Advertising and promotion in Coca-Cola

Introduction
Task 1

Q1. Explain the communication process that applies to advertising and promotion (P1)
Advertising and promotion are an integral part of our social and economic systems. In our complex society, advertising has evolved into a vital communications system for both consumers and businesses. The ability of advertising and other promotional programmers are makes the target audience at the marketing level. Its makes the organization feedback to the market situation of goods and products which are newly come to the competitive market
Advertising is the structured and composed, nonperson communication of information. It is usually paid for and usually persuasive, about products, services, or ideas. There are four important dimensions of advertising (communication, marketing, economic, and social) creates a clear concept about what advertising is and how it has evolved.
The promotion is the process of commodities at newly introduce to the market, it also offer coupons, free samples, contests, or rebates on the purchase price. By offering added value, promotion accelerates sales. So it is a very effective tool for the new product at the market. It is often used in conjunction with advertising—to promote the promotion. The promotional planner should recognize the different effects various types of advertising messages might have on consumers and whether they are appropriate for the product or brand. The message is done by the (print, TV, radio, newspaper, direct marketing) and their cost implications might also occur at this process.
Q2. Explain the organization of the advertising and promotions industry in the UK (P2)
At the UK which of the organization are responsible for the advertising and promotion activities that’s organizations activities are as follows;
EFSP
The European Federation of Sales Promotion (EFSP) was founded in 1980. It is a forum for countries across Europe to meet, exchange ideas and work together. It also enhances the reputation and promotes the highest standards of the Sales Promotion industry in Europe. It maintains two main areas of activity are lobbying and annual awards.
EACA
The mission of the European Association of Communications Agencies (EACA) is to represent full-service advertising and media agencies and agency associations in Europe. The aim of EACA is to promote honest, effective advertising, high professional standards, and awareness of the contribution of advertising in a free market economy. It’s also work for encourage close co-operation between agencies, advertisers and media in European advertising bodies.
European Federation of Sales Promotion (EFSP)
The European Federation of Sales Promotion (EFSP) was founded in 1980, and changed its name to the Promotional Marketing Council of Europe in September 2002 when it became a part of EACA (the European Association of Communication Agencies). This organization deals with the sales Promotion in Europe.
Promotional Marketing Council of Europe
The PMC is an organization that represents the Sales Promotion industry across Europe including Clients, Agencies and Suppliers. Member countries are France, Spain, Portugal, UK, Germany, Belgium, Netherlands, Italy, Ireland and Austria and the membership of these organizations accounts for an estimated 80 % of the sales promotion business in those countries.
Q3. Explain what problems advertising companies are facing currently and how they can solve them (M1)
Today’s advertising companies face several problems which are deals with the new business process, adapting to web/interactive marketing, cash flow, the slow economy, shrinking client budgets, finding qualified employees, obtaining larger clients and shrinking profit margins.
The main problems are as follows;
Complexity for the run new company.
Accumulate the budget support for the activities of the company.
Complexity for the new promotion and campaign activities.
Find the proper employee and to maintain them.
Reach to the new clients and accumulate them for the new products.
Generate new ideas for the new advertisement of new products.
Proper media support for the advertisement and promotion.
Q4. Explain the role of advertising in an integrated promotional strategy for Coca-Cola Enterprise Ltd (P5).
Advertising really plays a big role in Coca-Cola’s success. Its advertising has been rather pervasive, as one of Woodruff’s stated goals was to ensure that everyone on Earth drank Coca-Cola as their preferred beverage. Advertising for Coca-Cola is now almost everywhere, especially in southern areas of North America, such as Atlanta, where Coca-Cola was born. The most popular words in the world in 20th contrary are: God, she and Coca-Cola. After the highest popularization of word – “OK”, the second one is “Coca-Cola”. 98% of the people know “Coca-Cola”. That’s the result of Coca-Cola spending 6 hundred million dollar on promotions.
There are five main ways of promoting the brand – Coca-Cola.
The first one is traditional advertising, like showing advertisements on TV or posters.
The second one is the sponsoring of sport events.
The third one is online promotion.
The fourth one is selling Coca-Cola’s collections.
The fifth one is local promotion held by bottlers or retailers.
Although the main advertisements in every country still follow this strategy, especially using the local stars to attract young customers, Coca-cola begun to use computer technology to make cartoon images which matches local culture or just funny.
Q5. Explain branding and how it is used to strengthen a company like Coca-Cola (P6).
Branding is the building of trust with employees, customers and stakeholders. In marketing terms, the definition of branding is the sum total of a company’s value, including products, services, people, advertising, positioning and culture. Brands give potential clients a firm idea of what they are buying before they buy it, making the purchasing decision easier. Customers trust strong brands because they know what to expect.
The most important reason is that it can help increase the sales of Coca-Cola. This means that when need to increase prices then the target audience will be accepting of price increase.
Branding also encourages confidence and trust in product/service. Brandings introduce new products at the newly face at the market level also its increase the customers attraction for the new products at the market.
It should reflect – through the use of logo, name & stripling – brand values. It should clearly communicate with name and/or product or service. The Coca-Cola follows this for its branding such the logo and the color combination of logo.
The identity should be applied consistently across all media – for example its color and its positioning on a page or screen should remain familiar across all marketing material.
If consider partnering with other companies, ensure that the brand and brand identity reflect theirs and vice versa.
Q6. Demonstrate your creative thinking regarding Coca-Cola branding and its popularity in the UK market (D3).
Coke’s branding strategies had to go beyond brand positioning and associations. To ensure that customers had formed a harmonious relationship with the brand, the objective of brand resonance had to be achieved. Coca- Cola is a already brand product at the world wide. But for the increase of its popularity at the UK market this company may takes several initiatives for its new advertisement and promotion activities.
Coca-Cola needs the new branding approach for the target market, its needs different promotion activities for the all levels of customers. It takes the approach for the all level of market demand for the familiarity of its. For complete this work Coca-Cola needs the price promotion. Also Coca-Cola needs new steps for the promotion activities at the different level of customers. New campaign programme are set for introduce different flavor of Coca-Col.
Task 2
Q7. Asses how promotion is regulated in the UK (P3)
The UK marketing industry recognized the need for trust in advertising when it setup the advertising self-regulatory system for non-broadcast advertising in 1961. Since then, the UK’s system of self-regulation has helped to ensure advertising remains responsible: honest advertising helps to keep customers coming back. The 11th edition of the British Code of Advertising and Sales Promotion came into force on 4 March 2003. The purpose of the Code is to maintain, in the best and most flexible way possible, the integrity of marketing communications in the interests of both the consumer and the trade.
Advertising in the UK is controlled through a combination of codes of practice and legislation. There are two advertising codes – which are created, monitored and revised by two committees. These are the Committee of Advertising Practice (CAP) and the Broadcast Committee of Advertising Practice (BCAP).
The CAP Code deals with the non-broadcast advertising, sales promotion and direct marketing. The BCAP deals with the rules for broadcast advertising. These are enforced where necessary by the Advertising Standards Authority (ASA).
Since 28 February 2011, Broadcasting regulations rules have been relaxed to allow product placement – ie paying to have a product or service included or referred to – in selected types of TV broadcasts. This includes:
films
series made for TV or other audiovisual media services – eg video on demand
sports programmes
light entertainment shows
However, product placement isn’t allowed for certain types of goods, and it’s banned completely in all children’s, news, current affairs, consumer affairs and religious programming.
Q8. Examine current trends in advertising and promotion among soft drink advertisers in the UK and explain the impact of ICT on advertising and promotion industries (P4)
Soft drink is one of the most important product categories in the delivered wholesale and cash and carry markets. It contributes more than ?1billion of sales per year through independent retail, catering and on-premise outlets. It is a category maintaining momentum through creative marketing and promotions, new product developments and fresh packaging formats.
The current trends in advertising and promotion activities which are going at the UK market that’s depends on the following reasons;
Encourage excessive consumption of food or drink products.
Encourage the purchase of food or soft drinks by inappropriately using licensed characters, celebrities or promotional offers in ads intended for children.
Encourage the new generation to the soft drink.
Promote consumption of different kinds of soft drinks promotional offer.
The advertising of different flavor of soft drink at the different level of customers.
The ideas of new advertisement programme which takes by the different advertisement companies.
The impact of ICT on advertising and promotion are as follows;
Now a day’s advertisement is done by the different ICT programmes such as by the broadcast, by internet. But the misuse of this there is several impacts is going on the product advertisement.
There are some impact is create for the change of ICT use at the advertisement.
For the revulsion of use ICT at the advertisement and promotion activities are create new dimension at this sector.
Q9. Review the creative aspect of Coca-Cola advertisement (P7)
Coca-Cola’s promotion has had a significant impact on American advertising and its overall culture. It is even (erroneously) credited with the invention of the US traditional Santa Clause image. Anyway, Coca Cola advertising history demonstrates how the marketing science has been developing over time. Below there is a visual tour into the company print advertising.
1890 –
Drink Coca Cola
Coca-Cola first print ad was published in 1895 featuring a young Bostonian actress named Hilda Clark who was the company spokesperson.
Coca-Cola Revives and Sustains
It satisfies the thirsty and helps the weary.
Take one glass of Coca Cola when weary with shopping.
1950 –
Be refreshed!
“Be refreshed! Pause for Coke! Only Coca-Cola gives you the cheerful lift that’s bright and lively… the cold crisp taste that deeply satisfies! No wonder Coke refreshes you the best!”
“Spending the day on the waterYou’ll really welcome the cold crisp taste of Coca-Cola that so deeply satisfies… the cheerful lift that’s bright and lovely. No wonder Coke is the real refreshment… anytime… anywhere”
1960 –
Things Go Better with Coke
The “Things Go Better with Coke” campaign was adapted to the youth market by using catchy colors and fashionable concepts.
1970 –
During the mid-1970s, the political uncertainty in the United States determined Coca-Cola advertising campaign. As the nation questioned its direction, Coca-Cola reminded Americans of their country’s positive values in the “Look Up, America” campaign.
1976 –
Coke Adds Life
In May 1976, The Coca-Cola Company introduced a new campaign, presenting the brand as the soft drink for all occasions. Aimed at the young and young-at-heart, the new campaign, “Coke Adds Life to …,” was designed to show viewers that Coca-Cola added simple enjoyment to life.
1982 –
Coke is it!
In early 1982, Coca-Cola launched a new ad campaign, “Coke Is It!” The direct, positive statement was meant to appeal to the forthright mood of Americans in the 1980s. “Coke Is It!” represented the new taste and concept.
The public, however, demanded the return of the traditional drink, so the campaign turned out to be fiasco.
1993 –
Always Coca Cola
In 1993, The Coca-Cola Company made a dramatic shift in its advertising by introducing the memorable “Always Coca-Cola” campaign, by Creative Artists Agency and later Edge Creative. Animated polar bear became one of the most popular symbols of Coca-Cola.
2002 –
The Coke Side of Life
Q10. Use critical reflection to evaluate your work, justify your findings and make valid conclusions (D1).
This work is conduct with the advertisement and promotion of the new products which are introduced at the new business world. At this work mainly reflect with the advertisement and promotion activities of the Coca-Cola Company. The major findings of this work are the process and procedure which are takes for the promotion activities by the Coca-Cola. Also at this work discuss about the regulation for the advertising authorities and how these authority evaluate this. There are discussing about the new techniques for the promotion of the new products at the market. However, with the turn of the millennium, while Coke’s international sales were doing well it was facing some new challenges – especially in its largest market of UK.
Q11. Examine ways of working with advertising agencies (P8)
Companies work hard to ensure they provide premier goods and services to their markets. Small to mid-sized businesses use advertising agencies to help them relay their messages to the public. Though outsourcing means using the services of a separate entity, it is important to foster good relations with them so the relationship becomes mutually beneficial.
Be flexible
Know where you want to be, but be flexible in getting there. Remember why you sought the help of an advertising agency in the first place. Don’t assume you have all the answers.
It’s technical
There is a science behind advertising. How colors collaborate, words work with pictures, etc. contributes to the effectiveness of advertising. Understand you may desire a certain look, but advertising agencies hold the expertise; they know how best to advertise for your company.
Have one liaison
You may be accustomed to discussing business matters with several people or a board. When it comes to advertising, people host different opinions making it difficult to arrive at a final decision. Advertising agencies recommend appointing one person to work with them directly. This eliminates conflicting views that discourage agencies from working with you further.
Know your customers
Successful businesses sometimes assume they know their customers because their products/services sell very well. This is a common mistake. Advertising agencies may suggest conducting market research to understand how to reach your customers. This will cost more, but will be advantageous to your advertising campaign as a whole.
Q12. Communicate with any advertising agencies and present your findings (that you have learnt for Q11) in a suitable format (M3).
Communicate with advertising agencies at first look after the goods and service of the company also know about the process for the advertisement of the product. For the proper communication know about the technical aspects and the product promotion aspects and details description of the market valuation of the product response is needed. When inform about the choice of the customers then the product advertising is done carefully also select the level of the customer who needs the product. At the time of campaigning of product advertisement then choose the location for proper advertisement also needs the proper process for the campaigning of product with the product value description.
Task 3
Q13. Explain primary techniques of below-the-line promotion and how they are used in an integrated promotional strategy for Coca-Cola Enterprise Ltd or any business in the UK (P9).
The terms “below the line” promotion or communications, refers to forms of non-media communication, even non-media advertising. Below the line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in FMCG products, but also for industrial goods.
Below the Line uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than Above the Line strategies. These may include activities such as direct mail, public relations and sales promotions for which a fee is agreed upon and charged up front. Below the line advertising typically focuses on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates.
Another interesting and very effective BTL is Ssop Intercept. Trained sales personnel, often young women, are deployed at Retail Stores, near the shelves of targeted products. These young women convince customers visiting these shelves about the better aspects of their brand compared with others. This is ideal for new launches as it generates trials, which if successful result in repeat sales.
Coca Cola Great Britain (CCGB) is responsible for marketing Coca Cola products within UK. There are over 100 products within UK. One of their responsibilities is developing new brands and extending existing brands. The sustainable growth of the Coca-Cola system depends on the ability to work effectively together through collaboration, mutual support and shared goals. The system strengths lies in coca cola routes-to-market and our ability to help the customers grow their businesses, continually enhancing the value of brands to both customers and consumers. In order to continually grow business of Coca Cola Company needs to be increasingly efficient in use of resources. Below-the-line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in individual products, but also for industrial goods.
Q14. Select and/or design appropriate methods/techniques for the Coca-Cola Enterprise to boost their sales and meet strategic targets by 2012 (M2).
The integrated management system of the Coca-Cola business for meet the strategies goal for 2012 is—
The Coca-Cola Management System (TCCMS) is the new management system for achieve the target by the company. This system aligns with the internationally recognized requirements for quality, environment, health and safety, and food safety. In 2010, the Coca-Cola system will begin to transition to ISO standards for all Management System requirements previously covered by TCCMS.
• Quality: Coca-Cola management procedures ensure that we maintain high-quality standards. Ten facilities earned TCCMS certification in North America and all of production facilities in Europe are ISO 9001 certified.
• Environment: All of European production facilities are ISO 14001 certified, and 17 facilities in North America achieved TCCMS certification in 2008.
• Health and safety: Currently, 18 of European facilities are ISO 18001 certified and 17 facilities in North America are TCCMS certified.
• Food safety: Six of European production facilities are ISO 22000 certified and plan to certify six more in 2009 also certify 23 U.S. production facilities in 2009.
Q15. Evaluate other techniques used in below-the-line promotion for Coca-Cola Enterprise L td or any other business in the UK (P10).
The Coca-Cola company is not a new company to achieve the below-the-line promotion which are target by the company. The Coca-Cola Company’s marketing department is accountable for the brand development, maintenance and positioning of all of the Coca-Cola Company’s brands. They focus on all above-the-line marketing and national promotions for trade and end consumers through the appropriate media channels and brand activation. Coca-Cola Company focuses on understanding the market, and is primarily responsible for brand research, consumer research, and pricing studies. By maximizing the potential of brands, developing innovative new brands and introducing Coca-Cola’s international brands into UK, they ensure that our products are the first choice of consumers.
Green contest- Coca Cola has launched a green contest that is aimed at promoting environmental sustainability.
Coca Cola Wonder of the World Promotion- Allowed consumers to get the opportunity to win a dream vacation to destinations such as Paris, Hollywood, New York, Singapore and Cairo.
The promotion sparked an interest within the public who avidly collected their Coca Cola caps. All the promotional tactics of Coca cola aim to shape the culture of the population to think that drinking Coca Cola is the way of life.
Q16. As a senior manager of Coca-Cola Enterprise Ltd. how would you carry out responsibilities for managing and organizing advertising and promotion activities to meet its strategic target (D2)?
Completing the target of market demand at the Coca-Cola Enterprise Ltd. Takes the following steps for advertising and promotion activities;
New campaign activities at the all market level and for all customers.
New advertisement takes for the all levels of customers.
Takes different types of new variation of product introduce at the market with new advertisement and promotion activities.
Regular monitoring the advertisement and promotion activities at the market level.
Ensure the customer about the new thematic promotion and products potentialities.
Task 4
Q17. Follow an appropriate process for the formulation of a budget for an integrated promotional strategy (P11).
The marketing plan then, is a dynamic document which focuses on bringing marketing strategies to life, serving as a roadmap for carrying out marketing activities and implementing marketing strategies. It is a multi-step process, which considers the following:
Formulating a strategy of company or division and making sure that appropriate linkages are made between company strategy and marketing activity planning.
Analyzing the environment within which you do business to make sure the marketplace, the industry, competitors, and other influences.
Carrying out market profiling, enabling you to identify market segment, target customer types, and overall demand. Additionally, analysis of the industry and competitors, coupled with analysis of customer types, enables the creation of demand possibilities and the resulting forecasts.
The marketing mix, which considers a combination of activities which come together harmoniously, in bringing the product to market and sustaining it while in the market.
Budgeting of marketing programs so that the appropriate sales goals and corporate strategies can be attained.
Q18. Carry out the development of a promotional plan for Coca-Cola Enterprise Ltd. or any business in the UK (P12).
Sampling-if objective is to trial the product then sampling is an effective sales promotion method. Usually sampling is involved with low value products and products having highly visible features of benefits.
Couponing-it is one of the oldest sales promotion strategies and sometimes couponing makes the product problematic by cheapening your brand name. Coupon is mainly used for attracting new customers as well as to increase instant sales with price reduction of a product.
Loyalty schemes- It is basically a point based system, where each customer gets some points on each purchase and later he can use these points on buying the same products or other products at a reduced price. To many marketers, loyalty schemes are also known as-frequent purchasing scheme.
Packaging- many marketers does no pay much attention to the quality of packaging, because they simply do not understand the psychological and brand image aspects of packaging. An attractive and innovative packaging can work like a salient sales man-packaging does the hooking function to buyers. A well-packaged product carries not only the brand values but also create an emotional link to your prospects. Not that it is only important for packaging to be eye-catching, aesthetic, but it needs to protect the product inside with proper manner.
Q19. Plan the integration of promotional techniques into the promotional strategy for Coca-Cola Enterprise Ltd. or any business in the UK (P13).
A typical sales promotion budget covers almost 70% of the total consumer sales promotional budget. It is also considered as a brand differentiator by many big players like Coca-Cola. For Coca-cola business experts and academics, sales promotion is regarded as typical marketing techniques that add value to a product in order to achieve specific marketing goals.
The primary purpose of promotion strategy is to induce the consumers to make a quick buying-decision in order to create increases sales. Integration of promotion is to offer customers to take chance of winning a prize or offering some extra products with the same price. Sales promotion and marketing are inter-related but not have the similar purpose. The Coca-Cola company takes different promotions activities such as at the world cup football occurring time also at the summer season the takes different promotions activities for achieve the new customers and evaluate their products computations.
It is advertising which makes a platform for sales promotion where customers can see the direct added value of buying your product. On the other hand, advertising is an intangible promotion of products to send the marketing message to the customer-base.
Q20. Use appropriate technique for measuring campaign effectiveness (P14).
It is essential to pretest advertisements to see how effective they actually are in influencing consumers. An ad may have to be redesigned if it is found not be to be as effective as targeted.
Developing an advertising program entails several steps:
Identifying the target audience- Market reports can be bought that investigate the media habits of consumers of different products and/or the segments that the firm has chosen to target.
Determining appropriate advertising objectives- the objectives might include awareness, trial, repurchase, inducing consumers to switch from another brand, or developing a preference for the brand.
Settling on an advertising budget.
Designing the advertisements- Numerous media are available for the advertiser to choose from.
References:
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Chang, T.L. (1995), “Formulating adaptation marketing strategies in a global industry”, International Marketing Review
International Olympic Committee – Organization – Facts and Figures. Retrieved on January 13, 2007
Lynch, R (1997), corporate strategy, Pitman Publishing, Great Britain.
Ruth, J.A. & Simonin, B.L. 2003. Brought to you by brand A and brand B. Journal of Advertising
www.coke.com.au/about_advert.asp