How Coca-Cola's new marketing strategies are paying off

By Uwear

There is much more to being one of the world’s most valuable companies than just having a product that people enjoy.

Beverage industry giant Coca-Cola has increased its spending on advertising in recent months, and it’s working.

The United States’ based company believes better quality of marketing has helped its second-quarter profits rise to US$3.1 billion from US$2.6 billion one year earlier.

RELATED TOPIC: 4 components of great marketing

In addition to more focus on advertising, the brand has also begun incorporating mini-cans as well as glass bottles that tend to cost more. This comes after the company cut costs of its other products Sprite, Fanta and Powerade to bolster its below-average sales growth, then using that money for better marketing tactics.

Mainly due to the impact of foreign currency exchange rates, Coca-Cola’s global revenue dropped to $US12.16 billion for the period. However, the company’s organic revenue, which doesn’t include those factors, went up four per cent during the same period.

Coca-Cola’s advertising spending increased more than 10 per cent during the quarter, due to promotional strategies such as the recent “Share A Coke” campaign that places names and other slogans on the bottles. This has led many consumers to take pictures of them and post on social media platforms, which certainly helps the drink’s popularity.

RELATED TOPIC: The 5 principles of engagement marketing: engage people continuously over time

As more people continue to consume other less-traditional beverages, the company decided to raise prices for the product with its new style of packaging. In fact, Coca-Cola’s more expensive mini-cans had sales volume increase by double-digits.

Most of that growth in North America comes from having smaller sizes to choose from, according to Coca-Cola North America president Sandy Douglas. She noted that some customers prefer more petite sizes as opposed to packages that are too big and lead to waste.

According to the company, people in over 200 countries consume 1.9 billion servings of Coca-Cola each day. With a world-famous logo and recipe, the product is well-known in homes throughout the world and is a pillar in the beverage industry.

RELATED TOPIC: Coca-Cola Australia's Not-So-Happy Story

It also was sold for a consistent price from its initial creation in 1886 all the way up to 1959, when it could be purchased for just five US cents.

Coca-Cola nearly made a disastrous decision in 1985 when it decided to discontinue its original recipe for a more modern product called “New Coke,” which it didn’t go over well with loyal customers and appeared to be an overreaction to the increase in sales for Pepsi-Cola.

So it appears as long as the product and the traditional logo remain intact, less is more for a company of Coca-Cola’s stature.

Let's connect!  

Check out the latest edition of Business Review Australia!

Share

Featured Articles

Hybrid live event shaping the future of Sustainability & ESG

Sustainability LIVE London returns for a two-day, multi-track conference programme featuring inspirational ESG speakers, debates and discussions

Nine must-attend sustainability events for business leaders

From London to Abu Dhabi, Singapore to San Diego, these sustainability-focused events are designed to help business leaders action their ESG goals

Daniel Weise of BCG on new supply chain and procurement book

Daniel Weise, global leader of Boston Consulting Group’s procurement business line, on the timely publication of his new book, Profit From The Source

Attract and retain talent with flexible working and benefits

Human Capital

Nurturing the next generation of women leaders in Africa

Leadership & Strategy

5 Mins With: Cybersecurity expert Ariel Parnes of Mitiga

Technology