sharing, as discussed later
in 2.2.2. This creates good opportunity for the project with many people already valuing
drinking a soft drink like regular Coca-Cola.
2.2.1.3 Manners & Customs
Manners and customs are important for a company to analyse in order to avoid mistakes or
offending people when they operate. Manners are defined as “appropriate ways of behaving,
speaking and dressing in a culture”43 while customs is “Habits or ways of behaving in a
specific circumstances that are passed down through generations in a culture.”44
There are habits of behaving towards people in need. A majority of the people in the U.S. are
raised to be empathic towards their fellow human beings. With this in mind, when Coca-ColaCompany is going to design their marketing campaign, they could focus showing pictures
from the favelas or perhaps some other disturbing pictures from the slum in Brazil in order to
get sympathy.
2.2.1.4 Social Structure
The social structure plays a big role when companies decide to do business in a country. Wild
& Wild define social structure as “cultures fundamental organization, including its groups
and institutions, its system of social positions and their relationship, and the process by which
is resources are distributed”45. There are three elements of social structure, which includes
social group associations, social status and social mobility.
Coca-Cola is one of the most popular soft drinks in the U.S. and have strategically chosen not
to exclude any customer by setting a price more or less everyone can afford. The product is
therefore not limited for any social status. It is more or less accessible and affordable for
everyone from a lower social layer to the highest. Things as age and family structure will be
analysed as well in the segmenting part in order to create groups that the project will focus to
target on. There is also differences between social groups who are willing to help a charity
project.
Brazil is a country with enormous domestic differences, which is the underlying reason for
this project. Although there has been great progress since the millennium since President Lula
43
Wild & Wild (2012), p. 73
Wild & Wild (2012), p. 73
45
Wild & Wild (2012), p. 75
44
13
da Silva’s worked and approximately more than 30 million Brazilians have been lifted out of
poverty since. The new president Dilma Rouseff has also created a program called “Brazil
with misery” that has the main focus to get all Brazilians out of extreme poverty as soon as
possible.46
Even though all this positive statistics, there are still 20 % of the population living on 1-2 U.S
dollar each day. Many of these people are living in the favelas around the bigger cities. It is an
environment with a dangerously high crime rate, which has to be taken into consideration
implementing the product. The locals have to be included and be well aware with the
objective of the project.47
2.2.1.5 Religion
Religion is one of the most important influential factors for society’s attitudes, beliefs and
values48. The U.S as well as Brazil is predominantly Christianity, with 73 % of the U.S.
identifying themselves as Christians while 20 % have no religious thoughts49 and Brazilians
nearly 88 %50. One principle of this religion is charity, which means that people should help
other people when they are in need. While Light the World is a social project to help the poor,
it could be advantageous that the most the U.S. is Christians and also shares religious beliefs
where the project are going to operate, which creates some feeling of belonging.
2.2.1.6 Personal Communication
Personal communication is all about how the culture connects thoughts, feelings, knowledge
and information through speech, writing and actions and therefore a company can understand
how the society thinks and acts51.
This part is especially important when Coca-Cola is going to market their marketing
campaign. They need to make the U.S. people connected to the project and create the feeling
that they have the urge to help those people. In order to do that they need to study this
component and understand how the U.S. people react to marketing campaigns. This should
not be a problem for a company like Coca-Cola, which there has been mentioned in section
2.1.1 with huge experience from many years of marketing in the U.S.
46
http://www.landguiden.se/Lander/Sydamerika/Brasilien/Sociala-Forhallanden 2015-02-09
http://www.landguiden.se/Lander/Sydamerika/Brasilien/Sociala-Forhallanden 2015-02-09
48
Keegan & Green (2013) p. 127
49
http://en.wikipedia.org/wiki/Religion_in_the_United_States 2015-02-14
50
http://en.wikipedia.org/wiki/Religion_in_Brazil 2015-02-14
51
Wild & Wild (2012), p. 81
47
14
2.2.1.7 Education
Education is when you pass on information further down through the generations. Different
cultures use their own methods to educate their young people. In the U.S. there is mandatory
schools for younger people with the choice to go to college if they can afford it. This means,
relatively speaking, that the U.S. population are well educated.
This project could for example be affected by the fact that Coca-Cola drinks are not very
healthy. With an educated target market people perhaps avoid to buy Coca-Cola with
knowledge about the side effects. Also a well-educated society usually means better chances
of job and higher salary, which is good for the project if people have more money to spend on
Coke during the Olympics. In conclusion, there is both pros and cons with an educated
society for this project, although, theses might not affect the project so much.
2.2.1.8 Physical & Material Environment
The physical and material environment has an influence to societies culture and to its pace of
change. It includes for example topography, climate and material culture52. This component
does not affect the project that much on the U.S. market since television where the main
commercial are going to take place is more or less available everywhere and you can also buy
Coca-Colas wherever you live. In Brazil it will not have such a big influence either, except for
the material culture that is about technological advancement of a nation. The idea of the
project is to change the material culture in the Brazilian favelas with free or cheaper light in
order to let them spend more money on things that can higher their standards, which includes
technology.
2.2.1.9 Dietary Preferences
There are also cultural influences in terms of diets and consumptions patterns53. With a
growing health concern and more available substitutions, there are more and more people who
choose to drink healthier drinks.
Therefore, with the project focusing on selling regular Coca-Cola, which contains a lot of
sugar, it is a threat that people will choose a healthier drink instead of buying the product of
the project.
52
53
Wild & Wild (2012), p. 85-87
Keegan & Green (2013), p. 130
15
2.2.2 Hofstede’s Framework
The psychologist named Geert Hofstede developed this framework thru a study on more than
110 000 people who worked in IBM subsidiaries in 40 different countries and from a study on
students in 23 countries (Wild & Wild). The Hofstede framework compares cultures thru six
dimensions; power distance, individualism, masculinity, uncertainty avoidance, pragmatism
and indulgence. These dimensions are then measured at a score from 1-100 where 50 are
average.54 The figure below shows how U.S. scores on the different dimensions in
comparison with Brazil.
Figure 4 - Hofstede Framework
Source: http://geert-hofstede.com/united-states.html 2015-02-14
2.2.2.1 Power Distance
According to Wild & Wild Power Distance describes, “In which degree a culture accepts
social in equality among its people”55. If a country has low scores on power distance, social
inequality is not accepted among its people. Countries with high score on power distance
think social inequality is acceptable. As seen in the picture Brazils score is higher than the
U.S. score.56
The power distance will not affect the sales of Coca-Cola in the U.S. since the score belongs
to the lower parts, which means social inequality is not desirable. Also power distance in the
54
http://geert-hofstede.com/brazil.html 2015-02-09
Wild & Wild (2012), p. 89
56
Wild & Wild (2012), p. 89
55
16
U.S. may not affect the sales of Coke in the U.S. In Brazil this may be considered a problem
for Coca-Cola and their glowing bottle, since people in Brazil are used to live with and in
slums and accepted the inequality in the Brazilian society and therefore, not as willing to help
as they would have been in a country with lower Power Distance.
2.2.2.2 Individualism
The second dimension is individualism and identifies “the extent to which a culture
emphasizes the individual versus the group”(individualism versus collectivism) 57. Those who
score high on this dimension (the individualist cultures) are cultures, where hard work are
valued high. Also the individual in itself plays a big role, the “I” is more important than the
“we”. They are given freedom to achieve personal goals, but they are also held responsible for
their actions. A culture with low scores as Brazil, are feeling a strong bond to groups, family
and work units. Also they work towards a collective goal instead of a personal. This also
means that the group itself is responsible for the wellbeing of every individual in the group. 58
The U.S. on the other hand is one of the most individualistic countries in the entire world with
their score of 91.59
The U.S. may be really individualistic, but they are also the top donors of the world when it
comes to charity60. Perhaps this “charity behaviour” comes from the fact that they are a very
religious country. It can also be that they make themselves feel good about donate to charity
because of their individualistic thinking.
Coca-Cola should take advantage of the fact that Brazil is more of a “collectivism culture”
than an “individualism culture”. If they could connect people in Brazil to this “group” of
people in the favelas, maybe they would get more support from the people.
2.2.2.3 Masculinity
In this dimension there will be an analysis of masculinity versus femininity, where
masculinity indicates a society driven by competition. A feminine society on the other hand is
described as places were caring for others and quality of life is of greatest importance.61 As
seen in figure 4 above, Brazil scores a very intermediate score and the U.S. has a high score
57
Wild & Wild (2012), p. 88
Wild & Wild (2012), p. 88-89
59
http://geert-hofstede.com/united-states.html 2015-02-12
60
http://en.wikipedia.org/wiki/World_Giving_Index 2015-02-26
61
http://geert-hofstede.com/brazil.html 2015-02-09
58
17
of 62. The latter one indicates that competition thinking is present, which will probably not
affect how much Coke an American will buy.
2.2.2.4 Uncertainty Avoidance
This dimension measures how different cultures try to avoid uncertainty and ambiguity.
Another explanation is how a culture handles the fact that the future never can be known.
Cultures scoring low on this tend to be more innovative and not afraid of changes. Cultures
with high score are more afraid of changes and they value security and enjoy strong systems
with well-defined rules and procedures. Brazil has a score of 76, which is considered high,
and therefore a culture that do not like changes. The Brazilian people are also a very
passionate people due to their score and they are good at showing emotions thru their body
language.62 The U.S. on the other hand scores below the average.63
With that in mind, the U.S. culture is open for innovation and change. This dimension is also
not that necessary, as a charity concept does not count as a new idea or change in the U.S.
Coca-Cola is a well-established and well-known brand in Brazil, but since they are kind of
afraid of changes, the project may not be well received by the people.
2.2.2.5 Pragmatism
Pragmatism is defined as “how every society has to maintain some links with its own past
while dealing with the challenges of the present and future”64. If a culture scores low here
tradition is very important and they watch changes in the society with suspicion. On the other
hand if the score is high they encourage these changes and see them as a way to prepare for
the future.65 U.S. has a score of 26 and is therefore a form of “normative” country. As
mentioned earlier they look at changes with suspicion and they also need information to
analyse if something is true or not.66
Even though U.S. has a low score this dimension do not affect the project. Traditions are
important, but they do not affect Coca-Cola’s sale during a charity campaign. Brazil has a
middle score here of 44. Therefore this dimension is not of greatest importance when it comes
to Coca-Cola’s project.
62
http://geert-hofstede.com/brazil.html 2015-02-09
http://geert-hofstede.com/united-states.html 2015-02-12
64
http://geert-hofstede.com/brazil.html 2015-02-09
65
http://geert-hofstede.com/brazil.html 2015-02-09
66
http://geert-hofstede.com/united-states.html 2015-02-09
63
18
2.2.2.6 Indulgence
The last dimension is defined as “the extent to which people try to control their desires and
impulses, based on the way they were raised”67. A weak score is called indulgence and a high
score is called restrained. Both Brazil and the U.S. has a relatively high score of 59
respectively 68, and are therefore classified as indulgent cultures.68 An indulgent culture is
easiest described as people with positive attitude, with tendencies to optimism. They often
follow their impulses, which is reflected in their consuming patterns as well.69
The project could benefit from this kind of behaviour since Coke is usually a product you buy
without any further thinking. Also with a positive attitude a charity project may be more
embraced by the citizens of the U.S. a negative aspect of this may be that people get an
impulse and desires another taste then Coca-Cola and therefore buy another soft drink brand
instead of Coke.
For Brazil this means that they have a positive attitude, which is great when the workers come
to install the plastic bottles.
2.2.3 Marketing’s Impact on Culture
As been mentioned, there are huge differences between cultures in terms of what people like
and appreciate. Within a culture there is “shared preferences for convenience foods,
disposable products, popular music and movies”70.
With a company like Coca-Cola, which have substantial amount of marketing experience
global and especially in the U.S. where the company started. Therefore, it should not be any
problem for the marketing department to develop a marketing campaign that suits the taste of
the U.S. citizens.
2.2.4 Economic Environment
The economic system of a country involves the structure and processes to deal with all its
resources and manage their activities as a country. There is no nation that is completely
individualist neither entirely collectivist. There is an arrangement made on a horizontal scale
with pure centrally planned economy at one end and pure market economy at the other71. In
short, a strong centrally planned economy means the government more or less makes all
67
http://geert-hofstede.com/brazil.html 2015-02-09
http://geert-hofstede.com/united-states.html 2015-02-09
69
http://geert-hofstede.com/brazil.html2015-02-09
70
Keegan & Green (2013), p. 135
71
Wild & Wild (2012), p. 130
68
19
economy-related decisions, which includes the amount produced and the prices72. In a market
economy, the economy-related decision is privately made, which means that the amount
produced and the market sets the prices73. There is usually some kind of mixed economy
between these two sides74.
The U.S. is a mixed economy, which is clearly leaning towards market economy. They ranked
9 in the index of economic freedom in 201175. The economy is built by several different
sectors. They are leading in terms of research and development and the U.S. economy is often
seen as the locomotive for the global economy. Furthermore, the U.S. was hit significant by
the financial crisis in the year of 2008. It started to look better in the year of 2010 even though
they had a huge budget deficit because of huge warfare in Iraq and Afghanistan. However, in
the year of 2014 the economy took and huge turn in favour of the good. The unemployment
number went down to 5.6 % in December while the economic growth rose by 5 %.76
Coca-Cola confirms that both economic downturn and different macroeconomic factors such
as inflation and labour prices impact on their sales77. Labour costs and their changes will be
discussed further in section 2.2.5.
With a recovering economy together with a well-known brand that has huge market shares as
mentioned in section 2.1, on a free market which gives Coca-Cola the opportunity to sell as
many bottles as they can, gives a good prospect for the project in terms of economic
environment.
2.2.5 Political and Legal Environment
The U.S. has a republic form of government with an elected president who has the executive
power. The congress is responsible for the legislative power, although the president has a
veto. If the veto is used the congress need two thirds of the votes in order to get the suggestion
through.
There are mainly two sides in form of republicans and democrats. With no bounds between
the congress and president it is common that for example the president is democrat while
72
Wild & Wild (2012), p. 130
Wild & Wild (2012), p. 135
74
Wild & Wild (2012), p. 134
75
Keegan & Green (2013), p. 66
76
http://www.landguiden.se/Lander/Nordamerika/USA/Ekonomi 2015-02-12
77
http://www.assignmentsbox.co.uk/wp-content/uploads/2011/10/The-Coca-Cola-Company-MarketingStrategy.pdf 2015-02-14
73
20
republicans rule the congress, which is the current state. The president is elected every four
years and the congress every second.78
There is something called a political risk that Wild & Wild defines as “Likelihood that a
society will undergo political changes that negatively affect local business activity”79. These
kinds of risks can threaten the market of an exporter. There are several different types of
political risks such as:80
•
Conflict and violence
•
Terrorism and kidnapping
•
Property seizure
•
Policy changes
•
Local content requirements
For this project there is a risk of political instability because of president and congress
election a few months after the Olympics. There is a political risk in terms of policy changes
that affect the marketing campaign and the Coca-Cola product. Perhaps the opposition is
thinking about implementing new laws that might affect the economy and therefore has
impact on how people consume Coke. Moreover there is the risk if either opposition or the
ruling congress might change laws that affect both the product and labour costs, as Coke has
confirmed affects their operations. Those things might directly affect Coke, and therefore
indirectly the project.
Moreover there are people called lobbyists in the U.S., which are influential people from
organizations81. They are constantly trying to get ideas through the congress from the
company. With a new congress coming up right after the Olympics, there is a risk that the
people Coca-Colas lobbyists have been working with during the last years are scared of losing
votes if the suggestions from Coca-Cola is sensitive topic. Therefore Coca-Cola might lose
their influence, which they might need somehow for the project.
In the U.S. there is a high risk of getting sued if there is a tendency to break any kind of law.
Therefore Coca-Cola carefully needs to make sure that when for example designing the
78
http://www.landguiden.se/Lander/Nordamerika/USA/Politiskt-System 2015-02-12
Wild & Wild (2012), p. 104
80
Wild & Wild (2012), p. 104
81
http://www.landguiden.se/Lander/Nordamerika/USA/Politiskt-System 2015-02-12
79
21
campaign in order to promote the project, they make everything clear in order to not get
misunderstood.
In Brazil there is other type of political risks for the project. There is a high corruption in both
governmental and the police force. For example the police has been paid to kill children in the
slums in order to prevent reproduction of the people living there. Torturing is also a common
method used by the police force. Moreover there have been death threats and murders against
journalists writing about the slums.82
This is a threat against the project because the government and police might try to stop the
donation and help since they do not seem to like that they have those slum areas, which means
the whole project might fail. In order to prevent this they should analyse the condition right
now and try to talk to the people in charge before starting the project. Furthermore the risk of
corruption might lead to police forces taking the volunteers to jail. Also if the Brazilian
government does not like the project, they might declare their dissatisfaction against The
Coca-Cola Company.
Freedom of the press is something stated in the constitution and the media has no bounds with
the government. The majority of the media is owned by private companies and is financed by
advertising.83 This brings the project a good opportunity to buy advertisement in order to
promote the project.
82
83
http://www.landguiden.se/Lander/Sydamerika/Brasilien/Politiskt-System 2015-02-15
http://www.landguiden.se/Lander/Nordamerika/USA/Massmedier 2015-02-12
22
3
Segmenting and Targeting
The situation analysis has covered both the U.S. soft drink market and the Brazilian market
where the project will be implemented. The next step is to segment the U.S. market into
potential customer groups based on various variables, and the most promising segments will
be targeted and focused on. Since the source of financing is the sales of regular Coke, there
will be no focus in this report of cooperating with governmental organizations or receiving
high donations from companies.
3.1 Market Segmentation
Market segmentation can be defined as the “process of identifying specific segments –
whether they be country groups or individual groups - of potential customers with
homogenous attributes who are likely to exhibit similar responses to a company’s marketing
mix”84. Table 1 - Segmenting variables below illustrate the different type of segmenting
variables that the campaign is going to focus on.
Table 1 - Segmenting variables
Geographic
Region
Climate
City/Town size
Population density
Demographic
Income
Population
Age
Gender
Psychographic
Attitudes
Values
Lifestyles
Personality
Behaviour
User rate
User status
Benefit
Problem solving
Benefits
Issue
Source: Adapted from Keegan & Green (2015), p. 221-231
Geographic segmentation involves geographic variables such as region, city or country.
Demographic segmentation is based on measurable characteristics for the population, such as
the local income, population, education and gender. It is mainly fixed to one country and its
citizens. In psychographic segmentation, people are separated by their attitudes, values and
lifestyles. It identifies the needs and wants of consumers (all around the world) and patterns
them. Behavioural segmentation focuses on whether people buy and use the product, as well
as how often and how much. Lastly, the benefit segmentation looks at the different benefits
the consumers get by consuming the product. The benefit it offers, or the issue it addresses,
regardless of nationality.85
84
85
Keegan & Green (2015), p. 221
Keegan & Green (2015), p. 221-231
23
3.1.1 Geographic Segmentation
There are no data available giving any indications that sales are likely to be higher in specific
states, regions or cities. And there are also no data available on specific regions where the
interest for the Olympic Games is likely to be distinctively higher. The campaign will
therefore aim at the U.S. market, without any further geographic segmentation
3.1.2 Demographic Segmentation
The United States is home to 320,501,737 people along with being the 4th largest market in
the world in terms of per capita consumption of Coke.86 87 Soft drinks are a consumer product
that has a low per-unit cost and is therefore affordable by most people. Population variables
are therefore considered more valuable than income variables. The U.S. has more females
than males, and research made by the global information and measurement company Nielsen
indicates that it is likely to be more females watching the Olympic Games in Rio.88 89 But
males consume more sugary drinks, especially those aged 12 to 3990. Along with the
assumption that there are no significant difference between males and females in terms of
willingness to contribute to the project, gender segmentation is not considered necessary.
Age segmentation is more relevant to the campaign. There is a strong tendency among
children and teens being interested in the Olympic Games. 70% of the U.S. children watched
the London 2012 Olympics with their parents, and the Olympics viewing among teenagers
2012 was up 27 % compared with Beijing Games 2008. The viewer ratings on television were
highest among the population aged 55 and older, but many Americans aged 18 to 29 used
social networking sites such as Twitter and Facebook to follow the Olympics.91 There are no
data available on the age segments consuming most regular Coke, but as mentioned above,
males aged 12-39 consume most soft drinks in the U.S.
86
http://www.coca-colacompany.com/annual-review/2012/pdf/2012-per-capita-consumption.pdf 2015-03-13
http://www.census.gov/popclock/ 2015-03-13
88
https://www.cia.gov/library/publications/the-world-factbook/geos/us.html 2015-03-13
89
http://www.nielsen.com/U.S./en/insights/news/2010/how-different-genders-ages-races-and-regions-watch-theolympics.html 2015-03-13
90
http://www.cdc.gov/nchs/data/databriefs/db71.pdf 2015-03-13
91
http://articles.latimes.com/2012/aug/11/business/fi-ct-olympics-ratings-20120811 2015-03-13
87
24
3.1.3 Psychographic Segmentation
Coca-Cola’s CEO have stated that people consuming regular Coke live “fast-paced urban
lifestyles with more time outside of the home - seeking on-the-go cold refreshment”92. Light
the World will continue on this path, communicating a brand image that is young, modern and
refreshing. But it will also communicate that Coca-Cola attempts to make the world a better
place, focusing on the consumers that values diversity, equality and tolerance.
Coca-Cola has had several marketing campaigns focusing on the emotional connection
between consumers, their friends and the Coca-Cola products. Creating bonds where people
see the sharing of a regular Coke as a way of appreciating their relationships with their closest
ones93. The campaign “Share happiness” is one of them, and “Light the World” will use a
similar approach.94 But instead of focusing on connecting Coke consumers with their closest
ones, the focus will be on the consumers that care about others, willing to donate money and
contribute to a better life for the people in need.
3.1.4 Behaviour Segmentation
The 80/20 rule suggests that 80% of the revenues or profits are accounted for by 20% of the
firm´s product or customers95. This is believed to be the case for Coca-Cola, and the
marketing campaign will pursue sales and growth in those consumer segments where regular
Coke is already well known and popular. The campaign will focus on the consumers that can
be categorized into the heavy and medium usage rates.
3.1.5 Benefit Segmentation
During the two-week time period of the Olympics, Coca-Cola does not only offer the
consumers in the U.S. a refreshing drink. They offer a simple way for people to contribute to
enlightening Brazilian favelas, helping families out of the dark. Therefore, all people willing
to contribute to a better world by helping the poor is of interest to the marketing campaign.
92
http://www.pwc.com/us/en/ceo-survey-us/2014/assets/muhtar-kent.pdf 2015-02-16
http://finance.yahoo.com/news/coca-cola-shares-moments-happiness-171800223.html 2015-03-22
94
http://www.forbes.com/sites/greatspeculations/2014/10/01/coca-colas-carbonates-offer-growth-despiteunfavorable-market-trends 2015-02-15
95
Keegan & Green (2015), p. 231
93
25
3.1.6 Identified Segments
By using the segmentation variables above, five segments have been identified:
Generation Y (age 18-29)
They were born into an emerging world of technology and a fast-moving global society. They
have a strong brand knowledge of Coca-Cola and consume carbonated soft drinks on a regular
basis.
Families (adults aged 30-49 with children aged 5-17)
Family oriented adults with children old enough to understand the cause of the campaign. The
parents’ values are focused on educating their children and being a role model by helping the
people in need. Many children are also heavy or medium user of carbonated soft drinks.
Adults without children (age 30-49)
Career oriented adults with high focus on their lifestyle and image.
Dynamic and settled people (age 50-64)
Dynamic and settled people that are content with the comfort of home, family, and
community. They have a big interest in the Olympic Games.
The elderly (age 65+)
Retired people that have a lot of time for and interest in watching the Olympics.
3.2 Targeting
The market has been segmented, and the segments will now be evaluated according to their
“current size of the segment and anticipated growth potential, competition, and compatibility
with the company’s overall objectives and the feasibility of successfully reaching a designated
target“96. The segments with the greatest potential are chosen and divided into primary and
secondary target groups. The rest belong to the “spill overs”.
3.2.1 Primary Target Group
The primary target groups for the campaign are generation Y and families. These two
segments are not only by far the biggest consumers of soft drinks, but there are several
advantages from a marketing perspective as well. First of all, targeting the generation Y,
younger adults aged 18-29, is important due to their unprecedented influential power thanks
96
Keegan & Green (2013), p. 206
26
to social media channels. They prefer to communicate quickly and effectively using
communication channels such as social networks and text messaging, and opinions of
ordinary consumers have the potential to “go viral”. Marketers constantly try to catch their
attention, and it is therefore necessary to provide timely, relevant information right as
something is happening. In this case the Olympic Games. And as mentioned earlier, many
Americans aged 18 to 29 use social media sites such as Twitter and Facebook to follow the
Olympics.
Secondly, the generation Y have grown up in a global society where diversity in race, culture
and language can be seen everywhere. They accept that the world is constantly changing, and
they are active consumers that are constantly seeking new challenges. Furthermore, they want
to know that what they are doing is valuable to others.97 Light the World is an opportunity for
them to make a difference, helping the poor without putting a lot of effort, time, or money
into it. Coca-Cola enjoys strong customer loyalty and brand recognition by the younger
generation, and this campaign could leverage on that by socially connecting the generation Y
with each other for a good cause.
Families, meaning adults aged 30-49 having children in the age of 5-17, is the other primary
targeted group. The challenge in this case is that the purchase decision maker and the
consumer may be two different people. Children do consume a lot more soft drinks than
adults, but might not be old enough to buy their own soft drinks. The Olympic Games is an
event where families come together to watch the various sport events. This creates an
opportunity to communicate through commercials during the Olympics, making the families
well aware of the project. Parents want to be role models, contributing for the good, and
children have significant influence over family purchases. Since the product is affordable by
most people, it is an opportunity for parents even within the lower income levels to make a
difference. And it is also a simple way even for the busiest parents to make a difference in
their daily life.
Children in the higher ages become increasingly aware of their surroundings, and become less
dependent on their parents. They become more active on social medias and thereby more
influenced by marketers and people online. They are starting to have their own economies,
able to take their own decision such as buying soft drinks to contribute to the project.
97
http://www.sparxoo.com/2013/06/19/everything-advertisers-need-to-know-about-gen-y/ 2015-03-26
27
3.2.2 Secondary Target Group
The secondary target groups for the campaign are the adults without children (age 30-49).
Generation Y and families do consume most soft drinks, but adults without children in the age
of 30-49 do consume a significant amount as well98. They are well established in the business
world and have a strong purchasing power. They are not expected to have the same interested
in or time to watch the Olympic Games as the other market segments, but compensates to all
segments except the generation Y by being more active on social networks such as Facebook
and YouTube99.
3.2.3 “Spill Overs”
The ”spill overs” are the ones that the project does not dedicate any resources to. In this case,
the dynamic and settled people (age 50-64) and the elderly (aged 65+). These segments are
expected to have the highest Olympic Games viewer ratings on television, but are not as
active as the other segments on social medias. Many of them will probably be aware of the
project, but consume a lot less soft drinks than the other consumer segments. The interest in
the campaign is therefore expected to be low.
3.2.4 Total Size of Target Groups
The total amount of targeted people is presented in the table below. The numbers are rounded
to the nearest million to simplify the calculations.
Table 2 – Size of target groups
Primary target
group
Secondary
target group
Total
98
99
• Generation Y (age 18-29)
• Families (adults age 30-49 + children age 5-17)
• Adults without children (age 30-49)
• Primary target group + Secondary target group
51,000,000
62,000,000
Sum: 113,000,000
16,000,000
Sum: 16,000,000
= 129,000,000
http://www.cdc.gov/nchs/data/databriefs/db71.pdf 2015-03-20
https://forum.web.com/why-gen-x-still-matters-and-how-to-market-to-them/ 2015-03-20
28
Primary target group
There are a total of 82 million people in the age of 30-49 in U.S.100. 70% of these adults are
estimated to live in a household with a partner, and 70% of these households are estimated to
have at least one child101:
82,000,000 ∗ 0,7 ∗ 0,7 ≈ 40,000,000!adults.
The total amount of children in the U.S. age 5-17 is 54 million102. A further estimation is
made that 40% of all children age 5-17 are living in a household with two adults age 30-49103:
54,000,000 ∗ 0,4 ≈ 22,000,000!children.
There are a total of 40,000,000 + 22,000,000 = 62,000,000 people living in families.
The generation Y (age 18-29) are a total of 51 million people.
The total size of the primary target group is 62,000,000 + 51,000,000 = 113,000,000 people.
Secondary target group
As mentioned in the primary target group, there are 82 million people in the age of 30-49 in
the U.S.. Using statistics from the U.S. Census Bureau, an estimation of 20% of these 82
million people are childfree104.
82,000,000 ∗ 0,2 ≈ 16,000,000!adults
The total size of the secondary target group is therefore 16 million people.
100
http://www.census.gov/population/age/data/files/2012/2012gender_table1.xlsx. 2015-02-26
http://www.census.gov/compendia/statab/2012/tables/12s0059.pdf 2015-02-26
102
http://www.census.gov/population/age/data/files/2012/2012gender_table1.xlsx 2015-02-26
103
http://www.census.gov/hhes/families/files/cps2014/tabA3.xls 2015-02-26
104
http://www.census.gov/content/dam/Census/library/publications/2014/demo/p20-575.pdf 2015-03-22
101
29
3.3 SWOT-Analysis
The following SWOT-analysis is based on previous situation analysis and summarizes the
most important facts that have been covered. It gives an indication of the current situation in
terms of internal strengths and weaknesses, and external opportunities and threats for the
campaign.
Strengths
Weaknesses
•
•
•
•
•
•
•
•
• W1: Unhealthy product
• W2: Not a long-term solution
• W3: Not well-known project
S1: Financial strength
S2: Established eco-friendly project
S3: Market share
S4: Marketing and advertisement
S5: Existing distribution network
S6: Bargaining power
S7: Brand
S8: CSR
SWOT
Opportunites
Threats
•
•
•
•
•
•
•
•
•
•
•
•
•
O1: The Olympics
O2: Consumption of coke
O3: Generous country
O4: Image
O5: Consumer loyalty
O6: Emerging market
O7: U.S. growing economy
T1: Strong competition
T2: Unstable future
T3: Consumers preferences
T4: Unstable environment
T5: Reaction in the U.S.
T6: Corporate cannibalism
Figure 5 - SWOT-analysis
3.3.1 Strengths
S1: Financial strength
Coca-Cola's have a strong and stable cash-flow-generating business model.
S2: Established eco-friendly project
Liter of Light is an already established eco-friendly project with an innovative product using
only plastic bottles with high durability, water, chlorine and sunlight as an energy source.
30
S3: Market share
Coca-Cola has the largest market share in the soft drink industry in both the U.S. and in the
world.
S4: Marketing and advertisement
Coca-Cola puts a lot of effort and money in their marketing and advertisement campaigns and
are well know for this. Moreover they have many years of experience and are familiar what
kind of campaigns that works in different situations. Finally, the main message Coca-Cola is
trying to pass to the consumer is sustainability and happiness.
S5: Existing distribution networks
Coca-Cola has already a well-established distribution network both in the U.S. and across
more than 200 other countries.
S6: Bargaining power
Since Coca-Cola is the world’s largest soft drink producer it has significant power over their
supplier and this results in lower prices for their product ingredients.
S7: Brand
Coca-Cola is one of the most valuable brands in the world, enjoying strong brand recognition
and loyalty.
S8: CSR
Coca-Cola is famous for its CSR activities and has a strong global CSR-reputation.
3.3.2 Weaknesses
W1: Unhealthy products
The major weakness concerning the regular Coke is that it is unhealthy, containing a lot of
sugar and calories.
W2: Not a long-term solution
The campaign is not a long-term solution to the problem. The bottle light can´t replace the
need for electricity, the product doesn't work during night, and it has to be replaced every 5
years.
31
W3: Not well-known project
Liter of light is not that famous by now, it needs a higher marketing expenditure to convince
potential buyers, to support the project.
3.3.3 Opportunities
O1: The Olympics
The Olympics draws major attention from people around the world, and Coca-Cola is an
official partner. Therefore, the marketing campaign could potentially reach out to billions of
people in a very short amount of time. The Olympic Games 2016 is also located in Brazil and
therefore gives the viewer a connection to the favelas.
O2: Consumption of Coke
U.S is one of the largest Coke per capita consumers across the world. They are loyal to the
brand, and the campaign might therefore increase the sales rate even more.
O3: Generous country
One of the world’s leading countries when it comes to charity and donations is the U.S. This
result in receiving more donations to the project, then it would have got from other countries.
People from the U.S. are also the second most common tourist in Brazil and this combined
with their generous spirit will likely benefit the project, since many will feel some kind of
fellowship to the people in Brazil.
O4: Image
The campaign is an opportunity for Coca-Cola to strengthen their CSR reputation even more.
And doing it in an emerging economy such as Brazil improves the brand image future
potential customers.
O5: Consumer loyalty
Until now, Coca-Cola has already a high consumer loyalty. But the project could lead to an
increase of consumer loyalty and therefore to a higher sale rate.
O6: Emerging market
After the Olympic Games and after the project is finished and installed, the population of
Brazil hopefully will see Coca-Cola as a trustworthy company. Coca-Cola will therefore use
this project as a way to communicate their message and try to fortify their position as the
number one soft drink provider in one of the world’s most growing economies.
32
O7: U.S. growing economy
At the moment the U.S. have passed their economic downturn and are now heading in the
right direction. This creates a better standard of living for the U.S. people, which stimulate the
market and leads to more consumption.
3.3.4 Threats
T1: Strong competition
Coca-Cola face strong competition in the soft drink industry from competitors such as Pepsi
and Dr Pepper. And many global corporations launch major marketing campaigns during the
Olympic Games, which could potentially undermine the campaign.
T2: Unstable future
The world today is different from how it was 50 years ago. Today nature disasters and
terrorist attacks are more common than rare. Therefore Coca-Cola should be aware, that if
something more urgent appears, like a nature disaster, people will be more likely to donate to
those projects, which help these areas, instead of the project concerning the favelas.
T3: Consumers preferences
Growing health concerns in U.S. are causing a shift towards more natural and healthier
beverages with less sugar in it. Less sales means fewer helped families.
T4: Unstable environment
The situation in today’s Brazil with all of its corruption and criminality is a safety risk for the
project. The social inequalities create instability in the area and may not be well received by
the inhabitants of the slums. This can then create delays for the project or even jeopardize the
safety of the volunteers when being there.
T5: Reaction in the U.S.
Maybe everything has been a miscalculation and the people of the U.S. do not care about the
situation in the favelas and therefore the donations do not reach the approximated level.
T6: Corporate cannibalism
If people choose to buy the regular Coke because of the campaign, when they actually were
going to buy another product from Coca-Cola, for example Coke Zero or Coke Light. This
might result in corporate cannibalism.
33
3.4 Marketing Objectives
The information given in the situation analysis and the SWOT-analysis has resulted in a
deeper understanding of the market, including competitors, customers and countries involved.
The strengths and weaknesses of the product itself have been pointed out, and it is time to set
the marketing objectives for Coca-Cola and Light the World.
The AIDA-model, illustrated below identifies the different stages an individual goes through
during the buying process of a product or service, and will be used to find the marketing
objectives. 105
Attention
Interest
Desire
Action
!
Figure 6 - AIDA-Modell
Source: http://www.ne.se/uppslagsverk/encyklopedi/lång/aida-modellen# 2014-02-23
The first part, Attention, is all about creating brand awareness and affiliation with the
campaign. Once the campaign has gained attention, it hopefully generates Interest in the
benefit of the product, encouraging the buyer to research further. The third letter, Desire,
focuses on getting an emotional connection between the product and the potential customer.
This part is excluded from the report due the short distance between being interested and
taking action with this specific product. The final letter, Action, means the interested people
actually buy the product.106
105
http://www.forbes.com/sites/loisgeller/2014/06/02/the-aida-principle-roadmap-for-a-lot-of-great-advertising/
2015-03-23
106
http://www.forbes.com/sites/loisgeller/2014/06/02/the-aida-principle-roadmap-for-a-lot-of-great-advertising/
2015-03-23
34
The starting point for the AIDA-model is the total amount of targeted people (n =
129,000,000 people). It was calculated in section 3.2.4.
Attention
An estimation of 70% or more will be aware that buying a regular Coke during the 16 days of
the Olympic Games will help installing solar bottle lights into Brazilian favelas.
129,000,000 ∗ 0,7 ≈ !90,300,000!people
Interest
An estimation of 40% or more of the people aware of the campaign will want to find out more
about the product and project. They will either visit Coca-Cola’s, Liter of Light’s or Light the
World’s web page, or use social medias such as Facebook, Instagram and Twitter to like
and/or follow the project.
90,300,000 ∗ 0,4 ≈ !51,600,000!people
Actions
The final numbers are calculated in the actions below. These numbers will be the overall
marketing objectives for the campaign.
Action 1 – Litres of regular Coke purchased
Regular Coca-Cola can be found in most convenience stores and supermarkets across U.S.,
making it easy and comfortable for interested people to buy the product. This contributes to
an estimate of 40% of the interested people taking action, buying the product:
51,600,000 ∗ 0,4 = 20,600,000!people
It is important to remember that these 20,6 million people are not the only U.S. citizens
expected to buy regular Coke during the Olympic Games. A lot of people are likely to buy the
product without caring or even knowing about Light the World, although contributing to it by
consuming regular Coke. However, these people will not be covered in this report.
The annual per capita consumption of soft drink brands of The Coca-Cola Company is 403
servings (1 serving=250ml) in U.S.107. Carbonates accounts for 38,9% of the U.S. soft drink
market, and regular Coke itself accounts for 17% of the carbonates market108. An estimation
107
http://www.coca-colacompany.com/annual review/2012/pdf/TCCC_2012_Annual_Review.pdf 2015-02-26
http://www.trefis.com/stock/ko/model/trefis?freeAccessToken=PROVIDER_a7d862b382360a61a7b9661762
3c8976d19a2dab 2015-02-26
108
35
of 27 (403*0,389*0,17 = 27) servings regular Coke per capita is consumed annually.
Therefore, it is estimated that the targeted population will consume on average 1,5 servings
regular Coke per person during the 16 day time span of the Olympics:
1,5!!"#$%&'! ∗ 0,250!!"#$%& ∗ 20,600,000!!"#!$" ≈ 7,700,000!!"#$%&!!"!!"#$.
Action 1: The marketing campaign is estimated to successfully get at least 20,6 million people
purchase a minimum of 7,7 million litres regular Coke during the 16 days of The Olympic
Games in Rio 2016.
Action 2 – Number of families helped
This part will be covered in more detail in the marketing strategy and the 4P s. The cost of
helping one family installing one bottled light is estimated to be $2, including materials,
transports, labour and various costs. One litre of regular Coke costs on average $1 in the U.S.,
and 5 cents of each litre is donated to the project during the Olympic Games.
7,700,000!!"#$%& ∗ 0,05$! = $385,000
$385,000
= 192,500!!""#$!!"#!!"
$2
Action 2: Light the World is estimated to help at least 192,500 families in the Brazilian slum
areas light up their homes.
36
4
Marketing Strategy
After the SWOT-analysis, segment & targeting and an AIDA to set the marketing objectives,
the strategy of the project will be presented. The 4P s will be analysed and end up with an
implementation and control of the project campaign.
4.1 Product
The first P, product, is both the main challenge and opportunity for a company in order to
maintain competitive on a global market. A product is a goods, service or idea, which consists
of both tangible and intangible attributes. Tangible attributes can be for example weight,
dimensions or materials used while intangible includes things like reputation of the brand,
service, price, quality and aesthetics.109
In the project the product is the regular Coke that is going to be sold during the Olympics in
order to raise money for the actual project in Brazil. The beliefs of the project group are that
the reason for the project to succeed is to keep the Coke product sold maintained as usual.
There are several reasons for this, for example there is no costs to develop a new product and
the product is already established and well known.
4.1.1 Brand
“A brand is a complex bundle of images and experiences in the customer’s mind”110. A brand
image is the brand associations which consumers hold in their memories while brand identity
is the associations the company attempting to create.111
The reason for Coca-Cola to contribute to this project, in addition to boost sales, is to create a
better image of their brand. Although the campaign will be named Light the World, the
product itself will not have any special name. Although, there will be special labelling, which
will be discussed further in section 4.1.3
4.1.2 The Different Levels of a Product
”Products can be analyzed in three different levels, were each level adds customer value” 112.
The first level is the “core product”, which underlines what the costumer really is buying.
The second level is the “actual product”. This level converts the core product into an actual
product, like the brand itself, packaging, quality, and design. The last level is the “expanded
109
Keegan & Green (2013), p. 310
http://education-portal.com/academy/lesson/product-attribute-definition-lesson-quiz.html 2015-03-02
110
Keegan & Green (2013), p. 313
111
Keegan & Green (2013), p. 313
112
Kotler, Armstrong, & Parment, Teori, strategi och praktik (2013), p. 272
37
product”. Properties like warranty, installation and other things that the customers do not
expect exist during their purchase. This part usually consists of added value for the product.113
Augmented
Product
The opportunity
to help
Actual product
Design,brand,
quality
Core product
Taste, refreshing
Figure 7 - The different levels of a product
Source: Kotler, Armstrong, & Parment, Teori, strategi och praktik (2013), p. 272
For Coca-Cola these levels can describe why a customer purchases their product. Their core
product is a refreshing drink, which can quench their thirst and is the reason why most people
buy their product at the first place. The actual product is the brand itself and the personality it
radiates to other people and the solid packaging. People who buy Coke know that Coke equals
quality when it comes to soft drinks, therefore they know that they can buy a Coke anywhere
in the world and still get the exact same taste on Coke. Also the design and color of the can or
bottle is easily connected to their message in terms of happiness, which attracts people.
During this campaign the augmented product will provide the customer with something more
then usual, which is the opportunity to help another human being in another country. The
additional service from buying a Coke will be the financing of the project and therefore a new
argument for buying Coke instead of other brands during the campaign under the Olympics.
4.1.3 Labeling
Product labels are designed in order to create attraction and sometimes support position of a
brand in order to make the consumer buy their product. Soft drink marketers are especially a
market where labeling is an opportunity to speak to their consumers. 114“Coca-Colas
113
114
Kotler, Armstrong, & Parment, Teori, strategi och praktik (2013), p. 272-273
Keegan & Green (2013), p. 310-311
38
distinctive contour bottle comes in both glass and plastic versions and helps consumers seek
out the “real things””115.
In order to connect the advertisement with the product, regular Coke sold during the
Olympics will be marked with a special label. It makes the consumer aware once again that
they are contributing to the project. The label will include be the brand of Liter of Light, to
illustrate the cooperation between Coca-Cola and MyShelter Foundation. It will also have the
Rio 2016 Games logo and the short text “Buy a Coke – Light the World”. A prototype is
illustrated in the figure below.
Figure 8 - Prototype of labelling during the Olympic Games
4.2 Price
“Price is the summary of the value a consumer gives up to be able to get the benefits that a
product offers” 116, which in this case means a refreshing drink and opportunity to help
another human beings. Out of the 4P s in the marketing mix, the pricing P is the only one that
115
116
Keegan & Green (2013), p. 311
Kotler, Armstrong, & Parment, Teori, strategi och praktik (2013), p. 298
39
creates revenues and it is also the most flexible of them. 117 The pricing part will play a vital
role for Coca-Cola, since they want to attract new customers, which can support their cause
and also keep the people who buy Coca-Cola today. An attractive price can be the key to
accomplish both of these terms.
There is a different pricing strategy for different products, even within the same type of
product that varies from country to country. There is a possibility to set a low price and massmarket the product or put a higher price and make it a niche product. The latter one can be
used in form of a marketing skimming strategy, which means that the price is set to reach the
market who are willing to pay a premium price for a product. It is usually a strategy when the
production and number of competitor is limited. An example of this is when flat screen TV
came to the market with a very high price that some customers were willing to pay.118
Furthermore there is a product that does not have any special limit in production and lot of
competitors on the market, which makes the skimming strategy unusable. In that case, there is
another strategy called market penetration, which means that there is a low set price in order
to gain higher market share. With a higher market share there is a possibility to have lower
margins.119
With all the experience and many years of operating on the soft drink market, Coca-Cola
knows exactly what to expect from customers behaviour while setting their prices. As there
has been mentioned, Coke cost about $1/litre and 5 cents goes to the project. That means there
is a low price generally with a percentage that actually goes to the project. This is the reason
for the target groups that have been selected that focus on larger groups with goals to sell as
many Coke products as possible. This means the project is using a market penetration strategy
in order to succeed.
4.2.1 Good-Value-Pricing
Customers always want to create as much value as possible with their money and therefore
products or services that can offer that little extra are more likely to be successful. A good
example is the so-called “value-meals” offered at McDonalds. A value-meal at McDonalds
can for example be their Big Mac meal. Here they offer soda, a burger and fries at the cost of
what maybe just a burger and a soda would have cost at another place. For McDonalds the
117
Kotler, Armstrong, & Parment, Teori, strategi och praktik (2013), p. 299
Keegan & Green (2013), p. 345-346
119
Keegan & Green (2013), p. 346
118
40
cost of the fries is almost insignificant but the value added to the meal for the customer, may
be that little extra that makes the customer to choose McDonalds in front of their
competitors.120
Just adding the opportunity to help a person or a family in Brazil through the consumption of
a Coke, without changing the price, will be a competitive advantage for Coca-Cola against
their competitors. As for McDonalds with the fries, adding the possibility to help another
human being, which does not cost Coca-Cola that much will be a significant value enhancer
for the customer. This will, however, shrink Coca-Colas margins on the sales of Coke for a
small period of time but will also hopefully benefit by selling larger quantities. It will also
strengthen the brand image of Coca-Cola.
4.2.2 Psychological Pricing
This pricing strategy refers to the psychological aspects that a price reflects on a costumer and
not just the economic aspects. One aspect of this strategy is a term called “reference price”
and occurs when a costumer thinks or sees a product or service they almost instantly refers its
price to a similar or identical product or service and then considering if the price at all is
acceptable. Also different offers connected to the price is frequently used in grocery stores, as
a way to make the costumers buy their products.121
Coca-Cola will therefore keep the price the same as before, when doing this campaign. The
costumers will then see the Coke and the advertisement/offer of the Light the World and then
think of their reference price of Coke. After they have done this and see that the price is the
same as the actual price even though the project is added, they will feel that they get two
things for the price of one. Also if Coca-Cola had chosen to raise the price of Coke during this
campaign, people would have felt that they were the ones donating money and therefore the
image of goodwill would not been equally good. But if they choose to have the same price as
before, the costumer feel that both they contribute to the project in Brazil.
In addition, Coca-Cola usually never changes their prices because of a campaign. The cost of
for example creating a new label for the campaign is always done for new campaign and
therefore they have experience and knowledge about those changes. Even if they would not
break even on the each litre sold during the Olympics, a campaign like Light the World also
adds a lot of goodwill to their image.
120
121
Kotler, Armstrong, & Parment, Teori, strategi och praktik (2013), p. 300-301
Kotler, Armstrong, & Parment, Teori, strategi och praktik (2013), p. 313-315
41
4.2.3 Costs of the Implementation of Solar Bottle Lights
All the costs included in the implementation and installation of the solar bottle light is
expected to be a total of $2 per installed bottle light. It includes the materials, transports,
labour and various costs. The material needed is plastic bottles, chlorine, water and basic
working tools. Plastic bottles are easily assessable from recycling. Chlorine cost a few cents
per installation and basic working tools can be used for many bottles and therefore divided by
each bottle installed just a few cents as well122. The water system of Brazil is well developed
in the bigger cities, closely located to the favelas. The cost of water is therefore very low.
The labour costs are the extra costs appearing for Coca-Cola in the U.S. in order to create this
project, which takes several hours of planning and administration. The actual project team in
Brazil are volunteers and therefore the labour cost for them are none except for various costs
that appears. The transportation costs are all the transportation of supplies and workers
between project areas.
4.3 Place
The third P is place, which can be defined as ”place includes company activities that make
the product available to target consumers.”123 In other words, it is all about getting the right
product to the right place at the right time. There are a lot of different aspects that need to
interact with each other, such as channels, locations, coverage, inventory, transportation and
logistics.124 All those aspects are designed in order to create utility for the customer. CocaCola has used the words about utility for their products “within an arm’s reach of desire”125.
In international marketing there are three main types of distribution systems:
•
Intensive distribution
•
Selective distribution
•
Exclusive distribution.
Intensive distribution is based on providing the market by using all available channels to sell
their product. Selective distribution limits the number of channel in geographical areas where
they market their products, which creates an advantage to choose the most suitable. Exclusive
122
http://www.brazil-help.com/what_things_cost_in_brazil.htm 2015-03-04
Kotler & Armstrong, Principles of Marketing (2013), p. 76
124
Kotler & Armstrong, Principles of Marketing (2013), p. 76
125
Keegan & Green (2013), p. 375
123
42
distribution is a more extreme form of selective distribution where the producer only uses a
very small number of channels to sell their product.126
Coca-Cola uses the intensive distribution channel since the soft drink industry is a
competitive market and they depend on availability in order to stay strong against other
companies.
4.3.1 Value Chain
The value chain of a company can be understood as “Decisions at every stage, from idea
conception to support after the sale, should be assessed in terms of their ability to create value
for customers”127 while these stages are activities such as product design, manufacturing, and
transportation logistics in order to make sure the consumer receives the product without any
inconvenience. U.S. being one of their top largest markets in term of annual volume depends
on Coca-Cola having a well-established logistics and distributions system. With this in mind
there should be no problems to get the actual product on the market and available for people
to consume in order to contribute to the project. The figure below is the current value chain
Coca-Cola has.
Figure 9 - Value-chain for Coca-Cola U.S.
Source: http://www.coca-colacompany.com/sustainability/coca-cola-system-and-value-chain 2015-03-03
126
127
Kotler, Armstrong, & Parment, Teori, strategi och praktik (2013), p. 335
Keegan & Green (2013), p. 29
43
Responsibility sourced ingredients
Coca-Cola use responsibly produced ingredients, which includes things like packaging and
water stewardship.
Manufacturing
The Coca-Cola Company produces their regular Coke soft drink as usual in the factories. In
order to create value, they are for example focusing on using recycled bottles, safety while
handling product and ingredients.
Innovative distribution
After manufacturing the product is transported to their retailers of all kinds. The focus here is
once again to maintain human rights and safety for the product.
Partnerships with retailers
The product is now delivered to all kind of local markets that makes the product available to
more or less the whole U.S.
Consumer
The consumers buy the product and hands over money to the retailers. After the money has
reached the retailers, the payment for the product is sent to the finance department of CocaCola headquarters. This suggests that a new value chain should be designed from the part
when the project money reaches the headquarter to the actual implementation of the project in
Brazil, which can be seen in Figure 10 - Value chain for Liter of Light Brazil.
Suppliers
Liter of
Light HQ
Brazil
Project
areas
Money
from CocaCola U.S.
Figure 10 - Value chain for Liter of Light Brazil
44
Suppliers
Liter of Light Brazil are going to use the money sent from Coca-Cola Company in the U.S. to
get the supplies in Brazil instead of exporting everything, which seems more costly. The basic
working tools, glue and bleach will be purchased from retailers in Brazil. In order to make
sure the project keep the sustainability approach, the retailers will be analysed to make sure
they follow guidelines created by Coca-Cola in terms of human rights and high quality
products. The plastic bottles, on the other hand, will be collected through existing licensing
contract that Coca-Cola Company has in Brazil with plastic bottle collectors. The plastic
bottles are melted down and delivered to Coca-Cola, which forms new bottles. Instead of
filling the new bottles made from recycled plastic with Coke, they instead sell them to Liter of
Light as an internal customer for the cost of producing the bottle.
Liter of Light HQ Brazil
All supplies are collected and stored at Liter of Light headquarter in Brazil.
Project areas
After all the supplies are collected they are sent to different areas in Brazil where the bottles
are going to be installed.
4.4 Promotion
The promotion mix is the combination of advertising, public relations, sales promotion,
personal selling, and directs marketing used to communicate the product or service to
customers, stakeholders, and the broader public128. The marketing efforts should especially be
focused on the target markets identified by the company, with the objective of raising
customer awareness of the product or brand, generating sales, and create brand loyalty. The
challenge of effective communications, weaving together multiple marketing disciplines to
suit the organizational culture and the particular goals of the brand, has embraced a concept
knows as integrated marketing communications (IMC). It highlights the importance of
keeping a red line throughout all communication channels in order to achieve a greater impact
together than each channel could achieve individually.129
As highlighted in Section 3.4, Coca-Cola’s main objectives with Light the World are to
increase their sales of regular Coke and strengthen their brand image. The promotion efforts
128
129
http://smallbusiness.chron.com/difference-between-marketing-mix-promotional-mix-24142.html 2015-03-21
Keegan & Green (2015), p. 419
45
will be focused on the latter one, communicating to the world that Coca-Cola help people in
the developing world. Communicate that Cola-Cola cares about people, draws attention to the
people in need. The campaign will therefore primarily use an emotional appeal, evoking a
feeling response that will direct the purchasing behaviour of the customers130. Rather than
focusing on ads based on a rational appeal, proving the product’s quality and usefulness,
Light the World will focus on the cause. It will mainly communicate through design and
colour, music and tonality, as well as videos and pictures. It shall inform the consumers of the
situation of millions of Brazilians, pull on the heartstrings and encourage them to support
these people by buying regular Coca-Cola.
Coca-Cola is known for using virtually the entire spectrum of available medias when
communicating with targeted audiences131. Light the World will use primarily electronic
medias, including social networking channels and the television. The marketing efforts will
mainly be focused on the primary target group, meaning Generation Y (age 18-29) and
families with children (adults age 30-50 with at least one child age 5-17). But especially
marketing efforts on social networking sites does also focus on secondary target group, the
adults without children (age 30-50) will. Internet advertising, including web pages and social
medias, is considered critical for reaching all target groups, particularly the younger
generation aged 18-29. The other marketing channel expected to achieve great impact is
television commercials. The communication channels will be covered further in the following
sections.
Television Commercial
Television commercials is one of the most expensive forms of brand advertising, but
dominates the amount of people viewing the ad at once132. This is especially the case during
an event as the Olympic Games, when 70% of the U.S. population at some point watches it on
television. TV commercials are expected to be the most important communication channel
with the families. A draft of the TV commercial can be found in Appendix 1. By combining
and connecting the fantastic feeling of drinking a cold served Coke, a running Olympic
athlete and then finishing up by actually using the refreshing Coke bottle to help someone in
need, the aim of this commercial is to great a good emotional feeling.
130
Keegan & Green (2015), p. 430
Keegan & Green (2015), p. 435
132
Kotler, Armstrong, & Parment, Teori, strategi och praktik (2013), p. 369
131
46
4.4.1 Social Media
During the last 20 years, Internet has revolutionized the way of communicating. It has
integrated countries and people across the world, and social networking websites such as
Facebook and Twitter have created new ways to socialize and interact. While social medias
were initially for individuals only, today they are widely used by marketers, companies and
organizations. It is a cost effective way to promote their brands and to interact with their
customers, and it has become just as common to market products or services online as offline.
One of the primary target groups chosen for this project is the Generation Y. These people
were born in the era of the Internet and are therefore more integrated in the “cloud” and social
medias than other generations. The generation Y is also more likely to follow the Olympics
from a tablet, computer or phone on a social media, rather then the usual TV. Therefore the
best way to communicate to this group is through different kinds of social media. Another
opportunity that this medium offers is the functions’ that makes it possible to share. A well
placed commercial has the potential to “go viral”, and it is a cheap way for Coca-Cola to
spread their message about the project.
Facebook
The official Coca-Cola fan-page on Facebook will change its layout during this campaign to
support the project and the Olympics. People will find information about the campaign and
informative videos about it, but if they want to know more they will be guided to a new fanpage called Light the World. There they will find all information they want with information
about the project, pictures and videos taken from the different areas, instruction videos that
shows how the device works and how Coca-Cola implement them in the homes located in the
favelas. All these videos are connected to their YouTube account. The Light the World page
will also work as a channel for communication between Coca-Cola and the people interested
in their project, or as a communication channel between people who want to discuss the
subject.
Twitter
Twitter will work as a status updater and will focus on the most important messages from the
Facebook page and the official webpage. The information will be sent out from the official
Coca-Cola twitter-page and be about how many homes that have been helped and the amount
of money raised will be the most frequently messages sent out thru their tweeter feed.
Information about their appearances on other social medias will be presented.
47
YouTube
YouTube will serve as their main page for videos. All of Coca-Colas videos will be located
and easily accessed on YouTube and also linked form there to their other social medias. The
videos will be published by the official Coca-Cola profile and also by a newly created profile
named Light the World. The latter one will also have their comment field open and therefore
be open for discussion.
Instagram
A new profile named Light the World will focus on sharing pictures on Instagram. It will
inform interested parties of the success of the campaign and share pictures of the ongoing
project and implementation of solar bottle light into homes in the Brazilian favelas. The
profile will be open and active until all the raised money has been spent and the installation of
the solar bottle lights is finished.
4.4.2 Web Page
Liter of Light will be presented on both Coca-Colas and Liter of Lights existing web pages,
but there will also be a special web site created for the campaign with the name
www.LighttheWorld.com. A prototype is illustrated below.
Figure 11 - Prototype of www.LighttheWorld.com
48
The main idea with the web site is to visualize and transform information into graphics that
are both easy to grasp and visually appealing. It includes an informative video about the solar
bottle light and Light the World. Real time statistics about the support on social medias, the
amount of money raised and how many families that have been helped out of the dark
motivates people to take action and be a part of the campaign. It will also work as a media for
updates after the Olympics when the actual implementation of the work in Brazil will be
presented. It is a simple, effective and inexpensive way of communicating with the customers
within all the targeted consumer segments.
4.4.3 Radio Commercial
This is a type of media that is used less and less, although it will mainly broadcast during the
day when our primary target groups are working, which is the time when people are still
listening to the radio. It is a cheap promotion activity to remind the listeners about the other
marketing activities that they will get exposed to.
4.4.4 Public Relations
Public relations (PR) is defined as ”a strategic communication process that builds mutually
beneficial relationships between organizations and their publics.”133
Public relations (PR) are about building good relations with different groups of interest by
creating publicity connected to the company in diverse forms. With PR the people gets the
message thru news rather than from ordinary commercial and advertisement.134
The campaign will benefit the brand Coca-Cola in two main ways connected to PR. Firstly, it
is the involvement of Coca-Cola in helping poor people in Brazil, which will more then likely
be written and sent on the news worldwide during the time schedule for the Olympic Games.
This will give them an image of charity and goodwill, which will do that people have more
“belief” in the brand Coca-Cola and see them as good guys. The second positive thing is also
connected to the project Light the World, but this time it is involving just the Brazilian
people. The population of Brazil will see and hear about what Coca-Cola is doing for their
poor in their country and therefore they will gain trust for the brand Coca-Cola. Since Brazil
is an emerging and enormous market this is a great opportunity to create a good image of their
brand, which will strengthen their position in Brazil and also increase their sales of Coke.
133
134
Keegan & Green (2015), p. 436
Kotler, Armstrong, & Parment, Teori, strategi och praktik (2013), p. 370
49
4.4.4.1 Crisis Management
”Crisis management is the process by which an organization deals with a major event that
threatens to harm the organization, its stakeholders, or the general public.” 135
During the campaign Coca-Cola will send money to the Myshelter foundation, which will use
this to get the materials needed and then install these plastic bottles in the homes of the poor
in the favelas. Doing this in Brazil with their political climate and corruption, as well as the
existing violence in the favelas, can become dangerous. If an accident occurs, Coca-Cola will
be prepared and support the employees and the volunteers at Myshelter Foundation. This
crisis management will involve doctors, psychiatrists and facilities dedicated to people who
have seen or been exposed to psychological or physical violence during their work in the
favelas. Showing the public that they care about their employees and partners is very
important to retain their credibility.
4.4.5 Sales Promotion
Sales promotion is any paid message in form of a wide assortment of price (e.g. discounts,
coupons) and non-price (e.g. free samples, contests) promotion tools that add tangible value to
a product or brand. Sales promotions are used to attract consumer’s attention, offer stronger
incentive to buy a product. Typical for sales promotion is short-term gain, by sales promotion
a product may get sales boost but it is not that effective when building long-run customer
relationship.136
The idea for the project is to print a unique code on every bottle. This code can be entered
online at the web page. Possible rewards are specially designed T-Shirts, bags, frisbees, beach
balls, towels and other fan-articles from Coca-Cola.
As it is of great importance to integrate and coordinate sales promotion with other elements of
the promotion-mix137, there will be in addition to that another free competition connected to
the social media campaign. For every new 1,000 followers on the Facebook page there would
be a possibility to win rewards as well. The winners are randomly chosen aiming to reach and
keep as much followers as possible.
135
http://en.wikipedia.org/wiki/Crisis_management 2015-02-27
136
Keegan & Green (2013), p. 435
Keegan & Green (2013), p. 435
137
50
5
Implementation and Control
This section describes the implementation of the different marketing strategies in form of a
marketing activity plan. The control part should measure and make sure that the marketing
activities are working as planned.
5.1 Marketing Activity Plan
For the actual implementation of the project, there has been a marketing activity schedule
planned. The schedule describes primarily when the different promotion activities starts, but
also when the product release is. The schedule has been divided into six different periods; the
Olympics is during the fifth. The schedule is displayed in Table 3 - Marketing activity schedule.
Table 3 - Marketing activity schedule
Social Media: There is no extra cost of using social media and therefore it will be used two
and a half months before the Olympics at May 7th. It is a great opportunity to create
awareness for the project even though there is long time before the actual campaign. The
frequency of posts and updates will increase during the time before the campaign start.
Web page: Similar to social media, hosting a web page does not really create any special cost
for the project, and therefore should be up and running to create awareness long time before
the campaign.
Television: This type of promotion is perhaps the one that reaches the most people during its
operating time. But, due to the cost of having the commercial it would not start until around
two weeks before the Olympics. This creates time to be interested for the viewers, but would
51
not create to much costs for Coca-Cola. Also, the frequency of the commercial should
increase during the actual games.
Radio: Like the TV commercial, but less expensive. Would work as a reminder to the other
activities.
Sales Promotion: It is an expensive, but very effective way to create interest for a lot of
people. While the sales promotion is closely connected to the product release, it will be in
period five and six.
Product Release: The special edition bottle of Coca-Cola will be released during the Olympic
Games. It will be available for period five and six.
Project implementation: After the Olympics has ended, the collected money will be sent
immediately to Liter of Light in Brazil, thus they can start to install the lights.
5.2 Control
The control section provides information on the success rate of the marketing campaign, if the
marketing objectives are reached. It is therefore important to measures the coverage and the
effectiveness of the marketing efforts.
Awareness
An estimation of 70% or more will be aware that buying a regular Coke during the 16 days of
the Olympic Games will help installing solar bottle lights into Brazilian favelas (90,3
million).
There are several tools to measure the awareness of the project. Google Analytics will be used
to count the coverage of the online marketing efforts, meaning the number of people who see
the social media advertisement. In addition, the television commercial covering can be
measured by a service that for example Nielsen offers.
Interest
An estimation of 40% or more of the people aware of the campaign will want to find out more
about the product and project (51,6 million)
The objective is to get people gather more information about the project. Ways to measure
that are for instance people’s activities on social media like number of “Likes” of Facebook
page and followers on Twitter and Instagram. Also visits on the web page could be measured.
52
Action
The project has two action marketing objectives:
•
To get 20,6 million people purchase a minimum of 7,7 million liters regular Coke
during the Olympics.
•
To help at least 192,500 families in the Brazilian slum areas light up their homes.
The sales will be measured by Coca-Cola’s sales figures in U.S. MyShelter Foundation will
measure the number of families helped. They keep track on how many households they have
installed solar bottle lights in.
53
6
Summary and Discussion
This section will briefly summarize the main points of the project that makes it possible to
achieve the marketing objectives stated in the beginning. It will also include a short
discussion on how it was to work on this marketing campaign, how the team worked out, and
what we have gained from it.
6.1 Summary
The aim of this marketing plan is to help poor people in Brazil by selling Coca-Cola at U.S
markets during Olympic Games in Brazil 2016. The idea is that 5 cents of every sold litre of
regular Coca-Coca during the Olympic Games in Brazil 2016 would be donated to the project
called Light the World. The purpose of Light the World project is to provide source of light
into underprivileged households in favelas, in Brazil. The marketing campaign targets only
U.S. markets, and more specifically our primary groups that are Generation Y and families
with children.
The project has set specific marketing objectives that reflect the scale of actions and also
function as a measurement for Coca-Cola to estimate how well the marketing efforts did in
terms of reaching these objectives. This marketing plan had two marketing objectives: The
first one was the amount of Coca-Cola sold during the time of the Olympics, while the second
was the number of lights installed with the donated money.
To reach these objectives, the project has strategy that consists of four P’s: product, place,
price and promotion. To being with, product is one of the world’s strongest brand, Coca-Cola.
Beside the strength of the already well-known product, there will be a new design and an
opportunity to make a difference to Coca-Cola customers through consuming Coke.
Furthermore, for the price, there will be no major changes from the traditional market
penetration strategy that they are always using. Although, the feeling of buying something for
the original price while receiving something else will be used, which is called the “2 for 1”
strategy.
In addition, since target market is in U.S. where Coca-Cola has well established systems that
brings Coca-Cola to the right place at the right time, there are few weaknesses for the third
part of the marketing mix, place. The existing value-chain will be used like always to get the
product on the market. In addition, when using outsourcing in Brazil for the implementation
of the project, it will be ensured that all of the subcontractors follow guidelines from CocaCola in terms of quality and corporate social responsibility.
54
Lastly, in order to reach out to our primary groups, there is going to be a combination of
social media and traditional TV commercial, using an emotional appeal.
6.2 Discussion
“Dare to care” has been a highly interesting approach to an international marketing project.
Instead of just focusing on increased corporate profits, we have created a marketing campaign
that will actually make a difference to people in need. It has highlighted the importance of
integrating corporate social responsibility into the overarching corporate strategies, in a world
where good global citizenship in areas such as human rights, labor standards and
environmental protection has become more important. It has also pointed out some of the
unique or unfamiliar features global corporations encounter in specific countries or regions
with cultural differences, language barriers and various political, economic and legal
environments.
Our team consisted of seven engineering and marketing students from Sweden, Germany, and
Finland. Different nationalities, personalities, and background experience affects individual
perspectives and ways of doing things, and a lot of focus of the initial stages of the project
was getting to know each other. Everyone is highly reliant on one another at all stages when
developing a marketing plan, and it was important to try and bridge the cultural differences,
integrate disparate skills and contend the language issues. We quickly established Facebook
as a communication channel, had group meetings at least once a week and kept the working
progress transparent at all times by using Microsoft OneDrive for the marketing plan.
After all, it was challenging, but insightful and rewarding, to work with different nationalities
and personalities. Diversity of perspectives is one of the big advantages when working as a
team, and we have had many interesting and creative discussions along the way. None of us
had done a complete marketing plan before, and “Dare to care” gave us the opportunity to use
our growing knowledge and creative talents to make a difference on an international scale.
Analyse international markets and corporations, and twist and turn marketing strategies to
successfully develop a marketing campaign.
We believe that Light the World could be successfully implemented in the “real world”, and
although it has been a very time consuming process, it has also been an eye-opener that
everyone CAN make a difference.
55
7
References
7.1 Literature
Hill.C., Wee,C., & Udayasankar, K. (2012). International Business – An Asian Perspective
(Vol. 8). New York: McGraw-Hill Education
Kotler, P., Armstrong, G., & Parment, A. (2013). Marknadsföring – Teori, Strategi och
Praktik (Vol. 13). Barcelona: Pearson
Warren, K. J., & Green, M. C. (2013). Global Marketing (Vol. 7). Edinburgh Gate: Pearson
Education.
Warren, K. J., & Green, M. C. (2015). Global Marketing (Vol. 8). Edinburgh Gate: Pearson
Education.
Wild, J., & Wild, K. International Business- The Challenges of Globalization (Vol. 7).
Pearson.
7.2 Images
Front page
https://riomatters.files.wordpress.com/2012/06/img_6348.jpg 2015-03-26
http://upload.wikimedia.org/wikipedia/en/0/0b/Logo_of_Liter_of_Light_.png 2015-03-26
http://www.happy-wallpapers.com/wp-content/uploads/2014/11/Coca_cola_logo-2.jpg 201503-26
SWOT
http://www.thedrum.com/uploads/drum_basic_article/156492/main_images/Coca-Cola_0.jpg
2015-03-27
Prototype of web page
http://www.happy-wallpapers.com/wp-content/uploads/2014/11/Coca_cola_logo-2.jpg 201503-12
http://i.ytimg.com/vi/cQCHvO2H0_0/maxresdefault.jpg 2015-03-12
Prototype of Coca-Cola bottle labelling
http://upload.wikimedia.org/wikipedia/en/0/0b/Logo_of_Liter_of_Light_.png 2015-03-27
http://www.greenerpackage.com/sites/default/files/plantbottle-pkg.jpg 2015-03-27
http://payload89.cargocollective.com/1/7/224535/4087144/prt_320x212_1368381305.jpg
2015-03-27
56
8
Appendices
Appendix 1 – Television Commercial
Storyboard
Four use in planning TV commercials, YouTube videos and movies
Client: Coca-Cola Company
Date: July 22, 2016
Title: Light the World
Length: 30 sec
Video
View
Describe what we see in the screen
Draw what we are seeing in the main scenes
The viewer looks into a
small convenience store.
Next to a mother with
her little boy are the
three people taking
Coca-Cola bottles out of
the fridge. It is not
crowded.
3 sec
Outside under the sun the
viewer sees how a bottle
is opened and that one of
the guys drinks out of it.
He lowers the hand with
the empty bottle and
looks happy to his
friends.
2 sec
Suddenly somebody
taps him on the
shoulder. The Athlete
Hunter Kemper appears
behind him. Smiling he
takes the empty Coke
and starts running.
While he is carrying the
empty bottle, he also
carries the Olympic fire.
2 sec
He meets the athlete
Kristin Armstrong and
hand him the bottle and
fire. The journey of the
bottle is carried on
through the mountains
and besides the sea.
3 sec
Audio
Describe what we HEAR in the screen
(music, sound effects, dialogue, narration)
The buzzing noise of the
fridges and the laughing
friends.
The sound of a person
drinking with a fade of
street noises and children
laughs.
There are still the children
in the background but
music starts to play.
Throughout the hole run
music is playing with a
person singing. It has a
clear beat fitting to the
rhythm of the athletes and
has elements of Brazilian
traditional music.
57
Storyboard
Four use in planning TV commercials, YouTube videos and movies
Client: Coca-Cola Company
Date: July 22, 2016
Title: Light the World
Length: 30 sec
Video
View
Describe what we see in the screen
Draw what we are seeing in the main scenes
Finally the viewer can
recognize the Brazilian
landscape. The journey
continuous through
villages, where the heat
can be felt through the
TV and with poor people
at the sides of the streets
watching the runner
through tired eyes.
4 sec
The athlete Michael
Tinsley finally reaches a
member of the Light
up the World Group
and hands the bottle
over. He than runs away
with the Olympic fire to
the arena. The viewer
stays in a street of a
favela in Brazil. 3 sec
The helpers have a t-shirt
on with the Olympic
logo and the Coca-Cola
logo. They fill the bottle
with water and bleach.
People from the favela
surround and watch
them. Behind him is a
dark hole resembling the
inside of the home.
3 sec
On the roof is a hole.
A hand buts the filled
bottle through it.
2 sec
Audio
Describe what we HEAR in the screen
(music, sound effects, dialogue, narration)
Throughout the hole run
music is playing with a
person singing. It has a clear
beat fitting to the rhythm of
the athletes and has elements
of Brazilian traditional
music.
As the athletes passes
pedestrians and runs through
traffic the cars and people
can be heard. Children
laughs and honking cars
included.
The music is weaker and a
voice starts to speak out of
the off:
At Coca-Cola Company we
have a dream. We do not
only bring the
Olympic fire to the people
but bring light to people in
need.
People, who have not easy
access to electricity.
In Brazil 12 million people
life in Favelas.
Theses people cannot sit in
their homes and watch the
Games.
They can not read inside
their homes because it is to
dark.
We want to enlighten their
houses as a symbol of hope
and friendship.
Take part
58
Storyboard
Four use in planning TV commercials, YouTube videos and movies
Client: Coca-Cola Company
Date: 22.07.2016
Title: Light the World
Length: 30 sec
Video
View
Describe what we see in the screen
Draw what we are seeing in the main scenes
The camera moves
inside the previous dark
hole in the wall into a
room of a favela house.
Audio
Describe what we HEAR in the screen
(music, sound effects, dialogue, narration)
The music get
no speaker .
s louder;
2 sec
Happy faces of children
and families. The
children play inside and
a mother holds a baby
in her arms.
Besides the music laughing
voices can be heard;
children playing.
3 sec
Zoom out of Brazil
where light are shining
in the darkness.
1 sec
It goes dark. A bottle
with he Coca-Cola
lettering appears and
next to it a lettering
saying " Light the
World "
The music get s weaker
again and the off voice
continues: Cheer with your
friends for your favored
athletes with
a Coca-Cola and help to
bring happy moments into
the darkest corners of
Brazil.
Bring happiness to the
world!
The music comes to an end
and the Coca-Cola piling
noises can be heard with
the end of the song
2 sec
59