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BRUNEL BUSINESS SCHOOL

COVERSHEET FOR ONLINE COURSEWORK SUBMISSIONS

Module Code MG2048

Module Title Marketing Communications

Module leader Geraldine Cohen

Student ID number 0733849

Student name

Degree Programme (e.g. Business Business and Management (Marketing)


and Management (General))

I understand that the School does not tolerate plagiarism.


Plagiarism is the knowing or reckless presentation of
another person’s thoughts, writings, inventions, as one’s
own. It includes the incorporation of another person’s work
from published or unpublished sources, without indicating
that the material is derived from those sources. It includes
the use of material obtained from the internet. (Senate
Regulations 6.46)

By completing the above details, I confirm that I adhere to the


School’s Policy on plagiarism.
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“Comparative analysis of the Marketing Communications Mix for three companies in the Cola drinks sector:
Coca Cola, Pepsi Cola and Sainsbury own brand”

Presented By: Abdullah Zafar

Student Number: 0733849

Module Code: MG2048

Presented To: Geraldine Cohen

Email ID: abdullah_dev@hotmail.com

Date: 30 June 2010

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Pre

Table of Contents

1 Introduction.....................................................................................................4
2 Market Overview:............................................................................................5
3 Literature review.............................................................................................5
3.1 Marketing communications mix:...............................................................5
3.1.1 Advertising:.........................................................................................6
3.1.2 Sales Promotion:.................................................................................8
3.1.3 Personal Selling and Direct Marketing:...............................................9
3.1.4 Public relation and sponsorship:.................................................................10
3.1.5 E-marketing:.....................................................................................12
4 Research methods:........................................................................................13
5 Analysis and discussion.................................................................................13
5.1 Analysis and Discussion on Secondary research:....................................13
5.2 Primary research Findings:......................................................................15
6 Conclusion and Recommendations................................................................16
7 Bibliography..................................................................................................17
8 Appendix 1....................................................................................................19

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8.1 Questionnaire..........................................................................................19
Questionnaire

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1 Introduction

The aim of this report is to identify the Marketing Communication Mix strategies used by the different
companies to convey their message in the market. The main focus will be on three companies Coca Cola, Pepsi
Cola and Sainsbury’s classic cola and how they use different key elements of marketing communication mix to
interact with target audience. Initially the report will explain the Marketing Communication and the diverse
elements of marketing communication mix. Subsequently, the market share of three companies mentioned
above. Later, it will demonstrate how the marketing communication strategies and the different tactics used by
these companies in competition and how well they hit the target.5 | P a g e

In 1886 Coca-Cola was firstly served in Atlanta at the Jacobs’ Pharmacy soda
fountain. John Pemberton who was a pharmacist in Atlanta wanted to change the history. One afternoon, he
mixed fragrant, caramel coloured liquid and carried that mixture to Jacobs’ Pharmacy where it was further
mixed up with carbonated water. This new drink was tested by its customers all agreed that it has something
different. Coca-Cola Company came into existence in 1891. From 1893 – 1904 Coca-Cola reached all over
USA and in this period of time the company also hired first celebrity Hilda Clark to appear in advertisements.
Until now Coca-Cola has reached 200 countries worldwide. Coca-Cola is now the world’s most ubiquitous
brand by gaining its worldwide market share and serves more than 1.4 billion beverages each day, whereas this
figure was just 5 drinks per day in 1886. The Coca-Cola Company offers a portfolio of more than 3,300 in 200
countries (Coca-Cola 2008, Heritage Timeline).

Pepsi was born in the Carolinas in 1898 and was the invention of Caleb Bradham. Caleb
Bradham was a pharmacist and invented Pepsi-cola by the combinations of juices, spices and syrups. In 1902,
he launched the Pepsi-Cola Company in a room on the back of his pharmacy. At first Pepsi-Cola was just
available through soda fountains but soon he realised the need of bottle so that people can drink it anywhere.
Barney Oldfield a famous racing car driver first endorsed Pepsi in newspaper advertisements as “A bully
drink…refreshing, invigorating, a fine bracer before a race.” Pepsi is Available in 200 countries worldwide
(Pepsi 2008, A Brief Pepsi History).

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Sainsbury’s was started in 1869 and is one of the Britain’s largest retailers of food and
wine. It is most respected for its products, quality of service, successful development, cheap pricing, financial
performance, advertising and marketing, and its superior management. Most of all more than one third of the
company’s shares belongs to its employees. Sainsbury’s introduced its own Cola beverage in 1994 under the
name of Classic Cola. (Funding Universe 2006, J Sainsbury plc)

2 Market Overview:

In carbonates market cola sector dominates with 60% of market. Cola sector is strongly branded. Coca-cola is
the first biggest brand with high brand loyalty and holds two third of the retail carbonates market and
responsible for 48% of retail sales. Pepsi is the second with 12% of retail sales. Own brands such as Tesco Cola
and Sainsbury’s classic Cola are just responsible for 10% of retail sales. Coca-Cola and Pepsi are responsible
for more than 90% of cola sales in pubs and clubs (Mintel 2009, Market Share). In the Cola-sector, as a whole
has an unhealthy image due to its high sugar content. The fastest growing speciality in cola sector is low calorie
cola because of its relation to health. (Euromonitor International 2009, Carbonates Austria)

Some other key points are as follows,

• Market is huge with slow growth rates and loss of consumer base.
• The progressing dominance of Colas over flavoured carbonates.
• More use of sugar free cola’s because of increasing health concerns in the society.
• Increased spending by companies on advertisement through different media. (Mintel 2009,
Report Homepage)

1 Literature review

1.1 Marketing communications mix:

Marketing communications are the ways via which firms seek to inform, convince, motivate and remind
consumers about the brand they sell either directly or indirectly. It symbolizes the voice of a brand and also the
ways by which firms can establish a dialogue with customers relating to their product offerings. Marketing
communication mix can provide comprehensive product information to a consumer about who makes the

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product, why it is used, by what type of person it is consumed and what the company and brand stand for
(Keller 2001, pg 819-821)

Key elements of Marketing Communication are as follows,

• Advertising
• Sales Promotion
• Personal Selling
• Direct Marketing
• Public Relations and sponsorships
• E-marketing

1.1.1 Advertising:

The Institute of Practitioners in Advertising (IPA) defines advertising as:

“The means of providing the most persuasive possible selling message to the
right prospects at the lowest possible cost” (IPA 2001, Advertising)

There is variety of media which can be used for advertising. Different companies
select their media according to reach, frequency and Media impact they want for
their product. Coca-Cola was accountable for two-third of all media spending on
carbonates from 2004-2008 (Mintel, 2009). Coca-Cola’s recent Fifa World-Cup
2010 campaign which is based on its current theme ‘Open Happiness’ which
includes three TV Ad’s and were launched on 15th May 2010 (Mark Sweney 2010)
. The essence of ‘Open Happiness’ reflects positivity, optimism, inspiration and
bringing the idea of ‘Open a Coke, Open Happiness’. It is argued to be the
multimillion pound World Cup advertising campaign and said to be the single
biggest marketing push Coca-Cola has ever run. The Campaign was launched on
TV ad showing a player from Cameroon, named Roger Milla who is known for his
goal-scoring dances in 1990 World Cup. This Advertisement alone is running in
150 markets. Coca-Cola has also used other media such as internet, newspapers,
magazines and Billboards with a open happiness theme. (Joe Fernandez 2010,
Coca-Cola brings back Open Happiness push)

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Coca-Cola brings back Open Happiness push

For TV Ad’s Visit:

http://video.thecoca-colacompany.com/presscenter/avcenter/view/advertising

Comparatively Pepsi have also launched its soccer advertisement despite of not
being FIFA official sponsor. The advertisement was launched on 27th February
2010 on a YouTube channel named as Pepsi Football, featuring top soccer stars
Lionel Messi, Thierry Henry, Ricardo Kaka, Frank Lampard, Andrei Arshavin and
Didier Drogba. The music used in Pepsi commercial is sung by Akon and Kery
Hilson (Top American R&B Rapper (Mahalo 2010, Pepsi World Cup 2010
Advertisement). The video was being watched by 400,000 times and so ranked
seventh in the ‘Viral Video Chart’. (Michael Learmonth 2010, Pepsi's World Cup
Campaign Infiltrates Viral Video Chart)

Commercial video can be viewed by following this link:


http://www.youtube.com/watch?v=O-XZk0yxCzc&feature=player_embedded

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Despite of high budgeting Coca-Cola and Pepsi Advertising campaigns there is no


such campaign running by Sainsbury for its own Brand Classic Cola.

1.1.2 Sales Promotion:

The Institute of sales promotion defines sales promotion as:

“A range of tactical marketing techniques designed within a strategic marketing


framework to add value to a product or service in order to achieve specific sales
and marketing objectives” (Brassington 2006, pg.720)

Coca-Cola has different sales promotions running at the current period of time. It
includes chance to win a Fifa World Cup tour and PS3 every week this month
with a range of other rewards such as £5 prezzo discounts, BoomBox Projector,
Key ring Bottle Opener and many others. These rewards are converted into
points by visting CokeZone website when participant enters promotional codes.
These promotional codes are found under the cap of Coca-Cola branded
products. Coke Studio website also includes music and entertainment sections
where one can get free music after redemption of points. (Coca-Cola 2010)

Moreover, Pepsi is also running sales promotion named as ‘Max Your Wild Side’
in which they are offering £1000 every 90 minutes with a chance to win £50 k at

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grand final Draw. There is no need for a purchase, one just have to send a sms
and can participate anytime. The big idea behind this promotion is the rivalry to
its competitor Coca-Cola who is Sponsoring Fifa 2010 World Cup. (Mosaic
Marketing 2010)

Currently there is no sales promotion by Sainsbury for its classic Cola.

Google
Images

1.1.3 Personal Selling and Direct Marketing:

Cant and Van Heerden defines Personal Selling as:

“The process of person to person communication between a sales person and a


prospective customer in which the former learns about the latter’s needs and
seek to satisfy those needs by offering prospective customer an opportunity to
buy something of value such as good or services”. (Kant, Heerden 2008, pg.3)

Whereas, Direct Marketing can be defined as:

“Any activity which creates and exploits a direct relationship between you and
your customer as an individual” (Tapp 2008, pg.9)

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Coca-Cola have started doing Direct marketing and Personal Selling through a
platform named as ‘’Coke Zone’’. As Coca-Cola Company has a mass market and
it is difficult and expensive for the company to do personal selling and direct
marketing. However, it has developed a website for UK customers on which
people can go and register. By visiting the site people can earn rewards and can
redeem it for music, entertainment or other sales promotions. After registration
process special offers are sent by e-mail, letters or telephone (Coca-Cola 2010).
Coca- Cola Company is also running a mobile campaign in association with a
marketing solution company named as “Cha Cha mobile answer service”. The
purpose is to generate the interest of people in company’s Loyalty programs.
(Sonera 2009)

Google Images

There is not much information is found about Pepsi undertaking personal selling
and direct marketing. Whereas, Sainsbury has a much developed database and
they issue nectar cards (loyalty cards) to their customers. Sainsbury can use its
database to boost the sales of Classic Cola.

1.1.4 Public relation and sponsorship:

Through public relation and sponsorship companies are getting more loyal
customers. Coca-cola is has won several awards for its Corporate Social

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Responsibility. In March 2010 Coca-Cola partners with Special Olympics where a
fist ever ‘Unity Cup’ will be hosted (Coca-Cola Company 2010, Press release).
Another campaign, known as Coke Studio, is a platform where upcoming and
renowned musicians can collaborate musically which is also helping towards
bringing new talent (CokeStudio 2010, About). Coca-Cola has also been awarded
several awards for its Corporate Social Responsibility; some of recent awards are
as follows,

• Argentina's Most Admired Companies Ranking (October 2006)


• 2006 Corporate Social Responsibility Award, American Chamber in
Shanghai (September 2006)
• Leader in Corporate Social Responsibility, Gerente (September 2006)
• Citizenship efforts, Committee for Economic Development(June 2006).
(The Coca-Cola Company 2010, Awards)

PepsiCo also have an ethical image in the society. PepsiCo supports human
sustainability, environmental sustainability and talent sustainability. The on-
going campaigns are named as “Performance with purpose: The Promise of
PepsiCo” and “Think Social”. PepsiCo has also published its Global Sustainable

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Packaging policy (reducing plastic in their bottles) to show responsibility towards
environmental concerns. (PepsiCo 2010, Purpose)

Sainsbury’s as a company is devoted towards Corporate Social Responsibility.


They are promoting re-use of their plastic shopping bags by giving nectar points
to people who reuse their plastic bags.

1.1.1 E-marketing:

It can be defined as “Achieving marketing objectives through use of electronic


communications technology” (Chaffey 2007, pg. 339)

Coca-Cola and Pepsi both are doing e-marketing effectively. Especially Coca-Cola
is using new media such as mobile phone technology, internet and social
networking sites to reach its core consumers (Mintel 2009, Strengths and
Weaknesses). Both of companies have online presence with different sites for
each campaign. Internet population is rising day by day and most of people are
using social networking sites which are becoming an important part of our daily
life. Both of companies are on social networking sites where they do sales
promotion on the side of web pages called banners. Both companies have their
own pages for each of promotional advertising campaigns on networking sites

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such as Facebook, Twitter, YouTube and Flickr. Whereas, Sainsbury’s is not using
e-marketing very effectively as Classic Cola is just available on Sainsbury direct
website.

2 Research methods:

Both primary and secondary research is done in order to provide insight to


market communications strategies used by companies to cope up with the
competition. Secondary research is done through library database available
which includes Mintel, GMID (Global Market Information Database), Coca-Cola
Company official website, PepsiCo website, marketing magazines and annual
report of the companies. These recourses will help towards statistical information
on the impact of promotional campaigns and the tactics used by the company in
the battle of competition.

Quantitative method of primary research is used in this report. Questionnaires


are filled up by 20 individuals of Brunel University. The most of respondents are
male because of lower number of students available at University in summer.
Information collected may not be able give a right overview because of limited
sample size. Questionnaire used can be found in Appendix 1.

3 Analysis and discussion

3.1 Analysis and Discussion on Secondary research:

Secondary research proves that Coca-Cola is effectively driving the market.


Coca-Cola’s success is based upon its effective advertising and sponsorship
campaigns. Marketing communication strategy seems to hit the targets to a

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higher extent. Currently Coke is running a multimillion “Open happiness”
campaign. Detailed overview of this campaign is discussed above in Literature
review.

Furthermore, PepsiCo also change its strategic marketing communications based


on its rivalry to Coca-Cola campaigns. For example where there is some sales
promotion on price from Coca-Cola, Pepsi responds quickly with a better price. A
recent campaign by PepsiCo for Pepsi Max helped the company to regain a bit of
market share. Latest Marketing Communication Campaigns Pepsi is discussed
above as examples in literature review.

However, Sainsbury’s own Brand “Classic Cola” is not spending on advertising


due to which Classic Cola is not even a close competition to both of the market
Giants. Sainsbury are just focusing on in-store advertising of Classic Cola where
they usually do point-of-purchase promotions.

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Key Elements of Market Communication Mix

Key Elements

Advertising • Open Happiness, • Pepsi Max and latest • N/A


Fifa 2010 football Ads

Sponsorships • World Cup Fifa • Cricket World Cup • N/A


2010 T20

Public Relations • Organising • Human sustainability • Quality Food


(CSR) “Unity Cup” with • Environmental • Environmental
collaboration of sustainability efforts
Special Olympics • Talent Sustainability
• Coke Studio • Think Social

Sales Promotions • Fifa World Cup • Chance to win £1000 • N/A


Ticket
• Free music
downloads

Direct Marketing and • Through their • N/A • Through Nectar


Personal Selling Coke Studio Loyalty cards.
Website
www.Cokestudio
.co.uk

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1.1 Primary research Findings:

My sample shows that 70% of people like to drink Coca-Cola, 20% of people like
to have Pepsi and just 10% like to have Sainsbury Cola. The reason behind
choosing the brand was 40% dependent on Quality and Flavour, 30% of selection
was based on brand image, 20% chose this brand due to price and only 10% of
people say that they buy this brand due to sales promotions.

In addition, 60% of people feels that Coca-Cola do better advertising, with 40%
favouring Pepsi and No one could memorise any of advertisement for Classic
Cola and Tesco Cola.

2 Conclusion and Recommendations

Coca-Cola Company and PepsiCo are using key elements of Marketing


Communication Mix quiet effectively to fight the battle of competition. Direct
Marketing is a new way to attract customer which is expensive but can be really
helpful for the both companies to use it. Coca-Cola has started generating a
Database with a platform named as “CokeZone’’ which in long run may create
loyalty among customers which still is high. Pepsi should also take some
initiative towards Direct Marketing and should start building up database so that
they can cope up with the future competition. However, Sainsbury’s own brand

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can become important player in Great Briton in the future as they have well
established database it will cost them lower to reach the consumers. For that
Sainsbury’s should use all key elements of marketing communication effectively.

Word Count: 2650

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3 Bibliography

1. Brassington, F (2006). Principles of marketing. 4th ed. London: Pitman


Publishing. 720.
2. Coca-Cola Company. (2008). Heritage Timeline. Available:
http://heritage.coca-cola.com/. Last accessed 14 June 2010.
3. Euromonitor International . (2009). Carbonates-Austria. Available:
http://www.portal.euromonitor.com/Athens/Magazines/IndustriesHeavy.asp
x. Last accessed 14 June 2010.
4. Funding Universe. (2006). J Sainsbury plc . Available:
http://www.fundinguniverse.com/company-histories/J-Sainsbury-plc-
Company-History.html. Last accessed 18 June 2010.
5. Mark Sweney. (2010). Coca-Cola to launch World Cup ad campaign in UK.
Available: http://www.guardian.co.uk/media/2010/apr/19/coca-cola-world-
cup-advertising. Last accessed 18 June 2010.
6. Kevin Lane Keller. (2001). Mastering the Marketing Communications Mix:
Micro and Macro Perspectives on Integrated Marketing Communication
Programs. Journal of Marketing Management. 17 (7), 819-847.
7. Mintel. (2009). Carbonated Soft Drinks - UK. Available:
http://academic.mintel.com/sinatra/oxygen_academic/search_results/show
&/display/id=393871/display/id=442442/display/id=442391?
select_section=442392. Last accessed 21 June 2010.
8. Mintel. (2009). Carbonated Soft Drinks-UK. Available:
http://academic.mintel.com/sinatra/oxygen_academic/search_results/show
&/display/id=393871/display/id=442382?select_section=393871. Last
accessed 19 June 2010.
9. Mahalo. (2010). Pepsi World Cup 2010 Advertisement. Available:
http://www.mahalo.com/pepsi-world-cup-2010-advertisement. Last
accessed 29 June 2010

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10.Pepsi. (2008). A brief Pepsi History. Available:
http://www.sirpepsi.com/pepsi11.htm. Last accessed 16 June 2010.
11.Micheal Learmonth. (2010). Pepsi's World Cup Campaign Infiltrates Viral
Video Chart. Available: http://corp.visiblemeasures.com/news-and-
events/blog/bid/12069/Pepsi-s-World-Cup-Campaign-Infiltrates-Viral-Video-
Chart. Last accessed 19 june 2010
12.The Institute of Practitioners in Advertising. (2001). Advertising. Available:
http://tutor2u.net/business/marketing/promotion_advertising.asp. Last
accessed 23 June 2010.
13.Coca-Cola. (2010). What is Coke Zone. Available:
http://www.cokezone.co.uk/home/page/faq. Last accessed 23 June 2010.
14.Mosaic Marketing . (2010). Pepsi Max - Max Your Wild Side. Available:
http://www.salespromotionblog.com/promowatch/2010/05/pepsimaxyourw
ildside.html. Last accessed 29 June 2010.
15.Kant, C. Heerden, C (2008). Personal Selling. Lansdowne: Berne
Convention. 3.
16.Tapp, A (2008). Principles of direct and database marketing . 4th ed.
Essex: Pearson education limited. Pg.9.
17.Sonera, B. (2009). Sales Promotion and Personal Selling.. Available:
http://bianca-sonera.blogspot.com/2009/11/sales-promotion-and-personal-
selling_22.html. Last accessed 21 June 2010.
18.Coca-Cola Company. (2010). COCA-COLA PARTNERS WITH SPECIAL OLYMPICS.
Available: origin.thecoca-colacompany.com/presscenter/unity_cup_march2010.pdf. Last
accessed 22 June 2010.
19.Coke Studio. (2010). About Coke Studio. Available:
http://www.cokestudio.com.pk/about.htm. Last accessed 29 June 2010.
20.The Coca-Cola Company. (2010). Awards Archive. Available:
http://www.thecoca-
colacompany.com/ourcompany/awards_recognition_archive.html. Last
accessed 26 June 2010.
21.PepsiCO. (2010). Purpose. Available:
http://www.pepsico.com/Purpose.html. Last accessed 19 June 2010.

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22.Chaffey D (2007). E-business and e-commerce management: strategy,
implementation, and practice. 3rd ed. Essex: Pearson Education Limited.
Pg.339-340.
23.Mintel. (2009). Carbonated Soft Drinks . Available:
http://academic.mintel.com/sinatra/oxygen_academic/search_results/show
&/display/id=393871/display/id=442387?select_section=442388. Last
accessed 26 June 2010.
24.Mintel. (2009). Carbonated Soft Drinks - UK - February 2009. Available:
http://academic.mintel.com/sinatra/oxygen_academic/search_results/show
&/display/id=393871/display/id=442395#hit1. Last accessed 26 June
2010.

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1 Appendix 1
1.1 Questionnaire
I am currently a 2nd year student writing a report on marketing communications
and Strategies used by Pepsi Cola, Coca-Cola and Sainsbury’s Classic Cola.
Kindly fill out this questionnaire.

1. Choose your gender?

a) Male (90%) b) Female (10%)

1. What is your age?

a) 18-25 (70%)
b) 26-33 (20%)
c) 34-41(10%)
d) 42-49 (0%)

1. How many times you buy a cola drink

a) Once a day (65%)


b) Twice a day (5%)
c) Once in two days (10%)
d) Once a week(20%)
e) Other___________

1. Which of the following cola brands do you prefer the most?

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a) Coca-Cola (70%)
b) Pepsi Cola (20%)
c) Sainsbury’s Cola (10%)

1. Why did you choose this brand?

a) Price (20%)
b) Brand Image (30%)
c) Quality and Flavour (40%)
d) Sales promotion (10%)

1. Which of the following Cola companies do you feel advertise most


effectively?

a) Coca-Cola (60%)
b) Pepsi (40%)
c) Sainsbury’s Cola
d) Tesco Cola

1. Do advertisements by this company really help you towards buying this


product?

a) Yes (100%) b) NO

2. Which of these media attracts your attraction the most?


a) TV (40%)
b) Magazines (5%)
c) Newspapers (10%)
d) Billboards (15%)
e) Internet (30%)

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1. Where do you prefer to buy Cola’s from?


a) Retailers (70%)
b) Small grocery stores (25%)
c) Internet (5%)

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