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Case Study: Coca-Cola

The document discusses Coca-Cola's 2020 Vision plan to double revenue and market share by 2020. It overhauled its marketing strategy in 2011, outlined in a YouTube video called "Content 2020", which emphasizes creating "liquid and linked" content that inspires online conversations. One example is Coca-Cola Australia's "Share a Coke" campaign, which personalized bottles with popular names and encouraged sharing photos on social media, reaching 30% of the population. The new marketing approach aims to lose control of where ideas spread to inspire more conversations about Coca-Cola's brands.

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0% found this document useful (0 votes)
57 views13 pages

Case Study: Coca-Cola

The document discusses Coca-Cola's 2020 Vision plan to double revenue and market share by 2020. It overhauled its marketing strategy in 2011, outlined in a YouTube video called "Content 2020", which emphasizes creating "liquid and linked" content that inspires online conversations. One example is Coca-Cola Australia's "Share a Coke" campaign, which personalized bottles with popular names and encouraged sharing photos on social media, reaching 30% of the population. The new marketing approach aims to lose control of where ideas spread to inspire more conversations about Coca-Cola's brands.

Uploaded by

Erico Araujo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CASE STUDY

Coca-Cola /
This article appeared in Contagous issue Thirty Two.
Contagous is an intelligence resource for the
global marketing communiy focusing on
non-tradiional media and emergng technologes
www.contagiousmagazine.com

For more information please email the team on


[email protected]

1st Page.indd 1 06/08/2012 18:04


newscase
case study/ /coca-cola
/ quarterly
study patagonia/
round-up

The Social Network

COCA-COLA_EDITED_after proofs.indd 2 06/08/2012 18:26


contagious 48 / 49

CASE STUDY
coca-cola / The Social Network /

The ubiquity of Coke is the stuff of legend. Just


last December the ColaLife charity partnered with
the brand to distribute vital medication to far-flung
regions of Zambia, such is the reach of The Coca-
Cola Company’s network.
But a global presence is not the same as world
'For lots of multinationals
over the next five years, domination. The 2020 Vision roadmap unveiled
conversation management
is going to be a rapidly by chairman and ceo Muhtar Kent threw down
growing discipline in the
marketing department’ the gauntlet to employees and competitors alike.
Its headline targets were unequivocally ambitious:
Jonathan Mildenhall, to more than double system revenue and servings
vp global advertising strategy
& creative excellence by 2020, and ‘be #1 in the non-alcoholic ready-
to-drink business in every market and every
Brand DNA category that is of value to us.’
Founded /
1886
So what do you have to be willing to do to make
HQ / this happen? Well, you have to be ready to shake
Atlanta, Georgia
Employees /
things up… /
146,200
Product /
Sparkling and still ready-to-drink
beverages
By Katrina Dodd
Promise /
To refresh the world
To inspire moments of optimism
and happiness
To create value and make a difference
WHY CONTAGIOUS /
Liquid and Linked: the world’s most
valuable brand reinvents its marketing
and recognises its place at the heart
of the business

COCA-COLA_EDITED_after proofs.indd 3 06/08/2012 18:26


case study / coca-cola /

Jonathan Mildenhall is a born


agitator. In the stand-out seminar
of last year’s Cannes Lions,
Coke’s VP for global advertising
strategy and creative excel-
lence stood before a packed
auditorium to explain how The
Coca-Cola Company’s approach to
marketing had been ripped apart
and rebuilt to help the organisa-
tion attain its ambitious targets for
growth.

The pursuit of happiness / Rewriting the communications


constitution was a fast and dirty process that gathered
40 global execs at Coke’s Atlanta HQ in early 2011. Over
one intense week, the team thrashed out Content 2020,
a ten-step manifesto that comprehensively reinvented the
organisation’s marketing modus operandi: chapter and verse
on World Domination, but in a nice way.
Ever since that presentation at the Palais des Festivals,
Content 2020 has been conspicuous in its availability. Even
for a brand that’s all about sharing, the decision to publish its
long-term marketing strategy in the form of a 20-minute ani-
mated YouTube video was a provocative act of transparency.
The friendly, whiteboard sketchnote-style clip is narrated by
Mildenhall, his Leeds accent patiently walking the viewer
through the finer points of ‘content excellence’ and what it
means to create campaigns that are ‘Liquid and Linked’.
This neat descriptor sums up the dynamic approach
captured by Mildenhall and his colleagues: ‘We want to cre-
ate ideas that are so contagious we actually lose control of
where they go,’ he explains. ‘We want to inspire conversation
that goes into places we couldn’t even imagine.’ But all, of
course, directly linked to the values and objectives that mat-
ter to the company’s stable of brands.

We will do to the size of our LIQUID, LINKED AND LIKED


One of the first major responses to Content 2020 came from
business what it took us 125 as far away from Atlanta as it’s possible to get: Australia.
years to achieve. That means Ogilvy’s Share a Coke (Contagious 31) launched almost by
stealth as bottles of Coke bearing 150 of the most popular
there’s no convention in the Aussie first names began to appear on shelves in stores.
organisation that isn’t worth
Sharing is caring / As the press and public began to catch
reconsidering. on, the campaign proper rolled out. Newspaper ads and
TVCs showing a montage of volunteered photos of people
Jonathan Mildenhall with the same first name hit screens during Australia’s big-
gest sporting weekend, reaching around 30% of the total
population. The hook was in Coke creating a reason for
people to connect with friends and family, or reconnect with
those they’d lost touch with. The idea flowed through as

COCA-COLA_EDITED_after proofs.indd 4 06/08/2012 18:26


contagious 50 / 51

many channels as possible – mobile, Facebook, outdoor, TV,


radio – to ensure maximum participation, while mobile kiosks Marketing is about making
toured shopping centres to cater to less mainstream names.
For Mildenhall the campaign was ‘classic Liquid and
people fall in love with your
Linked. It’s social at the heart, it puts the brand in the hands brands. I know instantly
of our consumers, it’s user-generated content, it’s tell-
ing great stories organically.’ Better yet, he continues, ‘It’s when a story is well-crafted.
changing the marketing plan half way through the actual acti- It hits you in the heart.
vation because it becomes so popular that we have to call a
national referendum on more names to be added to the cans Javier Sánchez Lamelas,
and bottles.’ vp marketing, TCCC Latin America
It also drove sales for that market up by 5%, rising to 7%
amongst the target audience of younger consumers.

ART & COMMERCE


Mildenhall is passionate about the relationship between cre-
ativity and commerce. In the industry crucible of the Cannes
Lions International Festival of Creativity, The Coca-Cola
Company (TCCC) this year picked up a total of 30 Lions,
spanning 10 categories, including the crowning achieve-
ment of not one, but two Grand Prix.
‘We take Cannes incredibly seriously, because it's a
benchmark for excellence amongst this great global peer
group,’ he says. ‘We’re only going to be successful if we inspire
participation among the world’s most creative minds; I’d
much rather have them thinking about Coca-Cola Company
brands than anybody else’s. We now have creatives falling
over themselves to put their best ideas into our organisation.’

Strength in depth / The two Grand Prix in particular highlight


the breadth and depth of work through which a brand as
old and familiar as Coca-Cola is connecting with consum-
ers across its huge global constituency. The Coke Hands
poster from Ogilvy Shanghai, which won top honours in the
Outdoor category, is simplicity itself, an iconic graphic idea
that perfectly embodies the original brief ‘Sharing a coke’. No
translation required.
At the other end of the creative spectrum, a collaboration
with Google earned Coke its second Grand Prix, topping
the newly-minted Mobile category with a fresh take on the
Cascada, the 16-metre
brand's iconic Hilltop commercial. The reworked campaign
digital waterfall, responded
picked up on the original lyric ‘I’d like to buy the world a to people’s movement;
Coke’, creating a desktop and mobile ad interface that the more you interacted,
allowed users to ‘send’ a can of soda to one of a network of the more colourful and
custom-built vending machines across the world. animated it became.

LATIN LEADERSHIP
The ability to produce highly creative work across every
conceivable touchpoint in markets as geographically and
culturally distinct as China and America has been especially
striking this past year. Nowhere, however, has the output been
quite so diverse, so consistently inventive as Latin America, a
fact not lost on Mildenhall: ‘The correlation between creative
success and commercial success has been proven in Latin
America. Over the last five years it’s been our most awarded
region, and the most consistent growth driver of volume and
profit for The Coca-Cola Company.'

COCA-COLA_EDITED_after proofs.indd 5 06/08/2012 18:27


case study / coca-cola /

The hit factory / In Ecuador, a shopping centre played host Coke’s flexible approach to working and shares it with a
to Cascada, a 16-metre interactive virtual Coke waterfall; wider audience of potential talent. The Lab’s role is to push
Nexus Interactive Arts designed the waterfall to ‘play’ with existing key partners to use art and technology to reimagine
passers-by, generating unique patterns and effects to match consumer experiences, as well as to engage with experts
their movements. Ogilvy Brasil’s Sprite Shower offered a beyond the marketing world. It might, for example, reach
more literal take on a similar theme. A giant Sprite dispenser out to Hollywood scriptwriters to ensure storytelling on new
was installed on the beaches of Rio de Janeiro to bring the content-driven platforms like Coca-Cola.tv and Coke FM is
idea of ‘refreshment’ to life in the wettest way possible, the best it can possibly be.
drenching those brave enough – or maybe just hot enough
– to push the lever. Agility and adaptability: structured play / The determina-
Sports and music, so often the focus of dreary spon- tion to inject new thinking into the heart of its marketing has
sorship initiatives, also benefit from the region’s apparent been matched by Coca-Cola Latin America’s rigour in estab-
willingness to leave no idea – however leftfield – unturned. lishing an internal system that allows it to thrive. ‘We have
In Argentina, Coke’s Cheering several secret weapons,' explains
Truck, conceived by Del Campo
Nazca Saatchi & Saatchi, cap-
We are moving from Lamelas. ‘First, we work as one
integrated team across all our 35
728
tured the country’s passion for marketing communism – in countries. Our agencies are part
football, travelling from stadium of the team. We also work with a
Annual servings of
to stadium to record a million
which marketers were able horizon of 24 months stock of mar-
TCCC soft drinks
per capita, Mexico cheers, later played out to boost to push average quality keting materials. This gives us time
the national team during the to think and to dedicate resources
Copa America. marketing to consumers – to innovation. We have clear roles
In Colombia, music fans to marketing Darwinism, in and responsibilities among the dif-
downloaded tracks during a spe- ferent team members. The decision
cial concert, masterminded by which people will only see making process is transparent,
Ogilvy & Mather, Bogota, which
began with their favourite band
what they want to see. fast and we delegate as low as
we can in the organisation. Our
hoisted high above an adoring Javier Sánchez Lamelas quality standards are high. When
crowd. As the downloads racked you work in Coca-Cola "good" is
up, the band edged down, until they were finally in full sight not enough. We work in a powerful Marketing Factory. It’s a
on the stage. In another campaign, CCTV footage was scru- different model than the traditional way of working in a mar-
tinised not for crime but for moments that showed everyday keting department. We generate greater output, faster with
people at their best, with the spontaneous acts of kindness significantly less resources and rework.’
and altruism collated into a montage celebrating the good-
ness that is often overlooked. WORKING THE SYSTEM
Content 2020 was Coke’s way of seeding a more dynamic,
Open door policy / Javier Sánchez Lamelas is vp marketing, encompassing and adaptable approach to its communica-
TCCC Latin America; his delight in, and commitment to tions, but in Latin America the conditions have been created
delivering extraordinary value – in all its senses – is clear: to hothouse that process. Now, in line with the Liquid and
‘The thing I am most proud of is not a campaign, it is the way Linked approach, Coke has put the framework in place to
we work in Latin America to produce high quality marketing.’ ensure that success in one region can flow freely to others.
38 In its endeavour to attract the best ideas, Coke has
Annual servings of an open-door policy that invites any agency in the region Develop and disseminate / Guy Duncan, global group
TCCC soft drinks – except those working with PepsiCo brands – to submit creative director, Coca-Cola, cites the example of the infec-
per capita, China
scripts and concepts on an ad hoc basis. The result is a kind tiously popular Vending Machine spot, which dispensed
of creative pantry, stocked with tempting ideas that can be Coke and other treats to delighted students. ‘Taking that
pulled out when the time is right. spot forward, we evolved it into a broader philosophy that
Lamelas simply sees this as a pragmatic response to the we named Where Will Happiness Strike Next? That philoso-
evolution in his own market and beyond: ‘We are moving phy has gone beyond film into social media, and has also
from marketing Communism – in which marketers were able begun to shape global creative work. The new global pro-
to push average-quality marketing to consumers – to market- gramme led by Mexico is all about random acts of kindness
ing Darwinism in which people will only see what they want and extends to much more than a 30 second TVC.’
to see. In this scenario only high quality and highly adaptable In the Philippines, for example, the Coca-Cola brand
marketing will survive.’ applied the concept to a project that saw a group of Over-
seas Filipino Workers reunited with their families back home
Establishing the Innovation Lab / The increasing signifi- in time to celebrate Christmas together for the first time
cance of this came through when the company used this in years. It struck a huge, emotional chord throughout the
year’s Cannes Lions Festival to announce the Innovation region, and drew over a million YouTube hits in just three
Lab: not a physical space, but rather a term that conjures weeks.

COCA-COLA_EDITED_after proofs.indd 6 06/08/2012 18:27


contagious 52 / 53

Today’s culture demands


a continual dialogue with
consumers, meaning more
content, more often to feed
the conversation that is
24/7, always on. We have
to be more efficient than
we ever have before with
our production budgets
Project Re:Brief
to get the content that we
reimagined the iconic Hilltop
ad for the contemporary world,
need to feed that dialogue.
enabling web and mobile users to David Campbell, global creative director, TCCC
virtually send a can of Coke from
their screen to distant vending
machines around the world

‘Look at the
world a little
differently’
The Security Cameras clip
highlighted random acts
of kindness

COCA-COLA_EDITED_after proofs.indd 7 06/08/2012 18:27


case
casestudy
study/ /coca-cola
patagonia/

Spending
split
Agency financial relationship
‘We’re still spending as much as ever on
70/20/10 advertising, but we’re very conscious
about the proportion we spend that is
consumer-facing and the proportion that
goes on agency fees. Our introduction of
RISK & value-based compensation has helped us
REWARD feel very confident that we are sharing
the risk of creativity with the agencies
that provide it, but also that we are
rewarding outstanding performance from
those agencies that deliver. Agencies have
the opportunity to make double the profit
than before we introduced it, but likewise
if their work isn’t performing, that profit
is at risk.' Jonathan Mildenhall

Metrics
Measuring success
VOLUME / The Coca-Cola Company has two key
BRAND LOVE quantitative measures that it uses to
measure performance. The first is brand
volume, described in terms of ‘Unit
Prevailing cases’, a unit of measurement equal to 24
mood
eight-ounce (237ml) servings of finished
HAPPINESS beverage. The second is Brand Love, a
metric considered as important as market
share to the firm, and of critical relevance
to Jonathan Mildenhall and team.
The company uses a proprietary
tracking tool to quantify Brand Love,
interviewing over a 400,000 customers
each year across more than 90 of its
worldwide markets. The data collected
is converted into a metric which can be
used to compare performance across
different brands, countries and over time.
According to Mildenhall, ‘No organisation
on the planet, other than perhaps
political parties, has more sophisticated
conversation measurement processes and
talent in-house.’

COCA-COLA_EDITED_after proofs.indd 8 06/08/2012 18:27


contagious 54 / 55

Freedom to create / It helps that Coke is less prescriptive More bang for your buck / In terms of production logistics, the
now than previously, working hard to ensure that its agency nature of the project demanded an entirely new, more col-
partners have plenty of scope to bring a local take to the laborative way of working, especially for Coke says Butler:
iconic brands they work with. ‘That doesn’t mean to say that ‘They couldn’t be control freaks. It meant not researching
anybody can do what they want on any of our global brands,’ things to the nth degree, not being able to do animatics, but
says Mildenhall. ‘We are very clear. We have a single brand being able to watch the idea grow organically – far more
growth strategy for all the brands, a single brand vision and liquid and linked.’
architecture, and a single creative idea. We’ve moved away David Campbell, a global creative director for TCCC,
from brand "propositions" as old-fashioned thinking. Instead sees that change as vital and inevitable. ‘Today’s culture
we just have bigger brand spaces, so Fanta is all about Play, demands a continual dialogue with consumers, meaning
Coke Zero is all about Possibilities and Coke is all about more content, more often to feed the conversation that is
Happiness.’ 24/7, always on. We have to be more efficient than we ever
have before with our production budgets to get the content
Beginnings not endings / Flexibility within those wide param-
eters is crucial, and Coke’s global marketing team is focused
that we need to feed that dialogue. It’s an efficiency play. We
have less and less production dollars and we’re expected to
1,404,801
on infusing it throughout the worldwide system. According do more for it: to do that we have to change the way we work.’ With a score over 1.4
million, Coca-Cola was
to Jackie Jantos, global creative As far as Jonathan Milden- the highest-rated of
director and self-confessed ‘hap- hall is concerned, there is simply the 25 sponsors at this
piness nerd’, it actually allows We’re in a different world nothing to lose: ‘So far everything year's Olympic Games in
their marketing to become much London. The MediaCom
more personal. ‘We used the
in terms of collaboration, we’ve done has led to new think-
ing, but none of what we did
Sport Olympics Tracker
scored the performance
expression “Don’t tell people a sharing ideas and in terms couldn’t have been reverse-engi- of each brand on volume
story, give people a story to tell,”’ neered. The worst case scenario of tweets, sentiment,
she explains. ‘We’ve worked hard
of the responsibilities of is that we’ll end up with traditional potential reach and
engagement.
to move from developing commu- brands as ‘the new Medicis’. creative content.’
nications about stories and telling There’s been no reverse-engi-
Stephen Butler, creative partner, Mother
stories to actually provoking real, neering required on the Olympics
tangible human experiences as campaign, which has had buy-in
part of everything we do. The stories people have to tell from over 100 markets, doubling the reach of the brand’s
coming out of those experiences are far more authentic than Beijing effort. The result in this case is unprecedented for
anything we could ever tell them.’ Coke in other ways too, says Butler: ‘Historically, Coke
would have signed and sealed everything a year before the
CONTENT-DRIVEN MARKETING event, but even on the eve of the Games we were still in
That thinking is very much in evidence in Move to the Beat, this open creative forum to come up with ideas, to be able 200
the Olympics campaign Coca-Cola has masterminded with
London-based agency Mother. With the 2012 event widely
to react to things and to feel like we were part of a present-
tense experience. And we created a toolbox of interesting
markets
hailed as the first ‘social’ Games, there was a clear opportu- components that could be adapted or taken in their single Coca-Cola is available
in over 200 markets
nity to create a campaign that not only appealed to a young bits and pieces, which still held the idea of celebrating the
worldwide. North Korea
audience well beyond sports fans, but could be amplified beat without that becoming fractured.’ and Cuba are the only
through participation and interaction with its various elements. hold-outs.
CONTENT 2020: COKE’S MARKETING API
Mix and match content / As a result, Move to the Beat is Taking that toolbox analogy a stage further, it’s not a huge
unlike anything Coke has ever attempted since it began leap of imagination to see Content 2020 as an API for Coca-
marketing around the Olympic Games in 1928. Mother Cola’s marketing, a move that begins to bring the brand into
worked with artist and music producer Mark Ronson who some pretty interesting company. Project Re:Brief may have
was tasked with creating an anthem for the Games. Sam- made an unexpected couple out of Google and Coke, but
pling the sounds created by an international range of young there are interesting parallels between these two commer-
Olympic hopefuls, documentary crew in tow, the track was cial titans, in terms of scope, scale and significance. ‘We
debuted at a one-off live event in East London that brought were the world’s first global networked organisation,’ sug-
Ronson’s athletes and thousands of athletically-inclined gests Mildenhall; ‘But I look at Google and think what can I
teens together for a showcase gig. This was the basis for learn from the way they network using technology, the way
a range of content specifically designed to resonate around they network their own human organisation… I just want us
Coke’s global markets, whatever their level of interest in the to be more dynamic, more innovative and more transparent.’
Games themselves. There’s a curiously ‘Benjamin Button’ aspect to this.
The focus on flexibility went further still, says Stephen As Google and its Silicon Valley siblings begin to wrestle
Butler, creative partner at Mother: ‘The commercial was shot with the logistical and cultural issues that go hand in hand
with green screen behind so that local markets would be with their rapid increase in size and maturity, The Coca-Cola
able to drop their own athletes into the action and become Company seems to be rolling back the years, rediscovering
part of the bigger story of the Beat.’ its mojo and reimagining itself with enviable confidence.

COCA-COLA_EDITED_after proofs.indd 9 06/08/2012 18:27


case study / coca-cola /

'The worst case scenario


is that we’ll end up with
traditional creative content.’
Jonathan Mildenhall

This sense of
empowerment is
inspired and endorsed
by ceo Muhtar
Kent’s ‘constructively
discontent’ approach
to all aspects of the
business

Catalysing change / It takes chutzpah to nail your colours to Size and scale are not incompatible with change and
the mast in the way Coke did by launching its manifesto in growth, rather they magnify the responsibilities and opportu-
Cannes last year, observes Butler. ‘It made it clear to every- nities for those willing to take them on. ‘We’re in a different
one that this is a Very Serious Edict: World cc’ed.’ world in terms of collaboration, sharing ideas and in terms
But there was method in the madness, says Milden- of the responsibilities of brands as "the new Medicis"', says
hall: ‘Building internal capabilities around Content 2020 Stephen Butler. ‘Brands are the new power seats; they have
could have taken me six or seven years – to make all of our the financial power to be able to finance and realise ideas
business units fully understand how to embrace it, how to and narratives, and they have an audience that they owe it to.’
practise it and how to manage their agencies on it. But the
creative industries responded brilliantly and now they’re
helping teach TCCC all around the world how to apply it.’
That’s not to say that the hard work is done. If you con-
sider the cultural and communications changes that were the
catalyst for Content 2020, it’s unlikely the years ahead are
going to be any less significant. Wendy Clark, Coke’s senior
vp of marketing, is clear-eyed about the future: ‘Liquid and
Linked represents our point of view on how to successfully
communicate in the current landscape. Key in that statement
is the word current. By definition, our Liquid & Linked agenda
must indeed be liquid and linked itself. Meaning it must be
fully adaptable and representative of the communications
landscape at any given time. The landscape is anything but
static. The mandate we see is that our marketing must be
every bit as dynamic as the marketplace.’

The social network / The overhaul of marketing, though, is


just one aspect of a wider, more comprehensive mandate for
change throughout Coca-Cola, notes Mildenhall: ‘Our CEO
says as an organisation we are constructively discontent.
We will do to the size of our business what it took us 125
years to do. That means there’s no convention in the organi- Coca-Cola Beatbox, Olympic Park, London /
sation that isn’t worth reconsidering.’ designers: asif khan & pernilla ohrstedt /

COCA-COLA_EDITED_after proofs.indd 10 06/08/2012 18:27


contagious 56 / 57

analyst insight / coca-cola


By Hope Lee, Euromonitor /
Analyst
Insight The Coca-Cola Company (TCCC) achieved considerable
growth over 2007-2011, seeing reported revenue rise
from $28.8bn to $46.5bn, an increase of over 61%. The
company has a stated aim to double in size from 2010
to 2020.
TCCC’s power base is built upon its domination of
carbonates, which comprises almost three quarters of
its sales. Bottled water and fruit/vegetable juices are
key secondary categories. Coca-Cola is the company’s
flagship brand, accounting for over one third of its
volume sales according to Euromonitor International.
Sprite, Diet Coke and Fanta are also key brands. TCCC
has a balanced geographic mix, generating two thirds
of its volume sales outside of its established markets in
North America and Western Europe.
To achieve its 2020 financial objective, the company
is working to defend its position in carbonates in major
markets and accelerate the expansion of non-carbonates
in both developed and emerging markets. Carbonates
generated 71% of TCCC’s total off trade volume sales
in 2011, although this percentage has fallen in recent
years, down from nearly 77% in 2006, as TCCC has
sought to grow its non-carbonates coverage in the wake
of challenging carbonates market conditions in some
regions, and the ongoing health and wellness trend
affecting the soft drinks sector globally. The Coca-Cola
brand has been dominant in its category for some time
and it is under no threat. However, in some markets,
most significantly the US, the category is set to shrink.
Consequently, the brand should look for growth in devel-
oping markets such as Brazil.
Apart from growing its non-carbonates business
organically, the company has also made acquisitions to
boost its presence in non-carbonates, including Hon-
est Tea, Innocent and Zico coconut water. Euromonitor
International expects TCCC to continue to set its sights
on well-performing, small but strong niche brands,
especially in developed markets where there is a short-
age of large-scale acquisition candidates. TCCC has the
full capability to nurture and grow these newly acquired
small brands by leveraging its bottling, distribution
and marketing networks. The expansion of Innocent,
originally a UK-based brand, in Europe reflects this.
Compared to PepsiCo, TCCC seems markedly stronger in
marketing and growing a local brand. The surge in sales
of Minute Maid Pulpy in China was another successful
marketing story.
The key issue is that consumers are demanding – or
are advised to consume – a diversity of drinks. All manu-
facturers need to strengthen their core business, as
well as carry a wide range of drinks to spread the risk.
TCCC seems on the right track so far.

Hope Lee is senior beverages analyst at Euromonitor


International, London. www.euromonitor.com

COCA-COLA_EDITED_after proofs.indd 11 06/08/2012 18:27


case study / coca-cola /

Brand Map / coca-cola

Challenge / Solutions /

To optimise The Coca-Cola Company’s STRATEGY Transparency


marketing in support of the goals laid out
in Muhtar Kent’s Vision 2020 roadmap.

Specifically to double the revenue


generated worldwide to $200bn by 2020
and to more than double the number of
servings to over three billion per day.
Senior global marketers worked The public launch of Content 2020
intensively to produce Content 2020, expedited change throughout the Coca-
To expedite a transformation in TCCC’s a strategy in tune with the fast-evolving Cola system. It also gave its agency
marketing while maintaining a consistency digital and social landscape. Its ten step and production partners a mandate to
of spirit across core brands in all markets. manifesto outlined a new approach that innovate and tough creative standards to
could be applied consistently throughout hold the company accountable to.
TCCC system.
To win ‘a disproportionate share’ of
popular culture by being 'constructively
discontent'.
Content collaboration

For Coke, content drives conversation. Being receptive to ideas, whatever their
But a more rigorous approach to source, and being willing to collaborate
logistics and planning is essential to internally and externally to build and
maximise the content generated, both develop creative is crucial in helping
in terms of volume and its adaptability the brand pull off adaptable, timely
across markets. campaigns.

Our growth comes directly in line with


the prosperity and growth of our
advocacy BUDGETS
markets. They are interconnected. At
our best, we leverage global scale while
staying deeply rooted in and connected
to our local communities. As long as we
keep these two aspects of our business
connected we will meet our ambition
of refreshing the world and making a
positive difference. The global marketing team are While Coke commits 70% of marketing
Wendy Clark, svp marketing TCCC passionate advocates for Content spend to ‘bread and butter’ traditional
2020. Internally, colleagues run training marketing, markets allocate 20% to
workshops as well as taking on speaking campaigns that drive local relevance
engagements, acting as ambassadors and 10% to innovative ideas that ignite
for the Liquid and Linked methodology. interest and start conversations.

COCA-COLA_EDITED_after proofs.indd 12 06/08/2012 18:27


contagious 58 / 59

Results / Takeouts /

'Over the last five years


$13.09bn Leveraging transparency has helped drive
a step-change in Coke’s marketing that
Latin America has been Q2 results for 2012 show that TCCC is on track to meet its could have taken years to implement.
our most awarded region, Vision 2020 goals: posted revenue for Q2 was $13.09bn,
and the most consistent just above the $12.98bn forecast.
growth driver of volume and
profit for The Coca-Cola
Publishing Content 2020 not only
Company.' inspired third parties to approach TCCC
Jonathan Mildenhall
with ideas, but laid out upfront the criteria
35% required by the corporation. It also made
India’s Q2 volume growth for Coca-Cola as a standalone the internal team publicly accountable for
drink was 35%. The company will invest $5bn by 2020 to implementing the change.
6m further develop this key market.
Security Cameras ‘Command & Control’ is no longer an
video viewed over six
million times in five option. Collaborative creativity and the
weeks on YouTube
flexibility to change tack when required
is key.

Experience counts: ‘Almost all of our


4% programmes try to leverage a specific
Volume growth
worldwide was 4% experience of happiness, so that we’re
for the quarter not creating a communication, we’re
getting people to act with us around an
experience.’ Jackie Jantos

The sense of common purpose at TCCC


is palpable. ‘This is a really phenomenal
time for us. We feel it and we feel the
responsibility to take it forward as well.’
2011 2012
Guy Duncan
Coke has more than doubled its awards tally from
the Cannes Lions, from 12 in 2011 to 30 in 2012,
including two Grand Prix.

Q2 Volume growth for TCCC sparkling beverages

7% China

8% Pacific

180m 9% Russia

12% Eurasia & Africa


Consumers submitted 20% India
180 million of their own
‘beats’ via a dedicated
website, surpassing the
goal of 100 million

320m
The mini-documentaries released in China as part of the
Move to the Beat Olympics campaign racked up 320
million views in just two weeks.

COCA-COLA_EDITED_after proofs.indd 13 06/08/2012 18:27

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