Ch. 16 - Advertising, Public Relations and Sales Promotion

     Coca-Cola spends more on advertising than almost any company in the world. It was reported that in 2010, they spent a whopping 2.9 billion dollars on advertising worldwide, but that's what it takes to earn 40% of the global soda market share, and over $12 billion in quarterly revenue.

     A great deal of the companies advertising budget goes toward reducing consumer cognitive dissonance, re-enforcing their consumers behavior post-purchase, and giving customers incentive to purchase Coke again. The company has had a long running customer loyalty program called "My Coke Rewards". On this website customers can redeem codes found on bottle caps for various prizes, ranging from clothing to electronics. Another way Coke did this was by launching a program in England, where soccer fans who bought Coke could redeem a code on their soda bottle, and in exchange, Coca-Cola would donate anywhere from 50p to £100,000 towards a team of their choice.

     While Coca-Cola has traditionally engaged in product advertising, it recently has had to spend much more on advocacy and institutional advertising. This is due to recent health developments about the negative health affects of Soda. Another thing they are doing to combat this bad publicity, is to heavily promote and expand they're selection of diet soft drinks. Coca-Cola also sponsors a variety of fitness events around the world, as well as community parks in an effort to combat obesity and get people active.

     Most of the companies product advertising is pioneering advertising. Coke's advertising objective is to create a high demand for the beverage through lifestyle themed advertisements, aimed at making the consumer want to feel the fun and pleasure that only drinking a Coca-Cola beverage could bring them.

Ch. 14 - Marketing Channels and Retailing

     There is not one definitive retail environment for Coca-Cola. It is sold just about everywhere in the world, and in almost every type of store. Coke can be found in vending machines, supermarkets, drugstores, restaurants, and stadiums. Almost anywhere you go that has food, will be sure to have Coca-Cola. But most often, Coke is found in convenience stores.

     So to see a typical retail environment, I went to a local independently owned convenience store in my Brooklyn neighborhood. When I walked in, the store was empty, except for the one man operating the cash register. The floors were not that clean, the place did not smell that good, and the beverages were located all the way in the back of the store. When I got the the drinks section, it was mostly alcoholic beverages, with small refrigerator for various soft drinks. The retailer did not do anything to promote any specific beverage, and not one drink stood out to me.  After I got my can of Coke, I walked over to the cashier, handed him $1, and left, never talking to any employees during my visit.

     Overall, there was nothing special about my visit to the store. For the most part, this has been my experience buying Coke products. And, while the service and atmosphere is nothing special, the end result is. A nice, cold, refreshing can of Coke.

Ch. 6 - Consumer Decision Making

What does a hot summer day, a sporting event, and an upscale restaurant all have in common?
     That Coca-Cola is enjoyed by millions of people a day in all of these venues.

     This is no coincidence. The marketers of Coca-Cola work very hard to ensure that consumers don't think much about purchasing the beverage. In fact, 70% of the companies sales are impulse purchases.

     There are two main reasons why people purchase Coke; thirst and happiness. Coca-Cola advertisements will usually show people having fun, hanging out with friends, or spending time with loved ones. Coke's goal is to paint a picture in your head, that your ideal self is a person who is fun, outgoing, and popular, and that you self-actualize by drinking Coke beverages. So it's no surprise that buying a can of Coke makes sense when your feeling sad, stressed out, or lonely.


     The information search that usually occurs when we are thirsty occurs in a retail environment. Since buying a beverage is generally a routine purchase, very little time will be spent researching alternatives. We might scan the rest of the isle in the store, internally search for our prior experiences with the soft drink, or remember what our friends said about certain soft drinks.

     After purchasing Coke, people usually are happy and experience very little cognitive dissonance. Some people will regret buying it, due to it's unhealthy contents, or to the loss of the money that they spent on it. But most people think very little of the purchase, and can relax and enjoy the beverage, and feel satisfied with their purchase, and are likely to purchase it again. These people that repeatedly buy Coke selectively retain the negative information that they hear about the product. Since buying Coke usually involves little foresight, all consumers care about is that the drink will taste good.

Ch. 5 - Developing a Global Vision

     Coca-Cola has been extremely successful in developing a global vision. 75% of Coca-Cola's revenue comes from foreign sales. Seeing that Coca-Cola receives 75% of it's income from foreign markets, a big concern for them recently has been the depreciation of the U.S. dollar, especially since the economic recession of 2008.

      Coke is sold in over 200 countries world wide, yet their formula remains the same globally. They globally standardize their products, so no matter where you are in the world, you know exactly what beverage you are getting. Coke uses the same or similar marketing mix world-wide. They're popular slogan "Coca-Cola. Enjoy" was translated into different languages and used in over 140 countries.

     Coke has gained mainly they're global market share in three ways:

1. Constructing bottling plants in foreign countries to produce a cheaper product.
2. Advertising campaigns to gain international recognition. (94% of the worlds population recognizes the Coca-Cola logo)
3. Direct investments close to their target markets.