December 2019
Research on the evolution of the brand Coca-cola
Contents
| Section | Page |
| Executive Summary | |
| Section One : | |
| Section Two : |
| Section Three : | |
| Section Four : | |
| Section Five | |
| Appendix, Reference |
Executive Summary
Overview
This report examines the evolution of the Coca-cola over the different key stages of its brand development over time
Brand Building and Management
History
Here is the questions for the assignment
Choose a large established brand and, using a range of relevant tools, frameworks and/or theories explain the evolution of that brand over time, including:
- A critical assessment of the brand’s health at key stages of development.
- What changes in customer needs & wants and/or changes in environment it has faced; and how it has evolved and adapted to stay relevant? In the second section of the report you should cover the following areas, considering a strategic viewpoint:
- Outline, using relevant branding concepts, theories and/or frameworks, and justify how the brand should evolve in the future.
- Consider the potential for partnerships or other collaborations. Critically assess the recommended targets.
- Recommend metrics, tools and techniques that the organisation should consider using to evaluate the health of the brand and develop maximum brand value in the future.
You must critically research and apply in your coursework relevant academic theory and sources, course concepts and frameworks and industry material, fully referenced using the Harvard system.
https://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2011/05/Coca-Cola_125_years_booklet.pdf
PART B: A 3,500 word individual report (70% of overall grade)
Choose a large established brand and, using a range of relevant tools, frameworks and/or theories explain the evolution of that brand over time, including:
- A critical assessment of the brand’s health at key stages of development.
Brand equity Is the “added value” with which a brand endows a product; this added vaiue can be viewed from the perspective of the firm, the trade, or the consumer. The author’s focus is on how to buiid strong brands with the consumer, how to sustain that brand equily over time, and how to expand and protect a business by ieveraging brand equity.
Qualitative research
Brand Leadership summary – David A.Aaker & Erich
80s
In April 1985 Coca-cola presented one of the classic marketing mistakes where it replaced its forerunner coca cola brand with a new formula. The main drive was competitiveness against “Pepsi- Cola’s “Pepsi Challenge”. At the time coke was threatened to be taken over the cola market. As in 1982 Coca cola introduced diet coke which it caused to lose its market share. Coca cola felt it had to take drastic action therefore initially starting to advertise and in store blind taste testing between Coca-Cola and Pepsi-Cola starting in their home town texas which Pepsi won these tests. With these results Coca-cola’s strategy was to reformulate the recipe to sweeter taste similar to Pepsi. They called it “The New Coke” which has completely backfired and taken negatively by the public.However within three month the company re introduced the original coke and rebranded it as “Coca- cola Classic” and join the “New Coke”in the marketplace. This experience taught Coca-Cola a valuable lesson about branding.
For instance building brand loyalty which is able to achieve positive impact.
- It could marketing cost as loyal customers wont need, sales promotion wouldnt be needed
- Barriers to entry for new competition
- Better leverage within the trade
90s
2000s
Market Research
The April 23rd 1985 launch of New coke is still seen as one of the biggest failures in the world of marketing. Despite winning several blind taste tests, public outcry meant that New coke was eventually replaced with the old formula, labelled as Coca-Cola classic.
Two things went wrong.
- There was a flaw in the market research taste tests as it was assumed that taste was the deciding factor in consumer purchase behaviour. Consumers were not told that only one product would be marketed so were not asked if they would give up the original formula for New coke.
- No one realised the symbolic value and emotional involvement people had with the original coke.
Relevant variable that would affect the problem solution were not included in the research.
- Identify the opportunity – Is it something that fits within an existing category or is it a new product category?
- Explore the solution – engage in primary research using surreys focus groups, in depth one-on-one interviews.
T- Technological. New technology may be employed in packaging design of containers.
L- Legal. Coca Cola look at packaging from a recycling point of view as this appears to consumers who are concerned about waste.
In 1985 the Coca Cola company decided to terminate is most popular soft drink and replace it with a formula it would market as New coke. Before coca-cola launched New coke they had invested us $4,000,000 in market research and undertook 200,000 blind taste tests. Blind taste tests and focus groups were the basis of the launch of New coke in 1985.
Secondary
Quantitative – subjective and often open ended. Eg. Interviews with customers or focus groups which result in a wide range of answers based on personal experiences and feelings. Coca-Cola use focus groups and interviews when carrying out their 5 stage process.
Limitations
Example of the process:
Coca-Cola use research to find out what customers want and how happy they are with products that are on offer. Primary research methods help with determining if products need improving in different ways eg. taste, aesthetics.
Secondary research can be used to back up a theory and results of primary research. Market research helps to reduce risk in the decision making process and measures progress over time.
O – Opportunities are events and developments external to an organisation, Coca Cola could look for new territories for its products.
T – Threats are developments external to the organisation, which could damage overall performance. They could be to do with new products of competitors like Pepsi for Coca Cola or government policy that affects costs such as an increase in corporation tax.
Once key issues have been identified with the SWOT analysis, they feed into the marketing objectives.
PESTLE Analysis
Types of Data
E- Economic. Are there any constraints that might affect marketing a new product. In a recession would customers have enough disposable income to keep buying their product.
S- Social. Coca Cola ask people for their opinion for example when finding a name for a new drink.
Coca Cola 5 Stage Process
Data and information that has been collected before by the organisation itself or by another organisation.
Eg. Coca Cola can use data from external agencies such as:
- Commercial market research organisations
- Government statistics departments
- Competitors company reports & websites
- Trade publications
- The general media such as the financial times, the guardian and the economist
Quantitative – numbers and figures that can be analysed mathematically and/or presented graphically. Eg. sales figures, market values, customer preference questions. The customer preference questions would be used by Coca-Cola if they were trying to determine colour of new packaging for example.
Uses of data
Testing of Coca-Cola Vanilla for England.
- Taste testing to come up with the right flavour formulation that British consumers would enjoy.
- Focus groups to determine preffered packaging design.
- Test marketing to find out the potential for favourable product sales.
This examines the relationship between a business and its matching environment.
S- Strengths are the internal features of an organisation, which provide a competitive advantage. In Coca Cola this would be its highly effective manufacturing process.
W- Weaknesses are internal aspects of the organisation which are not as good as the competition as are not performing effectively. Coca Cola would have a weakness if staff have not been trained effectively an systems and procedures.
Market Research – Coca Cola
E – Environmental Coca Cola looks at packaging from a recycling point of view as their appeals to consumers who are concerned about waste.
https://prezi.com/gpx7femsiafw/market-research-coca-cola-business-unit-3-assignment-2/
Pepsi Co. Advertising Mistakes
- Packaging redesign January 2009
- Intended to modernize image
- Unit sales dropped by 20%
- After just one month, returned to original design
- In 2010 Gatorade relaunched as “G”
- Logo awareness dropped from 82% to 34%
- The company has stuck by the redesign
- In the early 90s, Pepsi believed they had the next big thing: Clear soda
- Named Pepsi Crystal, the soda was caffeine free and marketed as a healthier option
- However, the drink was really only 20 calories less than regular Pepsi
- Initially, customers bought the product but sales quickly dropped as there were not enough repeat customers
- After a year Pepsi pulled the plug
- In the 60’s, Pepsi had a successful campaign “Come Alive With Pepsi”
- However, when the campaign was taken to China it hurt sales considerably
- When translated the phrase read: “Pepsi brings your ancestors back from the dead”
- In the early 90’s, Pepsi devised a campaign in an attempt to beat Coca-Cola sales in the Philippines
- The campaign was a giveaway of 1 million pesos for the winning specially marked bottle cap
- Pepsi sales increased by 40%
- However, the company had sold about 800,000 caps marked 349 and this number was not to be the winner
- A mistake in announcing the winning number named 349 as a winning number
- When Pepsi was not able to deliver on their promises of prize money, riots ensued and they reported about 32 Pepsi trucks as burned, stoned, or overturned by the people of Manila
- While the company had only budgeted about $2 million for the campaign, they ended up having to spend $10 million for a goodwill gesture as well as facing thousands of lawsuits
Tropicana
Expanding to China
Image by Tom Mooring
- http://www.cracked.com/article_20438_the-6-most-baffling-marketing-disasters-by-famous-companies.html
- http://www.searchenginejournal.com/worst-marketing-disasters-2013/80679/
- http://investorplace.com/2011/02/loud-sun-chips-pepsi-branding-disaster-failure/#.VAORC2RdW5Y
- https://blog.theidealists.com/things-that-make-you-go-hmmm/worlds-most-burning-questions-1-historys-greatest-marketing-disaster/
- http://www.cbsnews.com/news/grief-at-gatorade-facebook-rebranding-fail-to-reverse-a-sales-slide/
https://prezi.com/-y7o4gh3m-c9/pepsi-co-advertising-mistakes/
- What changes in customer needs & wants and/or changes in environment it has faced; and how it has evolved
and adapted to stay relevant?
In the second section of the report you should cover the following areas, considering a strategic viewpoint:
- Outline, using relevant branding concepts, theories and/or frameworks, and justify how the brand should evolve in the future.
- Consider the potential for partnerships or other collaborations. Critically assess the recommended targets.
- Recommend metrics, tools and techniques that the organisation should consider using to evaluate the health
of the brand and develop maximum brand value in the future. - Think about the assisgnment– what are the current associates , use it to critical evaluate ,
- Demonstrate here is what the brand is today here it is what I want to be
Finally you are trying to achieve is Resonance iechoicinga football team
Look at Kellersthree – do you feel excited to use it
Sense of community 0 Nike
Active of engagment- Nike
- You must critically research and apply in your coursework relevant academic theory and sources, course concepts and frameworks and industry material, fully referenced using the Harvard system.
Points to follow- Reading widely is good – from reading list and then beyond reading
Reading list
Books – Brands and brand management in Strategic Brand Managment : building, measuring and managing brand equity
Principles of Marketing
- Book
- by Philip T. Kotler
- 2017
Product and Services Management
- Book
- by Paulina Papastathopoulou; George J. Avlonitis
- 2006
- Recommended
Business-to-Business Brand Management
- Book
- by Mark S. Glynn; Arch G. Woodside
- 2009
- Book
- Authors
Kevin Lane Keller
- Published date
2012
- Publisher
Pearson Education Limited
- Pub place
Harlow
- Edition
Global ed of 4th revised ed
- ISBN
9780273779414
Using some of the core models from the course is also good
What is bibliography? How to use it
REMEMBER Use models that relate to Brand building model
Think carefully about using non branding models – are they really needed?
Use critical analysis wherever relevant
- Pros and cons
- Counter arguments
- Risks/Mitigations
- Basis for conclusion
ole tips for critical assessments
Justify things in level 6 instead of only inserting things
don’t go too far on the narrative i.e. history of company using 500 words devotes words for explanation and critical analyses
Consider evidence base for brand associations – esp historical associations
i.e. brand they say they are premium but you can see they are doing lots of promotion
apple associates what apple stood for – secondary literature is imp maybe there is an academic research , or report. Try to get evidence how people felt of the brand
Ensure you are using models that you understand and use it appropriately
You can use models that don’t work and explain how it doesn’t work and this other model instead to make it work
i.e. Atkinson 2018 – took a picture on phone Brand Heath – Different Brand Statuses but it doesn’t show whether the brand has good brand health it can only tell what you can do to focus on possible solutions
Consider competitors where relevant – i.e. pepsi and Coca cola
It can support critical assessment – if your brand didn’t do something other brand did and worked for them
You can say competitors responded to trends better than your brand did – it can be direct or wider scope
Can develop future development areas
- g. can support critical assessment
- g. can support future development ideas
Remember this is brand building strategy not a business strategy module
Propose specific solutions and be don’t be afraid o creativity
