Marketing & PR - Introductory Session
1. What is marketing?
Marketing is defined as the action of selling and promoting products through multiple techniques including adverting and market research. Near enough every business would use some form of a marketing technique as it reaches more audience with the aim of promoting the company's products or services. It also allows company's to stay consistently ahead of its competition.
Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service. Marketing can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and customer relationship management that also benefits the organization. Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer behavior and providing superior customer value. From a societal point of view, marketing is the link between a society's material requirements and its economic patterns of response. Marketing satisfies these needs and wants through exchange processes and building long term relationships.
Examples of marketing:
The Blair Witch Project viral campaign.
Barack Obama's 2008 presidential campaign.
Pepsi; The REFRESH project.
The Dark Knight.
In May 2007, 42 Entertainment created a viral marketing campaign based around the films tagline ‘Why So Serious?’ through the launch of a website. The sites main aim was to build excitement and interest in the fans by giving them tasks and challenges to find out exclusive information about the film. This also made the fans feel a part of the film as they were witnessing things first hand and what nobody else has seen. The website featured fictional political campaign of Harvey Dent using the phrase ‘I Believe in Harvey Dent’, 42 Entertainment also created a vandalized version of it called ‘I believe in Harvey Dent too’ where emails were sent which removed pixels and revealed the first official image of the Joker; it was ultimately replaced with many "Haha"s and a hidden message that said "see you in December. All of this caused a storm wave of excitement and popularity with the at the time upcoming movie.
2007 San Diego Comic-Con international was when 42 Entertainment launched the Why So Serious website, where they sent thousands of fans on a scavenger hunt to unlock a teaser trailer and more photos of the joker. On October 31, 2007, the film's website morphed into another scavenger hunt with hidden messages, instructing fans to uncover clues at certain locations in major cities throughout the United States, and to take photographs of their discoveries. All the clues came together to reveal a new photograph of the joker and an audio clip of him, which at the time was extremely exciting as the anticipated film was one of the first to reveal so much before the film was even premiered. Completing the scavenger hunt also led to another website called Rory's Death Kiss (referencing the false working title of Rory's First Kiss), where fans could submit photographs of themselves costumed as the Joker. Those who sent photos were mailed a copy of a fictional newspaper called The Gotham Times, whose electronic version led to the discovery of numerous other websites. Overall The Dark Knight marketing campaign was one of the most successful campaigns ever created, and increased the films popularity in more ways than one.
2. What is involved in a marketing campaign? (tools and techniques)
A marketing campaign is defined as a specific activity designed to promote a product, service or business. A marketing campaign is a coordinated series of steps that can include a promotions of a product through different mediums (television, radio, print and online) using a variety of different types of advertisement. The campaign doesn't reply soley on advertising.
For a successful marketing campaign you need to advertise your product through multiple media outlets like the radio to create awareness. Viral marketing campaigns also are successful as they build excitement and a buzz around the product. Many viral marketing campaigns begin up to 12 months before the product is released to get as much following and publicity as possible. The 2012 Dark Knight Rises viral campaign is an example of this. Creating events is also involved as the more events made the more people are going to be aware of it. Finding clients and sponsors is also involved as these clients and sponsors can expand the product and make it more widely seen.
Marketing Strategy process:
Understanding the customer - it gives a clear picture of the target audience and its needs to be developed.
Analysing the market - find date such as total available market, market growth, market trends ect.
Analysing the competition - what other choices the target customers may have, to solve their pain point as well as researching the strengths and weaknesses.
Research distribution channels - the best way to deliver the product or service to the target audience.
Defining your marketing mix - includes product, price, place and promotion.
Analysing the financials - putting together a marketing budget and evaluate marketing ROI customer acquisition costs and so on.
Review and revise - evaluate the effectiveness of the marketing strategy and extend as needed.
There are many reasons for marketing campaigns, some of the most important reasons are it builds a brands image, for example the Evian water campaign made the brand more popular and related it with the campaign. It also is a good way to introduce a new product by creating a buzz and excitement over it. It increases sales of a product which already on the market and it also reduces the impact of negative news.
Nine functions of marketing
- Product/service management: the organizational structure within a business that manages the development, marketing and sale of a product or set of products throughout the product life cycle. It encompasses the broad set of activities required to get the product to market and to support it thereafter.
- Marketing information management: the results of marketing research that are used to plan for future marketing or product development activities. The information may come from a single source or through a system of collection.
- Financing: the act of providing money for a project.
- Purchasing: the activity of acquiring goods or services to accomplish the goals of an organization.
- Pricing: method adopted by a firm to set its selling price. It usually depends on the firm's average costs, and on the customer's perceived value of the product in comparison to his or her perceived value of the competing products.
- Distribution: the movement of goods and services from the source through a distribution channel, right up to the final customer, consumer, or user, and the movement of payment in the opposite direction, right up to the original producer or supplier.
- Promotion: the advancement of a product, idea, or point of view through publicity and/or advertising. See also sales promotion.
- Selling: the last step in the chain of commerce where a buyer exchanges cash for a seller's good or service, or the activity of trying to bring this about. See also marketing.
- Risk Management: the identification, analysis, assessment, control, and avoidance, minimization, or elimination of unacceptable risks.
Four Utility of marketing
Form Utility
A product must be processed into a form that the customer wants or needs. An example of this is like a single turning into a album.
Place Utility
This is based around transportation. How are they transported to the location to where customers can buy them? Modern day transportation systems make this possible.
Possessions Utility
Establishes legal ownership of a product. An example of this is computer software; you have to provide a user license.
Time Utility
Buying in the right place at the right time when a customer is ready to purchase a product. Involves a storage facility.
Marketing Mediums
- Online media - interactive ads, banners on websites
- Print media
- Social media
- Publicity
- Direct mail
- Email
- Radio
- Television
- Telemarketing
- Events and trade shows
- Search engines
- Outdoor media
An example of a successful marketing campaign was the re launch of famous corn snack Monster Munch. Originally launched in 1977 the brand became a household name and popular throughout the UK. The relaunch was successful as people said that it brought back childhood memories and makes you feel young again. They were reintroduced bigger, crunchier, a bigger pack format and retro pack design featuring the lovable and iconic Monster characters. Some of the marketing campaigns used were a fun website where people can play games with the monster munch characters, a 'Monster Munch' tour, a offer where if you buy 3 packets of monster munch and pay a five pound cheque you can get a monster munch t-shirt and monster munch mascot's visiting cities. The monster munch relaunch was very effective; it's the number one snack for fun and hunger fill amongst men aged 18-24 and it outsells Walkers cheese & onion when sold side by side.
3. What is PR? (What is distinctive about these activities/relationship with news form)
PR stands for public relations and is revolved around reputation but as well as the media. It's the result of what you do, what you say, and what others say about you. It is used to gain understanding and trust between the organisation and the public - whether that's employees, customers, investors, the local community - or all of those stakeholder groups. Public relations professionals use many different techniques as part of their PR campaigns. From media relations and lobbying, to speaking at conferences, to online viral campaigns, to sponsorship - and more. PR isn't always about short-term campaigns, such as product launches. It can encompass longer-term strategic aims, such as brand building and working with local communities.
It's different from advertising as with PR, a company does not pay the newspapers and TV channels for the media exposure it secures, essentially meaning that public relations is more of a gamble. It's the third-party endorsement which gives PR its power and credibility. PR benefits a company as the public relations can play a critical role in achieving a competitive advantage by, for example, opening new markets, attracting high-calibre employees, giving more access to funding and investors, creating a high value for products and services, and protecting businesses in times of crisis. Organisations will always benefit from public relations whether the companies big/small or local/international.
Public relations is the main way a company can control an organisations image. It also is used to increase popularity, product awareness and persuasion of the audience. If a PR stunt is success it can run for weeks and really benefit an organisation, an example of this is mobile network provider Three's Dancing Pony campaign. Fresh from the horse mean scandal, Three created humour from the situation by releasing an advert starring a Shetland Pony dancing to Fleetwood Mac's Everywhere (slightly unrealatable but entertaining). The campaign was massive success generating 28, 000 retweets on Twitter, over a million Facebook shares and nearly 8 million views on Youtube. However if a PR stunt flops it can be very damaging on an organisation, this happened when Urban Outfitters started selling and promoting a new version of Monopoly called 'Ghettopoly' in 2003, the name already causing slight anger seems nothing compared to the content inside. Phrases like 'get rich by stealing properties, pippin hoes, building crack houses and getting cars jacked!' all were used in the controversial game board. Even rewarding players with $50 when they've got 'the neighborhood addicted to crack' was the final straw with furious customers as they found some found the game board extremely racist and prejudgmental. This isn't the first failed PR stunt by Urban Outfitters they often cause controversy like the A "vintage," faux-bloodstained Kent State Sweatshirt which referred to the 1970's Kent state massacre, prescription pill bottle shaped shot glasses which caused fury as it glamorizes drug use, the 'eat less' top that was seen as promoting eating disorders and the Obama/ Black” color option. Using Obama’s name to describe the color of a black t-shirt offended many as it was a unthinkable idea.
City Press is an example of a PR company, it's an integrated PR, digital and creative communications agency. It's a very successful PR company with the winning of PR Agency of The Year and the nomination for 2014 Pride Awards. Its Headquarters are in Manchester but also have offices in Birmingham, London, Edinburgh and Bristol. Some of the companies specialist services are public & media relations, corporate reputation, copy writing, digital & design, social media, websites & apps, graphic design and video & audio. They provide corporate and consumer communications for a diverse range of businesses and brands. Some of City Press' clients are British Gas, Coca Cola, Post Office, The Co-Operative, Lloyds Bank, The Big Issue Foundation and Growing Business Awards. City Press is devised to ensure customers can draw down on our collective strategic communications experience and insight across a number of key sectors.Whether it’s raising awareness of a new product, gaining credibility in a target market, defending reputations, or advising on mergers and acquisitions, they declare they are skilled at changing and shaping the way people view companies and brands.
4. How has marketing strategy/techniques evolved over the past 10 years?
Marketing has extremely evolved over the past 10 years in multiple ways. With the surge of social networking portals, multifunctional cell phones, and gadgets, the face of marketing has undergone a major makeover in the past decade. It has in fact become a necessity for companies to follow the latest marketing trends to not just get new customers, but also to retain the existing ones. Aggressive, competitive, and innovative marketing strategies are used mainly today. Technology improvements has become a blessing for consumers and given them a sense of empowerment. Product information is available at the click of a finger and there are more competitors than ever in the market which is why every company is trying to be better than the next. It has also created new media for marketing around the globe in the virtual world. Within this decade, new non-traditional marketing concepts have emerged, such as viral marketing, social media marketing, undercover marketing, and attraction marketing.
A 2012 survey which looks at the top ten most effective marketing strategies show what respondents thought the most effective strategies were;
Email marketing – 83%
Website (content and SEO) – 71%
In-person interactions – 68%
Social media – 49%
Events 41%
Outbound calling – 33%
PR – 22%
Direct mail – 21%
Traditional advertising (TV, radio, print, etc.) – 17%
10. Pay-per-click – 17%
This survey shows that email marketing is very successful, so promotion emails ect are the most persuasive. Websites and social media are also effective but direct mail and tradional advertising aren't as much but which isn't surprising considering the evolution of technology and decrease in magazine/newspaper popularity.
A lot of marketing techniques have been become online based over the recent years and print based techniques like leaflets, emails, advertisements in magazines and newspapers have all become more non existent. Online marketing techniques have exploded on the internet with the use of social media like Facebook, twitter and Instagram, pop ups, smartphone apps and webpage links all being widely used as a marketing strategy. The evolution of technology is very important and has made marketing exceptionally more improved and successful. Before, newspapers and magazines were the main sources for marketing techniques as really it was one of the only popular ways to promote products and business. They are still used as a technique today but not as effective as online. Before the TV was invented around the 1950's every single marketing strategy was used in print form which shows that you don't have to always use online as a way to persuade the audience as there were plenty of successful marketing before the evolution of technology. An example of this is in 1903, for instance, newspaper publisher Henri Desgrange started a new bicycle road race as a temporary publicity stunt to promote his newspaper, never imagining that the Tour de France would be going strong more than 100 years later. Other successful and unexpected print marketing before the invention of the TV were the Miss America Pageant which was created in 1921 as a clever way to attract business and tourists to Atlantic City. The Pillsbury Bake-Off, which was launched in 1949, was intended to be a one-time event, but it's become an annual event for the baking company.
The younger audience these days which a lot of marketing techniques are aimed at have a more technological mind which means they use more technology, see more technology and out of interests are based around technology which means it takes a lot to impress this audience; so a simple advertisement in a newspaper wouldn't be as interesting for this age range compared to an older audience. The expectations of the youth are more higher and developed as technology has evolved. Technology brand Apple, has become one of the most successful brands globally, even being voted the overall winner of the 2012 CMO Survey Award for Marketing Excellence and apart of that is because of there unique marketing strategies. Apple hire customer-obsessed, empathetic employees, interactive customer involvement, build compatible experiences, enable customer discovery and differentiation through Apple Stores, devise a business model that creates ongoing customer value, cannibalize when necessary and create an ecosystem that makes offerings valuable.
5. How has our understanding of marketing audiences changed in the 21st century?
The understanding of marketing audience have changed a lot through the 21st century due to multiple reasons including the development of technology, the popularity increase of online use and the lack of print based marketing in the media. Near enough all marketing companies will use a form of technology to attract and interest the audience as because peoples look on technology has completely evolved in the space of 10 years. Years ago a lot of the audience would find marketing in print based media like magazines and newspapers interesting and would persuade them to research the product further. An example of a successful print marketing campaign is the Gold Lion Campaign which was used for Shanghai General Motors, the campaigns is completely print based and have not created any film campaigns to use with it which is unusual for an awareness creating campaign. The campaign is about reckless drivers and the aftermath of their reckless decisions. The print campaign features real people who actually were injured by bad drivers, posing in the street and holding up the exact signs those drivers had ignored under the tagline 'signs are there for a reason'. In the past 10 years technology has essentially taken over people's lives in a way in which some people physically can't live without daily usage of technology and nearly everyday will have or have used technology either for work purposes for just pleasure. It's very rare to find people who live technology free lives as its now been developed to be used in every form of living; its used as a way of contacting people through telephones/mobiles, emails ect. Even simple things in life which 10 or 20 years ago wouldn't even have thought about incorporating technology like fridges with visual screens connected or watches with screens in which has a camera built in and messenger (a recent product brought out by technology giant Apple) is used widely and seen as 'normal' in today's society. Peoples exceptions have increased so they expect interesting and news things when it comes to products, forcing marketing companies to try and produce the newest and best of everything. An example of this is the development of TV's, originally invented as a simple black and white TV, this at the time was a big development in technology and people were already impressed. But due to further developments they've know turned into shadows of the original first TV, with Flat LCD screens being a popular choice, some TV's now even have 3D with them. Other examples of the development of technology are typewriters developing into laptops, telephones developing into cellphones ect. Due to all this its hardly surprising peoples exceptions have increased and only the bestest, most advanced products will attract. Marketing has also become a more bigger business due to the development of technology, marketing companies now have to market their products in a way which the audience will find interesting and attracting, so marketing companies will use more exciting and bigger marketing techniques as a way of becoming popular with the audience. The bigger companies are usually more important as they've got a unique and expanded marketing behind their product. The transformation of marketing is beginning as the audience spend more time on mobiles, tablets and laptops now then ever before. Brands are now challenged to connect with customers through all these devices and create campaign which reach across social media, e-commerce and display advertising. The real-time conversations brands have with people as they interact with websites and mobile apps has changed the nature of marketing, everything is more based around technology and the internet. The modern-day marketing department needs to combine the creative side of the discipline – using powerful narratives to tap into people’s wishes and aspirations – with the technical side of data, digital engineering and analytics. The two areas do not always sit easily together. Getting creative marketers to work alongside technical staff can be a huge challenge.
I created a Pinterest account which was based around the change of marketing audiences in the 21st century.
The link is:
http://uk.pinterest.com/halfordbarden/marketing-in-the-21st-century/
I pinned multiple different images on the Pinterest which I felt related to marketing in the 21st century, some of the pins were of technology which has been created recently and first ever technology creations which shows the contrast of technology of today and technology 20 years ago. I also pinned articles relating to the topic and good marketing examples which I found from Pinterest and also Google.
Print screens from the pinterest board:
6. What is more important, the product or the marketing?
I think marketing is a lot more important then the actual product as without marketing the product would not have a platform to be successful or create popularity. Products which don't use marketing end up being a lot less effective as they don't use that form of marketing which gains hype, widespread and recognition. The product can be the best product in the world but without strong marketing it would just crumble up against other competitors as they have all the good marketing techniques to increase the products overall popularity. The heart of your business success lies in its marketing. Most aspects of your business depend on successful marketing. The overall marketing umbrella covers advertising, public relations, promotions and sales. Marketing is a process by which a product or service is introduced and promoted to potential customers. Without marketing, your business may offer the best products or services in your industry, but none of your potential customers would know about it. Without marketing, sales may crash and companies may have to close. An example of a product which used a good form of marketing is ProShade which is a company that makes a 3-in-1 gadget that combines a visor, sunglasses and a lanyard--which is a cord and a hook that allows you to carry something on them, like keys or a pocketknife or what have you. Proshade made an intriguing offer to the National Park Service earlier this year when they proposed to give $4 million to Mount Rushmore in exchange for getting to put a logo visor on each of the presidents' heads. The company explained in a news release, "The National Park Service needs more support in preserving Mount Rushmore. There's a dearth of funding in the budget to provide the national landmark with the facelift it needs. If they accept, we'd like this to go toward preservation efforts-including a much-needed pressurized wash."Although the National Park Service didn't take them up on their offer and despite the fact that any decent journalist knew they were being taken, the company received a fair amount of publicity for their outlandish offer. One writer for Adweek summed it up best in a column about ProShade's concern for Mount Rushmore when he said, "This obviously smacks of a blatant publicity stunt, as I can't conceive of anyone agreeing to this offer (especially at such a low price). But I'll write about it, anyway." The product is obviously important and you can't have marketing without a product but the main element to a successful product is good marketing. Marketing is a very important aspect in business since it contributes greatly to the success of the organization. Production and distribution depend largely on marketing. There are lots of benefits in having the right marketing strategy for the good product and not pushing more some products and disregard their wants and the value they can really bring to the customer. Here are some important reason why marketing is important: Marketing Promotes Product Awareness to the Public: You cannot afford to just let people find out about your business themselves. You have to advertise, promote and educate the public about the goods of your business. This is why a company must invest in marketing so as not to miss the opportunity to be discovered and sell its products. It’s good to have a great product but if nobody knows about it, you will make no profits. Marketing Helps Boost Product Sales: If your company aims to increase the sales percentage and double the production, the marketing department must be able to come up with effective and strategic marketing plans. This is critical not only to generate sales, but also to build a brand and a strong reputation for a company.
Marketing Mix Diagram
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements. This is an example of Marketing Mix diagram.
This is an example of an extended Marketing Mix which includes several other Ps like people, physical environment and process.
An example of a successful marketing campaign is Sky. The 'Broadband Happily Ever After' campaign debuted in 2011 which become a great success for the ever expanding company allowing them to reduce it's marketing spend. The company itself says it has significantly raised awareness of their TV broadband product, which has now risen from 51% before the campaign was launched to 66% in 2011. The successful campaign has helped BSkyB win the Marketing Week Engage Awards Telecommunications and IT category earlier this year. The fairytale themed advertisement has effectively become familar to consumers and leading to Sky shifting their budget for Broadband from TV to digital and owned media. Director of Brand Strategy and Communications at BSkyB, Lucian Smithers, explained that their "simple" and "fun" marketing strategy has been so successful that the company is able to reduce their spend on media and move their focus from TV to online, internal communications and spots on their own channels. He commented: "We didn't spend as much on media this year as we did last year. The campaign has become so well known now that our maintenance levels are lower, but our acquisition numbers are still high." This is just one example of a very successful marketing campaign which is evidence for the evolution of marketing in ten years, before businesses would focus so much on creating campaigns which are unique and exciting rather then actually focusing on the product and the benefit for the audience. Whereas now companies notice that the more simple and fun campaigns are more successful as they are a lot more rememberable and allow the company to spend more time and money actually on the product.
ATL, BTL & TTL
The terminology ATL, BTL & TTL all are apart of an organisational business and marketing communications which uses advertising techniques or different strategies companies to sell their products. ATL stands for 'above the line', BTL stands for 'below the line' and TTL stands for 'through the line'. ATL communications use media that are broadcast and published to mass audiences, BTL communication use media that are more niche focused. While both ATL and BTL communications can be used to either build brand awareness or drive sales through specific offers (promotions), it is BTL interaction that gives the marketer the ability to tailor their messaging in a more personal manner to the audience. ATL promotions are also difficult to measure well, while BTL promotions are highly measurablegiving marketers valuable insights into their return on investment. These insights can then be used to inform the next BTL communication to the audience and tailor the messaging based on the feedback received.
"Through the line" refers to an advertising strategy involving both above and below the line communications. This strategic approach allows brands to engage with a customer at multiple points (for example, the customer will see the television commercial, hear the radio advert and be handed a flyer on the street corner). This enables an integrated communications approach where consistent messaging across multiple media create a customer perception.
The Nine Functions of Marketing
This is a diagram of the nine functions of marketing, the functions consist of distribution, public relations, product, advertising, pricing, promotion, research, sales management and legal marketing.
Product: Assisting in the design and development of products and services that will meet the needs of prospective customers.
Legal Marketing: Obtaining, managing, and using market information to improve decision making and the performance of marketing activities.
Financing: Budgeting for marketing activities, obtaining the necessary financing, and providing financial assistance to customers to assist them with purchasing the organization's products and services.
Purchasing: The planning and procedures necessary to obtain goods and services for use in the operation of the business or for resale.
Pricing: Establishing and communicating the value of products and services to prospective customers.
Distribution: Determining the best methods and procedures to be used so prospective customers are able to locate, obtain and use the products and services of an organization.
Promotion: Communicating information to prospective customers through advertising and other promotional methods to encourage them to purchase the organization's products and services.
Advertising: Direct, personal communications with prospective customers in order to assess needs and satisfy those needs with appropriate products and services.
Sales Management: The planning controlling, preventing, and procedures used to limit business losses.
Coca Cola Marketing Mix
Coca Cola is a carbonated soft drink which is sold across restaurants, shops, supermarkets and vending machines throughout the world. It is produced by The Coca-Cola Company of Atlanta Georgia and is simply referred as Coke. Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime or coffee. In 2013, Coke products could be found in over 200 countries worldwide, with consumers downing more than 1.8 billion company beverage servings each day. Coca-Cola was seen as the worlds most valuable brand based on Interbrand's best global brand study of 2011.
One of the brands with the highest brand equity is without doubt Coca Cola, although it has gone through its highs and lows of business to actually reach the position its in today. The marketing mix of Coca Cola is ever changing and over time more and more products have been added to the already massive brand, with a total over 3300 products under Coca Cola's name. The marketing mix of Coca Cola consist of the 4Ps; product, price, place and promotion.
Product
Coca Cola has one of the widest portfolios in the beverage industry with the compression of 3300 products. The beverages are divided into category of diet; 100% fruit juices, fruit drinks, water, energy drinks, tea and coffee etc. As per Nielson’s data, Coca cola is the No.1 brand in sparkling beverages, juice, and retail packaged water in 2010. Coca cola has its market presence around 200 countries. Coca cola brands in India are Fanta, Maaza, Limca, sprite, Thums up, Minute Maid, Nimbu fresh, Nested iced tea etc.
Price
Due to the availability of wide range products the pricing is thought out according to the market and geographic segment. Not every Coca Cola product is the same price and each sub-brand of Coca Cola has different pricing strategy and its based on the competitors pricing. The direct competitor to Coca Cola is Pepsi, the beverage market is defined as a oligopoly market (few sellers and large buyers), hence they form into cartel contract to ensure a mutual balance in pricing between the sellers. The price of Coca Cola varies £1.55 for 1.25L, £1.85 for 1.75L, £4.20 for 12x150ml, £3.75 for 12x 330ml, 42p for 150ml, £1.49 for 1L, 68p for 330ml, 80p for 375ml and £1.25 for 500ml.
Place
Coca Cola is one of the world's most famous and favorite brands and is something which recognized from all over the world. The distribution system of coca cola follows the FMCG distribution pattern. The effective distribution network of coke has almost eroded the small and middle level players in the market. In India they have captured even the rural market by extensive distribution and have eroded the market share of Bovonto, Kalimark etc.
Promotion
Coca Cola used multiple promotional and advertising strategies to create an increased demand in the market by associating with life style and behaviour and mainly targeting value based advertising. You are more likely to see a coke ad individualised for a particular festival or in with a general positive message. Coca cola uses CSR as its marketing tool to gain emotional benefits in consumers mind. The current promotions through CSR include “Support my school” campaign with NDTV. It has many brand ambassadors like Shahrukh khan, Hrithik Roshan, South Indian Actor Vijay and Trisha , Ghambir, Aamir khan etc and has signed contract recently with Imran khan. It allows price discounts and allowances to distributors and retailers in order to push more products into the market. It employs both push strategy through promotions and pull strategy through advertisements and campaigns.
Successful Coca Cola Marketing
Coca Cola partnered with Redley Scott to create a short film which celebrated the returning of the iconic polar bears and it used Facebook as part of a multichannel campaign designed to raise awareness and generate sales.Working alongside Starcom Mediavest, Coke used a full range of Facebook products (including a Logout Experience, Target and Reach Blocks and Page Post ads in the News Feed) to activate the campaign online before measuring the results with a Kantar Worldpanel study. The study found that Facebook was a strong complement to Coke’s TV campaign, driving incremental sales with an ROI greater than all other media. ROI stands for return on investment and is the most common profitability ratio. 27% of Coca-Cola’s incremental sales were generated by Facebook, using only 2% of the gross media budget and 35% of total purchase behaviour was driven by the synergistic effect of Facebook + TV. For Berquet (Manuel Berquet-Clignet marketing director for Coca Cola in France) Facebook was the natural platform to explore a more personal style of marketing. A century ago, Coke was sold in local stores by grocers who greeted their customers by name. The evolution of mass media added scale at the cost of personalisation. But on Facebook, marketers can have both: a global platform that lets brands personalise their messages at unprecedented scale.
Unsuccessful Coca Cola Marketing
One of the most notorious product flops and brand missteps in history was the introduction of New Coke. The new version of the popular fizzy drink was launched in the mid 1980's by Coca Cola as an attempt to help the soda company stay ahead of any competitors during the so-called 'cola wars'. However it completely failed and ended up just purely annoying the consumers. “The tacky way it was introduced made it seem as though the regular Coke drinkers mattered little to the company and a boycott was started,” said Richard Laermer, CEO of RLM PR, a public relations firm New York City, and author of “2011: Trendspotting for the Next Decade”. Shortly after (within a few weeks later) the New Coke brand was completely abandoned and the original version was then resurrected as 'Classic Coke' which has stayed the same ever since.
New Coca Cola Product
Coca Cola Life
Coca Cola launched a new product called Coca Cola Life in Argentina in June 2013 and in Chile in November of that year. It had been created in Argentina after five years of research in the country. It had been the first version of the soft drink to be produced with stevia and sugar as sweeteners. Coca Cola life launched in the UK in August of 2014 and since September 2014 has been launched in the USA, Frontier of Mexico and Sweden. In the year of April 2015 it is set to be launched in Australia and News Zealand. It is a lower calorie version of Coca-Cola having only 27 calories per 100ml containing just 60% of the calories of classic Coke. The new Coca Cola product will co-exist with Diet Coke and Coca-Cola Zero in the Argentine and Chile market. Coca Cola Life is compared with Pepsi Next which also uses Stevia as a sweetener. The stevia life which is used in Coca Cola Life is a source of intense natural sweetness. Sweeteners extracted from stevia leaves are calorie-free and up to 200 times sweeter than table sugar.
In an effort to convey the health-conscious values of Coke Life, the company has moved away from its iconic red labelling, in favour of a more natural green. As well as its eye-catching appearance, the change in colour resonates with the use of stevia leaf extract to sweeten the beverage. Green has become synonymous with environmentally-friendly, recyclable packaging and natural ingredients, both of which feature in Coca-Cola Life, making its colour change a simple, yet effective, alteration. The ingredient swap in Coca-Cola Life has created a mid-calorie drink containing 89 calories per 33cl can, therefore slightly healthier than the regular variety, which contains 139 calories. The key difference with Coca-Cola Life is its lack of artificial sweeteners, such as aspartame, which many have argued is unhealthy and produces an unpleasant sweet taste. It may, therefore, appeal to those who want to drink something more natural, with fewer calories than regular Coke and without the excessive sweetness of artificial sweeteners. Coca Cola Life is aimed at young 18 to 35 year olds without a specific gender (meaning its aimed at males and females) whom are very health conscious and would always decide to have the healthier option of something. These people are still fun and exciting as they don't completely cut out unhealthy foods but if a healthier version was one other they'd go for it. These people will be well educated as they are aware of unhealthy foods and whats bad for people, they also will be family orientated as Coca Cola is a family brand.
Coca Cola Life Marketing
The new Coca Cola product is aimed at adults looking for a new lower calorie option and the media campaign created by the Coca Cola brand is designed to have a mass appeal with an eye catching campaign highlighting the 'inclusion of sweetness from natural sources, lower calorie option and the standout green packaging'. The new product contains a third less sugar and a third fewer calories than regular Coca Cola thanks to a blend of sugar and stevia leaf extract. Nick Canney, VP Sales & Marketing at Coca‑Cola Enterprises, said the following; "The marketing campaign for Coca‑Cola Life will create instant impact and ensure consumer awareness of the brand launch is high, helping to grow sales for retailers throughout the coming months. Coca‑Cola Life along with Coca‑Cola, Coke Zero and Diet Coke, is an important part of our ongoing commitment to offer consumer choice for every occasion and meet changing lifestyle trends. It forms part of our on‑going strategy to bring innovative new products to the market to help drive incremental growth of the total soft drinks category".
Coca Cola are planning on creating a major marketing campaign for the launch of Coke Life which will be the brand's first new launch in eight years. The campaign will consist of outdoor, print, digital and experiential launches and TV campaigns, the marketing campaign will use a catchy strap-line "Sweetness from natural sources". The marketing for Coke Life with have a similar launch to the 2008 Coke Zero, marketing director Bobby Brittain said "This launch for us is a new member of the Coca-Cola family and we don’t do those sorts every year, and we don’t do those sorts of things by halves". The campaign will build throughout September and will gain momentum into 2015 when, Britain revealed, a TV ad campaign would be "absolutely on the agenda" as the brand builds distribution and brand awareness.
Coca‑Cola announced a huge marketing support campaign which includes OOH otherwise known as Out of Home advertising (which is advertising that reaches the consumer while they are outside the home), print, digital and experiential to support the launch of Coca‑Cola Life as it seeks to build consumer awareness of its new brand. The introduction of Coca‑Cola Life in store will be supported by a multi-million pound marketing campaign beginning in early September through to the end of October. Outdoor advertising will focus on proximity including 6 sheets, 48 sheets, buses, as well as iconic and commuter digital screens, and will be supported by a print and digital campaign, sampling at commuter hubs and shopper marketing activity to drive awareness. The campaign will focus on driving trial, awareness and establishing the product intrinsics – lower calories and sweetness from natural sources. The OOH campaign will comprise over 7,000 sites, including major roadside, underground, bus and train locations. Targeted digital panels will be activated across key road and rail commuting spots nationwide, building awareness of the eye catching green Coca‑Cola Life – looking to driving consumers to trial the new brand.
Television Advertising Campaign
This a video of Coca Cola Life's television advert.
https://www.youtube.com/watch?v=yRqUTA6AegA
Over the last two weeks, the 60-second ad created by Wilhelm’s Buenos Aires-based agency, Santo, has garnered international media acclaim, millions of views on YouTube and countless social media shares. The spot promotes Coca-Cola Life, a new low-calorie cola being piloted in Argentina and Chile that is naturally sweetened with stevia leaf extract and sugar. The brand's campaign invites consumers to “open their good nature.” The commercial opens with a young couple discovering they’re expecting, then captures the sleeplessness, stains, shenanigans and indescribable love and affection that soon follow. In the closing scene, the mum reappears, mouth agape, with news that baby No. 2 is on the way. A faithful remake of the Bee Gees’ “To Love Somebody” appropriately serves as the soundtrack. Coca Cola Life doesn't have a United Kingdom version of the advert which potentially suggests that Coca Cola is going to test the new product first in Argentina where it first was created before millions of pounds are spent on worldwide television ad campaigns.
Billboard/Poster Advertisements
Coca Cola Life use a variety of billboards as marketing strategies for the new brand of Cola. The company have created hundred of billboards across in England. Posters have been up around popular areas with a lot of people who would see the posters like bus shelters, shop windows and car parks.
Celebrity Endorsements
Model and actress Rosie Huntington-Whiteley helped Coca-Cola promote new low-calorie drink Coca-Cola Life with the launch of a pop-up shop in London. Open on Saturday 20 September, the pop-up shop on South Molton Street offers shoppers the chance to try the new Coca-Cola drink from an installation wall to be in with the chance of winning a Coca‑Cola Life prize, including a long weekend in New York City. Huntington-Whiteley said: “To me, life is about enjoying the special moments that make us happy, however big or small. With the Coca‑Cola Life pop-up boutique we are inviting people to recognise and celebrate those moments as well as create new personal experiences. "I hope you all enjoy the great taste of Coca‑Cola Life and that our Coca‑Cola Life moments help to create memories that will last a lifetime.”
Product
The customer wants the product Coca Cola Life as a lower calorie option of the famous brand. It satisfies the target market which is young 18-35 year olds who are fairly affluent, well-educated, health-conscious, family-oriented, the sort of consumers who has steered away from full-sugar drinks on health grounds. The features Coca Cola Life have to meet these needs is a lower calorie option. The costly features consist of £1.85 for 1.75L, 65p for 330ml can, £1.25 for 500ml and £3 for 8 330ml can. I got these costs for popular supermarkets Asda and Tesco. The customers will use Coca Cola life on a daily basis as an everyday drink due to its lower calorie and healthier option. Coca Cola life comes in normal and regular Coke bottle shapes but the only difference is the green banner around the bottle rather than the silver or red. The customers would be attracted to the green colour scheme as it represents health and naturalness, the customers would be more likely to drink it if they think its a healthier and more natural version of the original. The sizes of the product vary from 300ml, 500ml, 1 litres, 1.75L and 2 litres.
Price
The value of the product or service to the buyer is that it provides them with a satisfying and healthy beverage which can be drunk pretty much whenever and still have the same style of flavour as the original less healthier version of the drink. The established price points of Coca Cola Life are similar to the ones for the original Coca Cola, the diet version and also the other flavoured versions. Coca-Cola products pricing are set around the same level as its competitors, Coca Cola has to be perceived different but still affordable. Coca Cola has had to remain tremendously fluent and consistent with their pricing strategy. They have had worthy and “dangerous” competitors constantly driving them to be smarter, faster, and better. Coca Cola Life uses lower price which a strategy of penetration pricing to point to penetrate new markets that are especially sensitive to price. Coca Cola Life does that to face the competition and to raise brand awareness among the population. For example, in India or Pakistan, Coca Cola is focused on reducing prices of their 200ml container (cans). Discounts are also used in Coca Cola Life, often offers like 2 for 1, half price and reduced prices are used to attract and grab the buyers attention.
Different Pricing Strategies Coca Cola uses
Premium Pricing
Premium pricing strategy establishes a price higher than the competitors. It's a strategy that can be effectively used when there is something unique about the product or when the product is first to market and the business has a distinct competitive advantage. Premium pricing can be a good strategy for companies entering the market with a new market and hoping to maximize revenue during the early stages of the product life cycle. Coca Cola life uses premium pricing in ways through setting Coca Cola's products around the same level as its competitors, Coca Cola has to be perceived different but still affordable.
Penetration Pricing
A penetration pricing strategy is designed to capture market share by entering the market with a low price relative to the competition to attract buyers. The idea is that the business will be able to raise awareness and get people to try the product. Even though penetration pricing may initially create a loss for the company, the hope is that it will help to generate word-of-mouth and create awareness amid a crowded market category. Coca Cola often uses penetration pricing through having multiple offers in supermarkets, convenience stores and other places which sells Coca Cola. By doing this it captures the customers attention with the offers and deals.
Economy Pricing
Economy pricing is a familiar pricing strategy for organizations that include Asda, whose brand is based on this strategy. Aldi, a food store, is another example of economy pricing strategy. Companies take a very basic, low-cost approach to marketing--nothing fancy, just the bare minimum to keep prices low and attract a specific segment of the market that is very price sensitive. Coca Cola uses this strategy by focusing more on the product rather than the marketing; often shops like Asda, Tesco etc will only have minimum marketing for the products as its already such a successful and established brand.
Price Skimming
Businesses that have a significant competitive advantage can enter the market with a price skimming strategy designed to gain maximum revenue advantage before other competitors begin offering similar products or product alternatives. They use marketing-skimming as there is a sufficient number of buyers that have a high current demand, the unit costs of producing a small volume are not so high that they cancel the advantage of charging what the traffic will bear, the high initial price does not attract more competitors to the market and the high price communicates the image of a superior product. Coca-Cola aims to be the product-quality leader in the market, its nearest competitor being Pepsi.
Psychological Pricing
Psychological pricing strategy is commonly used by marketers in the prices they establish for their products. For example £99 is psychologically "less" in the minds of consumers than £100. It's a minor distinction that can make a big difference. Coca Cola uses psychological pricing throughout their marketing. The products and services frequently have customary prices in the minds of consumers. A customary price is one that customers identify with particular items. Odd prices appear to represent bargains or savings and therefore encourage buying. Marketers often use odd prices that end in figures such as 5, 7, 8, or 9. A somewhat related pricing strategy is combination pricing, such as two-for-one or buy-one-get-one-free. Consumers tend to react very positively to these pricing techniques.
Place
Buyers will look for this product in grocery stores, supermarkets, convenience stores, chain brand retail shops like WHSmith and petrol stations. Coca Cola life when popularity has increased would start to be sold in restaurants and pubs. Other places you'd be able to buy this product is online, buyers would be able to also purchase this product from websites like Ebay, Amazon and website version of retail stores. All bottling partners work closely with customers and for the right distribution channels - grocery stores, restaurants, convenience stores, movie theatres and amusement parks are all places where customers can get Coca Cola Life. Coca-Cola Enterprises (CCE) uses Salesforce across multiple geographies and multiple business functions. From the call centre agent to the service technician and the sales representative,
Salesforce connects people and information to deliver a better customer experience. There are a lot of competitors faced with Coca Cola, some include PEPSICO, INC, Nestlé S.A, and Dr Pepper Snapple Group, Inc. They all try to compete with Coca Cola buy using similar marketing techniques and pricing strategies.
Promotion
Coca Cola gets across their marketing messages to the target market through multiple television adverts, radio adverts, billboards and internet promotions. They reach to the audience by advertising in the press through television and radio but also will use billboards as a way of gaining product attraction and attention. They use a mixture of marketing mailshots, PR and the internet. Coca Cola don't use a best time to promote as the product is drunk all year round, but on special occasions like Christmas they promote a Christmas version of the product which uses Christmas marketing. Competitors do similar promotions like special editions of the products on important occasions like Christmas and Easter. They also promote version of their products in seasons like Summer where the drinks are mostly drunk, which Coca Cola also does.
SWOT Analysis of Coca Cola/Coca Cola Life
Coca Cola Company
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Parent Company
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Coca Cola Ltd
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Category
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Beverages and foods
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Sector
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Food and Beverages
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Tagline/ Slogan
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Open happiness; Twist The Cap To Refreshment; Life Begins Here; The Coke Side of Life; Brrrr
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USP
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The number one beverage brand in terms of sales with more than 500 products at offer
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STP
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Segment
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Anyone who needs a beverage for any occasion
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Target Group
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All age groups, from kids to adults
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Positioning
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A beverage brand for the entire family
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Product Portfolio
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Brands
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SWOT Analysis
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Strength
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1.The number one beverages brand in terms of reach and sales
2. Popular subsidiary brands like Coca Cola, Fanta, Kinley, Limca, Maaza, Minute Maid, etc.
3. Global reach with presence in over 200 countries
4.More than 500 brands on offer
5.An employee strength of around 1,50,000 people globally
6.Strong and efficient supply chain network, ensuring that all the products are available even in the most remote places
7.Strong financial condition
8.Strong brand recall through advertising and marketing by associating with celebrity brand amassadors
9.CSR activities in the field of water conservation and recycling, education, health etc.
10. Effective and efficient packaging technique giving emphasis on recycling and reusing
11. Long association with international sports events, sponsorships etc
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Weakness
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1.The presence of traces of pesticides in the cola beverages have caused damage to the brand image
2.Strong competition in the aerated drinks segment from Pepsi Co means constant fight over market share.
3.No presence in the snacks and food industry; although they have great impact on beverage industry they could make the brand bigger by expanding the products to snacks and drinks.
4. Coca Cola haven't tackled obesity yet, although they've brought out healthier versions of the drinks, they haven't created something which will target all ages and also is healthy; Coca Cola Life is aimed at the super health conscious not everyone.
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Opportunity
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1.Increase its reachin untapped countries and market
2.Market and popularise the less known products
3.Acquire other companies
4.Diversify its product portfolio by entering into snacks industry to compete with Pepsi Co
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Threats
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1.Health consciousness amongst people
2.Difficulty in complying with different government regulations and norms in different countries
3.Inlation, economic slowdown and instability
4.Strong competition
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Competition
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Competitors
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1.Pepsi Co
2.Dr. Pepper Snapple
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Coke Life VS Coke Zero Vs Diet Coke
These are the differences between the four Coca Cola's, they are regular, diet, zero and life.
Since its launch in 1982, Diet Coke has been popular with people conscious of their weight, especially women. In 2005 Coca Cola Amatil launched a similar product, Coke Zero, but with more ‘masculine’ looking packaging to appeal to males. Coke Zero has even been nicknamed "Bloke Coke".
Although they both contain caffeine, the amount varies:
Regular Coke - 9.7 mg/100ml
Diet Coke - 12.8 mg/100ml
Coke Zero - 9.6mg/100ml
Therefore, the amount of caffeine in Coke Zero is almost identical to that of Regular Coke and higher in Diet Coke. Most consumers would agree that Coke Zero tastes more like regular coke. This could be due to both having virtually the same amount of caffeine. The food acids used are different. Regular Coke contains 338 (phosphoric acid), Diet Coke contains 338 and 330 (citric acid), whilst Coke Zero contains 338 and 331 (sodium citrate). American statistics suggest that Regular Coke is the highest selling soft drink and Diet Coke is third. Coke Zero has never made it in the Top 10 list, but is apparently slowly growing in popularity.
Coca Cola Life is the only beverage by the established brand which is made with a blend of sugar and stevia leaf extract. It's aimed at the health conscious rather than the people who are dieting as it still has calories in but just a lot healthier then the original, diet and zero version. It also is the only type of Coca Cola which is connotated with the colour green; the other three versions are more traditional colours being red, grey and black.
The differences between Coke Zero and Diet Coke are more harder define but they are as follows. Both ‘Diet Cokes’ and ‘Coke Zero’ are low calorie soft drinks compared to regular coke. Both have similar ingredients which are carbonated purified water, flavour, artificial sweeteners aspartame, acesulphame potassium, preservative and caffeine. Diet Coke came on market in 1982; preferred by many in America and became the number one sugar-free drink. Diet Coke is also known as ‘Coca-Cola light’ in some countries and it is the No. 3 soft drink in the world. It is preferred by people who want no calories, but plenty of taste. Diet coke comes in many different flavours such as Black Cherry Cola Vanilla, Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry. But Coke Zero only offers’ Coca-Cola’ taste with zero calories. It is preferred mostly by young adults and it is sweetened with a blend of aspartame and acesulfame potassium (Ace K). Coke Zero has 0.5 kilocalories per 100ml while Diet Coke contains 1 calorie. It’s been believed that men are more reluctant to buy diet coke because the word ‘diet’ associated with women. Therefore, to market the product ‘Coke Zero’ been produced to associate masculinity.
The calories of a 330ml can of Diet Coke is only one calories, the calories in Coke Zero is zero calories and in Coca Cola Life is 89. Some may suggest that this version of Coke will not be as popular purely for its higher calorie content. Although its a lot healthier than the diet and zero version some people who aren't educauted on health and dieting will straight away choose the zero or diet as they are more known versions and visibily low calories which people will automatically think is a healthy option. Which is why Coca Cola Life will be more appealing to the educated health conscious.
Coca Cola Life VS Pepsi True
The new Pepsi True is sweetened using the naturally occurring sweetener extracted from a South American plant, and will be sold exclusively on Amazon.com in a major departure from the typical distribution chain in the beverage sector. "It's a brand-new product proposition with a brand-new media platform, and we want to make sure the launch reflects a right-size approach," Simon Lowden, chief marketing officer at Pepsi Beverages North America. According to Pepsi, the new drink contains 30 per cent less calories than normal Pepsi and it does not use artificial sweeteners or high-fructose corn syrup, unlike most soft drinks in the market. Pepsi True was launched shortly after Coca Cola Life which could suggest the two beverage industry giants are facing a battle with each other to be the most popular and success. The packaging of Pepsi True is very similar to Coca Cola Life as both drinks use the colour green which suggests pureness, health, natural and the environment. Coca Cola Life was launched in a month before Pepsi True which could suggest Pepsi got the idea of Coca Cola as the use of Stevia in drinks weren't very popular at the time. Both companies claim the green signifies the stevia leaf and both use a combination of sugar and stevia to limit the number of calories per serving to 60. The portions are smaller, too, with Coca Cola Life originally served in 330ml can and Pepsi True in a 300 ml can. For now Coca-Cola and PepsiCo are launching these new stevia-laden drinks in limited markets. Pepsi True is only available on Amazon.com, starting later this month. After Coke found success with Coca-Cola Life in Argentina and later Mexico, the company announced it can be found in some Fresh Markets in the U.S. South before a nationwide rollout.
The Lord of the Rings is a film series consisting of three epic fantasy adventure films directed by Peter Jackson. They are based on the novel The Lord of the Rings by J. R. R. Tolkien. The films are subtitled The Fellowship of the Ring (2001), The Two Towers (2002) and The Return of the King (2003). They were distributed by New Line Cinema.
