Case 1 USC Mark 34
Case Study: Coca Cola Integrated Marketing Communications
(adapted from www.linkedin.com/pulse/case-study-coca-cola-integratedmarketing-gregory-stringer)
Mar 11, 2015
This case study examines the Coca Cola IMC approach as described in the Cola War blog
(http://softdrinkcolawar.blogspot.com/). Factors considered will include an examination
of which components are expended in regards to the integrated approach, the comparative
importance of the components, component efficiency, and the overall success of the IMC
approach.
Integrated Components Used
The integrated components used by Coca Cola employed a mass media methodology
which included television advertising, print media and banner ads. The approach utilized
a marketing mix of advertising, direct marketing, as well as Web based interactive and
social media marketing and sales promotion.
Coca Cola advertising has historically been among the most prolific in marketing history.
The various ad campaigns throughout the company’s one hundred twenty nine year
history have often had a major impact on culture and society, including a hit song which
received airplay on popular radio stations in 1971. The logo and bottle designs are
immediately recognizable throughout the world, and are integral to the brand’s image and
recognition in the marketplace (Wikipedia, 2015). In the southern U.S. the beverage is so
pervasive that all soft drinks, typically referred to variously as soda, pop, or soda pop, are
called Coke (McConchie, 2015). Coca Cola has repeatedly been ranked as the number
one soft drink in the world as a direct result of their aggressive advertising campaigns,
and was even the first soft drink consumed by astronauts in space (Hartlaub, 2015).
Direct marketing efforts by Coca Cola are myriad. The devices operated incorporate
vendor company partnerships designed for exclusivity, i.e. restaurants and movie theatres
only offering Coke products, eliminating any direct competition. They sponsor sporting
events via use of the company, e.g. baseball fields, again offering attendant consumers
the brand’s products solely. This allows for one-to-one sales to important clients in
especially reserved seating areas. Mobile marketing endeavors send out text messages in
an attempt to personalize promotions, and viral marketing exertions rely heavily on wordof-mouth communication from brand loyalists (Wilkin, 2009).
Web based and social media marketing campaigns constitute industry benchmarks.
Because the brand is so universally recognized throughout the world, little if any
audience building is necessary. Fans number over eighty six million across social media
channels engaged by the brand. Differing tactics are provided on individual social
networking sites, yet a consistently unified message is upheld. Crowd-sourced content as
well as direct engagement are hallmarks of Coca Cola’s social media marketing (Shively,
2014). Web based interactive marketing is focused on design and functionality, relying
on banners, video and public relations. New products, online games, and social, cultural
and sporting events are the focus of the Coca Cola Website content (Darakeva, 2013).
Coca Cola’s commitment to a campaign of audience engagement throughout their online
marketing crusades is well recognized.
Sales promotion for Coca Cola is aimed at two strategies, retail and food service. Retail
efforts are directed toward company partnerships, direct store delivery and point-of-sale
(POS) techniques. Reliance on exclusive company partnerships wherein restaurants only
offer Coke products eliminates competition. Direct store delivery is a crucial link in the
value chain, and offers mobile advertising with bright red delivery trucks emblazoned
with the brand logo. POS displays include brand specific coolers for in-store sales along
with vending machines which carry Coke products. Food service activities emphasize
Coke products in food pairings, menu optimization, and specialty beverages. Meals
comprised of convenience foods such as hamburgers, hot dogs, French fries, etc., are
often supplemented by the suggestion of Coke products for accompaniment. Such foods
may be combined with Coca Cola brand drinks for menu optimization, which may
include specialty beverages such as Diet Coke, Cherry Coke, and others (CokeSolutions,
2014).
Comparative Importance of the Components
A comparison of the relative importance of the Coca Cola IMC components reveals a
marketing communications mix which is iconic. So much of the brand image is
immediately recognizable, right down to the bright red and white lettering of the names
Coke and Coca Cola. This imagery is carried out globally, and is so established and
acclaimed world-wide that even in languages that may not be familiar in local markets
are readily known by consumers (Wikipedia, 2015). Multi-lingual ad use was in fact the
case during the recent airing of the NFL Super Bowl Championship, in which the use of
English, Spanish, Tagalog, Hebrew, Hindi, Keres, and Senegalese-French languages were
incorporated along with the song America the Beautiful (Indian Country Today Media
Network, 2015).
The Coca Cola IMC messaging has established a longing for the product that supersedes
the desire for that typically associated with a drink to quench one’s thirst (Dudovskiy,
2015). The rank and positioning of the elements used as part of the integrated marketing
approach cannot therefore be overstated. The resultant international presence of Coca
Cola is a direct outgrowth of the marriage of the advertising, direct marketing, as well as
Web based interactive and social media marketing and sales promotion efforts that have
been included over the years in their IMC endeavors. Coca Cola has established itself as a
player on the large-scale stage as a direct outcome secondary to the comparative
importance of the components of the integrated marketing communications mix.
Component Efficiency
The efficiency of the combined IMC elements has proven to be quite lucrative. Revenue
has recently been listed at forty six billion USD, with a profit margin of 15.43% and a
book value per share of six dollars and ninety five cents USD (Yahoo! Finance, 2015).
Annual sales in excess of forty six billion USD and a ranking of #4 of the World’s Most
Valuable Brands place Coca Cola squarely on the global market. The company, which
was incorporated on September 5, 1919, now carries over five hundred different
beverages which are marketed on six continents (Forbes, 2014).
The competence of the combined components used in the Coca Cola integrated marketing
communications exemplifies the excellence that can be achieved by a single brand. The
achievement can further be evaluated by examination of media metrics such as
advertising equivalency, the sum total audience which has been attained through
particular media outlets, statistical figures of journalists hosted, number of articles
published etc. In terms of market share benchmarks, Coca Cola is promoting and selling
its products in over two hundred countries, and employs almost one hundred forty
thousand associates, lending credence to the consideration of the company as a market
leader in the majority of these marketplaces. Assessment of unique Website visitors,
length of visit, search engine results (both free and paid) numbering in the billions on
both Google and Bing as well as others offer insight to the combined component efficacy
(Dudovskiy, 2015).
Overall Success of the IMC Approach
An effective integrated marketing communications approach that is deployed and
maintained is an essential modern business requirement (Perner, 2008). In terms of
successful outcome, Coca Cola’s IMC approach has set a standard that offers a point of
reference of desired triumph that is enviable across the industrial landscape. Recordsetting sales and revenues, brand visibility and recognition and positioning on the global
market are indicative of the Herculean levels of accomplishment achieved by the
company. Coca Cola products are consumed world-wide as a direct result of retail and instore marketing efforts which are meticulously detailed. In the almost one hundred thirty
years of business practice in the soft drink trade, Coke has risen to the top of the
industrial food chain.
The elements which are expended in regards to the integrated approach, the comparative
importance of the components, component efficiency, and the overall success of the IMC
approach have combined to create a sensation that customers have warmly embraced. As
long as this integrated marketing communications strategy is utilized there is no doubt
that Coca Cola will continue to be a market leader that is universally recognized.
Works Cited
CokeSolutions. (2014). Beverage Sales Strategies for Soft Drink Marketing. Retrieved March
1, 2015, from CokeSolutions:
http://www.cokesolutions.com/MarketingTools/Pages/Site%20Pages/Strategies%20and%20S
olutions.aspx
Darakeva, V. (2013). Internet marketing of the Coca Cola Company. Retrieved February 28,
2015, from Slideshare: http://www.slideshare.net/VenelinaDarakeva/internet-marketing-ofthe-cocacola-company
Dudovskiy, J. (2015). Coca-Cola Marketing Communications: A Critical Analysis. Retrieved
March 1, 2015, from Research Methodology: http://research-methodology.net/coca-colamarketing-communications-a-critical-analysis/
Forbes. (2014). Coca Cola on the Forbes World's Most Valuable Brands List. Retrieved
March 1, 2015, from Forbes: http://www.forbes.com/companies/coca-cola/
Hartlaub, P. (2015). Sweet! America's top 10 brands of soda - Business - US Business - Food
Inc. | NBC News. Retrieved March 1, 2015, from NBCNews:
http://www.nbcnews.com/id/42255151/ns/business-us_business/t/sweet-americas-top-brandssoda/#.VPL2zWd0z1I
Indian Country Today Media Network. (2015). Coca-Cola’s ‘America the Beautiful’ Super
Bowl Ad Causes Stir - ICTMN.com. Retrieved February 28, 2015, from Indan Country Today
Media Network: http://indiancountrytodaymedianetwork.com/2014/02/03/coca-colasamerica-beautiful-super-bowl-ad-causes-stir-153391
McConchie, A. (2015). The Pop vs. Soda Page. Retrieved February 28, 2015, from Pop vs.
Soda: http://popvssoda.com/
Perner, L. (2008). Promotion: Integrated Marketing Communication. Retrieved March 1,
2015, from ConsumerPsychologist:
http://www.consumerpsychologist.com/intro_Promotion.html
Shively, K. (2014). Lessons from Coca-Cola’s Social Media Strategy: Cohesive Campaigns
and Creative Content | Simply Measured. Retrieved March 1, 2015, from Simply Measured:
http://simplymeasured.com/blog/2014/05/22/lessons-from-coca-colas-social-media-strategycohesive-campaigns-and-creative-content/
Wikipedia. (2015). Coca Cola - Wikipedia, the free encyclopedia. Retrieved February 28,
2015, from Wikipedia - The Free Encyclopedia: http://en.wikipedia.org/wiki/Coca-Cola
Wilkin, R. N. (2009). Coca Cola's Original Coke: Marketing Communication Mix. Retrieved
February 28, 2015, from Blogspot:
http://cocacolasoriginalcoke.blogspot.com/2009/04/marketing-communication-mix.html
Yahoo! Finance. (2015). KO Key Statistics | Coca Cola Company (The) Common Stock |
Yahoo! Finance. Retrieved March 1, 2015, from Yahoo! Finance:
http://finance.yahoo.com/q/ks?s=KO+Key+Statistics
QUESTIONS FOR CASE ANALYSIS: 1. First of all, please have a good understanding of the concept, definition, principles, and components of INTEGRATED MARKETING COMMUNICATION (IMC) before reading the case. You can read about this from the text book, or any other source. 2. Read the case at least 5 times. 3. Answer the following questions. Submit your answers on maximum 2 pages of short bondpaper, any font type, font size 12, line spacing of 1.25. a. Review each component of the integrated marketing communication plan of Coca Cola and explain how it can become effective. b. Differentiate each one from the other components of IMC. c. How does each one contribute to the overall effectiveness?