September 20, 2014 Comms 421:003 Brooke Weenig, Aricka Wilde, Bridget Kreis, Savannah Bassett, and Whitney Laycock Client Strategic Plan Assignment Situation Analysis: In the United States, the adult obesity rate in 2013, according to a Gallup report, was 27.2 percent, up from 26.2 percent in 2012, and is on track to surpass all previous annual average obesity rates (http://www.cdc.gov/healthcommunication). Legislators, doctors, and other professionals are all scrambling to target the culprits of national weight gain. In 2012, former New York City mayor Michael Bloomberg labeled soft drink consumption as the leading cause of obesity. The Coca-Cola Company joined in the antiobesity conversation when they released their Coming Together campaign, a coming together with other health organizations to fight obesity, in January 2013. The campaign maintained, “Beating obesity will take action by all of us based on one simple, commonsense fact: All calories matter, no matter where they come from, including CocaCola and everything else with calories. We provide 140 calories to spend on extra happy activities.” Numerous health professionals immediately criticized the campaign. During this time, Coca-Cola’s stock value fluctuated and its revenue declined, which caused many stockholders to second guess their shares in the leading soft drink company. Many shareholders jumped ship and started investing in Coke’s leading competitor, Pepsi. Coca-Cola has a unique opportunity to promote itself as part of healthy, balanced lifestyle. The declining soft drink sales and the rise of criticism from health organizations and consumers alike in the United States have prompted Coca-Cola to take a stand, and all act as potential difficulties for this campaign. The challenge that faces Coca-Cola is how it will address the current obesity problem without giving up successful traditions, like Coke’s secret recipe. Statement of the core problem/opportunity: Because of increased awareness of obesity in the US and “failed” campaigns in the past, Coca Cola’s revenue and image is threatened; Coca-Cola’s major challenge is finding a balance between supporting healthy lifestyles and selling products that seem to contribute to greater health concerns such as obesity. Goal: Increase Coca-Cola’s revenue and enhance their image through promoting a balanced lifestyle among consumers. Show consumers that Coke is dedicated to being an active part of consumer lifestyle changes. Objectives: 1. To increase revenue by 3 percent by the end of the second quarter on June 30, 2015. 2. Increase stockholder shares by 2 percent by the end of the second quarter. 3. To increase positive traffic in social media and other media outlets in conversation promoting healthy and balanced living by 10 percent by June 30, 2015. Big idea: The Coca-Cola Company is going to greater heights to be a part of your healthy, balanced lifestyle. It’s what you do with Coca-Cola products that allow you to live happy, balanced and healthy lives. “It’s what you do with Coke.” Key public #1: Mothers, middle-income, families, married, United States Demographics and psychographics: As part of this campaign, we will focus our efforts on Caucasian mothers in the United states, who have families of kids, who are married, stay-at-home moms, apart of the middle class and who have moderate exercise styles. Generally these women range from 30-60 years of age. While fathers are out at work, it is usually the mother that is at home making buying decisions for what the family eats and is largely the institutor of food-traditions in a home. These are busy women, but are focused on building a family and helping their kids lead successful lives. According to the CDC organization, the average stay-at-home mom spends 91.6 hours a week doing mother-related jobs--which involves a lot of time in the car (CDC, 3). Recent studies show that moms are generally more concerned about their children being obese and living healthy lifestyles than dads are (CDC, 44). According to a 2012 Market Research study, healthy eating takes a back seat when kids are driving mom’s buying decision (Bergin, 50). The same study showed that food health and safety is more important to mothers, and in the USA, moms with children, are the ones most likely to look at ingredients on the back of the food they are buying (Bergin, 77). Moms in this demographic are generally loyal to whatever product they buy and are very trusting. Moms seek out the best products for themselves and their family and they want to feel accomplished because of the decisions they make. Self-interests: These mothers’ self interests include: staying home so they can keep care of the family, managing stress well, keeping their family happy, keeping their children safe and healthy, feeling successful and influential as a mother and being perceived as loving, kind and giving. Influencers and opinion leaders: Another study showed that moms are greatly affected and more persuaded by marketing found in grocery stores (Bergin, 4). Moms are generally the buyers at grocery stores and make decisions based on their children. A mother’s child is a key third-party influential. Moms are highly affected by their peers—other mom’s with the same age of kids. Relationship to Coca-Cola: Some of these mothers are avid soda drinkers, but for the most part teach their children that soda isn’t healthy, thus Coca-Cola could seem as an enemy to their children, but as a source of pleasure for themselves. Most of these women likely grew up drinking soda, but because of the increase in awareness of the potential health risks of soda, they do not want their kids to be obese or unhealthy, thus generally steer away from soda drinks. Objectives they will help us accomplish: This public will help us accomplish objectives one, three and four. Best channels to reach them: This demographic tends to be on social media channels such as Facebook and mommy blogs. They love anything that makes being a mom more efficient and cheap. Many moms are fascinated with new recipes and new, quick easy ways to have happier, healthier families. Primary message #1: Family is happiness and Coke is all about making you and your kids happy. Get out and get active together, create family memories with Coke. It’s what you do with Coke that brings your family together. Secondary messages: Our product has brought families together since we were established in 1844. Ever since then, our products have been crowning, delicious thirst quenchers for every happy moment with your family. Whether it is after soccer practice, track, and a party or for a school-science project, Coke can provide mediums for you to spend meaningful time with your children, so that they can feel of your love. Children love when you spend time with them. Soda isn’t our only option--we have many hydration products such as Smart Water and PowerAde to refuel you and your children. Happiness in your family is quality time and laughter. The moments we have with our families are priceless. A refreshing drink of Coke and fun activities fuels memories. According to a recent study done by the Department of Health and Human Resources, American parents report their families being “successful” when time is spent together doing activities and taking time to get to know each other (CDC, 66). Take a Coke and go on an adventure. Strategy: Through promotions, deals and events we can persuade mothers to purchase coke products that encourage family time and bonding, encouraging them to support our local causes. Tactics: On the back of packaging have fun, active activities that people can do as a family, like discount tickets to theme parks and sporting events, emphasizing family togetherness. Grand prize drawing for customers who enter to win a trip to the Coca-Cola factory; entries based on codes/bottle caps etc. For every coke product purchased, $1 is donated to a charity based on the various products. For example Smart-Water money can be donated towards clean water in charities in Africa. Others will go to anti-obesity campaigns and health organizations throughout the US. Promoting events at locations like “Sodalicious” and “Swig” as places for Moms to bring their kids to, get a soda and meet Coke’s Polar Bear Mascot. Strategy: Through social media and traditional media, promote our idea of families and family fun activities, as to increase the amount of mom’s buying Coca-Cola for the entire family. Tactics: Post recipes that use coke products on the websites and on coke packaging. Post recipes and fun drinks to make on Pinterest and mommy blogs. YouTube videos with personal stories about Coca-Cola products being there through all aspects of family life. Newspaper articles and feature stories promoting Coke events and charity opportunities. Postings on Facebook, Instagram and Twitter of families doing stuff together, involving Coca-Cola products as the main highlight. Primary message #2: Families that drink Coca-Cola products together stay together. Family time is a time of enjoyment, and it is what you do with Coke that solidifies your relationships with your kids. Secondary messages: Take Coca-Cola products on all your adventures. Whether it is after a long hike, a bike ride, a day in the sun, or after the big game--families need a refresh button. Drinking a Coca-Cola product together after a day full of adventure gives your family a chance to stop and talk. There is a flavor of Coca-Cola for everyone in the family, so you can all sit around and talk together as family after a day full of activities. We have well-over 50 drinks to give variety to your family gatherings. One third of children do not eat dinner with their families, according to a study done by Family and Consumer Sciences Research Journal, to promote a more family-friendly environment, we are instituting a nation-wide campaign #Letseattogether (Bergin, 6) Having healthy dinners together reduces teenage drug involvement and underage drinking. Studies also show that eating together promotes healthier meals. (The Family Eating Project, 5) Strategy: Using social media and traditional media we can promote to mothers the importance of families and relationships as well as healthy living, so that they will share this information online thus driving our revenues upwards. Tactics: Postings on Facebook, Twitter and Instagram with advertising promotional videos using the hashtag #letseattogether. Tap into mommy blog networks and find advocates for Coca-Cola products who can share testimonials. Promote diet, zero and non-caffeinated options on social media to help moms understand all the options for their kids to stay healthy and spend time together. Design an app for moms that provides recipes, activities to do with the family and reminds moms about family dinner. Primary message #3: Healthy Coke-drinking not only promotes a happy lifestyle, but also is a part of a balanced, healthy lifestyle that allows you to be there for your kids when they need you most. Secondary messages: We have reduced our serving sizes, to ensure that you are still getting the taste that you love, without over doing it. Want to live long to see your kids accomplish the dreams you are helping them chase right now? Coke offers no-sugar added, no calories and safe soft drinks in order to help you maintain a healthy lifestyle. As a mom, you are busy. You are constantly moving from one thing to the next. On average you spend 96 hours a week on everyone else but yourself. You deserve refreshment every once and a while, and it is as easy as grabbing a CocaCola product. A recent Miami University study showed that drinking a soft drink eases stress (Miami Herald 2012). Being a mom is stressful, but drinking a Coke can calm you down enough to enjoy the day and work hard at what you do best. Moms have more to juggle than most people. Coke allows you to be balanced in your diet and still be fit, all the while enjoying your favorite soda drink. Coca-Cola products are part of a healthy lifestyle--just the weight loss victory of one of our leaders, Dutch. “As a result, going to the gym has never become a burden, as he puts it, nor has adjusting his diet. Jansen hasn’t eliminated any foods either, including chocolate, sweets, or Coca-Cola. Rather, he monitors his calorie intake; upping his exercise on days he eats more, or deliberately eating less on days when he can’t exercise. And he controls his portions better while reducing carbs and fat.” (O’Neil 1) Strategy: Through social media and traditional media we will promote “me time” for moms, thus driving up revenues, increasing social media traffic and increasing participation in our events. Tactics: Feature story in local papers on moms and the stress of their work focusing on how they can ease that stress by taking time to enjoy the things that they love. Postings on Facebook, Twitter and Instagram about various substitutes that can still keep you healthy but let you enjoy the taste that you love. Key public #2: College students in the United States, campuses with 20,000+ Demographics and psychographics: This key public covers 18- to 24-year-olds attending college. Partying, being away from family and forming your own identity typically characterize college culture. Young adults are deeply concerned with fitting in and belonging socially and may also be impacted by the prominence of hipster culture, which values rebellion against authority and social norms. The population is well read and technologically savvy, so mass media as well as social media would prove viable communication channels. Research shows that 18 to 24-year-olds are turning to coffee instead of soda (http://www.npr.org/). The Center for Science in the Public Interest took a look at several popular items and analyzed their caffeine content. It found that a 12-ounce cup of coffee from Starbucks contains about 260 milligrams of caffeine, which is about five times more than a 12-ounce can of Diet Coke. The rate at which college students are consuming caffeine is having a significant effect on their sleeping habits and general health (http://www.kon.org/urc/v10/grumbine.html). Research has established certain factors that influence beverage choice including age, gender, socioeconomic status, body weight, taste preferences, lactose intolerance and self-confidence (Thompson, et al., 2007). Students living on-campus and reporting unhealthy BMI tended to consume less soda than students reporting unhealthy BMI who lived off-campus. Also, students who lived on-campus and reported healthy BMI tended to consume more soda than students who lived off-campus (Aubrey, 2013). Student life is also characterized by a limited amount of time to cook. Meals are often pre-packaged and on-the-go, lacking in nutritious value. College students often are not looking for healthier options, but something that is easily accessible and cheap (Sifferlin, 2013). Self-interests: As mentioned, young adults are deeply motivated to fit in and discover social acceptance. However, they are also concerned with their futures and performance in academic and career settings. Influencers and opinion leaders: Research indicates that elementary school children would often choose to consume soft drinks instead of milk following the influence of peers (Thompson, Bachman, Watson, Baranowski, & Cullen, 2007). Peers continue to have a large influence over college-age students. Now, as their peers turn to more “mature” beverage choices, students across the country are following suit and giving up soft beverages. Key influentials could also include celebrities that younger generations relate to, professors, and family. Relationship to Coca-Cola: College students tend to drink more soft drinks than older adults. A 2012 Gallup study found that more than half of young adults ages 18 to 34 (56 percent) drink soda every day, compared to only 46 percent of adults ages 35 to 54, and 42 percent of adults ages 55 and older (Saad, 2012). The Coca-Cola Company already offers extensive scholarship programs to college students. Since 1989, the company has awarded scholarship to more than 5,000 students. Focused on being socially aware and service-oriented. “Nurturing passionate, motivated and service oriented leaders” are ideals that drive CocaCola (http://www.coca-colascholarsfoundation.org/). Objectives they will help us accomplish: This public will help us accomplish objectives one and three. Best channels to reach them: This demographic relies heavily on social media. Facebook, Twitter, Instagram, Pinterest, YouTube, blogs, and other forms of online communication are the best way to reach this public. They love sending messages quickly, easily and in a way that will reach a lot of people. Primary message #1: It’s what you do with Coke that matters. Take that liberty and discover yourself with Coca-Cola. Secondary messages: The college years have the biggest effect on forming a student’s intellectual, social, and physical identity (http://www.d.umn.edu/sit/include/doc/student_development_theory.pdf). College students are learning how to contribute to society and express emotion in a postive way (http://www.d.umn.edu/sit/include/doc/student_development_theory.pdf). College students are heavily influenced by European ideals, specifically more liberal beliefs, fashions, and lifestyles. Many students say they prefer the perceived laid-back lifestyle of Europe to the busy American one (http://usatoday30.usatoday.com/news/top25-trends.htm). Coca-Cola products have been a part of this country’s history for over 100 years. Testimonials and endorsements from famous athletes and musicians showing how Coca-Cola has helped them achieve great things. The influence of peers is stronger to college students than that of family members (http://www.academia.edu/470550/Pressure_to_be_perfect_Influences_on_colleg e_students_body_esteem). College students experience high levels of stress and a pressure to succeed. They often have a difficult time balancing the demands of life (http://www.nytimes.com/2011/01/27/education/27colleges.html?_r=0). Strategy: Helping college students brand themselves and find their identity using CocaCola products through messages sent by social media. Tactics: Commercials featuring Kevin Durrant, One Direction, and other famous athletes and pop music bands taking a break to drink a Coca-Cola product. Hold an online video competition where students show how Coca-Cola fits into their balanced lifestyle. Entries are submitted with the hastag #discover yourself, and the three top entries win a cash prize. A twitter account with the hashtag #discoveryourself where students can post what they are going that day with their Coca-Cola break. Set up a local Facebook page where sponsors can post notices and events for the campus, such as the location and time for a “Coca-Cola party”. YouTube videos and commercials highlighting the history of coke and colleges: homecoming games, tailgate parties, studying for an exam, having your first girlfriend/boyfriend, etc. Coca-Cola Life commercials-- “First Kiss.” A Coca-Cola app where you can enter in your activities for the day and it will map out your day for you, including putting in 5-minute “Coca-Cola break” and send an inspirational message. Buzzfeed quiz: What Coca-Cola product are you? Share the results on Pinterest, Facebook, Twitter, Instagram, etc. Have an Instagram competition: Who can post the coolest picture of themselves drinking a Coca-Cola beverage? Primary message #2: Coke provides a way for you to give back to your community. Secondary messages: The Coca-Cola Company offers extensive scholarship programs to college students. The company is dedicated to being there for the community and raising a generation of socially responsible adults. Since 1989, the company has awarded scholarship to more than 5,000 students. Focused on being socially aware and service-oriented. Without the help of Coca-Cola, thousands of high-school students would not have been able to further their education and contributed to the positive growth of the community. Nurturing “passionate, motivated, and service oriented leaders,” is what drives Coca-Cola (http://www.coca-colascholarsfoundation.org/). Around 25 percent of college students volunteer, and two-thirds of college students consider volunteering an important part of the college experience (https://www.ctdhe.org/Cccs/pdfs/08_0211_college_volunteer.pdf) Many students aren’t aware of service opportunities or believe such opportunities take too much time (http://usatoday30.usatoday.com/news/education/story/201201-22/college-students-volunteering/52744806/1). Strategy: Increase student involvement in community projects through Coca-Cola outreach programs and initiatives. Tactics: Sponsor writing competitions to win a Coca-Cola scholarship. The theme of the writing prompt could be: How does Coca-Cola fit into your balanced lifestyle? Use the winning entries for promotional materials. Commercials from recipients of the Coca-Cola scholarship showing them receiving the scholarship and how they are using it to pursue their education and make like better. “A Day with Coca-Cola.” Student volunteers go out and clean up a community or read to elementary school students while wearing a vest with the Coca-Cola logo. Hold 5Ks and half-marathons where PowerAde and Smartwater are served. Have a drawing for students to go to another country and offer humanitarian aid. “Share a Coke with” video competition. Show students performing service and sharing a Coca-Cola with that person. Primary message #3: Being a college student is hectic, but coffee isn’t always the best alternative. Coca-Cola is a family-oriented company committed to your balanced lifestyle. We’re there when mom can’t be. Secondary messages: Research shows that 18 to 24-year-olds are turning to coffee instead of soda (http://www.npr.org/). The Center for Science in the Public Interest found that a 12-ounce cup of coffee from Starbucks contains about 260 milligrams of caffeine, which is about five times more than a 12-ounce can of Diet Coke. The rate at which college students are consuming caffeine is having a significant effect on their sleeping habits and general health (http://www.kon.org/urc/v10/grumbine.html). Drinking coffee is more expensive in the long run than Coca-Cola. If you buy one cup of coffee everyday at a local coffee shop, you would spend over $800/year (http://www.hughcalc.org/coffee.cgi). College students are more likely to drink what their peers are drinking. (http://www.ncbi.nlm.nih.gov/pubmed/21683044). Strategy: Have college students turn to soft drinks as a healthier alternative to coffee through social media and events. Tactics: “What would you do if Mom were here?” Commercials that highlight students making good choices when they feel their mom is present. At the end of the commercial the student could choose a Coca-Cola product over coffee. Have an online forum offering questions/answers with regards to living a balanced lifestyle. Create an online recipe book for students featuring quick, easy, cheap and balanced meals. Release an image visually depicting how much money you spend on a coffee addiction versus the occasional Coca-Cola beverage. Key public #3: Stockholders Demographics and psychographics: Shareholders can be identified as having a desire to make money through their investments of the company. They are those that have money to invest so they are financially successful and range from the ages of 25 to 75. This public usually is focusing on making money for themselves, their families, and for their retirement. They are predominantly male, educated, often with business degrees and work in some financial capacity. Self-interests: Shareholders are in it for the money. They want to make money for themselves and those that they provide for. If the company they invest in is doing well, then they will invest more in it. However, when shareholders feel that their investments are threatened they will sell their stock in fear that they will lose money if they do not pull out. This will inevitably hurt the company. Influencers and opinion leaders: Shareholders are influenced by other shareholders. When others pull out of an investment, they are likely to do the same. Opinion leaders for this public are major investment agencies, credible journalists, and Coca-Cola Executives and board members. Relationship to Coca-Cola: It can be assumed that shareholders of Coca-Cola and Coca-Cola Company have mutually beneficial or mutually detrimental relationships. If the company is making large profits, more people will invest in it and then Coca-Cola will have more money to use to invest in itself. However, the opposite is also true. This public only cares about what the company is doing in order to help them make more money. Objectives they will help us accomplish: This public will help accomplish objectives one and two. Primary message #1: By promoting a new balanced lifestyle more people will purchase and trust the Coca Cola Brand. Secondary messages: Coca-Cola and Pepsi and other competitors are losing soda drinkers in America as consumers switch from fizzy, sugary drinks to healthier water, tea, juices and sports drinks. But whereas Coca-Cola has lost on average 2 percent a year in likefor-like volume of fizzy drinks in America since 2004, Pepsi has lost 3 percent, according to Sanford C. Bernstein, an investment bank (http://www.economist.com/node/21550263.) Introducing Coca-Cola Life (a healthier Coke product with stevia) to the US this September 2014 will help individuals live healthily and happily. Coca-Cola are making the packaging and serving sizes smaller to help prevent obesity. Coca-Cola caters to consumer wants and needs by providing healthier beverage options like Vitaminwater, Dasani, Evian, PowerAde, as well as much other sugar free and calorie free products. It’s living healthily when you pause in life and just drink one of Coca-Cola’s many options. Coca-Cola has always been there as part of your life’s biggest moments. We help you celebrate and get through life happy. Strategy: Assure company shareholders that Coca-Cola is strong and using stockholders investments for increase the company's financial standing through social media, traditional media and direct contact. Tactics: Emails to investors with data and analytics from previous campaigns and how we are improving. Post monthly investment opportunities that Coca-Cola is participating in to promote transparency between the company and its investors. Posts on social media platforms such as Twitter and Facebook to inform investors of what is happening in the company. Primary message #2: We are promoting the trending attitude to be healthy through new Coca-Cola Products including our new Coca-Cola life campaign. Secondary messages: After the successful launches of Coca-Cola Life in Argentina, Chile and most recently Great Britain and Mexico, Coca-Cola Life is entering a growing segment within the soft drink category. The U.S. market is gradually, introducing Coca-Cola Life, starting Aug. 25 with an initial rollout in 8-oz. glass bottles in locations across Georgia, North Carolina, South Carolina, and South and Central Florida. By November, Coca-Cola Life will be available nationwide in other retail locations in many packaging options. “We ultimately want to be leaders in this emerging segment, and Coca-Cola Life is our first effort to make this a reality,” explains Andy McMillin, vice president, Coca-Cola brands, Coca-Cola North America. “For consumers looking for a reduced-calorie soft drink sweetened with cane sugar and stevia leaf extract, this is a great-tasting option.” In North America, Coca-Cola offers more than 750 beverages including more than 200 low or no- calorie options. Coca-Cola Life complements this portfolio and is one of more than 45 beverages in The Coca-Cola Company’s global portfolio currently sweetened in whole or in part with stevia leaf extract (others include Glaceau Vitaminwater Zero, Honest Tea and Odwalla). “We’re excited to debut Coca-Cola Life in our flagship U.S. market as we continue to innovate and expand our portfolio to meet consumers' evolving needs and preferences,” McMillin noted. “Coca-Cola Life is right at home in our broader portfolio and is positioned to provide consumers with simple yet sweet moments of refreshing uplift throughout their day.” Strategy: Reach out to shareholders around the world and motivate them to invest in Coca-Cola and to maintain their stocks through personal contact and traditional media. Tactics: Press Releases sent out to Business Week, Forbes, Economist, and Indra. Webcasts to shareholders. Personal letters thanking them for their shared success in the company. New Stories on Coca-Cola Company’s progress sent out to major news stations. Primary message #3: It’s not a question of risk versus reliability. Trust in Coke. It’s what Coke does for you. Secondary messages: Coca-Cola is consistent. It is slow, steady and reliable to invest in. Pepsi and other competitors will have spikes and dips, but we have maintained a steady incline from inception. ‘Global unit case volume grew 2 percent. Coca-Cola International volume grew 2 percent while North America’s volume was even. Gained both global volume and value share in nonalcoholic ready-to-drink beverages, with value share gains ahead of volume share gains. As part of the expansion of our productivity and reinvestment program announced in February, Coca-Cola are on track to invest an incremental $400 million in 2014 media initiatives in order to accelerate top-line growth. Cash from operations was $1.1 billion in 2014. Coca-Cola still features a portfolio of $17 billion-dollar brands and is the number one provider of sparkling drinks in the world. Strategy: Promote Coca-Cola’s financial reliability and success to shareholders through personal contact and company communications. Tactics: Company events such as conferences and luncheons in which we will present company statistics to encourage transparency and trust. Personal emails to shareholders about recent partnerships and investments/ corporate social responsibility. A short informational video for shareholders showing what investors have done for Coca-Cola (and those it impacts) and what we have and are trying to do for them. WORKS CITED Aubrey, Allison. "Young Adults Swapping Soda For The Super Buzz Of Coffee." NPR. NPR, n.d. Web. 21 Sept. 2014. <http://www.npr.org/blogs/thesalt/2013/01/14/169161207/young-adults-swapping-sodafor-the-super-buzz-of-coffee>. Bergin, Sue. (2009, December 15). Making Dinner Together Time. 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