The Coca-Cola Company Essay Example for Free

The coca-Cola Compevery EssayThe Coca-Cola Comp all is the worlds largest beverage company, refreshing consumers with more than vitamin D sparkling and still patsys. The company and bottling partners ar dedicated to the 2020 Vision, a roadmap for doubling system revenues this decade, pore on five key beasprofit, people, portfolio, partners and planet.VisionIt represents what they need to accomplish in order to continue achieving sustainable, quality growth. pile Be a great place to work where people argon inspired to be the beaver they lowlife be. Portfolio Bring to the world a portfolio of quality beverage nocks that anticipate and satisfy peoples desires and needs. Partners Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet Be a responsible citizen that b others a difference by helping build and support sustainable communities. Profit Maximize long-term concede to shargonowners while organism mindful of our ove r completely responsibilities. Productivity Be a highly effective, lean and fast- wretched organization. vivacious their ValuesTheir determine serve as a compass for their actions and describe how they be maintain in the world. leadershipThe courage to shape a better futureCollaboration Leverage collective genius impartiality Be realAccountability If it is to be, its up to mePassion Committed in heart and mind novelty As inclusive as our tick offsQuality What we do, we do well contract on the MarketFocus on needs of their consumers, customers and franchise partners Get out into the foodstuff and attend, observe and learnPossess a world viewFocus on execution in the grocery store every dayBe insatiably curiousWork Smart present with urgencyRemain responsive to change spend a penny the courage to change course when needfulRemain constructively dis subjectWork efficientlyAct Like OwnersBe accountable for our actions and inactionsSteward system as circumscribes and focus on build ing value reward our people for taking risks and finding better rooms to solve problemsLearn from our outcomes what worked and what didntBe the labelInspire creativity, passion, optimism and funFOCUS ON CONSUMERResponding to consumers needs with innovationConsumer needs and demands ar constantly evolving end-to-end market places. In order to remain relevant to their consumers they establish clear category and brand priorities and define foc implementd objectives. They drive innovation by continuously building on their strong family of brands and introducing late flavors and packages in special(prenominal) markets. Part of their innovation process,they are launching existing brands in new markets and re-launching or reinvigorating existing brands where appropriate. In galore(postnominal) of the markets where adults are a growing segment of consumer base, they guide launched several crossroad innovations to ensure they graceful their expectations and their increased intere st in reducing their sugar and large calorie in analyse.In 2008, they launched Coca-Cola Zero, a full-flavor no calorie Coca-Cola beverage highly popular among adult consumers, which is available in 20 out of 28 markets. They look at progressively reformulated Fanta, Sprite and Nestea so they at present contain up to 30% fewer calories than in 2010. This has been a gradual process to enable the consumers to adjust to the reduced sugar nub. The average calorie content of beverages is now 31Kcal/100ml, representing a 16% decrease since 2011 and supporting their commitment to promoting healthy lifestyles. They are overly innovating in the use of cancel sweeteners, Stevia, a plant-based extract that has zero calories. In 2012, they launched Sprite with Stevia in Switzerland, and its mainly apply in Nestea range available in 12 markets.Nutritional labelling contractmentKey nutritional information is on front-of-pack labels of stores and baths. In Europe, they cod pi sensation ered the use of Guideline Daily Amounts (GDAs) on front-of-pack labels since 2009. These show calorie, sugar, gamey, saturated fat and salt content in absolute values and as a percentage of daily intake. These are reported per serving and as a proportion of a healthy diet, the nigh altogether important(p) put in of information needed to control weight. Additionally, no- and low-calorie beverages are clearly labelled on front-of-pack, so that consumers can put them more easily. In 2012, they were one of 12 companies that signed up to the new EU Regulation on Food Information to Consumers, a voluntary framework for labeling of Guidelines Daily Amounts.Making packaging more sustainableWhile the content and origin of products are the understructure, their packaging in a range of sizes and material types is also vital in meeting consumer needs. Packaging comprises an average of 22% of the cost of advanceds s doddering, a percentage they project to reduce through minimizing raw ma terials apply. They focus in particular on reducing the sum of packaging, cognise as light-weighting and on increasing the recycled and renewable content ofcans and bottles. They also work with suppliers to increase the recycled content of packages as using recycled instead of virgin material reduces the carbon footprint of packages.Recycling of metal and glass is already well established, with recycled content accounting for around half of the material in cans and bottles. Their focus is on the recycled content of our PET bottles. In 2013, their use of recycled PET rose by 23%. They also use refillable packaging, equivalence to 10% of volume. As well as recycled content, The Coca-Cola Company advances plant-based packaging innovation for the Coca-Cola System. For example, a plant-based PET Plantbottle certain by The Coca-Cola Company, was the first fully recyclable PET bottle made with up to 30% plant-based material( the bottle of Dorna in Romania).Marketplace executionFive core principlesAvailability bureau placing the range of products within short reach of consumers in the right package, in the right location, at the right time. Affordability means offer a wide variety of desirable, exchange premium quality products, in packages appropriate for the occasion, at the right price. Acceptability means supplying an extensive and growing range of products that meet the highest quality standards in each country, enhancing their acceptability to consumers. energizing means motivating consumers to choose their products by improving product availability and attractiveness at the employment of purchase and by building brand strength in their local markets. Attitude is about the demeanor sales representatives and their people behave every day in their interactions with customers ensuring that they meet their needs with an objective to flummox the preferred supplier of choice.Customer care centersThey established customer care centres that provide a und ivided and efficient signal of contact between the customers and themselves leading to improved satisfaction scores. To track the overall performance, they have employed the independent external organization GfK to provide a measure of customer satisfaction crossways markets.Hellenic well-grounded Morning MeetingsThe Hellenic Good Morning meetings enhance execution in the marketplacewhereby the sales force teams in each country meet on a daily basis, set key targets for each day, review results from the previous day and reward best performers.Marketing and merchandisingThey develop strong relationships with customers by focusing on execution of customer trade promotions and merchandising at the point of sale. They support it by conducting regular customer satisfaction surveys and by developing innovative materials for retail sales activation, including new racks, point-of-sale visuals and sales aids for customers. They also conduct market analyses to better down the stairsstand alone(predicate) shoppers and purchase occasions in different trade extends. This information is used to develop all of non-alcoholic ready-to pledge beverage categories at every point of sale. They sponsor large sporting, cultural and community activities across all countries.They seek to integrate consumer merchandise and sponsorship activities with retail promotions. In conjunction with the global sponsorship of the Olympic Games by The Coca-Cola Company, which dates prickle to 1928, they engage in a range of promotions. The Coca-Cola Companys association with international sporting burdens such(prenominal)(prenominal) as the Olympics, the Football European Cup and the Football World Cup also enables them to realize significant benefits from the unparalleled marketing opportunities of some of the largest and most prestigious sporting events in the world.PERPETUAL INNOVATIONJoe Tripodi, oldtimer Marketing and Commercial Officer of The Coca-Cola Company laid out his compa ny approach to brand createion and the strategy it adopted to winning over Millennials, those crucial consumers born between the early 1980s and the early 2000s. Millennials are digital natives, having been born into a world dominated by the Internet. According to Tripodi, They expect unlimited choice, modify and delivered through multiple channels at maximum speed. Millennials are striving to change their world to set with a new set of values. In this new world order the spark of an idea can ignite a flame across an entire region in seconds, thanks to modern engineering science. The psyche has incredible power to sway opinion, start a movement, and even topple governments.The key to any brand staying relevantis to constantly innovate and evolve by being nimble and progressive, and to share the same values that Millennials respect. There are 5 specific areas where snow is focusing on innovation Packaging, Partnerships, Products Equipment, Consumer Provocations, and Cultural Leadership. first appearance at Coca-Cola means that trade good ideas and best practices can be scaled globally and can travel. This is non easy in a huge multinational corporation, with a market cap of $175 billion, except it is possible.Creativity, asserts Tripodi, is essential to drive innovation, as is courage, risk taking, and reinvention. This is not limited just to how Coke goes to market. It means having to reinvent the company and the way its it is structured and networked internally and externally. It is our ability to adapt, to participate in, and even lead in culture, that will allow us to achieve our byplay goals, he says. And those business goals are extraordinarily ambitious. Cokes goal, known as its 2020 Vision, is to double its business by the end of the decade or, in new(prenominal) words, to double what it took 125 years to create 1. PackagingFor Coke, packaging has been a defining aspect of its sum and a key part of its engagement strategy. The contour-sh aped Coca-Cola bottle will be 100 years old in 2015. Its shape is iconic, and totally synonymous with the brand. Coke has experimented, and had success, with a variety of packaging innovations over the years, but when sales and brand equity suddenly declined in Australia a couple of years ago, Coke needed to find relevance with Millennials.The solution was an ingenious, if risky, packaging idea Customizable packaging by replacing the Coke mark with Australias most popular Teen first names. Instead of a Coke you could order and inebriety a Mike, Dave or Suzy. This was hugely thriving Down Under Sales spiked, with an incredible amount of social media impressions and expressions. Customized packaging has now been activated in 30 countries so far. In Japan, where customizing packaging by names could not be done, Coke found another ingenious way to deliver the idea. It partnered with Sony so its customers could download free songs that were tied to their birth year.2. PartnershipsCok e looks at its partners as co-creators of its Portfolio of Innovation. Itdynamically manages the partnerships as assets and Tripodi emphatically states, Were better and stronger with the capabilities of our partners.3. Products equipmentCritical to Cokes future is keeping its pipeline full. This past year it introduced over 500 new beverage products around the world. One exciting innovation is the FreeStyle machine, a new generation of fountain dispenser. Offering over 100 products, it enables any kind of flavor mix, cralimentation new and unique flavor combinations. Its a big shift out of manufacturing and into equipment innovation to enable consumer co-creation and customization.The individualized consumer get a line with the products is a key Millennial expectation. A new mobile app lets consumers save all their blends, so any Freestyle machine will know their favorite flavor combo. Data based on user feedback on the Freestyle, unite with technical monitoring which provides Co ke with insight on product, consumer engagement and new dispenser opportunities. It is real-time consumer co-creation with the potentiality to develop completely new markets for the company.4. Consumer provocationsPart of Cokes engagement strategy, he explains, is to move past from being a brand that promotes enjoyment, to a brand that provokes happiness. The heart of Cokes engagement class is social platforms that provokes experiences through stories that are sufficiently powerful and share worthy to fuel conversations with many.5. Cultural leadershipAs the most recognized brand in the world, it is a known fact that Coke has a position in the global cultural consciousness. To stay relevant in a marketplace that is being reordered by Millennials, it has to engage itself in active conversations with this generation. And sometimes those conversations can be awkward, but they are important to take on. Like, for example, the subject of obesity.To that end, Coke has developed what th ey have termed a 360 degree Engagement Plan, that admits low and no calorie beverages, transparent nutrition information, inspiring well-being and encouraging people to get active and moving by supporting physical activity programs, together with a commitment of not advertising to children under the age of 12. The manager warns that marketers should not be seduced bytechnology alone. Without creativity, a strong story, one cant make a strong connection. Using all of the tools of innovation and storytelling gives Coke the opportunity to spread their brand of happiness around the world and stay relevant.MARKETING MIXSegmentationMarket partition is the process of portioning market into groups of potential customers with correspondent needs and/or characteristics who are wish wellly to exhibit similar purchase behavior. Objective of such a process is to analyze and understand market, identify opportunities and use or develop competitive edge to capitalize on those opportunities. Th e Coca Cola Company segments the customers based on the following criteria Geographic segmentation Coca Cola has segmented the worldwide market on the basis of geographies. There are various divisions created for major regions of the world and heads of each division report to the parent company. flowerpot of autonomy is given to each division to run the operations. Place of consumption Coca Cola segments the market on the basis of the place of consumption of the beverage. Most of consumption takes place on premises such as cadences, restaurants, cinemas etc, while the rest takes place in homes. Product type Coca Cola segments the market on the basis of the type of products bought by customers. The market is divided into Cola products and non cola products. Cola products shortly provide majority of the revenues, but the proportion of non cola products is increasing. Demographics The segmentation is done on the basis of age, as well as income.TargetingCoca Cola targets different segm ents with different ads. Primary market is represented by young people, aged between 12 and 25 years old, with people from 25-40 comprising the secondary market. Cola products are targeted towards people who want strong flavor, while Diet Coke and its variants are targeted towards the sub segment that is health conscious. The health conscious segment of the market is targeted also by the non cola beverages. Some of the products, such as Sprite, specifically target teens and college students, while others, such as Limca, target young working population.PositioningCoca Cola positions its products as refreshing and thirst quenching. The products are said to bring joy Open Happiness. The products are associated with having a good time with friends and family and enjoying everyday life. They are also marketed as consistent and of high quality.Romanian MARKETCoca-Cola HBC Romania is the biggest company in the non-alcoholic beverage industry in the country and is a franchised bottler of Th e Coca-Cola Company. Coca-Cola HBC Romania (410 billion Euro swage in 2013) started operations in Romania in 1991 and now it employs 1,700 people. They operate three bottling plants across the country and channel products through 14 warehouses and distribution centers. The product portfolio consists of leading brands Coca-Cola, Fanta and Sprite local brands such as the natural mineral body of waters Dorna, Dorna Izvorul Alb, Poiana Negri brands licensed by other companies, such as Nestea and Illy.ADVERTISING look at a Coca-Cola social movementFor the 1st time in brands muniment, Coca-Cola offered its logo to its consumers and told them to surprise the loved ones offering them a Coca-Cola bottle with their own name on it. The press was firstly launched in Australia in 2011 with the purpose to bring back the consumers interest. The result was a 7% increase in the consumption among young people. From that aftermath on, the campaign expanded in more than 80 countries. The idea pr oved to be very successful on the Romanian market too, where it was launched in 2013.Andrei, Ana or Maria had their own Coca-Cola bottles because during that period, the most popular one hundred fifty Romanian names replaced the known brand logo. Also, Coca-Cola let its consumers share with friends also, with Share a Coca-Cola with a gamer or Share a Coca-Cola with a biker. The cans and bottles of Coca-Cola also included a series of other words used to define individual like lover, your half, the sexy girl, VIP, Diva, wind and so on. Say it with a song campaignThe idea of having your bottle personalizedized was continued in 2014 through music. During summer, the Coca-Cola logo was accompanied by the lyrics offamous songs. Besides lyrics, the bottles had on their labels a QR code, which could be scanned, allowing the consumers to listen to a fragment of the chosen song, before sending it to friends. Moreover, the initiative encompassed a smartphone application through which the c onsumers could make new friends by identifying people with the same musical preferences in their proximity.Banner Duet CampaignLaunched in July 2013, Coca-Cola Banner Duet Campaign is one of the most innovative digital campaigns of last year the campaign offered users the opportunity to record a personalized digital duet with Adi Despot, the famous lead singer of Vita de vie rock band. In superiors across the web, the musician invited the users to call him using their phones. Once they call the number shown, the banner recognizes the call, Adi answered and offered to sing the famous song Praf de Stele together in a duet with him. Adi sang in the banner and the users used their phone as the microphone, and all the singing voices were recorded as a personal duet with him. Besides being part of a unique experience, the users had the chance to win tickets to one of the most important music events in Romania BESTFEST and a meet and greet with the artist. In the 2nd stage of the campai gn, all the participates that recorded duets with Adi, were rewarded for the effort Best voices got a personal YouTube video of their duets On MTV, voices of the recorded users were integrated in the official clip of Praf de Stele At BESTFEST, Adi Despot shared the stage with all the voices recorded, and vie them as his chorus connecting his fans from digital to the ones from the event. Lets eat together campaign (2013)The beverage brand combined live tweets with pre-recorded spots in an effort to help people rediscover the happiness of eating meals together. In fact, a whopping 60% of Romanians do not eat meals together, instead opting to live a solitary culinary life in front of their TV sets. Coca-Cola Romania enlisted MRM Worldwide to help Romanians rediscover the happiness of sharing a meal together, of course in hope of associating it with a Coke. They ran a typical ad showing family and friends coming together with the help ofCoca-Cola. However, unlike any other spot ever c reated, this one integrated live tweets on national television.At the bottom of the ad, there was a text bar that hosted tweets from fans featuring the hashtag LetsEatTogether. MRM live-edited the tweets as they flowed in and chose up to seven tweets to show each time the ad was played. Most of the tweets were turn to to specific people, with friends inviting friends to have a meal together and enjoy each others company. As a result, Cokes Twitter base in Romania increased 15% and the ad garnered over 1 million social media impressions. Placing live Twitter mentions into a pre-recorded ad presents an incredibly innovative way to combine traditional advertising formats with todays social media, and proves that you can really invite someone over for a meal through your TV. radiolocation for good App Campaign (2014)As part of the unrestrained for Good initiative, a global project dedicated to people doing good for random strangers, Coca-Cola Romania via MRM Bucharest created Radar Fo r Good, the first mobile platform for close range volunteering, to support the people who want to do good in the society right now. The app shows you where, near you, you can do something good at the moment. This is a good use of locational data for a specific cause. A spokesperson at McCann lets us know The campaign generated much buzz in Romania, converted over 21.000 volunteers. Also, over 130 NGOs enrolled their causes in Radar for Good and reported an increase in volunteering numbers to up to 50%.CORPORATE SOCIAL RESPONSABILITYImproving water efficiencyIn their bottling plants, they closely monitor water sources, minimizing the amount of water they withdraw. By incorporating water manner of speaking technologies in their production lines, they have managed to improve the efficiency with which they use water. For example, in Romania two new technologies have been implemented in recent years dry lubrication technology eliminates substantial water consumption as gel instead of w ater moves the beverages along the conveyors on their PET production lines ionized air technology washes PET bottles, instead of water.Working in partnershipThe Green Danube is their most longstanding partnership. Together with the multinational Commission for the Protection of the Danube River, they conduct conservation and awareness-raising activities in Romania and nine other countries lying in the river basin. These include annual Danube Day celebrations, which see the participation of tens/hundreds of thousands of people. In 2008 and 2009, Tasuleasa Social and Mai Mult Verde organizations conducted a large-scale reforestation event in Vatra Dornei and a cleanup of the Siret riverbanks from Vatra Dornei to Galati, including nine cities.At the same time, 200 children from 65 high schools in the area participated in multiple didactics sessions on volunteering and civic responsibility, leadership, project management, survival skills and first aid. 250 training hours were made pos sible thanks to volunteer specialists and public figures such as Marcel Iures, Ada Milea and Catalin Stefanescu. SMURD, Romanias Mobile Emergency Service for Resuscitation and Extrication, joined the program and offered first aid and survival trainings, alongside the volunteers at the Siret river banks clean up.An additional 2,500 teens participated. As part of the Adopt a river from its spring to its mouth (Golden Award at European CSR Awards 2013), water egis and conservation platform, they set up a Water Educational vegetable marrow in one of their former plants in Dorna Candrenilor. Here local teenagers can learn about biodiversity, contamination and ways to address it, responsible tourism, best practices in volunteering. The project was carried out in partnership with the Romanian Ministry of Environment and Forests, Calimani National Park and Tasuleasa Social organization.At the center and through a series of other educational and ecological campaigns developed over time in Dorna Candrenilor, they are contributing to the long-term protection and conservation of natural riches and water resources in the area where their mineral waters spring. The results of the Adopt a river from its spring to its mouth integrated program, from north of the country, where they bottle the mineral waters to the Danube Delta are 32,500 trees planted, 70 tonnes of fluff collected, 2.5 million euros accessed by local authorities for sewage system and filtering stations for Dorna inhabitants, adopting a law for dreary the industrial fishing, adopting the urbanism plan in Danube Delta. Energy and climate protectionThey are accelerating their efforts in the parts of the business that use the most energy the bottling plants, fleet and cold discombobulate equipment. In bottling plants, they are building combined heat and power units. They are also expanding energy-savings programs. In their fleet, they are exploring and expanding the use of hybrid vehicles and alternative fue ls. They are also changing driver behavior with the Safe and Eco-Driving program. Their new energy-efficient cold drink equipment emits up 50% less CO2 emissions than 2004.Packaging and recyclingThey are working to reduce the environmental impacts of their packaging at every stage of its lifecycle. The integrated approach includesReducing the amount of packaging they useIncreasing recycled contentPromoting recycling and recoverySport and physical activityApproximately 1,900 people actively participate in their sports and fitness activities each year The Red bicycle contest and tour. Promoting the Active Lifestyle principles is one of the many ways Coca-Cola HBC in Romania brings together its two major commitments towards people and towards the environment.Go green with the Red Bike was an event whose concept was launched by Coca-Cola HBC Romania and Green Revolution under the patronage of Bucharest City star sign and the Romanian Cycling Federation. The main objective of this progr am is to encourage Bucharests citizens to adopt a healthy lifestyle. For the second consecutive year, over 1,200 Bucharest citizens have gathered in Izvor Park to take part in the biggest cycling tour for amateurs, the Red Bike.CONCLUSIONSCoca-ColaMore than a Product?In fact, its not just about the product any more. Its about stories, memories, associations, and human connections (although of course, these connections would have been very carefully and deliberately engineered by talented marketers over many years and countless tabular array meetings). This issomething that Coca-Cola have been the masters of for over 100 years. Even if you duplicated the entire Coca-Cola production process and produced a drink that tastes identical, (or better for that matter), you could not duplicate the memories people have of the brand, and therefore their connection to it. The secret recipe of Coca-Cola may no longer be secret. It may not even be unique any more. But the memories associated wit h the brand are, and that is what makes the brand so much more valuable than other colas.Tangible and nonphysical assets combine to create financial brand equity. This equity is derived from peoples willingness to pay a premium for the brand and an unwillingness to accept substitutes. Like the Tiffany bracelet, people would rather pay more for the recognized brand due to the (deliberately engineered) feelings and identity they associate with it, which have been nurtured by the company over many years. Coca-Colas marketing strategy has always been to associate happiness, positivity and the good life with their products, from 1906s rather officious and prissy The National Temperance Beverage slogan, to 1971s slightly more idealistic Id like to buy the world a Coke, which despite not actually being the official slogan, became so successful that its still remembered fondly to this day.Their secret is the focus on stories, memories, connections, events, positive associations, positive experiences. Without these, a brand will forever remain just one of many options. Coca-Cola have a history of fascinating the public with their marketing campaigns. Except Coca Cola dont call marketing campaigns marketing campaigns, rather a system wide collaborative effort to engage with consumers in a meaningful and effective way. An example of this attempt to increase the romantic associations with the brand is the recent Share a Coke campaign. This was an attempt to create positive connections between people with Coke at the center that according to their figures created an increase in volume of sales, household penetration and brand love scores. Having such a dominant brand that it eclipses any other in general conversation and becomes synonymous with that particular product provides the strongest possible competitive advantage and is the holy grail of brand equity.