Digital Marketing 1 Group Assignment Guidelines Coca-Cola Company.pdf

DIGITAL MARKETING 1 - MKT318m GROUP ASSIGNMENT GUIDELINES

COCA-COLA COMPANY Lecturer: TRAN VI ANH

Group: 4 Class: MKT1807

Members:

Table of Contents _

I Executive summary II Brief introduction of the client III Digital marketing mix evaluation IV Digital Commnunication plan V Digital Strategy Proposal

VI Recommendations and Conclusions VII References

I Executive summary:

Coca-Cola, often referred to as simply "Coke," is one of the world's most iconic and recognizabbeverage companies Founded in 1886 by John S Pemberton, Coca-Cola has grown to becomglobal leader in the production and distribution of non-alcoholic beverages Here is an executivsummary of the company:

Coca-Cola operates in over 200 countries and markets its products globally.

The company has an extensive distribution network, making its products widely available tconsumers

• Marketing and Advertising:

Coca-Cola is known for its iconic advertising campaigns, including the famous "Share a Coke" an"Open Happiness" campaigns

The company invests heavily in marketing to maintain brand recognition and customer loyalty • Challenges:

The beverage industry has faced challenges related to shifting consumer preferences, with increasdemand for healthier and low-sugar options

Regulatory pressures and taxes on sugary beverages have impacted the industry

II.Brief introduction of the client:

• History:

The company has a rich history and has played a significant role in shaping the global beveraindustry Coca-Cola's early marketing campaigns and iconic contour bottle design helped establishas a symbol of American culture and a global brand

• Mission/Vision:

Mission: to refresh the world, inspire moments of optimism, and create value

Vision: To be the world's best beverage company, creating a sustainable future while satisfying the desires of consumers and providing growth opportunities for its employees and business partners

• Products/Services:

- Coca-Cola: The company's flagship carbonated soft drink, known for its distinctive flavor - Diet Coke and Coca-Cola Zero Sugar: Low-calorie and sugar-free versions of Coca-Cola - Fanta: A popular fruit-flavored carbonated beverage.

- Sprite: A lemon-lime flavored carbonated drink

- Minute Maid: A brand that produces a variety of fruit juices and juice drinks - Dasani: Bottled water products.

- Powerade: A sports drink to help hydrate and replenish electrolytes

Coca-Cola also operates a vast distribution network and offers various other non-carbonatbeverages, including teas, coffees, energy drinks, and more The company continually innovatesmeet changing consumer preferences and health trends

III Digital marketing mix evaluation:

1 Digital technology has helped Coca-Cola upgrade their products in many different ways Some examples are:

Coca-Cola has used artificial intelligence to develop new products that suit consumer preferences aneeds For example, they created Coca-Cola Plus Coffee, a beverage that combines the flavorcoffee and coke, based on data about customer preferences in different markets

Coca-Cola has used machine learning to optimize the formulation of existing products For exampthey used a system called Cherry Picker, a data analytics platform to evaluate the effectivenessdifferent ingredients in soft drinks This system helped them reduce sugar in Coca-Cola Zero Sugwithout affecting the taste

Coca-Cola has used virtual reality to test and improve the packaging design of its products Fexample, they used a tool called VR Store, a simulation of a retail store, to see how consumers reacto different types of packaging This tool has helped them increase brand awareness and attcustomer attention

Coca-cola, giải quyết những thách thức trong kinh doanh bằng công nghệ - CIO Vietnam (ciovn.org)

2 What changes have occurred in pricing strategies due to digital technology? Data-driven pricing

This data helps them determine customers' price flexibility, i.e their willingness to pay for a particulaproduct Based on price flexibility, they can segment customers into different groups, with differenprices and promotions For example, they can offer higher prices to brand loyal customers, or offlower prices or attractive promotions to potential customers or customers who are sensitive to tbrand price

This data also helps them set prices by sales channel and geographic location For example, they price their products differently at restaurants, beverage stores, or supermarkets They may also ptheir products differently in different countries and regions, depending on the needs, context, acompetition of that market

Thanks to digital technology, Coca-Cola has enhanced its data-driven pricing capabilities, helpinthem adapt to many other aspects of the market, and optimize customer demand This has given tmany competitive advantages and increased revenue

Online sales channels:

Digital technology has opened up new online sales channels for Coca-Cola such as e-commeplatforms and mobile applications

These channels often involve different pricing strategies, including promotional pricing, bundling ansubscription models, which may differ from traditional retail pricing

For example, you can find cocacola sellers on all social platforms, shoppe, lazada, sendoo Wdifferent prices for each platform, it brings many incentives and conveniences to customers Price transparency:

The Internet has made price information more transparent and accessible to consumers Customcan easily compare prices of Coca-Cola products across different retailers and platforms This increased transparency has put pressure on companies to maintain competitive prices and provalue-added services to justify their prices

For example, when buying goods, people tend to compare which store is cheaper to buy, but coca prices on all platforms, making it easier for customers to make a choice

Mobile payment and loyalty programs:

Digital technology has facilitated mobile payment options and loyalty programs Coca-Cola can offediscounts and rewards to customers who use mobile payment apps or participate in loyalty prograThese programs can help retain customers and encourage repeat purchases

Artificial Intelligence (AI) and Machine Learning:

AI and machine learning algorithms can analyze market conditions and customer data to predict futdemand and optimize pricing strategies Coca-Cola can use AI to make price recommendations aadjust prices dynamically

Promotions and digital coupons:

Digital technology has made it easier for Coca-Cola to distribute promotions and coupons througdigital channels such as email, social networks and mobile applications This allows for targetepromotions to specific customer segments, driving sales and brand loyalty

Real-time response:

Digital technology allows companies like Coca-Cola to receive real-time feedback from customethrough social media, reviews and surveys This feedback can inform pricing decisions and help adjstrategies quickly to meet customer preferences

For example:

Coca-Cola beverage products are an example of a market penetration pricing strategy When it fappeared in Vietnam in 1960, Pepsi was taking the leading position and owned a large market shin the beverage industry At this time, Coca-Cola is ready to lower prices very low to reach its producto all customer segments

At that time, we could easily find Coca-Cola at street vendors or sidewalk stalls The price of a bottof Coca-Cola at that time was 2,000 while Pepsi was 5,000 and maybe higher Currently, CocaCois one of the giants with the largest market share worldwide, and the market penetration pricinstrategy has brought great efficiency to this company's Marketing campaign

3 How has digital technology affected distribution channels (locations)?

In a 2017 interview with Bloomberg, Coca-Cola's CEO mentioned that slowing traffic at shoppingmalls was affecting the company's sales Direct distribution channels (retail stores, supermarkets avending machines) in food courts in shopping malls are important distribution channels for CocaCola and when consumers leave shopping at traditional stores but prefer the convenience of onshopping, these channels are being adversely affected Furthermore, as more and more consumorder groceries online, buying a bottle of Coca-Cola directly in the store is often “forgotten.”

Adapting to digital disruption

One of Coca-Cola's key priorities is to adapt to the changing retail landscape and use technologyits advantage The company recently began using Google technology in US grocery stores to delipersonalized ads on customers' smartphones Beverage giant Coca Cola is also looking to reducenumber of vending machines installed at various locations due to reduced traffic in these areas Tkey to revenue growth is to find newer distribution channels that are suitable for the changinlandscape, as consumers shift to online purchases rather than in-person purchases This could invintroducing new packages that are easier to ship as customers look for online shopping and hodelivery The company is also actively using social media platforms to promote its products Changing consumer preferences toward healthier beverages and the convenience of e-commerce negatively impacted Coca-Cola, and those trends show no signs of slowing down anytime soon Tcompany needs to adapt to the changing retail landscape and innovate both in terms of productsdistribution channels to drive sales over the long term

4 In what ways has digital marketing and advertising (advertising) evolved?

Coca-Cola's social media strategy focuses on interacting directly with customers and establishrelationships We will d iscuss how Coca-Cola uses different social media platforms to gain a majorover its competitors Let's see an overview of how they perform on different social media platformsCoca-Cola's Facebook Marketing Strategy

Coca-Cola is a globally recognized brand and its Facebook page has 109 million fans, which is nsurprising given its size and popularity However, if you look at its Facebook page, you will noticethat it does not have regular daily updates like other brands like Red Bull Coca-Cola has gone mthan a week without making a public announcement

Since Coca-Cola doesn't have stores, their social media marketing strategy isn't focused on bringpeople to stores or e-commerce platforms; rather, it's all about maintaining its brand image and raisawareness of its advertising campaigns compared to other companies The number of participantreally low, with an average of only a few thousand likes

Like Instagram, Coca-Cola has a dedicated India page where it posts Indian-focused content with o141k followers Coca-Cola posted a contest on Facebook promising giveaways However, the terand conditions of the contest continue to repeat over and over again

Coca-Cola's YouTube Marketing Strategy

Coca-Cola has more than 3.77 million subscribers on YouTube They carry out their campaigns apost videos for all audiences around the world In contrast to other social media accounts, YouTu

does not have a separate channel for the Indian audience They post all their campaigns on the schannel

Here are some of their most viral uploads on Youtube:

All of these videos have reached a large audience, with a maximum of 127 million views The curatvideos are short, quick, and fun to watch By creating these engaging videos, they can attract maudiences

Coca-Cola's SEO strategy

Coca-Cola has a domain authority score of 55, which is quite impressive, and receives organic seatraffic of 55.5

thousand

Coca-Cola on the e-commerce platform Shopee:

Gains a large number of followers, clearly publicizes prices, and adjusts content according to evenCase Study: Happiness machine!

The Happiness Machine campaign is part of the Open Happiness global integrated campaign anone of Coca-Cola's most popular marketing initiatives This campaign aims to convey joy anunexpected experiences to customers

Coca-Cola vending machines have hidden cameras placed in various locations across many countThey recorded the campaign over two days and created a video of participants' reactions to receivfree coke or other items like sunglasses, flowers, etc

Customers need to interact with the machines in a variety of fun and unusual ways to receive a fCoke, such as hugging one in Singapore, dancing to K-pop music in South Korea, and singing a caChristmas in Sweden

The emotional reactions of the participants were recorded and disseminated across various platfoas a series The films went viral on YouTube, attracting millions of views and cementing Coca Colareputation as a company that spreads happiness

happiness

5 What are the key identifiable issues related to the company's digital marketing mix? The term "digital mix" generally refers to the combination and integration of different digital marketing and online communication strategies and channels that a company uses to reach and enits audience imagine your target It includes all the digital tools, platforms and tactics a business usto achieve its marketing and communication goals in the online realm

The digital mix is a key component of a company's overall marketing strategy and can includelements such as a website, social media, content marketing, email marketing, online advertisimobile apps, etc It is designed to create a cohesive and effective online presence and outreaensuring that companies can effectively connect with their audiences in the digital age

Website: Coca-Cola has a well-structured and visually appealing website (www.coca-cola.comwhich serves as a hub for information on products and sustainability initiatives sustainability antheir brand campaigns It provides great user experience and is mobile responsive

Social Media: Coca-Cola maintains a strong presence on major social media platforms such Facebook, Twitter, Instagram and LinkedIn They use these platforms to interact with customershare brand stories, and run marketing campaigns Their social media content is creative and oincorporates user-generated content

Social media reputation management: Monitor and address customer feedback, both positive anegative, on various social media platforms to protect brand reputation

Content Marketing: Coca-Cola is known for its content marketing efforts They produce a variety ocontent, including blog posts, videos and interactive experiences, to connect with their audiences astrengthen their brand identity

Content strategy: Create and distribute engaging and shareable digital content that resonates wCoca-Cola's diverse global audience

E-commerce: Coca-Cola's e-commerce presence varies by region In some areas, they offer disales to consumers and home delivery of products They have also partnered with online retailers shopee for digital sales

Mobile Apps: The company has developed mobile apps, such as the Coca-Cola Freestyle appengage customers, offer personalized drink recommendations, and enhance the in-store experieshop

Mobile Optimization: Adapt to the mobile-first landscape and ensure a seamless user experiencesmartphones and tablets

Data Analytics: Companies invest in data analytics to better understand customer behavior apreferences, allowing them to tailor marketing and product development efforts

Measurement and analytics: Enhance data-driven decision making by investing in powerful analytitools and methods

Innovation: Coca-Cola explores emerging technologies such as augmented reality (AR) and virtureality (VR) to create brand experiences that interact and connect with young audiences Advertising combined with AR appeared in Vietnam 10 years ago and is becoming increasingpopular, especially the form of integrating AR on product packaging (AR Scan Packaging) is verwidely applied In early 2013, Coca Cola Vietnam launched the "Spring Swallow" advertisingcampaign using augmented reality After installing a specialized software and scanning the phocamera to the Coca Cola logo icon, consumers can interact with a virtual Coca Cola can and shundreds of swallow wings flying on the screen

Adopt innovative technology: Stay up to date with emerging technologies such as AI, AR/VR anIoT to enhance customer engagement and operational efficiency

Video Marketing: The company leverages video marketing on platforms like YouTube, with a mix ofpromotional videos, commercials, and storytelling content

Case study:

Coca-Cola's handling and results when they were criticized on social networks about thenvironmental impact of plastic packaging The problem is that Coca-Cola is boycotted anegatively covered by concerned customers and environmental activists, using the hasht#CocaColaPollution to spread images and stories about the plastic waste caused by their producause The treatment includes six key steps: monitoring and crisis management, engagement transparency, content strategy, influencer partnerships, long-term strategy, and measurement areporting As a result, Coca-Cola was able to effectively solve the problem, rebuild trust, andemonstrate its dedication to responsible business practices

IV Digital communication plan

1 Development of the target market and media user profile: a Target market profile

• Define the target market as precisely as possible (e.g., age, gender, location, income level).

• Coca Cola's goal is to cover the entire Vietnamese market and increase recognition amuch as possible However, the main target market that Coca Cola targets is stidensely populated places The four major cities identified by Coca Cola as current targmarkets include Hanoi, Ho Chi Minh City, Da Nang and Hai Phong After researchingthe market , Coca-Cola determined that these cities have a very high consumptiocapacity for their products.

Vietnam also focuses on population characteristics, especially young people with higproduct demand.

• 2 types of customers

• The age of Coca Cola's audience is unlimited, however the majority of Coca Cola'scustomers are between 10-35 years old This group of young consumers is the segmethat Coca-Cola has focused on since its inception and has maintained and developedthis day

40 years old This group of customers will care more about health than product desigpackaging or taste Therefore, this famous brand has introduced to the market a line sugar-free Coca Cola products, meeting the needs of the elderly to limit sugar intakfrom soft drinks

of customers, because the price of a can of Coca Cola in Vietnam is only 10,000 VNDor a plastic bottle of Coca Cola in a retail supermarket costs 5,000 VND

• Research the interests and preferences of your target market (e.g., lifestyle and hobbies).

on lifestyle criteria, including young people and middle-aged people Launching newhealthy, calorie-restricted product lines on the market has helped this brand attract manpotential customers.

• Identify how the product benefits the target market and how the product currently performs tfulfill those factors Consider competitors’ offerings to assess performance (e.g., who are the competitors, what can they offer your customer, what are their price points)

• Diverse selection: Coca-Cola offers a variety of products to serve the preferences anneeds of its target audience in Vietnam In addition to Coca-Cola Classic, they also havCoca-Cola Zero Sugar, Coca-Cola Light, and many other soft drinks and drinks such aFanta, Sprite, Nutriboost, allowing customers to choose based on their taste anpreferences their own requirements

• Coca-Cola constantly contributes to the process of socio-economic recovery anddevelopment, as well as creating growth momentum in the new normal conditions inVietnam

• One of the typical activities is that Coca-Cola supports clean water sources for thecommunity and nature, more than the amount of water the company uses in thproduction of beverage products Together with partners, Coca-Cola also supports thinstallation of advanced water filtration systems at schools and the establishment osocial enterprises, also known as EKOCENTER, across the country, providing abou10 million liters of clean water free for 800,000 beneficiaries In addition, Coca-Cola'snewest factory in Long An, which started construction in October 2022, promises tobring many job opportunities and train a skilled local workforce With its modern production lines and smart design, the company will also contribute to the realizationof Vietnam's net zero emissions commitments by 2030.

• Compared to competitor Pepsi, Coca Cola's price is slightly higher In terms of the mainproduct, the classic flavor, it has the same price of 10,000 But based on the price ofbox of 24 cans, Coca Cola costs 540,000/barrel while Pepsi costs 216,000/barr el.b Media user profile:

• Use your target market profile to develop a media user profile

• Coca Cola through social networking platforms such as Facebook, Instagram, to colleopinions and feedback from users to gain a better understanding of customers' profiles ainterests, and learn how they interact with the company

• For example, Freestyle is an automatic soft drink vending machine, including many differenflavors of Coca Cola Users just need to spend money to freely mix all kinds of flavors to creaa "satisfactory" glass of water with their own recipe The machine allows users to choose fromore than 100 flavors, many of which are not produced in cans or bottles at all Launched 2009, Freestyle now appears in tens of thousands of restaurants, grocery stores, movie theaand other establishments across North America

• Data from Coca Cola shows that there are currently 50,000 machines in use, serving more th11 million glasses of water every day And this is the source of information from surveys ofmillions of customers using the device

• In VN, during Tet, coca cola consumption increases quite strongly, people tend to buy coccola as gifts because coca cola has images like swallow wings, peach blossoms, apricblossoms,

• Identify the types of media channels used and the frequency of use by your target market (e.what websites/apps do they visit, what blogs do they read, what type of information do thesearch)

• Determine the channels that are most likely to reach your target market and the tactics that amost likely to lead to purchase intention/action