situational analysis coca cola
DESCRIPTION
adverising projectTRANSCRIPT
CATRINELA RĂŢOI
MASTER OF COMMUNICATION AND ADVERTISING
2nd YEAR
Advertising campaign for Coca Cola
Situational analysis
1. About the brand
Coca Cola is one of the most important beverage companies on international level, being a brand
known all over the world. To raise awareness among the consumers and attract new ones had to
invest a lot in creating and maintaining its image, even from the beginnings of the company. The
Coca-Cola Company started to develop its global network in the 20s. It is now present in over
200 countries. The Coca Cola system applied successfully a simple formula on a global level:
creating a refreshing moment in exchange for a small amount of money, a million times a day.1
The company is world known because has succeeded in maintaining itself in the top of
the best companies through a continuing adaptation to cultural, local, social influences.2
The Coca Cola brand has the same identity as one hundred years ago: the most refreshing
beverage in the world, the first one that comes to mind when you are thirsty. This is shown by
the slogan “The pause that refreshes”3. The brand is also given credit for the new modern image
of Santa Claus wearing red and white costume, the identity symbol of Coca Cola.
The company itself incorporates more individual brands, but Coca Cola distinguishes between
them and along the times has stood against negative perceptions. The important aspect is that
mass perception should exist, be it either positive or negative. And with all this it continues to
evolve, excelling in brand innovation but still with preserving the sense of nostalgia of the old
generations and thus connects the consumers with the brand.
Coca Cola had always associated its brand image with well-known icons, symbols of the
times and from all around the world, like celebrities, like Santa Claus and more recently the
association with the Olympics which solidified brand awareness among consumers.
1 The Coca Cola Company Fact Sheet available at http://www.coca-colacompany.com/investors/company-fact-sheet accessed on 16.03.20132 The Coca Cola System available at http://www.coca-colacompany.com/our-company/the-coca-cola-system accessed on 16.03.20133 The Coca Cola Brands available at http://www.coca-colacompany.com/brands/coca-cola accessed on 16.32.2013
The brand has also a powerful promotion in the online environment and connects with its
customers via the platform “Coca Cola Music”4. This was an ingenious step taken as to create
and maintain connections with the youth and not only.
Beside these Coca Cola has used also other promotion techniques, positioning and repositioning
methods and in the end has succeed in continuing to stand as one of the most powerful brands in
the world.
2. Consumers
Coca Cola communicates with its consumers on three emotional levels: understand, feel, live.
for each level corresponds a set of visual elements that transmit a certain type of messages and
adapted to different contexts and communication mediums. Therefore it stands as a brand for
everybody anywhere and anytime. The essence of the brand never changes as neither the recipe
does. 5
In making a research on the consumers of Coca Cola must be firstly made an analysis on how
it segments the market. From a geographical perspective the company creates different divisions
for different regions and gives them full autonomy. Regarding the consumption, the ideal place is
at home, from where comes the image with all the family together at the table, eating and
enjoying a coke. The issues of demographic segmentation are resumed on the perspective of age
and income.
The main target is the young people, the ones looking for flavor- this referring to Coca Cola-
and the segment concerned more on health- here been representative Diet Coke. But not only has
the youth represented the customers because people of all ages drink Coca Cola.
Actually all the promotional techniques are applied as to attract new customers but also to
maintain the existent ones and the position of Coca Cola on the market is defined and stands in
top through this relationship that is created with the customer.
3. Market competition
On the beverages market although Coca Cola is on top it has a strong competitor and that
follows its position very closely. Thus the real competitor of Coca Cola is PepsiCo and the
4 Coca Cola Music Platform available at http://www.coca-cola.com/music/en_ZA/portal/index.html and http://shareacoke.com.au/mm/songs/holding.htm accessed on 16.03.20135 Customer Analysis available at http://coca-cola-remodel.tripod.com/id25.html accessed on 16.03.2013
competition is present in all the market worldwide. Although Coca Cola is on top on sales in
the world, PepsiCo is the leader on the US market. The means are to enlarge the portfolio of
products and introduce new ones.
Applying certain strategic methods Coca Cola has gain competitive advantage on the
market. These strategic methods are its strategy of branding and marketing, glocal strategies
and introduction of new products. Through the branding strategy Coca Cola has achieved
loyalty from the customers with preserving its quality. The marketing strategies helped the
brand to become the world’s most known brand and thus having the biggest competitive
advantage. The glocal means to mix central functions of marketing with local ones as to
adapt to traditions and culture of a certain region. This is made by preserving the global
brand but introducing some local elements as to adapt the brand image with the local culture.
4. Communication
Coca Cola has used the available medium to communicate its vision and transpose it in
advertisements. Advertisements had been first on radio and afterwards on television and
nowadays are everywhere. In this sense had been launched many successful campaigns. The
image of the brand has been promoted and is promoted by associating it with famous persons and
well known to the public. Nowadays, it is also promoted in the online environment as to connect
to this type of customers.
In Coca Cola vision advertising must communicate the products personality, the brand
becomes like a person, identifies itself, it makes itself pleasant through its aspect and style.6 the
main purpose for this association is to attract attention toward the product, obtain the customer
fidelity and maintain it.
Thus advertising communication is made through commercials on radio, TV, online medium,
social campaigns, sponsorships for different programs.
Communication within the company is autonomous, being made within divisions and these in
their turn report to the global one.
6Coca Cola Mission, Vision & Values available at http://www.coca-colacompany.com/our-company/mission-vision-values accessed on 16.03.2013