Strategic Brand Management Assignment on

Coca Cola Branding Strategy

In Partial fulfillment of the requirement of course for MBA FT (2011-13) Submitted on 13.12.2012

Submitted to Prof. Tripurasundari Joshi

Submitted by: Jyotendrasinh Mahida Shalini Majethia 111124 111151

Introduction
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Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines internationally. It started in 1886 by Eagle Drug and Chemical Company.The Coca-Cola Company claims that the beverage is sold in more than 200 countries. It is produced by The Coca-Cola Company in Atlanta, Georgia, and is often referred to simply as Coke or (in European and American countries) as cola, pop, or in some parts of the U.S., soda. 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 As a 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 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 editions with lemon, lime or coffee. Branding Strategy of Coca Cola, Its advertising Campaigns,

Channels and Target Market When Coca-Cola was re-launched in India, it promoted the brand using advertisements that used communication approaches more suitable for western markets. However, the brand quickly adapted its communication to ensure proper appeal to Indian customers. In the late 1990s Coca-Cola began using Indianized themes to appeal to the Indian customers. It realized that its communication needed to appeal to the youth. Also, Coca-Cola was aware that the Indian youth respected traditional Indian values even if they wore western clothes and listened to western pop music. Taking these aspects into consideration, it created an advertisement showing an Indian college-goer coming home for the Diwali holidays. The young man was clad in trendy clothes (blue jeans and T-shirt) and even
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sported an ear-stud to signify his contemporary style. He was shown touching the feet of his grandparents while the Diwali fireworks lit up in the background. This brand communication helped in creating a personality of Coca-Cola that the Indian youth could relate with and it resulted in a suitable positioning for the brand. Coca-Cola also realized that the Indian youth were obsessed with Hindi movie stars and cricketers. Therefore, if these stars could be roped in for the advertisements the connection of the target segment with the brand could be enhanced. Brand Associations In 2000, Coca-Cola chose the leading Hindi movie stars and also some of the best cricketers to enable proper brand associations. The intent was to ensure that the celebrities who would endorse the brand would help to have a ruboff effect of their personas on the Coca-Cola brand. Since a large number of Indian youth aspired to emulate these celebrities, the association would result in creating the right identity for the brand. Coca-Cola signed up Hrithik Roshan (the heartthrob of the nation during the period 2000-02 owing to the stupendous success of his films like Kaho Na Pyar Hai) for the campaign that used the tagline Jo chao ho jaye (meaning whatever you wish may turn true). This value proposition must have made sense to the youth since they fantasize about becoming hugely successful and popular. The unbridled attitude of the youth was reflected through the actor and the brand. One advertisement was created to commemorate Diwali which is the festival that heralds hope and instils a sense of joy into the Indian youth. The connection with the target segment was immediate owing to the fireworks in the background and the message Happy Diwali. Coca-Cola also enabled proper brand associations by signing up cricketers like Virendra Sehwag and Sunil Gavaskar. They created a situation wherein
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the batting legend Sunil Gavaskar was shown giving tips to the upcoming batsman Virendra Sehwag but both had their eyes on the bottle of Coke. Given the high adulation for cricketers in India, and the religion-like fervor evoked by cricket, the brand Coca-Cola became associated with the most popular sport. Again, the carefree approach of the youth was captured through the caption life ho to aisi (meaning life should be like that). Coca-Cola had realized that to really get into the hearts of the youth in India, the attitudes and habits of the youth needed to be captured through the advertisements. Therefore, it needed to show the youth doing things that were a part of their daily routine. With the advent of the internet, a large number of the youth from middle-class and upper-class families in India had got hooked to chatting on the internet through chat sites. It gave an opportunity to bond with like minded young people from around the world and also offered the chance of mingling with the opposite sex. This held the potential of meeting ones life partner as well. Therefore, the youth spent significant time chatting on the internet and were quite obsessed with the idea of chatting with strangers. Coca-Cola created an advertisement using leading actors Aamir Khan and Aishwarya Rai who were shown as chat mates using the password Coke ho jaaye (meaning lets have a Coke). The chat mates serendipitously meet at a fast food joint where the password helps them to recognize each other. It must have given a dj vu feeling to a number of young people and the brand Coca-Cola became an integral part of their psyche. The caption at the end of the ad said, Jo chaho ho jai CocaCola enjoy. Branding for Targeting the Mass Market Coca-Cola was keen to tap the large Indian market and soon realized that the brand needed to possess mass appeal. This meant that the brands positioning and value proposition needed to be suitably altered. The brand had been targeting upper class customers who had spending power but the
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volumes were low. In order to ensure high volumes, Coca-Cola needed to penetrate rural markets, small towns and target the lower income group customers living in cities. The caption thanda matlab Coca-Cola (meaning chilled means Coca-Cola) was chosen in 2003 to ensure mass appeal of the brand in India. The reason behind this choice was obvious. In India, the common people tended to refer to any chilled drink using the generic name thanda which means chilled. Therefore, the intent of Coca-Cola was to own the generic term for chilled drinks in the customers minds. This caption was capable of enabling penetration into the small towns and the rural markets wherein the generic term thanda was very prevalent. The urban population that was not westernized also used this term extensively. The next step in mass-market branding was choosing a suitable actor for enabling brand association. Coca-Cola roped in the popular actor Aamir Khan who was young and zestful. However, the brand of the actor was not encashed upon but his acting skills were used to good effect. This was done by getting Aamir Khan to play various roles in the advertisements that represented the various sections of Indian customers. The Self-Styled Hero To communicate the message to the masses, Aamir Khan played the role of the Indian self-styled hero. This was the quintessential macho man who had little formal education and was heavily influenced by the heroes in movies. So, he was shown wearing a cheap leather jacket, unkempt hair and lot of accessories that enabled him to assert his machismo. His manner of speaking was rude and domineering and chose soft targets to exhibit his superiority. The character was shown ordering the counter man at a small food stall for giving him a thanda. The non-descript bottle given in return was scorned by the hero who educated him using the caption thanda
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matlab Coca-Cola. The diktat was simplewhenever anybody asked for thanda, Coca-Cola was to be served. The character played by Aamir Khan was representative of the aspirations of the lower middle classes who were heavily influenced by the film heroes and dreamed of aping these characters in real life. Also, the use of the local lingo instead of chaste language enabled the masses to relate with the brand easily. The Punjabi Farmer Another advertisement depicted Aamir Khan in the role of a Punjabi farmer. Punjab is an agriculturally rich state in India and the people have a vibrant and carefree attitude towards life. They are hard working people who also like to enjoy the good things of life. Therefore, the ad showed three thirsty young girls getting off their car and walking into the Punjabi farmers land for a thanda. The farmer jested with the girls in his cavalier style and created some drama by using the well to pull up a bucket containing bottles of CocaCola. The sight of the bottles made the girls scream with delight but the message was cleareven the rural masses were referring to Coke when they wanted a chilled drink.

The Bengali Babu Aamir Khan also portrayed the Bengali babu who goes to a restaurant with his wife and children. His bohemian demeanor and laid back attitude result in his wifes remonstrations at his mannerisms. She admonishes him and tells the waiter in Hindi (albeit with a Bengali accent) to bring thanda for everyone. This ad also reinforces the message of Coca-Cola representing any
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chilled drink and by showing characters belonging to various parts of India, the communication was expected to create a pan-Indian awareness of the brand. In 2003, another significant step taken by Coca-Cola for enhanced rural penetration was the launch of the 200 ml bottle for Rs. 5. The test marketing done in Andhra Pradesh had yielded favorable results and the new bottle was launched across India. The advertisement to showcase the offering (especially to entice the rural customers) was done using a typical rural setting. In this advertisement, Aamir Khan played the government official who is revered by the rural folks. He is eyed by the local belles since he is the babu who wears a safari suit, dark glasses and wields immense power over every villager. The babu finds that the village retail shop owner attempting to sell the 200 ml bottle for Rs. 6 to the local women. He confronts the shop owner and using typical rustic humor, gets the shop owner to return the extra rupee. The advertisement was representative of any Indian village and the rural population could easily identify with the entire story. Most importantly, Aamir Khan was portraying a typical village personality instead of being portrayed as a glamorous actor who drinks Coca-Cola. The storyboard is shown in Exhibit 4. Updating the Brand Communicationthe Youths Changing Psyche Coca-Cola was careful in ensuring that its rural market focus did not happen at the cost of originally targeted segmentthe youth belonging to the middle and upper classes. The communication of the brand had to be updated to ensure that it kept pace with the youths changing psyche. A significant change among the youth was the assertiveness of young women. More and more women were getting good college education and joining the workplace. They refused to submit meekly as their mothers had done. Aishwarya Rai played the role of a college girl. She represented the quintessential Indian middle class girl who respected Indian values and
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traditions. This was evident from her traditional attire, well-combed hair, etc. The young men studying at her college made passes at her using the Coke bottle. She was shown confronting the men and even giving them some lessons on how the Coke bottle could be used for various kinds of whistling tunes. The men were embarrassed and accepted defeat in the face of her boldness and assertive gestures. The tagline thande ka tadka (meaning chilled drink made sizzling) supported the storyline of the advertisement and also reflected the new attitude of the Indian youth. The Pesticide Controversy Coca-Cola was hit by the pesticide controversy (see Exhibit 6) and needed to do damage control to ensure that its brand image was not tarnished. Again, the brand managers of Coke relied on Aamir Khan to reaffirm customers faith in the brand. In this advertisement , the actor Aamir Khan tells that as a patron of the brand, he was also concerned after reading various reports on pesticide residues in Coke. The advertisement shows Aamir Khan being given a tour of Cokes factory and the 400 quality control tests that are a part of the production process. The brand communication was expected to be effective since Aamir Khan is a popular actor and his testifing to the safety of the product was expected to have a reassuring effect on the customers reassured. Brand Resonance Cokes Branding Strategies Cokes 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. If resonance was achieved, customers were expected to regard the brand as a friend or a close acquaintance with which they shared a bond. To enable this kind of
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bond formation, the brand needed to find a place in the customers hearts (in addition to their minds). The youth in India were increasingly getting hooked to the internet and a website enabled brands to enjoy a one to one communication with customers. This was a big step towards brand resonance where the customer knew that s/he was directly interacting with the brand. With this objective and to enable high brand engagement, Coca-Cola set up the website www.myenjoyzone.com. The site was used for organizing contests. The promotional contest received over 7.5 lakh entries (7,50,000) from across the country. The contest called Coke Kuch Na Kaho had the winners spend an evening with Aishwarya Rai at Mumbais exotic location The Resort. This was a great hit with the youth and participation was enabled through strategic partners. The Red FM Channel in Kolkota was particularly successful and attracted over 25,000 participants. Reliance Infocomms three lakh customers also participated in the contest. website myenjoyzone.com was upgraded in September 2003 and offered more features like a virtual walkthrough of Coke City. Further, a number of interactive contests were on offering in various blocks that made up Coke City. The winners of contests could get Coke merchandize and also interact with celebrities through the site. Resonance Initiatives for Rural Customers Coca-Colas brand resonance initiatives were not restricted to the upmarket customers. The brand was trying to target rural markets and therefore suitable initiatives needed to be undertaken. A very common problem in rural areas has been the depletion of water resources and Coca-Cola has taken the initiative in several places across India to launch rainwater harvesting projects. These projects have been initiated in places such as Rajasthan, Kerala, Andhra Pradesh, Delhi. This ensures that the local
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population is assured of access to water and through the brands involvement with local issues, resonance is achieved.

Apart from water conservation, Coca-Cola has also been involved in environment-friendly exercises such as planting of trees, organizing lectures on sustainable environment. The brand has also been involved in educational issues through literacy mission drives and social empowerment programs.

Channels Used for the Campaign ( Happiness Factory Campaign taken as an example) Digital Campaign Website MSN Messenger Games iPhone Application Xbox Live

Outdoor TV 60 Seconds animated Advertisement creating curiosity to play games and know more about this campaign. Coke Zone (Internet) Radio
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Vending Machines installed at different colleges targeting teenagers. Cinema

Coca-Cola Happiness Factory campaign to social media proved a winning approach for Coca-Cola, as it sought to build brand love amongst younger audiences. Measured using unique ICE methodology, brand love is defined by an agreement score of 7.5 out of 10 on several highly positive brand perceptions. A branded Coke Happiness Factory game on Windows Live Messenger proved the most effective driver of brand love amongst 1619-year-olds. Dashboard advertising on Xbox Live proved 41% more effective than TV for the same audience. Campaign objectives: Build brand love for Coca-Cola amongst an audience of 16-19-year-olds. Brand love is defined as an average agreement score of 7.5 out of 10 on the following perceptions:

I would consider buying Coke next time Im buying a soft drink I intend to buy Coke next time Im buying a soft drink Coke is my favourite soft drink Coke is a brand I love Coke is for someone like me Coke is a feel-good brand.

Creative solution: The Coca-Cola Happiness Factory campaign used a branded Windows Live Messenger game and Xbox Live dashboard ads alongside channels such as TV, Cinema and Outdoor, to drive engagement amongst youth audiences. In the Coke Happiness Factory Messenger game, teen consumers took on the role of the Happiness Factorys cuddly band of workers; through the Xbox
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Live dashboard ads they could download campaign elements or talk to expert gaming buddies to increase their Xbox Live skills.

Key results:

The Windows Live Messenger game proved by far the most effective channel for the campaign amongst 16-19-year-olds, with 7 times the impact of TV on brand love

The Xbox Live campaign proved 41% more effective than TV when it came to increasing brand love for Coca-Cola

The Windows Live Messenger Coke Happiness Factory game was played over 915,442 times by over 288,112 unique users.

Xbox Live in-game and dashboard ads delivered over 3,622,174 impressions with a click-through rate of 5.18%.

Brand extension :-

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Coca-Cola, one of the world's largest soft drink manufacturers became famous for its flagship product Coca-Cola. Coca-Cola adopted different marketing strategies and built a strong brand among the consumers. But the
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company was faced with stagnating sales in the 1980s due to shift in consumer preferences from carbonated drinks to healthy drinks like juices and green tea. With an aim to attract health conscious consumers Coca-Cola introduced fortified carbonated drinks terming them as 'sparking beverages'. To strengthen its efforts to gain competitive advantage in this emerging segment, Coca-Cola initiated a new marketing campaign for its new product 'Coke Zero' and simultaneously launched 'Diet Coke Plus'.

References: http://business.time.com/2012/03/14/the-10-best-brand-extensions-everaccording-to-me/slide/diet-coke/#ixzz2EyEXXHS1 http://articles.economictimes.indiatimes.com/2012-0321/news/31220052_1_thanda-matlab-coca-cola-coca-cola-india-limca http://advertising.microsoft.com/international/coca-cola-happiness-factory www.wikipedia.com/coca-cola

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