BACHELOR OF BUSINESS ADMINISTRATOR WITH HONOURS

SEMESTER JANUARY 2019

BBPM2103

MARKETING MAMAGEMENT 1

MATRICULATION NO : 881202015562001

IDENTITY CARD NO. : 881202015562

TELEPHONE NO. : 014-3160187

E-MAIL : [email protected]

LEARNING CENTRE : JOHOR BAHRU LEARNING CENTRE

 Customer Database Adoption by Coca-Cola Company

1.0 Introduction

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The most popular and thirst quenching beverage is Coca Cola due to its unique flavor started in
1886 when Dr. John S. Pemberton an Atlanta pharmacist experimenting different flavors to
create unique flavored syrup and mixed it with carbonated water and it was a success after
sampled (World of Coca-Cola, n.d.). In 1889 by Asa Candler purchased the formula and brand
and consolidated the Coca Cola organization in 1892 (Khurana, 2016). According to
Deutch4macys.com (2011), stated: in 1916, the organization started fabricating its well-known
jug, which remains signature state of Coca Cola today. In 1928, Robert Woodruff, the
organization's leader around then, drove the development of Coca Cola abroad when acquainted
the Coca Cola with the Olympic recreations out of the blue. During the 1960s the organization
chose to extend with new flavors-Fanta, Sprite and Fresca, what's more it obtained the Minute
Maid organization, including a totally new line of business juices to the organization.

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During 1980s, a period of much change and advancement at the organization and the
presentation of Diet Coke turned into the best low-calorie drink in the world. The organization's
quality worldwide was developing quickly and a seemingly endless amount of time after year
Coca Cola found a home in an ever increasing number of spots on the planet. Concerning today,
Coca Cola has become the world's most universal brand, with more than 1.4 billion refreshment
servings sold every day. Coca-cola Hellenic Bottling Company mentioned that Coca-Cola is the
world’s most well-known brand and it is non-alcoholic ready to drink refreshment brand
regarding deals volume. Coca-cola has been positioned the third most significant worldwide
brand on Interbrand's yearly Best Global Brands positioning for four successive years. According
to Statista (n.d), Coca-Cola has made about $79.96 billion revenue in 2018. Pratap (2018)
mentioned that, Pepsi – The greatest and nearest competitor of Coca Cola; its chief opponent
Pepsico was framed after the merger of Pepsi and Frito lay in 1965. It has 20 billion dollar marks
in its item portfolio in 2017. The US biggest market occupied with serious challenge with Coca
Cola. Its Net income in 2017 was 63.5 Billion Dollars and Gross Profit 28.8 Billion dollars. The
two brands contend over a few classes including grass refreshments, wellbeing and caffeinated
drinks just as filtered water and squeezes. Other rivalries such as, Dr. Pepper Snaple, Redbull,
Nestle and Parle which generate almost the same revenue as the Coca-Cola company but their
competition is not as tough or close as Pepsi.

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2.0 Ways of utilising customer database in general

According to Schofield (n.d.), database means: the clients of a business are the most essential
resource an organization can have. Contingent upon the sort of industry, an organization may
pitch to similar clients again and again. There are different kinds of organizations that pitch to a
client once or rarely and are always searching for new clients. For example, a specialist may
complete a medical procedure on an individual once, that patient may never require another
medical procedure but a dental practitioner sees their patients a few times yearly on a continuous
premise. The manner in which they cooperate with their clients will be distinctive in view of the
need of their administrations. Subsequently, the manner in which an organization utilizes client
data can be imperative. A client database is the accumulation of data that is assembled from
every individual. The database may incorporate contact data, similar to the individual's name,
address, telephone number, and email address. The database may likewise incorporate past buys
and future needs.

Zahari Mohamad et. al (2013) stated some ways of utilising customer database:

i. Know your potential customers

A company improves their sales by advertising their products and services, providing toll-free
numbers for potential customers to make enquiries and from that the company develops a
customer database to determine the likelihood of potential customers, then they will reach the
customer from online or telephone to gain real customers (Zahari Mohamad et. al, 2013). For
instance, big companies such as Netflix, use big customer database to know more about their
customer via online because it saves costs (insideBIGDATA, 2018).

ii. Target suitable customers to receive special offer

Zahari Mohamad et. al (2013) mentioned: to increase the sales of a company’s product and
services by cross-selling or upselling by identifying a strategy that outline the special offer.
The company refers to the customer database to seek existing customers who fulfill their
needs for the next step. MacDonald’s uses cross-selling technique so well, for example, if a
customer is buying a burger the employee will ask if the customer would like have fries along
 with the burger (Geane, 2018). It is like creating a mutual relationship among products
without customers’ knowledge.

iii. To improve customer loyalty on the firm

Gifts and discounts and some promotions will be given to customers to gain customer loyalty
(Zahari Mohamad et. al, 2013). For example, LinkedIn has a client database of more than 500
million business experts with adaptation systems, for example, LinkedIn Premium, Sales
Navigator, Talent Solutions, and most quite LinkedIn Ads.

iv. To reactive customer purchasing

The organization may reactivate client obtaining with the utilization of a programmed mailing
project to send birthday and commemoration cards just as updates about advancements
dependent on information in the client database (Zahari Mohamad et. al, 2013). For example,
Estee Lauder cosmetics give free birthday gift for every customer signing up for their Loyalty
Program (Olivia, 2018). The company is gaining loyal customers and at the same time
promoting their products to gain more potential customers.

3.0 Identification and discussion on way(s) of utilising customer database adopted by Cola-
Cola Company

The large company like Coca-Cola is in more advanced stage of collecting customer’s database
as they utilizing Big Data which they find it strategic to gain more loyal customers (Williams,
2017). Williams (2017) also mentioned that, interfacing all the more intimately with clients is
basic for any brand, yet for a worldwide mammoth like Coca-Cola, which claims more than 500
refreshment brands, it turns into a vital workmanship. Talking at ADMA Data Day in Sydney,
Coca-Cola's chief of information technique and exactness promoting, Justin de Graaf, uncovered
the stuff for the organization to drive commitment in the present information substantial and
exceptionally aggressive advanced scene. One of the victories his group accomplished was with
the MyCoke loyalty program in the United States, which de Graaf said the organization utilized
to expand its span from 3 million to 18 million. What Coca-Cola had the capacity to do was to
utilize the client information to discover those individuals on the web and publicize to them
personally. Rouse (2018) mentioned that: for a long time, organizations have had couple of
limitations on the kind of information they gather from their clients. Organizations utilize the
huge information gathered in their frameworks to improve activities, give better client
administration, make customized advertising efforts dependent on explicit client inclinations,
and, at last, increment productivity. Information got from electronic wellbeing records, online
life, the web and different sources gives authorized data on irresistible sickness dangers or
episodes. (Rouse, 2018).

Although being in a tough competition among rivalries, Coca-Cola attracts a very well range of
customers from young people to the old. The customers are so loyal according to a survey in
2009, Coca-Cola gain its potential customers by word of mouth, the best cost saving marketing
tool and most customers obtained the habit of drinking coke from their parents and the rest is
history. The word of mouth spread like virus that potential customers are gaining becoming loyal
customers (Essays, UK, 2018). Marr (2018) mentioned, in 2017, Coca-Cola developed cherry
flavored drink for its own brand Sprite after collecting data from customers which they used in
vending machines. The machine obeyed according to what the customer chooses and allowed
unique flavors to be chosen by the customers and therefore, the cherry flavor became the most
wanted after gathering information. Social media is also another way to collect customer’s
information, preferences and taste, thus, Coca-Cola came up with an idea of using image-
recognition (Artificial Intelligence) technology to identify their product being anywhere in the
world being posted online.

Coca-Cola Company unnecessarily targets a suitable customer because in 2014, Coca-Cola had
7% increment in their sales by organizing “Share a Coke” campaign (Econsultancy, 2018).
Customers were so attracted to the personalized coke which their name is written on bottle
stickers (Tarver, 2018). This one of the successful strategies they have implemented to gain
suitable customers. Many gullible customers just wanted a customized coke bottle to show off in
the social media. People were actually so obsessed on wanting the customized coke bottle and it
was that easy for the Coca- Cola Company to attract customers’ attention just like stealing candy
from a baby. Besides, based on latest research in 2017 by Pannaman, to guarantee promoting
efforts achieve targets and make an incentive over all portions equally, Coca-Cola has 37 Social
Centers which speak to associated and organized assets. Utilizing Salesforce, these groups team
up and remove social information identified with dangers and openings. Social Centers have
three principle purposes: to tune in, to draw in, and to make content. The esteem that internet
based life examination ought to never be thought little of. With the correct arrangement of
apparatuses and client first methodologies it can enable organizations to become familiar with
shrouded dangers and openings, just as enabling brands to seem increasingly reliable according
to a client - on the grounds that they are heard, drawn in, and educated, consistently.

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Coca-Cola Company is strategizing ways to get their products with ease in today’s fast moving
marketplace (Moye, 2018). According to Moye (2018), he stated that their main task is to follow
what customer wants. Coca-Cola likewise is utilizing advanced innovation to make new
customer encounters by means of creative projects like taste and output, which gives purchasers
a chance to open encounters and prizes by filtering symbols on Coke bundles with their cell
phones. "This has been very effective for us is still in its early stages, yet it furnishes the chance
to interface by and by with a brand through an advanced ordeal fixing to a physical item. What is
more, the up and coming age of the momentous Coca-Cola Freestyle wellspring container is
Bluetooth-empowered, which implies Freestyle versatile application clients can consequently
line up custom blends, healthful information and more when they venture into an outlet. You can
have a really associated involvement. The organization's emphasis on digitization is conveying
an incentive to retail and foodservice clients, as well. The MyCoke stage, for instance, empowers
stores to recharge their drink inventories and calendar future requests on the web (MyCoke, n.d.).
What is more, a cloud-based computerized signage framework gives eateries a chance to make
content updates to menu loads up dependent on continuous acquiring information (Moye, 2017).

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data-can-accelerate-coke-north-am

To reactivate customer purchasing, Vos (2018) stated that the achievement of any client
reliability program relies upon the showcasing office's capacity to gather pertinent information
and make a customized understanding. In 2017, Coca-Cola reported the time had come to stop its
longstanding unwaveringness program, 'My Coke Rewards (MCR)', to clear a path for new
methodologies that draw in shoppers. Coca Cola likewise shared that it would make a gift to
philanthropy with the remaining MCR focuses. Coca-Cola Give is the new goal for fans to offer
back to nearby schools and different causes. Fans can change over codes found under the tops of
Coke drinks and inside multi-packs (gift esteems differ by item) into commitments that help their
nearby schools and causes.
4.0 Recommendations of steps to improve the management of customer database utilization
of Coca Cola Company.

According to Mark van Rijmenam (n.d.) it might be evident that The Coca-Cola Company is a
long ways ahead in utilizing huge information to improve their associations, items, increment
their income and lessen their expenses. Obviously likewise all through different offices inside
The Coca-Cola Company, for example, class the board, customer showcasing or the inventory
network, huge measures of information are utilized to improve more and basic time-touchy
choices. They have built up a propelled endeavor information warehousing that is fit producing a
solitary perspective on all multi-channel retail data, which empowers Coca-Cola to react rapidly
and precisely to changing economic situations. They institutionalized all information through a
progression of ace information the board forms and their definitive objective is to help Coca-
Cola's clients wind up proficient and successful inside their stores to drive deals and improve the
shopper experience. With so much information being gathered from such a large number of
nations, Coca-Cola is accessible in 206 nations, security is a noteworthy worry inside The Coca-
Cola Company. Coca-Cola has just been on a 10-year information administration voyage to
guarantee that socially explicit sensitivities of various social orders are regarded. On a blog entry
by Computer Weekly, Katherine Fithen, Chief Privacy Officer at Coca-Cola, clarified that "in
the US it isn't frightening that the market comprehends what we purchase. In different societies,
it is viewed as dreadful to follow that. The utilization of GPS information isn't unpleasant for
certain societies; it is for other people. It might be certain that The Coca-Cola Company is a long
ways ahead in utilizing enormous information to improve their associations, items, increment
their income and diminish their expenses.

Harvey (2017) posted in Datamation website that it isn't just the innovative parts of enormous
information that can be testing — individuals can be an issue as well. In the NewVantage
Partners overview, 85.5 percent of those reviewed said that their organizations were focused on
making information driven culture, yet just 37.1 percent said they had been effective with those
endeavors. At the point when gotten some information about the hindrances to that culture move,
respondents indicated three major obstructions inside their associations:

 Inadequate authoritative arrangement (4.6 percent).

 Absence of center administration selection and comprehension (41.0 percent).
  Business position or absence of comprehension (41.0 percent).

With the end goal for associations to gain by the open doors offered by enormous information,
they will need to do a few things any other way. What's more, that kind of progress can be
enormously troublesome for substantial associations. The PwC report prescribed, "To improve
basic leadership capacities at your organization, you should keep on putting resources into solid
pioneers who comprehend information's potential outcomes and who will test the business." One
approach to set up that kind of initiative is to name a central information officer, a stage that
NewVantage Partners said 55.9 percent of Fortune 1000 organizations have taken. Be that as it
may, with or without a central information officer, ventures need administrators, chiefs and
supervisors who will focus on beating their huge information challenges, in the event that they
need to stay aggressive in the expanding information driven economy.

Angelis (2015) stated: at present Coca-Cola bottlers run their very own framework, thus they
send information in a wide range of various organizations. Adapting the capacity to infuse
information and if the information is changed, changes would be made to those institutionalized
scientific categorizations or chains of command. Additionally turn around issue exists since
having to change data once again into the bottler's view – giving back their data in organizations
they can peruse. We seek to give information as an administration, both to our clients and to our
bottlers.

Angelis (2015) also stated utilize a psychological registering framework, similar to the
ENTERRA® Enterprise Cognitive System™ that can help incorporate information just as play
out the sort of examination that prompts better and quicker choices. These progressed
investigation are once in a while alluded to as "Examination 3.0," which are portrayed without
anyone else's input learning innovations fit for creating bits of knowledge crosswise over
organized and unstructured information. Frameworks that utilize Analytics 3.0 innovations can
lift the basic leadership of the all-out workforce just as standardize information. An Accenture
think about clarifies it along these lines, "Subjective processing innovation expands on [machine
learning] by fusing parts of man-made consciousness to pass on experiences in consistent,
characteristic approaches to support people or machines achieve what they couldn't without
anyone else. At its most developed, psychological processing will be the genuinely wise
information production network — one that veils intricacy by bridling the intensity of
information to help business clients ask and answer vital inquiries in an information driven way.
The "information store network" is the thing that Accenture calls the sort of data stream required
by organizations like Coca-Cola.

5.0 Summary

Coca Cola Company is well-known company generating billions of revenue per annum and they
have unique marketing strategy than its competitors although tough competition among rivalries
yet they utilize advanced technology to adopt customer database in general by using Big Data
technology to get little information of their brands being used by the potential customers who
actually ends up loyal customers eventually after campaign been held to promote their product
by without much articulation deciphering their marketing strategy to customers. Social media has
been their main platform to promote their product and creating brand awareness using artificial
intelligence technology to gain more data by just recognizing their product used by their
customers. They kept in touch with customers by creating websites to sign up for free gifts and
new way of selling their products via online and vending machines that creates new flavors
according to customer’s tastes and preferences which they brilliantly came up with cherry
flavored Sprite. These were all advanced adoption practiced by Coco-Cola Company, although
for every action there is a reaction, customers felt insecure of their privacy being invaded by the
Coca-Cola Company gathering all their information via AI and Big Data which was okay for
some people but not for the most in other regions. Besides, the company faces data integration
issues therefore, utilizing psychological registering framework would do. No matter what
challenges Coca-Cola Company faces it could still tackle the issue with ease.

(3012 words)
 ATTACHMENTS

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