Investigate the effect that marketing has on Coca Cola

I am going to investigate the effect that marketing has on Coca-Cola, which has many national promotional campaigns for its products and services in the UK, I order to promote it's product to the public. The national promotional campaign that I will be using as an example of how Coca-Cola use marketing will be the 'Holidays are Coming' campaign that is used during Christmas by the company. Coca-Cola uses many ways of marketing to make sure that the brand does well every year.

These include sales promotions, advertising, and public relations.

History of Coca-Cola-

Coca-Cola was created in 1886, and sold in a small Atlanta pharmacy. Once the value of Coca-Cola was recognized, Dr Pemberton, the inventor of Coca-Cola, sold off parts of the company to various partners, and just before his death, sold the rest of the business to Asa Chandler. At the cost of $2,300, he achieved full ownership of the company in 1891. He then formed The Coca-Cola Company, and the initial capitalization was 0,000.

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Using a large amount of marketing, including calendars and coupons, the company continued to expand.

Soon, the company's facilities couldn't manage with the large demands, so a new headquarters was created in 1898; this became inadequate within ten years. Benjamin Thomas then received the rights from Mr. Chandler to bottle Coca-Cola, which lead to the opening of the first bottling plant in Chattanooga in 1899. Over the next twenty years, the number of bottling plants grew from two to over 1,000; now, Coca-Cola has one of the largest and most widespread productions and distribution networks in the world.

In 1999, a group of investors purchased The Coca-Cola Company for $25 million and Robert Woodruff became the president of the company. He placed a large emphasis on product quality and began the "quality drink" campaign. In 1920, the first European bottling plant opened in Europe. During the 1980's Coca-Cola was shown to be one of the largest and most recognized brands in the world. In 1982, they released Diet Coke, which quickly became the second best selling soft drink in the world behind Coca-Cola.

Aims and Objectives-

The mission statement for Coca-Cola is 'to benefit and refresh everyone who is touched by our businesses. In order to achieve this one of the aims of The Coca-Cola Company is to provide the best product that they can to the public, and create customer satisfaction. To ensure this the company ensures that all employees are working to their highest standards to create the best product, in the quickest possible time to make sure that there is an ability for quick distribution.

They also aim to never let their high standards of quality fail. To do this, there are strict assessments at each stage of the production of all products at Coca-Cola production plants, throughout the day. When distributing any products, Coca-Cola arranges with the distribution companies what standards Coca-Cola expect from them. This means that the customer will always be satisfied with the product, and will hopefully increase the number of customers that Coca-Cola has. This would, in turn, create a bigger profit for the company and also satisfy the shareholders more.

Another mission of the company is to continue growing and expanding, without forgetting the importance of the customer while doing this. To do this, Coca-Cola tries to keep improving the quality of their product continuously, in order to satisfy the consumer more; in turn, allowing the company to grow more financially.

Promotional Campaign-

The promotional campaign that I will focus on will be the 'Holidays are coming' advertisements. To help promote this festive campaign to help raise the sales of Coca-Cola, the company used special packaging, promotional activities, and a large amount of advertising through the media. Due to the success of this Coca-Cola promotion, it has been used each year since it had been created; and is also used with other Coca-Cola products. The company has used several promotions since but this is one of the most popular as people can identify with the advertisements.

This promotion began in 1957 and has been used every year during the Christmas season since. In 2005, the campaign was given the new name of 'give. Live. Love. Coke'. The television adverts were also given new characters to create new interest in the adverts. These characters were also used on all packaging, point of purchase displays and other types of advertising such as billboards. In America, to promote the product further; the Coca-Cola Caravan shown on the adverts visited different areas. This made the consumers feel that the company felt all of its customers were important to them. The company believes that the holiday promotions reminds people to come together to share the magic of the season and the spirit of generosity. Also, the Polar Bears, some of the characters featured on the advert, are meant to represent fun and togetherness.

To help maintain one of the missions of Coca-Cola; this campaign helps to create more business for the company, creating a larger profit. Another aim of the company is to create happiness for all of its customers through their products; so the use of characters aimed at children means that the product is enjoyed more.

To help sell more of the product during the festive season, the company also add three-liter bottles to their production line, because of the high demands for more of the product and this also encourages consumers to buy more of the product. These bottles were available for purchase in packs of three so that the demand for Coca-Cola could be met; which shows the convenience of the consumer was considered. Last year, Coca-Cola also included a buy two for �1.40 offer on two-liter bottles. This meant that consumers once again were encouraged to buy more products from Coca-Cola.

In large retailers, e.g. Tesco, Coca-Cola was available on special crates that mean the customer can help themselves to the product, without the store having to unpack the drinks and shelve them. This meant that Coca-Cola was featured at the ends of aisles so that they had more exposure; and were also given more store space, allowing the promotional cut-outs to be displayed.

Marketing Mix-

In order for Coca Cola's products to sell successfully, the company has to look at what they are selling to make sure that they are attractive to the consumer. They have to make sure that their pricing is not too expensive or too low as to put the consumer off purchasing the product. The marketing mix is made of four Ps:

1. Price-

When a business sets a price range for its product they would need to make sure that they can still compete with rival companies and that it would be a price that the customers would be willing to pay. Coca-Cola aims to remain at a competitive price considering its competitors; and also regularly monitors how the market is progressing and changes its prices according to this, to keep attracting customers.

2. Place-

as Coca-Cola is a producer, how the product is distributed is important as it could affect how the product is received and how it sells. Coca-Cola sell directly to retailers, who then sell the product to the public. This saves the company large amounts of money as there is no need to create outlets of their own. Although, large sales teams would be needed to consult with retailers on how the product should be marketed and about product, price, and promotion. Coca Cola have marketing teams all over the world whose aim is to make sure that their products are distributed by the retailer, at the company's standards. Also, the company see that it is important that their products are also distributed by Coca Cola itself, in the companies own containers; as to make sure that the product is of the greatest quality when it reaches the consumer.

3. Promotion-

To make the public aware of a product, there are many methods to use; these include: media advertising, personal selling, non-personal communication and free publicity. Using market research shows which are the best part of the market to aim the product at. The message of the promotional campaign should be aimed at this part of the market and should relate to the promotional objectives of the business. Coca Cola use all of the mentioned types of campaigns in order to create more business for the company and make create more exposure for the products.

4. Product-

Firstly, the company would need to find who would be interested in buying the product, for example by market research. This would be able to show if the product is satisfying the customer's needs. Other things that could be examined are: packaging, materials used, size and quantity. By analysing the market and its requirements, the company can change the product in order to reach the customers needs, and increase company profit.

In order for Coca Cola's products to sell successfully, the company have to look at what they are selling to make sure that they are attractive to the consumer. They have to make sure that their pricing is not too expensive or too low as to put the consumer off purchasing the product.

Promotion is an important part of the marketing mix as it is what allows the public to become aware of the products that are available to them. This allows Coca Cola to sell more of it's product to the desired market segment and create more popularity for itself because of the high standards of its product, distribution, and competitive pricing. This in turn would create a bigger profit for Coca Cola to put more effort into improving its products and services. Coca Cola link their promotion to their aims and objectives as the promotion creates greater customer satisfaction, larger profits and more exposure for the company.

Packaging-

In order to sell more of its product, and meet its aim of creating a bigger profit, Coca Cola also use special holiday packaging. They use this as customers are more attracted to the products due to the festive season theme during Christmas time. Last year they featured all of the characters out of the television advertisements in the hope that people, especially children, would become attached to the characters. This would mean that more customers would have purchased the product, creating a bigger profit.

For the first time, the holiday promotion was used on some other Coca Cola brands such as Diet Coke and Cherry Coke due to the popularity of the characters and the success of Coca Cola. In stores selling the product, there was special point of sale displays, where an almost real-life sized Santa was shown near the product. The other characters were also shown enjoying the Christmas holiday. This would attract the customers to the product, and make sure it was easily accessible for them.

Advertising-

Coca Cola use many types of advertising for the holidays campaigns, one of them are having the Coca Cola 'Holidays are coming' van drive around the country in the lead up to Christmas. In 2005, Coca Cola created a large calendar on the side of Birmingham Town Hall to link with this theme. This meant that there was a sense of festivity in the city centre, while themed events were aimed to bring the community together as with every window, there was a display of fireworks and music; and on Christmas Eve Santa appeared with 'real' snow. This meant there was a large audience of young people, and was a good way to advertise to this age group. Coca Cola creates local activities, to ensure that they are relevant to the consumers in Great Britain and the local community. This creates a good relationship with some of the main stakeholders in the company, the community and local businesses.

Distribution-

In order to reach a wider variety of customers, Coca Cola distribute their products to a large amount of the globe. Many of the outlets of the Coca Cola brand include: retailers (large supermarkets, corner shops and petrol stations), schools, colleges. Hospitals, workplaces, pubs, clubs, restaurants, caf�s, cinemas and wholesalers. Also, McDonalds currently have the right to sell Coca Cola on site, which means that the company have even more exposure to sell more products and increase profits. Read about personal selling

Citizenship-

In order to attract more consumers, Coca Cola has strict policies both in and out of the workplace which would benefit the environment and society. One policy that Coca Cola have is that they heavily promote recycling. All of the packaging that any Coca Cola product comes in is capable of being recycled. Coca Cola Great Britain was the first major sponsor of Save-a-Can which nationally collect cans of steel and aluminium for recycling. This means that the company is respected by the local community for its efforts, which is an important objective for Coca Cola.

Coca Cola was also the founder of the Industry Council for Packaging and the Environment in 1974. The aim of this organisation is to promote environmentally responsible and cost effective policies on packaging. Coca Cola has also co-sponsored some school education materials produced by INCPEN.

The Coca Cola Environmental Management System (eKOsystem) is an internal company at Coca Cola, which manages the company's environmental performance worldwide. This includes creating systems within offices for the collection of all used items, such as cans and plastic cups and stationary for recycling systems. Also, they are responsible for ensuring that the company uses recycled material, including stationary, wherever possible throughout the system.

To ensure the happiness of employees, Coca Cola have policies which help provide a good working environment and that are responsive to employee's thoughts and concerns. One of the key activities and policies include groups that can represent employees. These are made only of employees and means that all views can be represented fairly without fear of action against them. This also means that employees feel more respected by the company and will work harder for Coca Cola. There is also a continuous learning development programme that ensure employees get more training to improve their skills and allow them to gain promotions; encouraging them to work to their best ability so that they have more chance of promotion and more benefits. Coca Cola also have their own business code of conduct.

Coca Cola have also been a member of the Per Cent Club since 1988. This is mainly formed from national and international companies; who donate no less than 0.5% of the pre tax profits that the company makes to the community. Taking part in activities like these mean that the company is locally accepted and respected, which in turn should increase local profits for the company.

Another mission of Coca Cola Great Britain is to help young people to achieve their personal best, and the company aim to achieve this through three main strategies: sporting education, encouraging physical activity and improving the environment. In order to do this Coca Cola support a number of sporting activities and sponsor many sport clubs and events.

Sponsorship-

To advertise their product further, Coca Cola have a large amount of sponsorship deals within the UK. Some of the global sponsorships they had included: The Olympic Games, FIFA World Cup and the Rugby World Cup. The only European sponsorship deal they have is for the European Football Championships. These are all of the UK deals that Coca Cola currently have:

- 'Coca Cola' Football League Championships

- 'Coca Cola' Championships

- 'Coca Cola' League One

- 'Coca Cola' League Two

- 'Coca Cola' Play-Offs

- 'Coca Cola' Under 13 League Cup

- 'Coca Cola' 7'ds Scottish Schools U13

-The Welsh National Rugby Team

-Dragons Rugby Trust

-British Olympic Association Team GB

By having these sponsorship deals, Coca Cola have enabled themselves extra publicity. Also, by sponsoring sports teams they are seen to be promoting sports and a healthy lifestyle, which would hopefully attract more consumers. This also means that some of Coca Cola's opposition would have less reason to argue that the company promotes an unhealthy lifestyle, especially for the younger generation. The citizenship and sponsorship activities that Coca Cola have are a large part of the promotion of Coca Cola within the UK.