Integrated Marketing Communication - of Coca-Cola - Case Study Example

Name: Tutor: Course: Date: Introduction Marketing is the process through which planning and execution of conception, pricing and promotion of commodities to create exchanges which satisfy organizational and individual objectives. Integrated marketing communication refers to the control and management of all market communications. It involves ensuring that brand positioning, personality and messages are synergistically delivered across all communication elements and that they are delivered using a single and consistent strategy. This is achieved through strategic analysis, choice, control and implementation of marketing communication elements (Smith & Allan, 1999, p.166). On a broader look, not all marketing involves the exchange of cash for a service or good. Marketing is nowadays focused on communicating and delivering value to customers in ways that are beneficial to an organization and its stakeholders. Marketing combines the elements of the marketing mix; product, price, place and promotion into a marketing program that facilitates the potential exchange with customers in a market platform (Morgan & Summers, 2005, p.35). Marketers have to be aware of the options and issues available in each element and how these can be combined so as to form an efficient and effective marketing program capable of delivering value to the customers. In this paper, the selected brand is Coca Cola Background Coca Cola was established in 1986. Over the centuries, it has grown to be the leading soft drink maker in the world and has maintained this position despite facing competition from rival brands such as Pepsi. Its dominance is visible all over the world soft drink market. Pemebrton, its founder, started this marvelous journey by making Coca-Cola syrup which was sold in fountain drinks. A decade later in 1899, the bottling business began. B. Whitehead and F. Thomas were given the rights to sell the drink. The business grew over the next drink operating as independent franchise businesses all over the world until 1980s when the franchises began consolidating. Coca-Cola first operated in the United States until 1906 when it expanded to Canada, Cuba and panama. By the beginning of the 1930s, coke was available in more than 50 countries and was being bottled in 27 countries. Over the next 80 years, Coca-Cola continued expanding with the goal of “making coke available whenever and wherever consumers want it.” Today, Coca-Cola is available in virtually the entire globe and its visibility is boosted by its aggressive marketing and promotional campaigns, some of which include being the official sponsor of the FIFA 2010 World Cup competition held in South Africa. Coca-Cola Mission Statement, Vision and Values Coca-Cola’s incredible dominance of the world soft drink market has been made possible by these guiding guidelines. Its marketing communication activities have focused on passing across these messages to the consumers. The company’s mission which declares its purpose as a company and acts an enduring standard against which the company weighs its decisions and actions is “to refresh the world, inspire moments of optimism and happiness and to create value and make a difference.” The company’s vision serves as a framework for its roadmap therefore guiding it through describing what it needs to do in order to continue achieving quality and sustainable growth. Its values describe how it behaves in the world market and they include leadership, collaboration, integrity, passion, accountability, diversity and quality (The Coca-Cola Company, n.d). Coca-Cola’s Marketing Communication Mix and Strategy Coca-Cola’s marketing strategy enables it to listen to the needs of its consumers and respond to them with the right solutions. As a result, it has come up with over 500 brands designed to meet the seemingly unending needs of the world population in terms of taste and preference. People want a beverage that is a reflection of what they are and this understanding has driven Coca-Cola to study and understand its consumers. The brands recognize the people as who they are, where they live, how they work and how they relax and refresh themselves. It focuses on different ages, demographics, culture, living standards, geographical regions and gender when coming up with new products. This is designed to help it segment and target its consumers more effectively. Coca-Cola is determined to not only make drinks but ensure they are acceptable to the consumers. It also contributes to communities through CSR programs targeting education, wellness, health and diversity. Integrated Marketing Communication Program for Coca-Cola Coca-Cola has adopted various methods to communicate with its target consumers. These include internet marketing, direct marketing, sales promotion, personal selling and publicity. In order to further consolidate its market share and retain its consumers, it needs to adopt new ways while still maintaining the old ones. So far, its efforts have been hugely successful as demonstrated by its impressive dominance in the world soft drink market. Coca-Cola should use its IMC program to communicate effectively with its target consumers. This can help it improve its performance and by getting in touch with its consumers in a better way and understanding them completely. It should adapt this communication plan regarding its market through segmentation, targeting and positioning. This will bring it closer to consumers who will view it as part of their lives and be attached to them. It should also focus on entertainment and fun because Coca-Cola is a refreshment drink. The message should be tailored in a way that passes the intended message, which is sharing happiness. As one of the four elements of the marketing mix, promotion plays a vital role in the success of a brand. A promotion strategy focuses on helping the product or service flow through the entire marketing channels up to the targeted market. It aims to inform, influence and persuade prospective customers through communication. In definition, promotion includes all methods used to inform, persuade and remind consumers, wholesalers, consumers and retailers about the marketing mix of a commodity, its price and place (Jain, 2009, p.383). It includes the following elements: 1. Advertising Advertising refers to the non-personal communication of marketing information to a target audience which is paid for by the advertiser and is usually delivered through mass media so as to reach the sponsor’s objective. The information is usually about an organization, service, product or idea (Kazmi & Batra, 2008, p.10). This means that a company has to budget for advertising because it is a paid-for service. Since it is non-personal, it means it involves mass media such as TV, radio, newspapers and magazines. The lack of personal interaction means there is no immediate response from the message recipient. As such, the advertiser must first weigh the advert carefully and take into consideration how the target audience will interpret and react to it. Advertising is an integral component of integrated marketing communication for several reasons. To start with, it is cheap when the target audience is large. TVs and radios particularly are very effective as they reach many people over large geographical areas. During prime time, adverts reach millions of households. The other reason is that advertising is useful in building a brand image and to influence people’s perception. It can be used by coca-cola to create unique and favorable image that people can associate it with. Brand image plays an important role in the purchase decision of consumers and it is therefore imperative for Coca-Cola to build a strong and unique brand. Relying heavily on advertising is perfectly okay for advertising as it is one of the most effective promotional tools. Coca-Cola should use aggressive marketing to promote its drinks. Advertising is therefore the company’s best tool. It also has to reach the entire world market and this is only possible through the use of mass media. It should come up with different concepts and themes to market its products. Advertising should mainly be done through mass media because this will build the brand and image and at the same time create awareness about it. Advertising can be done through the use of big names such as actors, actresses, artistes, models, businesspeople and athletes. Use of sports is particularly useful and effective as witnessed during the 2010 FIFA World Cup when Coca-Cola partnered with FIFA as the official sponsor. The company should also use slogans as it has done over the past. It can come up with new slogans such as “Coke is Life” to stress how inseparable it is from its consumers lives. In the past, famous slogans that Coca-Cola has used include: Open happiness The Coke side of life Always Coca-Cola You can’t beat the feeling We’ve got a taste for you Have a Coke and smile Coca-Cola should adopt the following advertising methods: a) Retail/Local Advertising. It can advertise using its retailers or local merchants in order to encourage customers to buy its products at those outlets. b) National Advertising. Using geographical segmentation, it can create national advertisements focusing on specific countries. Using such segmentation, it can further make consumers in a certain country to feel close to it by using known celebrities and national features in its adverts. Such adverts will reinforce its image making consumers predisposed to purchase it. c) Primary and selective demand advertising. Coca-Cola should use primary demand advertising to stimulate demand for soft drinks in new markets as well as in those markets where it is doing poorly with the aim of boosting its sales through demand. And increase in demand will guarantee an increase in its sales since it is a leading manufacturer. For existing market, it can use selective advertising by purely marketing its own products alone (Guinn et al, 2003, p.21). 2. Direct Marketing Direct marketing is defined as direct communication between the seller and buyer. It does not involve the use of an intermediary. As such, no distraction comes between the two parties. It is also viewed as any form of advertisement that creates and makes use of a direct relationship between a seller and a prospective buyer (Mullin, 2002, p.1). Direct marketing has traditionally been considered as an element of the promotional mix but since it is a vital component of integrated marketing communication, it should be viewed as a component of the promotional mix (Mueller, 2008, p.41). It involves separate budget, objectives and strategies and play an important role in building a brand. It involves activities such as database management, telemarketing, direct selling and direct response advertisements through channels such as the internet, direct mail, as well as print media. Coca-Cola can use direct marketing tools such as direct response advertising. Here, a product is promoted via ads that encourage the target consumers to purchase the product directly from the seller. The seller therefore markets the products directly to the potential customers. The internet offers a direct link between a seller and a buyer thereby making it a perfect platform for direct marketing. The company can also combine it with telemarketing by calling potential customers, sending direct mails, flyers, brochures, videotapes and catalogues. This will be particularly effective in new markets where the products are not yet well known or embraced fully by the consumers. Coca-Cola should use direct marketing to reach its customers. For instance, it can partner with restaurants, movie theaters, tournament organizers to avail the drinks directly to consumers. In such partnerships, Coca-Cola products should be the only ones sold by these partners such that customers only have the choice of Coca-Cola. This will help Coca-Cola to force out its competitors and retain an upper hand. The agreements will also ensure these partners stock Coca-Cola’s products only and they will therefore retain that identity. Sponsoring events will also go a long way in aiding this endeavor. Sponsoring events such as soccer, cricket, rugby, volleyball, tennis and athletics is also an effective method of direct marketing. 3. Internet/Interactive Marketing Internet marketing, also known as online marketing, refers to marketing and advertising efforts which rely on the internet and email to drive sales through ecommerce. These efforts are used in conjunction with the traditional methods of advertising such as radio, newspapers, magazines and television. (Webopedia, n.d). Over the past one and a half decades, the most dynamic and revolution changes on how companies advertise themselves have taken place due to the internet. Internet marketing is also known as interactive media because it allows the flow of information on both sides. Advertisers convey their message to the target audience who then give their feedback in real time. Unlike the traditional one-way methods of marketing such as advertising, interactive marketing allows the target users to perform several actions such as make inquiries, receive and alter images and information, answer questions and make purchases, all over a single platform. Other than the internet, there are other forms of interactive marketing such as interactive television, kiosks, digital cell phones and CD-ROMs (Belch & Michael, 2012, p.20). By using the internet as a promotional tool, Coca-Cola will be reaching over 1.3million people who are all potential consumers, most of whom already know about it. Such a customer base offers incredible potential in terms of possible amount of sales. The internet offers the ability to make faster decisions because all information about a product is available at once. Customers can also respond quickly at the click of a button. It is also cost effective compared to other forms of promotion. Coca-Cola can also conduct market surveys online by requesting for opinion of their customers through items such as online forms and questionnaires (Lamb et al 2012, p.313). Coca-Cola should embrace interactive media and use it to reach its target consumers in a better way which will as a result increase its sales. The interactive nature of this interaction is also important in helping consumers bond with a brand. The company has a website which allows with customers through shopping, games and contests. It also has a section in which customers can see how they can contribute to their communities and help them. Coca-Cola should invest more on its website and maintain it is up to date in today’s world when there is a continuous improvement in technology. Coca-Cola should also continue using social networking sites such as Twitter, YouTube and Facebook to connect with its customers and interact with then in a better way. This will also help it reach the consumers who cannot afford to watch other media such as TV but spends a lot of time online. 4. Sales Promotion Sales promotion is defined as any activity which provides incentives for a limited time period with the aim of inducing a desired response from the targeted people. It involves promotional activities apart from publicity, personal selling and advertising. Sales promotion always involves the use of specially designed materials such as give always like pens with a product’s logo (Koekemoer & Bird, 2004, p.226). The main aim of sales promotions is to boost sales of a product for a limited period. They are usually carried out in programs that can be as a short as a few weeks or extensive over many months. Coca-Cola can use sales promotion to boost the sales of its products in two ways: a). Trade-Oriented Sales Promotions Trade-oriented sales promotion is targeted towards marketing intermediaries that a firm uses such as distributors, wholesalers and retailers. The aim is to make them put an extra effort in promoting the product to their immediate customers. Coca-Cola should make use of its distributors, retailers and wholesalers because they act as a link to its consumers. Marketing the products to them will make them put an extra effort in marketing Coca-Cola to their customers through such actions as stocking Coca-Cola’s products only. This can be done through merchandising and promotional allowances, sales contests, trade shows and price deals. Action like these will make these intermediaries be good ambassadors for Coca-Cola thereby helping it boost its sales (Chamberlain, 2011). b). Customer-Oriented Sales Promotion Consumer oriented sales promotion is targeted towards consumers of a product. Coca-Cola can use it and employ methods such as couponing, sampling, sweepstakes, rebates and refunds, bonus packs, premium contests, frequency programs, price-offs and event marketing. Actions like these will attract consumers to its brand who will come expecting to take advantage of the promotion activities. 5. Publicity/Public Relations This is an important component of the promotional mix of a product. It refers to the non-personal forms of communication regarding a product, service, idea or an organization which is not paid for directly or is run through an identified sponsorship. It is conveyed in the form of editorials, news stories or announcements about an organization or its products. It is similar to advertising because it involves non-personal communication to mass audiences only that the company does not pay for it directly. Companies try to get the media to run favorable stories about it or its products in order to create awareness, opinions and knowledge about it. Since the company is not involved directly, this form of promotion has more credibility. This is because the consumers view the conveyors of such information as unbiased and objective and therefore tend to believe them. Other than credibility, publicity is also relatively cheap because the firm does not invest directly to have its information communicated to its target audience (Belch & Michael, 2012, p.22). A negative aspect of publicity is that the company has no control over this kind of information and if negative, such information may hurt the company’s reputation. Closely related to publicity is public relations. Gupta (2005, p.17) defines public relations as management philosophy which places peoples’ interests in all decision and actions. It is a continuous process through which management tries to obtain the understanding and goodwill of its employees, customers and the public internally through correction and self analysis. Coca-Cola should enhance its public relations department to ensure its image is always clean. The public relations department should focus on ensuring there is favorable general opinion and reputation of the company among members of the public worldwide. This will go a long way in ensuring it is renowned for goodness. This will help it address lawsuits, new products, rumors, stories and other activities that are of interest to the public and those which may harm its image. It seems to be doing well on this end but still can improve and ensure it has a lasting positive image. In its website, it has created a section where investors, both current and prospective can access its financial statements and updates on its stock performance which is crucial in that it shows openness to its shareholders regarding its financial performance. The company should also undertake projects that benefit the community as part of its corporate social responsibility. It can target areas such as sanitation, malnutrition, education and health especially in poor countries. All over the world, people expect it to demonstrate love for humanity by supporting the poor and vulnerable through community projects. For instance in education, it can offer scholarships to bright kids from poor countries. Efforts like this will make its consumers love and identify with it. 6. Personal Selling Personal selling is mistaken to mean the same thing as marketing, whereas that is indeed not the case. Cant & Heerden (2003, p.3) defines personal selling as the person-to-person communication process between salespeople and prospective customers in which the salespeople learn the needs of these prospective customers and seek to satisfy them by offering the prospective customers an opportunity to purchase something valuable such as a good or service. This means the purchased goods solve the needs of the customers and there interaction between the buyer and the seller before the commodity of value is purchased. The interaction between the seller and the customer gives the seller communication flexibility. As such, the seller can hear and see the customer’s reactions and alter the message accordingly. The seller gets feedback through reactions and response which makes personal selling a powerful promotion method (Kumar, 2009). Coca-Cola has always employed personal selling in its marketing and promotional activities. To further boost its sales, understand its customers better and develop a better relationship, it should ensure it has many salespeople marketing its products to the people in all corners of the globe. These individuals should understand the company’s goals and be good ambassadors of its products. They should be able to represent the company well through communication, selling, taking feedback and building relationships with the customers. Personal selling is the only tool of promotion that uses personal communication. As such, its advantages and disadvantages accrue out of this interaction. It allows for better timing of the message because the marketer can choose the appropriate time to deliver the message. It also gives flexibility on how the message can be delivered. It also gives the advantage of allowing a sale to be closed immediately. On the disadvantages, it is costly to deliver the message since it involves a single customer or a small group at a time (Ingram, 2004, p.53). Coca-Cola’s salespeople should be assigned small geographical regions to ensure they reach as many people as possible. Once they establish a rapport with a customer, they should then seek to sell them and seek their opinion. Once they develop a relationship with the customers, they will make them repeat customers thereby boosting the company’s sales. Conclusion For any company to realize its full potential in today’s market which is more competitive than ever before, it must promote and market its products in the best possible way. Its marketing communication program must be effective. It should also be reviewed regularly to ensure it conforms to the current market needs. Technology is evolving fast and businesses must also evolve in the manner in which they conduct their operations. From my study of the Coca-Cola company, there is huge potential that it can realize if it improves its integrated marketing communication program. It has a great integrated marketing communication program but can do better than it is doing currently. Frequently revising the program to conform to the current trends will go a long way in helping the company maintain its grip at the top of the world’s soft drink market. It should adopt new technologies completely and fully embrace the internet as a useful link to its worldwide market. Embracing changes in technology as they come will make it versatile thereby helping it beat new competition and remain the market leader and most valuable brand worldwide. Through an efficient integrated marketing communication program, Coca-Cola will be able to coordinate its marketing communication efforts well. This will minimize duplication and take advantage of synergy among the different promotional tools. Integrated marketing communication is the beast way of maximizing return on investment in promotion and marketing. Needless to say, it strengthen the brand image and builds a strong bond between the customers and the brand. If adopted and implemented well, the program will go a long way in helping Coca-Cola develop further and sustain its reputable, famous and valuable brand identity. References Belch, G. E., & Belch, M. A. (2012). 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