Objective of Study

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OBJECTIVE OF STUDY

The project’s purpose is to gain an opportunity to integrate and apply the concepts
of Advertising and Sales Promotion to the development of a real-world servicing
experience.

HISTORY OF THE COMPANY


The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical
Company, a drugstore in Columbus, Georgia by John Pemberton originally as a
coca wine called Pemberton's French Wine Coca He may have been inspired by the
formidable success of Vin Mariani, a European cocawine.
In 1886, when Atlanta and Fulton County passed prohibition legislation,
Pemberton responded by developing Coca-Cola, essentially a non-alcoholic
version of French Wine Coca. The first sales were at Jacob's Pharmacy in Atlanta,
Georgia, on May 8, 1886. It was initially sold as a patent medicine for five centsa
glass at soda fountains, which were popular in the United States at the time due to
the belief that carbonated water was good for the health. Pemberton claimed Coca-
Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia,
headache, and impotence. Pemberton ran the first advertisement for the beverage
on May 29 of the same year in the Atlanta Journal
By 1888, three versions of Coca-Cola — sold by three separate businesses — were
on the market. Asa Griggs Candler acquired a stake in Pemberton's company in
1887 and incorporated it as the Coca Cola Company in 1888. The same year, while
suffering from an ongoing addiction to morphine,Pemberton sold the rights a
second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O.
Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley
Pemberton began selling his own version of the product.

Coca-Cola, the corporation nourishing the global community with the


world’s largest selling soft drink concentrates since 1886, returned to India in 1993
after a 16 year hiatus, giving a new thumbs up to the Indian soft drink market. In
the same year, the Company took over ownership of the nation’s top soft-drink
brand and bottling network. It’s no wonder our brands have assumed an iconic
status in the minds of the world’s consumers.

A Healthy Growth to The Indian Economy


Ever since, Coca-Cola India has made significant investments to build and
continually consolidate its business in the country, including new production
facilities, waste water treatment plants, distribution systems, and marketing
channels.
Coca-Cola India is among the country’s top international investors, having
invested more than US$ 1 billion in India in the first decade, and further pledged
another US$100 million in 2003 for its operations.

A Pure Commitment to The Indian Economy


The Company has shaken up the Indian carbonated drinks market greatly, giving
consumers the pleasure of world-class drinks to fill up their hydration, refreshment,
and nutrition needs. It has also been instrumental in giving an exponential growth
to the country’s job listings.
The Indian operations comprises of 50 bottling operations, 25 owned by the
Company, with another 25 being owned by franchisees. That apart, a network of
21 contract packers manufacture a range of products for the Company.
On the distribution front, 10-tonne trucks – open bay three-wheelers that can
navigate the narrow alleyways of Indian cities – constantly keep our brands
available in every nook and corner of the country’s remotest areas.
Coca cola advertising profile
Coca-Cola is the world's most famous, most valuable brand. But the product has
seen sales growth stall since the close of the 1990s, as worldwide consumers
develop a taste for other beverages. Coke initiated a painful restructuring, and then
launched its biggest-ever marketing campaign in 2001, with a new emphasis on
local markets instead of global conformity. Think Local, Act Local was the new
strategy; but that too was slow to deliver results. Since then the group has struggled
to find new ways of lifting sales of its core product. One way has been with the
steady introduction of new variants. The most successful of these in recent years
has been Coke Zero, a low-calorie version of the core brand designed to be more
appealing to male drinkers.

History of Coca-Cola Television


Advertising
The D'Arcy Era, 1950-1956
The first television ad created for The Coca-Cola Company was produced in
conjunction with a television special featuring Edgar Bergen and Charlie
McCarthy on Thanksgiving Day, 1950. The sponsorship of this program and its
advertising were both by the D'Arcy Agency of St. Louis. D'Arcy had been the
advertising agency for The Coca-Cola Company since 1906, when William C.
D'Arcy persuaded Coca-Cola to begin a newspaper campaign. Television
advertising was initially an experimental medium for The Coca-Cola Company and
D'Arcy. Both struggled to develop a strategy to reach consumers effectively at a
time when few cities had television stations. One approach was through sponsored
programs that offered the opportunity for The Coca-Cola Company to expand
relationships with performers from its radio programming.
From D'Arcy to McCann, 1956-1969
In 1956 the company's advertising account was transferred to McCann-Erickson.
D'Arcy closed and commemorated its fifty years of work with Coca-Cola in a print
ad that appeared in the Wall Street Journal on April 2, 1956.McCann launched two
campaigns during the 1950s, "The Sign of Good Taste" and "Be Really
Refreshed". In 1963, McCann hit its stride with a campaign that proved to have
worldwide appeal, "Things Go Better with Coke."

Coke Adds Life campaign


In May 1976, The Coca-Cola Company introduced a new Coke ad campaign,
touting the brand as the soft drink for all occasions. Aimed at the young and
young-at-heart, the new campaign, "Coke Adds Life to …," was designed to show
viewers that Coca-Cola added simple enjoyment to life.

Coke is It! and New Coke


In early 1982, Coca-Cola launched a new ad campaign, "Coke Is It!," with an
emphasis on the product's qualities of taste and refreshment. The direct, positive
statement "Coke Is It!" was meant to appeal to the forthright mood of Americans in
the 1980s. Ironically, the introduction of "new Coke" demonstrated in unexpected
ways that after ninety-nine years, Coke had indeed become part of the tapestry of
American life. When The Coca-Cola Company introduced a new taste for Coke in
North America in 1985, television advertising helped launch it. The public,
however, demanded the return of the traditional drink, so vehemently that the
company was obliged to bring it back–renamed as "Coca-Cola classic."

Two Tastes and Two Campaigns


Introduced in 1986, the "Catch the Wave" campaign for the new taste of Coke
strove to be youthful, leading-edge, and competitive. The "Catch the Wave"
campaign for new Coke, created by McCann-Erickson New York, aimed to
connect with an emerging youth-oriented target audience. For Coca-Cola classic,
the "Red, White and You" campaign emphasized that drink's broad appeal and the
emotional attachment it generated. At the same time, it attempted to celebrate
contemporary American lifestyles and a modern American spirit. The campaign
was aimed at an extremely broad audience. The campaign was created by the New
York-based ad agency SSC&B Lintas.
Playing with Polar Bears
In 1993, The Coca-Cola Company made a dramatic shift in its advertising by
introducing the "Always Coca-Cola" campaign, by Creative Artists Agency and
later Edge Creative. The ads ran around the world and included a variety of
innovative technical approaches, such as computer animation. One such
commercial, "Northern Lights" introduced what would become one of the most
popular symbols of Coca-Cola advertising: the animated polar bear. The polar bear
was a considerable success, and went on to star in six commercials for Coca-Cola,
including two ads for the 1994 Olympic Games in which it slid down a luge and
soared off a ski jump. Bear cubs also made their debut for Coke in a holiday ad in
which the bear family selects its Christmas tree.

International Approaches at the Millennium


On the international front, The Coca-Cola Company launched a television
commercial in 1998 for the Muslim fasting month of Ramadan. Created by
McCann-Erickson (Malaysia), the commercial was titled "Charity" and marked the
company's first attempt to have one Ramajan television commercial for its entire
worldwide market. In the past, the brand's Ramajan commercials had been made
by local advertising agencies in each country, but the "Charity" ad ran in twenty
Islamic countries including Malaysia, Indonesia, Pakistan, Bangladesh, the United
Arab Emirates, Turkey, Egypt, Lebanon, and Morocco. On the international front,
The Coca-Cola Company launched a television commercial in 1998 for the Muslim
fasting month of Ramadan. Created by McCann-Erickson (Malaysia), the
commercial was titled "Charity" and marked the company's first attempt to have
one Ramadan television commercial for its entire worldwide market. In the past,
the brand's Ramajan commercials had been made by local advertising agencies in
each country, but the "Charity" ad ran in twenty Islamic countries including
Malaysia, Indonesia, Pakistan, Bangladesh, the United Arab Emirates, Turkey,
Egypt, Lebanon, and Morocco.
Advertising Agencies Hired by Coca-
cola
Leo Burnett,
Leo Burnett is among the world's best-known agency brands. The agency capped
the 1990s with a showstopping deal which combined the forces of three major
agency groups. In 1999, Burnett's acquired D'Arcy parent MacManus, stealing
that business from under Interpublic's nose for $1bn; then sold a 20% stake in the
combined group to Japanese giant Dentsu for a rumoured $400m to create one of
the world's biggest marketing groups, named Bcom3. The final twist came in 2002
with capture of Bcom3 by Publicis, and the subsequent merger of the D'Arcy
network into Burnett. In 2007, Leo Burnett merged with below-the-line unit Arc
Worldwide under a single management team, although it continues to use both
brands. Advertising Age estimated advertising revenues of $717bn in 2007,
making Leo Burnett the #12 agency network worldwide.

McCann Erickson,
McCann Erickson is the biggest worldwide agency network by global footprint.
Although the main agency specialises in traditional advertising, it also offers a
broad range of other marketing services under the banner of the McCann
Worldgroup, which coordinates input from several other Interpublic-owned
agencies including Momentum Worldwide, Futurebrand and Weber
Shandwick. A dynamic force during the 1990s, McCann stumbled badly at the
beginning of the following decade, distracted by accounting irregularities and
management problems. The loss of the prestigious Coke Classic account in several
important markets was a severe blow. Since then, however, McCann has recovered
its composure and has steadily re-strengthened its client portfolio. Yet despite its
worldwide presence, it is always under threat from more nimble competitors in the
key US market, and has had to fight hard to keep hold of key clients like Verizon,
Microsoft and General Motors. Advertising Age estimated worldwide advertising
revenues of $1.4bn in 2009.

Advertising Expenditure of Coca-cola


As for expenditures, coca-cola expense production costs of print, radio, internet
and television advertisements as of the first date the advertisements take place. The
following amounts reflect the total worldwide amounts spent on print, radio,
internet, and television advertising. Advertising expenses included in selling,
administrative and general expenses were approximately:
2006: $2.6 billion
2005: $2.5 billion
2004: $2.2 billion
2003: $1.8 billion
2002: $1.7 billion
2001: $2.0 billion
2000: $1.7 billion

OVERALL IMC OBJECTIVES


The objectives are very important in marketing campaign, so that the company can
have a clear vision. They are:
1. Market share objective: to gain 60% of the market for soft drink industry.
2. Profit objective: to achieve 20% return on capital employed.
3. Promotional objective: to increase awareness of the product in the market.
4. Objective for survival: to survive the current market war between competitors.
5. Objective for growth: to increase the size of the worldwide Coca-Cola enterprise
by 10%.

PUBLIC RELATION STRATEGY AND


TACTICS
For countries in Asia, Coca-Cola company focused their P.R. campaigns on social
problems, such as reconstruction of areas that are affected by disasters. The
strategy is about sponsoring the needs of local people in that area. It can develop
organization’s credibility. In Coca-Cola case, the strategy can develop social
responsibility credibility. Local people became very aware to what the Coca-Cola
Company did.
The image, that Coca-Cola tried to build, sent to the society very well. Coca-Cola
Company made associations with other foundation and also gave fund donations. It
made Coca-Cola company has an image as a social company. Public Relation mix
activities to develop organization’s credibility.
• Ocean tsunami of December 2004 and earthquake in Pakistan in October 2005.
 Coca-Cola Company collaborated with local governments and International relief
and development agencies, including the International federation of Red Cross and
Red Crescent Societies, UNICEF, and International Medical Corps, to provide
financial and material support. Coca-Cola Company gave a cash donation alone $8
million.
 Together with government agencies and NGO, Coca-Cola Company built
schools and houses. In Indonesia, Coca-Cola Company built 11 schools in Aceh,
also provided vehicles and communication tools. In Sri Lanka and India, it built
schools and houses too. In Pakistan, Coca-Cola Company built 100 homes with
local NGO SAHARA for life Trust.
 In Thailand, Indonesia and India, Coca-Cola company also donated fishing boats
to families who don’t have jobs anymore because of the disasters. In Thailand, they
supported for a revolving microfinance loan program and a community e-learning
center. In Indonesia, it helped to maintain a ceramic workshop. Besides, they
helped people by providing pushcarts and kiosks in Thailand and Indonesia too.
Besides their social activity, Coca-cola Company also sponsored few sport
events. The Coca-Cola Company and FIFA, football’s world governing body,
announced the extension of their long-time association. The partnership extension
was announced by Joseph S. Blatter, president of FIFA, and E. Neville Isdell,
chairman and chief executive officer, The Coca-Cola Company, in Cape Town,
South Africa, host country for the 2010 FIFA World Cup.
The Coca-Cola Company is the world's largest beverage company. Along with
Coca-Cola, recognized as the world's most-valuable brand, the Company markets
four of the world's top five soft drink brands, including Diet Coke, Fanta and
Sprite, and a wide range of other beverages, including diet and light soft drinks,
waters, juices and juice drinks, teas, coffees and sports drinks. Through the world's
largest beverage distribution system, consumers in more than 200 countries enjoy
the Company's beverages at a rate exceeding 1.3 billion servings each day.
Another product of Coca-cola Company, Sprite, held a dangdut singing
competition called “Ajang Sensasi Dangdut Plong” (ASDP) in several part of Java
Island. Dangdut music is very popular in Indonesia, so it was also very successful.

ADVERTISING STRATEGY AND


TACTICS
Advertising strategy and tactics are very important too. Making waves in
communications to make understanding between the product and the consumers.
Advertising strategy and tactics consist of two-stage advertising campaign and
make sure that advertising can reach all of outlets through television, radio,
billboards, newspapers, magazines, and the internet.
The first ads were created to make consumers awareness, whereas the second ads
focuses on what the brand is all about. Ads were placed at the same time on the
major networks before the launching. On the launching time, consumers can access
via internet and clips of the television commercials. Also, we can give several of
products in the bottle shape for the samples at specially events. Although
advertising is usually very expensive, it is the most accuracy and effective way of
exposing potential customers to Coca-Cola products. Coca-Cola also make use of
line promotions, such as competitions or contests, coupons or vouchers, and free
samples.
Coca-cola advertising has a quite big impact on human culture, especially
American culture. Coca-cola also invented an image of Santa Claus as a big old
man with red and white clothes, just like Coca-cola’s characteristic.
Advertising for Coca-cola company products for now almost can be seen
anywhere.

SALES AND PROMOTIONAL


ACTIVITIES
• Make advertisements in many versions on TV.
The advertisements according to Coca-Cola Company’s concept which is fun
together.
• By personal selling.
It is made up for P.R. and corporate image.
• Coca-Cola company uses the pull strategy, so that they know what customers
want and they will buy the product.
• Coca-Cola company sponsors a lot of events including sports
(for example, football matches in Indonesia, The Olympic Games, The FIFA
World Cup, Rugby World Cup, etc), and educational activities.
• Coca-Cola Company uses competitions in providing instant prizes to encourage
consumers buying the products.
• Coca-Cola Company made a campaign which told that their products has the best
taste and the most popular product by its large range of market share.
• Stocking up the products to the retailing stores, supermarkets, convenient stores,
even in many sport stadiums and shopping malls.
• By stocking up the products everywhere, it’s not difficult to make the purchases.
The Coca-Cola logo is displayed on T-shirts, hats, etc. People who wear it,
indirectly promote Coca-Cola itself.

RESULT FROM THE CAMPAIGN


Based on the objectives, that Coca-Cola Company has made, we haven’t get the
results yet, because the campaigns are on going. However, so far, the campaign
through sponsorship, exposing on media, billboards, and personal selling, Coca-
Cola Company has gain an image as a sociable company. Besides, Coca-Cola is
also identical with its fun-theme products.

CONCLUSION
Coca-Cola is a famous company in the world. Besides, it includes one of the
biggest soft drinks company over the world. As others, Coca-Cola company also
have Intergrated Marketing Communication (IMC) objectives and strategy.
The objectives of Coca-Cola campaign are to make it be more motivated.
Marketing campaign strategy consists of public relation strategy, advertising
strategy and marketing strategy. Public relation strategy is used to establish a
mutual understanding and create a good image or credibility from the company
with its customers. It can be achieved by sponsorsing many events, such as sport or
charity events. Those are what Coca-Cola company do too.
Advertising strategy is usually done through media, either print media
(like newspapers, magazines,etc), broadcast media (like TV and radio) or digital
media (like internet). It aims to tell the information about the product to
community.
The strategy, that relate with the sales is marketing strategy. This talks
about the right product, price, place, and promotion in order that people buy the
product and satisfy with it. Coca-Cola produces the right product with many
options of sizes and taste; sets the right price with more expensive price than others
(because of the good quality and values of Coca-Cola’s products); definites the
right place with stocking up products in supermarkets and retailing stores; and uses
the right promotion with sales promotion. Marketing tactics are also done by right
segmentation. Coca-Cola company produces many kinds of product. Each product
satisfies a certain group of target market. Its target markets are usually teenagers.

PROMOTION MATERIAL
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