Comprehensive Project - Himanshu Harbola

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

Report submitted to
Centre for Management Studies Jamia Millia Islamia
in partial fulfilment of the requirements for the award of the degree of Master of Business Administration
by
Himanshu Harbola
Roll No. 11-MBA-17 Enrol No. 11-5929
Under the supervision of
Dr. Kavita Chauhan

Associate Professor
Centre for Management Studies Jamia Millia Islamia, New Delhi-110025
DECLARATION
I, Himanshu Harbola, hereby declare that the report entitled Studying the Integrated Marketing Communication strategies of Coca Cola in fulfilment of the requirements for the award of the degree of Master of Business Administration which is submitted by me to the Centre for Management Studies, Jamia Millia Islamia University, New Delhi has been done by me and that, to the best of my knowledge and belief, it contains no material previously published or written by another person nor material which has been accepted for the award of any other degree or diploma , Associateship, Fellowship or other similar title or recognition. This is the original work and is the result of my own efforts.
Dated: 20th March , 2013 Place: New Delhi Himanshu Harbola
CERTIFICATE
On the basis of the declaration submitted by Himanshu Harbola, a student of MBA(Full-Time) 2nd Year, , I hereby certify that that the thesis entitled Studying the Integrated Marketing Communication strategies of Coca Cola which is submitted to the Centre for Management Studies, Jamia Millia Islamia University, New Delhi in partial fulfilment of the requirements for the award of the degree of Master of Business Administration, is an original contribution with existing knowledge and faithful record of research carried out by his under my guidance and supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.
Dated: 20th March, 2013 Place: New Delhi
Dr. Kavita Chauhan Associate Professor Centre for Management Studies Jamia Millia Islamia, New Delhi
ACKNOWLEDGEMENTS
I would like to express my heartfelt thanks to my faculty guide, Dr. Kavita Chauhan, for guiding me through this project and for his insightful suggestions and advices. I would also like to thank all those who, directly as well as indirectly, helped me to achieve my aims and objectives for this duration for completion of my project. My thanks and gratitude also goes out to the unmentioned, but not unimportant people, who helped me with their advice and support.
Dated: 20th March, 2013 Place: New Delhi Himanshu Harbola
CONTENTS
DESCRIPTION Cover page Declaration Certificate Acknowledgments Contents Objectives of study 1) Introduction of Study 1.1) Why IMC 1.2) Barriers to IMC 1.3) Communication Theory 1.4) Evolution of IMC in India 1.5) Key challenges to IMC in India 2) Focus points of the report 2.1) Company profile 2.2) Promotional mix of Coca Cola 2.3) Advertising 2.4) Direct marketing 2.5) Interactive/Internet marketing 2.6) Sales promotion 2.7) Publicity/Public relations 2.8) Personal selling 3) Survey/Fieldwork for the project 4) Conclusion 5) Recommendations 6) Bibliography
PAGE NO 1 2 3 4 5 6 7-21
22-44
45-59 60 61 62
Objectives of the study

To study the gradual evolution of Integrated Marketing Communication in India To study the role of IMC in enhancing the bottom-line of the organisation and overall sales revenue To gauge consumer perception and success of IMC To understand the IMC measures undertaken by Coca Cola India ltd and identify the success factors
INTRODUCTION OF STUDY
Integrated Marketing Communication (IMC) is an approach to brand communications where the different modes work together to create a seamless experience for the customer and are presented with a similar tone and style that reinforces the brands core message. Its goal is to make all aspects of marketing communication such as advertising, sales promotion, public relations, direct marketing, personal selling, online communications and social media work together as a unified force, rather than permitting each to work in isolation, which maximizes their cost effectiveness. At its most basic level, Integrated Marketing Communications, or IMC, as we'll call it, means integrating all the promotional tools, so that they work together in harmony. This is enhanced when integration goes beyond just the basic communications tools. There are other levels of integration such as Horizontal, Vertical, Internal, External and Data integration. Horizontal Integration occurs across the marketing mix and across business functions - for example, production, finance, distribution and communications should work together and be conscious that their decisions and actions send messages to customers. While different departments such as sales, direct mail and advertising can help each other through Data Integration. This requires a marketing information system which collects and shares relevant data across different departments. Vertical Integration means marketing and communications objectives must support the higher level corporate objectives and corporate missions. Check out the Hall Of Fame later for more about missions. Meanwhile Internal Integration requires internal marketing - keeping all staff informed and motivated about any new developments from new
advertisements, to new corporate identities, new service standards, new strategic partners and so on. External Integration, on the other hand, requires external partners such as advertising and PR agencies to work closely together to deliver a single seamless solution - a cohesive message - an integrated message. Horizontal integration Vertical integration Internal integration External integration Data integration
WHY IMC?
Although Integrated Marketing Communications requires a lot of effort it delivers many benefits. It can create competitive advantage, boost sales and profits, while saving money, time and stress. IMC wraps communications around customers and helps them move through the various stages of the buying process. The organisation simultaneously consolidates its image, develops a dialogue and nurtures its relationship with customers. This 'Relationship Marketing' cements a bond of loyalty with customers which can protect them from the inevitable onslaught of competition. The ability to keep a customer for life is a powerful competitive advantage.
IMC also increases profits through increased effectiveness. At its most basic level, a unified message has more impact than a disjointed myriad of messages. In a busy world, a consistent, consolidated and crystal clear message has a better chance of cutting through the 'noise' of over five hundred commercial messages which bombard customers each and every day. At another level, initial research suggests that images shared in advertising and direct mail boost both advertising awareness and mail shot responses. So IMC can boost sales by stretching messages across several communications tools to create more avenues for customers to become aware, aroused, and ultimately, to make a purchase
10
Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process... and this reduces their 'misery of choice' in a complex and busy world. IMC also makes messages more consistent and therefore more credible. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons.
Un-integrated communications send disjointed messages which dilute the impact of the message. This may also confuse, frustrate and arouse anxiety in customers. On the other hand, integrated communications present a reassuring sense of order. Consistent images and relevant, useful, messages help nurture long term relationships with customers. Here, customer databases can identify precisely which customers need what information when... and throughout their whole buying life.
Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature. Agency fees are reduced by using a single agency for all communications and even if there are several agencies, time is saved when meetings bring all the agencies together for briefings, creative sessions, tactical or strategic planning. This reduces workload and subsequent stress levels - one of the many benefits of IMC.
11
BARRIERS TO IMC
Despite its many benefits, Integrated Marketing Communications, or IMC, has many barriers. In addition to the usual resistance to change and the special problems of communicating with a wide variety of target audiences, there are many other obstacles which restrict IMC. These include: Functional Silos; Stifled Creativity; Time Scale Conflicts and a lack of Management know-how. Take functional silos. Rigid
organisational structures are infested with managers who protect both their budgets and their power base.
Sadly, some organisational structures isolate communications, data, and even managers from each other. For example the PR department often doesn't report to marketing. The sales force rarely meets the advertising or sales promotion people and so on. Imagine what can happen when sales reps are not told about a new promotional offer. And all of this can be aggravated by turf wars or internal power battles where specific managers resist having some of their decisions (and budgets) determined or even influenced by someone from another department.
Here are two difficult questions - What should a truly integrated marketing department look like? And how will it affect creativity?
It shouldn't matter whose creative idea it is, but often, it does. An advertising agency may not be so enthusiastic about developing a creative
12
idea generated by, say, a PR or a direct marketing consultant. IMC can restrict creativity. No more wild and wacky sales promotions unless they fit into the overall marketing communications strategy. The joy of rampant creativity may be stifled, but the creative challenge may be greater and ultimately more satisfying when operating within a tighter, integrated, creative brief.
Add different time scales into a creative brief and you'll see Time Horizons provide one more barrier to IMC. For example, image advertising, designed to nurture the brand over the longer term, may conflict with shorter term advertising or sales promotions designed to boost quarterly sales. However the two objectives can be accommodated within an overall IMC if carefully planned.
But this kind of planning is not common. A survey in 1995, revealed that most managers lack expertise in IMC. But its not just managers, but also agencies. There is a proliferation of single discipline agencies. There appear to be very few people who have real experience of all the marketing communications disciplines. This lack of know how is then compounded by a lack of commitment.
13
COMMUNICATIONS THEORY
Simple communications models show a sender sending a message to a receiver who receives and understands it. Real life is less simple - many messages are misunderstood, fail to arrive or, are simply ignored. Thorough understanding of the audience's needs, emotions, interests and activities is essential to ensure the accuracy and relevance of any message.
Instead of loud 'buy now' advertisements, many messages are often designed or 'encoded' so that the hard sell becomes a more subtle soft sell. The sender creates or encodes the message in a form that can be easily understood or decoded by the receiver. Clever encoding also helps a message to cut through the clutter of other advertisements and distractions, what is called 'noise'. If successful, the audience will spot the message and then decode or interpret it correctly. The marketer then looks for 'feedback' such as coupons returned from mailshots, to see if the audience has decoded the message correctly.
The single step model - with a receiver getting a message directly from a sender - is not a complete explanation. Many messages are received indirectly through a friend or through an opinion leader. Communications are in fact multifaceted, multi-step and multi-directional. Opinion leaders talk to each other. Customers talk to opinion leaders and they talk to each
14
other. Add in 'encode, decode, noise and feedback' and the process appears more complex still.
Understanding multiphase communications helps marketers communicate directly through mass media and indirectly through targeting opinion leaders, opinion formers, style leaders, innovators, and other influential people.
How messages are selected and processed within the minds of the target market is a vast and complex question. Although it is over seventy years old, rather simplistic and too hierarchical, a message model, like AIDA, attempts to map the mental processes through which a buyer passes en route to making a purchase.
There are many other models that attempt to identify each stage. In reality the process is not always a linear sequence. Buyers often loop backwards at various stages perhaps for more information. There are other much more complex models that attempt to map the inner workings of the mind.
In reality, marketers have to select communications tools that are most suitable for the stage which the target audience has reached. For example, advertising may be very good at raising awareness or developing interest, while free samples and sales promotions may be the way to generate trial.
15
This is just a glimpse into some of the theory. Serious marketers read a lot more.
STEPS FOR EFFECTIVE MARKETING COMMUNICATIONS
Get Senior Management Support Integrate at Different Levels of management Ensure the Design Manual or even a Brand Book is used to maintain common visual standards for the use of logos, typefaces, colors and so on Start with a Zero Budget Think Customers First Build Relationships and Brand Values Develop a Good Marketing Information System Share Artwork and Other Media Be prepared to change it all
16
Developing Effective Communication

Step 1: Identifying the Target Audience Affects decisions related to what, how, when, and where message will be said, as well as who will say it
Step 2: Determining Communication Objectives Six buyer readiness stages
Buyer-Readiness Stages
Awareness Knowledge Liking Preference Conviction Purchase
Step 3: Designing a Message AIDA framework guides message design Message content contains appeals or themes designed to produce desired results Rational appeals Emotional appeals: Love, pride, joy, humor, fear, guilt, shame Moral appeals
17
Step 4: Choosing Media
Personal communication channels Includes face-to-face, phone, mail, and Internet chat
communications Word-of-mouth influence is often critical Buzz marketing cultivates opinion leaders
Nonpersonal communication channels Includes media, atmosphere, and events
Step 5: Selecting the Message Source Highly credible sources are more persuasive A poor spokesperson can tarnish a brand
Step 6: Collecting Feedback Recognition, recall, and behavioral measures are assessed May suggest changes in product/promotion
18
EVOLUTION OF IMC IN INDIA

Indias huge population and growing middle class presents promising potential for many US and European multinational companies focusing on the Indian markets. With more companies viewing India as an emerging market, competition in markets is growing and integration would become inevitable for communications in the developing world. The economic liberalisation and reform movement, started in India in 1991, has been one of the major contributors to the increase in its trade interactions globally. The open flow of communication with the rest of the world and the countrys ability to adapt to these changes has made it a very lucrative and promising land for many multinational companies.
The growing purchasing power of Indias huge middle class makes it easier for companies to do business in India. However, the customer base in India is extremely fragmented. The huge geographic expanse of the country has resulted in an inconsistent distribution system that is radically different from that present in most other countries. Added to this is the cultural diversity of its inhabitants, differences in their tastes, habits, and requirements that make it very difficult for companies to market their goods in a streamlined and consistent manner. In the absence of welldeveloped departments for individual elements of marketing
communications, a quasi-integrated approach might already be practiced among various departments in Indian companies.
19
The idea of IMC still manifests itself in a variety of local and situational ways, both for academics who study it and for managers who apply it in real world and real time situations. Keeping in perspective a pertinent analogy of Think globally, act locally with the concept of IMC, it is pertinent to examine the theories of culture and sub-culture, demographic, social class, and groups influences, with reference to India.
The concept of focused and massive marketing is fairly new to the Indian companies who have traditionally experienced a mixed economy and trade restrictions back home. In a protected economy, the companies had faced restricted competition and consequently did not realise the importance of targeted and more focused marketing. IMC is a major strategic concept that is as evolutionary and discursive in its concept as other marketing and management tools. There is a strong need to explore the concept and phenomena of IMC directly in the real world of communication. Communication is the basis of all marketing activities. The purpose of integrated marketing communications strategy is to work toward the common goal of customer focused marketing.
20
KEY CHALLENGES TO IMC IN INDIA

Key challenges to achieve optimal IMC performance are still in existence and acting as key barriers in way of effective IMC function in the country. Following are the few of them:
Lack of strategic consistency Lack of technology advancement support Lack of needed skill sets among marketing staff Scarcity of creativity and innovation Insufficient marketing budget Complex cultural and social values Lack of a standard measurement process Ambiguity on the issue
21
Focus Points of the Report
Company Profile The Promotional Mix Of Coca Cola Advertising Direct Marketing Interactive and Internet Marketing Sales Promotion Publicity/Public Relations Personal Selling
22
COMPANY PROFILE
Coca-Cola was set up in May 1886 by Dr. John S. Pemberton in Atlanta, Georgia. The name Coca-Cola was suggested by Dr. Pemberton's bookkeeper, Frank Robinson. Coca-Cola currently offers more than 500 brands in over 200 countries and serves over 1.6 billion servings each day. The Company markets, manufactures and sells beverage concentrates, sometimes referred to as beverage bases, and syrups, including fountain syrups, and finished sparkling and still beverages. Outside the United States, it also sells concentrates for fountain beverages to its bottling partners. Coca-cola was asked by the Indian government to leave the country along with I.B.M in 1977 due to investment violations. The company re-entered the India market in 1993. It has, since then grown its operations rapidly through a model that supports bottling operations, both company owned as well as locally owned and includes over 7,000 Indian distributors and more than 1.3 million retailers. The Companys core sparkling beverages include Coca-Cola, Sprite, Fanta, Diet Coca Cola / Coca-Cola Light, Coca-Cola Zero, Schweppes, Thums Up, Fresca, Inca Kola, Lift and Barq's. Its energy drinks include Burn, Nos and Real Gold. Its juices and juice drinks include Minute Maid, Minute Maid Pulpy, Del Valle, Simply, Hi-C, Dobriy and Cappy. The Companys other still beverages include glaceau vitaminwater and Fuze. The Companys coffees and teas include Nestea teas, Geo rgia coffees, Leao / Matte Leao teas, Sokenbicha teas, Dogadan teas and Ayataka teas. Its sports drinks include Powerade and Aquarius. The Companys waters include Ciel, Dasani, Ice Dew, Bonaqua / Bonaqa and Kinley.
23
KEY COMPETITORS: PepsiCo Inc. Nestle Dr Pepper Snapple Group Inc. Groupe Danone Kraft Foods Inc. Unilever
24
SWOT ANALYSIS
SWOT analysis is an important measure that is adopted by an organisation to do strategic planning. SWOT examines the actions of the organisation, its strengths, weaknesses, opportunities and threats. Then it enables systematic identification of these factors and facilities the best match between them. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieving that objective. Identification of SWOTs is important because they can inform later steps in planning to achieve the objective.
STRENGTHS Worlds leading brand Operates on a large scale Growth in revenues
WEAKNESS Negative effect of publicity Health issues
25
OPPORTUNITIES Acquisitions Growing demand of bottled water Non-carbonate drinks market
THREATS Dependence in bottler partners Issues around the world COLA- war
26
COCA COLA IN INDIA

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of The CocaCola Company; and an extensive distribution system comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells concentrate and beverage bases to authorized bottlers who are authorized to use these to produce our portfolio of beverages. These authorized bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make our beverages available to consumers across India. In India, additionally, the Company also sells certain powdered beverage mixes such as Vitingo and Fanta Fun Taste.
BRIEF TIMELINE 1950 1958 1973 1977 Coca-Cola bottling plant opens in New Delhi Concentrate plant opens in India 22 bottling plants operate in 13 states Coca-Cola and 38 other companies refuse to dilute stake, formally withdraws from Country in 1978 1992 Re-enters India
27
CORPORATE GOVERNANCE
(a) The Code of Business Conduct outlines expectations for employees to comply with the law and act ethically in all matters. The Code remains applicable to all employees of The Coca-Cola Company and its majorityowned subsidiaries.
(b) Anti-Bribery Policy: The Coca-Cola Company and its subsidiaries are committed to doing business with integrity. This means avoiding corruption of all kinds, including bribery of government officials. The Company is a signatory to the United Nations Global Compact, by which it is committed to work against corruption and bribery around the world. In addition, the Company also has incorporated a prohibition against bribery into its Code of Business Conduct. This anti-bribery policy provides compliance requirements to prevent improper payments and to ensure accurate reporting of permissible payments under all applicable anti-bribery laws.
(c) The Code of Business Conduct for Suppliers seeks to extend and clarify similar ethical expectations to our suppliers. The Supplier Code became effective in February 2008. Both the Code of Business Conduct and the Supplier Code highlight the ethics line reporting service, through which individuals can confidentially ask questions or report concerns to an independent administering party.
28
RESPONSIBLE MARKETING INITIATIVE
The company has long been a leader in the area of responsible marketing, particularly with regard to marketing in media that may be seen or heard by children under age 12. The company does not show children drinking any of the products outside the presence of a parent or caregiver and do not directly target children younger than 12 in their marketing messages or advertising in childrens programming. In addition, the company does not directly market in primary schools. In 2010, Coca Cola evolved their global Responsible Marketing Policy and redefined the appropriate audience threshold for what constitutes childrens programming. They shifted the threshold for childrens programming from audiences that are more than 50 percent children younger than 12 years of age to audiences that are more than 35 percent children younger than 12. This implies that the company will not buy advertising directly targeted at audiences that are more than 35 percent children younger than 12. The policy applies to all the beverages and the media outlets used, including television, radio, print, internet and mobile phones.
29
Analysis of Images and Words used in CocaCola Advertising and Their Appeal
Coca Cola marketing campaign materials have been devised according to the messages they aim to convey, and images, words and sounds featuring within them have been perfected by marketing professionals in order to serve the same purpose.
Messages sent through images, words and audio materials promoting Coca Cola can be classified into three categories: Coca Cola helps to best satisfy the thirst, drinking Coca Cola is stylish, and drinking Coca Cola is part of a lifestyle.
Marketing initiatives, words, images, audio and video materials Coca Cola employs tries to communicate a message that this drink satisfies the thirst in the best possible manner and partially for this reason Coca Cola is consumed by millions of people per day. However, a range of scientists as well as marketing authors such as Bsonera, cast a doubt about the ability of Coca Cola to satisfy the thirst efficiently, and argue that thirst for Coca Cola has been created by company marketing professionals in the first place.
30
OBJECTIVES OF COCA COLA CAMPAIGN

Coca Cola advertisement campaigns have been launched in order to achieve specific objectives. It is clear that the main objective of Coca Cola Company as a business entity is profit maximisation, and all of the efforts of the company are directed to the achievement of this primary objective. However, Coca Cola advertisement campaigns contribute to the achievement of the primary objective of profit maximisation in several ways.
Each of the objectives of the campaign can be analysed in order to identify if Coca-Cola marketing campaigns are aiming to achieve them.
Firstly, creating awareness of the company and its products. This specific marketing objective is pursued by Coca Cola Company as a secondary objective. This is because the company already has a high level of brand recognition and its limited range of products is widely wellknown within the countries the company is operating.
Secondly, informing and educating consumers and buyers. The relevance of this type of marketing objective to Coca Cola campaigns is limited due to the fact that there are no positive informational and educational points associated with Coca Cola drink, such as nutritional aspects and health benefits that could be communicated to the potential and existing customers.
31
Thirdly, encouraging a liking for the companys products over those of the competitors of the company. This is one of the main objectives Coca Cola marketing campaigns aim to achieve. Global market of beverage products is highly competitive, and of the main strategies adopted by Coca Cola Company involves engaging in intensive marketing initiatives.
Fourthly, encouraging product trial among potential new customers. This form of marketing objective is pursued by Coca Cola very occasionally and only in new markets the company is entering.
Fifthly, increasing short-term sales by the means of stimulating action. This specific marketing objective is often pursued by Coke. Accordingly, seasonal and other sales are often introduced in major supermarkets, and relevant information is communicated to the potential and existing customers. Sixthly, reassuring customers and reinforcing their particular desirable buying behaviour. This type of marketing objective is pursued by Coca Cola campaigns through integrating the consumption of the drink to the lifestyle of the customers, thus achieving their lifelong loyalty.
Seventhly, generating information from customers. Such type of marketing objective is not very popular with Coca Cola marketing campaigns due to the size of the company as well as the nature of the business.
32
Eighthly, creating sales lead. The marketing objective of creating sales lead is popular with the types of businesses that operate with the push strategy, i.e. the companies that direct their marketing initiatives mainly to the distributors and wholesalers, not the final consumers.
33
The Promotional Mix: Tools Of IMC
34
ADVERTISING
Advertising is defined as any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor. Coca Cola uses the concept of aggressive advertising to promote its products. Thus advertising is the most important marketing tool for the company as it has to cater mass consumer markets. They mainly does national advertising. Company introduces different themes and concepts to sell their product and advertises mainly in electronic media and out of home advertising. These advertisements build brand image and create awareness. Big names of Indian film industry mainly become the brand ambassadors of the Company.
Throughout the years, the slogans of the Coca Cola have been memorable. For E.g. Thanda Matlab Cola-Cola Jo chaho ho jae Cola-Cola enjoy Coca-Cola-Piyo sir utha ke
Brrrrrrr!!!
35
MEDIUMS OF ADVERTISING
Coca Cola has created a niche for itself in the advertising world by conjuring innovative ideas and models to increase its visibility and add value to its services. It has, over the years, used various mediums to reach to customers and ensure high revenues.
The mediums of advertising used by Coca-Cola are:
Print media: They print media for advertisement. Although very rare, they have a separate department for print media.
Point Of Sale Materials: Point of sale material this includes: Posters and Stickers display in the stores and in different areas. It also includes: Vizi cooler Freezers Display racks
36
T.V COMMERCIALS
Coca Cola has very intelligently used television as a medium to reach out to its customers across the globe. It is a well known fact that today, TV is the most common entertaining medium available to the customers. Hence, TV commercials are one of the most attractive way of doing advertisement and selling a product. Coca Cola has also realized this fact and over the years, come with some of the most memorable television ads on Tv.
The company focuses on both the urban as well as the rural India with its advertisements. It chooses its brand ambassadors with care and ensure that the celebrities connect with the audience.
In the summer of 2011, Coca-Cola introduced the new Brrrrr!! Ad and featured Imran Khan as the brand ambassador.
37
OUTDOOR ADVERTISING
Coca cola is very much conscious about their billboards and hoardings. They have so many sites in different locations for their billboards.
Billboards are usually found at cross roads, buildings, shops.
Also in India the Coca-cola can be seen painted on walls, bus stands, dhabas etc focusing in rural areas if India.
38
DIRECT MARKETING
Coca Cola uses direct marketing in many ways. First, the company partners with various restaurants, movie theaters, etc. to carry its product. This way, when a customer orders a drink, the only brand they are offered is Coke, which forces them to buy a drink from that brand. By doing this, Coca Cola forces out other competition, and keeps the restaurants, or other businesses, purchasing their product over and over again. Eg. Mc Donalds.
According to mobilemarketingmagazine.com, Coca Cola uses mobile graphics and texts to appeal to markets on a more personal level.
Coca Cola also sponsors various sporting events in India and around the world in events like Cricket, Football, and Motor Racing etc.
39
INTERACTIVE/INTERNET MARKETING
Coca Cola uses the internet to promote its products. The company has its own website, which is quite simple to navigate through. The website allows customers to become interactive through various games, contests, shopping and through a special section of the website that enables consumers to find out how they can help their community. Also in the modern era of communication and networking, the company uses various social networking sites like Facebook, YouTube, Twitter to connect with the consumers. The internet marketing thus helps to reach to those consumers who cant afford to spend time on T.V and are always online.
40
SALES PROMOTION
A sales promotion is an activity that is implemented to boost the sales of a product or service temporarily. Coca Cola does sales promotion in two ways to quickly increase sales.
1. Consumer - Oriented sales promotion: Getting Shelves Eye Catching Position Under The Crown Scheme
2. Trade - Oriented sales promotion: Discounts to retailers and stores Return back allowances Merchandising assets Free goods or free tours
41
PUBLICITY/PUBLIC RELATIONS
Publicity refers to non personal communications regarding an organization, product, service or idea not directly paid or run under identified sponsorship. Today, the company can still use word of mouth advantage. For instance, when Coca Cola produces a new product, and customers on their lunch break purchase that new product and enjoy it, they will tell others in the office about how great the new product is. This creates a positive buzz around the product and leads to positive word of mouth publicity. This will cause others to purchase the product, and in-turn increase sales. Public relations is defined as the management function which evaluates public attitudes, identifies the policies and procedures of an individual and organization with public interest, and executes a program of action to earn public understanding and acceptance. Coca-Cola can address law suits, rumours, stories, new products, and activities. There is also a section of the website devoted to investors. Here, current, or future, investors can access financial statements and upto-the-minute stock information.
42
CORPORATE SOCIAL RESPONSIBILITY
Coca Cola India is also undertaking some projects as a part of their social cause and part of the corporate social responsibility. The company supports My School campaign along with NDTV has Sachin Tendulkar as the brand ambassador.
The project Unnati focuses on more yield of mangoes to farmers.
Coca Cola also Sponsors events in cricket and music and the latest example is MTV Coca Cola Studio, which has gained immense popularity.
43
PERSONAL SELLING
Coca Cola has many salespeople, who are individuals representing the company to communicate, sell, service, and build relationships with customers. These salespeople promote their product to different customers within their regions, and once they sustain a customer, they sell their products to them and service them many times per week. These individuals form close relationships with the customers in order to continue business with them. Thus though minimum, the company also has many sales people for personal selling.
44
SURVEY/FIELDWORK FOR THE PROJECT
1). TOPIC OF THE PROJECT

To Study the Integrated Marketing Communication Strategies of Coke
2). RESEARCH OBJECTIVE

To study the feasibility of the current marketing communication strategies of Coke To gauge consumer perception and success of IMC initiative of Coke
To understand the psyche of the consumers while making a purchase decision

To check the awareness of the consumers regarding the advertising and marketing initiatives of the company
45
3). RESEARCH DESIGN METHODOLOGY Sources of data collection: Primary Data:

Questionnaires Personal Interviews
Secondary Data:
Research papers Official websites Corporate journals Case studies
Data Gathering Tools:

Questionnaire Internet
Limitations of the study:

Time constraint Limited sample size
Universe:
IIT Campus shopping complex, Hauz Khas, New Delhi
SAMPLE SIZE:
The sample size was 50.
46
Survey on consumer preferences:

Questionnaire: Name: _________________ Occupation: Contact number: _______________ Email:____________________
1) Do you consume soft drinks/beverages on a regular basis? Daily Once a week Monthly Very occasionally
2) Are you influenced by the TV/Print ads while making a choice? Yes No Sometimes
3) Do you prefer Coke over other aerated drinks while making a purchase? Yes No Sometimes
47
4) Can u recall all the Coca Cola products/brands while purchasing? Yes No Some of them
5) Do you believe that the Coca Cola advertisements have a favourable impact on your purchase decision? Yes No Sometimes
6) Do you think that Coca Cola has the most impactful marketing communication strategy? Yes No Cant say 7) On a scale of 1 to 10 how would you rate Cokes marketing communication for its line of products? 0-5 5-8 >8
48
8) Does innovative advertising/marketing compel you to try out new products in the market? Yes No Sometimes 9) Rate the influencing factors for TV ads: Celebrity endorsements Entertainment Music Innovation Animation
10) Product attribute ratings: Taste Brand Value for Money Quality Price
49
ANALYSIS/DATA INTERPRETATION
1) Do you consume soft drinks/beverages on a regular basis?

Daily Once a week Monthly Very Occasionally
12%
14%
32% 42%
The result shows that a sizeable population consumes soft drinks/beverages on a regular basis and hence there is tremendous potential in the segment.
50
2) Are you influenced by the TV/Print ads while making a choice?

Yes No Sometimes
30% 46%
24%
Majority of the respondents said that advertisements have an influence on their purchasing choices.
51
3) Do you prefer Coke over other aerated drinks while making a purchase?
Yes No Sometimes
40%
34%
26%
Majority of the respondents replied in the affirmative when asked whether they prefer Coke over other brands, thus reiterating its commanding position in the market.
52
4) Can u recall all the Coca Cola products/brands while purchasing?

Yes No Some of them
16%
10%
74%
An overwhelming majority of respondents could not recall all the brands of Coca Cola. Coca Cola has thus, successfully managed to create sub brands apart from Coke.
53
5) Do you believe that the Coca Cola advertisements have a favourable impact on your purchase decision?
Yes No Sometimes
22%
54% 24%
Majority of the respondents felt that the Coca Cola advertisements influence them positively in their purchase decisions.
54
6) Do you think that Coca Cola has the most impactful marketing communication strategy?
Yes No Can't Say
36% 50%
14%
Half of the respondents were unsure about the marketing communication strategy of Coca Cola. However, a significant number of respondents replied in the affirmative about Coca Cola having the most impactful strategy.
55
7) On a scale of 1 to 10 how would you rate Coca Colas marketing communication for its line of products?
0-5 5-8 >8
18%
12%
70%
An overwhelming majority rated Coca Colas marketing strategy above average/good, while a small percentage felt that it was below par.
56
8) Does innovative advertising/marketing compel you to try out new products in the market?
Yes No Sometimes
40%
40%
20%
Most respondent agreed that clever marketing and positioning strategies affect the consumers switching decisions.
57
9) Rate the influencing factors for TV ads:
Chart Title
60 50 40 30 20 10 0 Disagree Agree Strongly Agree
Majority of the respondents agreed that entertainment and innovation are the major influencing factors for successful marketing.
58
10) Product attribute ratings:

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Taste Brand Value for money Quality Price 5 4 3 2 1
An overwhelming majority of the respondents rated quality, taste and value for money as the most important product attributes. Hence, apart from clever marketing communication, product quality holds utmost prominence.
59
CONCLUSIONS
For any company to reach the peak in todays competitive era, it needs to incorporate each and every component of the promotional mix. Coca-Cola has reached the pinnacle owing to an efficient and dynamic marketing communication strategy. Integrated Marketing Communication strategy encompasses the entire gamut of the promotional mix along with effective communication. Coca Cola has effectively managed to capture peoples attention by marketing the brand and sub brands in line with peoples aspirations. The market survey also concludes that Coca Cola has managed to stand out from the crowd in advertising and managed a loyal consumer base.
60
RECOMMENDATIONS
As the consumer is compelled by innovative marketing and advertising to try out new products, Coca Cola must incorporate a dynamic IMC strategy to keep its goals in line with changing peoples choices. As people associate credibility with Coca Colas brand, the company can leverage its brand equity to enhance the image of its sub brands. The impetus on marketing communication and innovative advertising should continue as it increases the brand visibility and enhances the bottomline of the organisation.
61
BIBLIOGRAPHY
BOOKS Marketing Management by Kotler, Keller, Koshy and Jha 13th Edition Integrated Marketing Communications, 2e by David Pickton and Amanda Broderick Advertising and Promotion- An integrated marketing communications perspective by Belch and Belch
WEBSITES http://www.multimediamarketing.com/mkc/marketingcommunicati ons/ http://www.thecoca-colacompany.com http://www.coca-colacompany.com/our-company/ http://www.managementstudyguide.com/integrated-marketingcommunications.htm http://www.1to1media.com/view.aspx?itemid=31026
62

Comprehensive Project - Himanshu Harbola

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Comprehensive Project - Himanshu Harbola

Hochgeladen von

Copyright:

Verfügbare Formate

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

Centre for Management Studies Jamia Millia Islamia

Under the supervision of

Dr. Kavita Chauhan

Centre for Management Studies Jamia Millia Islamia, New Delhi-110025

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

Dated: 20th March , 2013 Place: New Delhi Himanshu Harbola

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

Dated: 20th March, 2013 Place: New Delhi

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

Dated: 20th March, 2013 Place: New Delhi Himanshu Harbola

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

Objectives of the study

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STEPS FOR EFFECTIVE MARKETING COMMUNICATIONS

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

Developing Effective Communication

Step 2: Determining Communication Objectives Six buyer readiness stages

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

Step 4: Choosing Media

Nonpersonal communication channels Includes media, atmosphere, and events

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

EVOLUTION OF IMC IN INDIA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

KEY CHALLENGES TO IMC IN INDIA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

Focus Points of the Report

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STRENGTHS Worlds leading brand Operates on a large scale Growth in revenues

WEAKNESS Negative effect of publicity Health issues

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

OPPORTUNITIES Acquisitions Growing demand of bottled water Non-carbonate drinks market

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

COCA COLA IN INDIA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

RESPONSIBLE MARKETING INITIATIVE

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

OBJECTIVES OF COCA COLA CAMPAIGN

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

The Promotional Mix: Tools Of IMC

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA

The mediums of advertising used by Coca-Cola are:

STUDYING THE INTEGRATED MARKETING COMMUNICATION STRATEGIES OF COCA COLA