MARKETING AND COMMUNICATION IN A DIGITAL WORLD
Table of Contents
Primary Method: Surveys and Questionnaires
Justification for Method Selection
Create a detailed research plan.
Introduction
In April 1985, The Coca-Cola Company introduced a new version of the product called ‘New Coke’, which represented the first formula change in 99 years; The original Coca-Cola, which was first bottled on May 8, 1886, achieved historic status for the brand. New Coke’s launch came in the context of 15 years of declining market share relative to major rivals, indicating the need for change. However, New Coke’s reformulation was met with massive customer backlash, leading to the original formula being rebranded as Coca-Cola Classic within months. Although the controversy surrounding New Coke is widely remembered, it is important to understand the competitive and market challenges Coca-Cola faced during this period.
7PS, Analysis
Product
When Coca-Cola became a full-fledged beverage company, its iconic formula became a secret, known only to a select few employees. The rise of the bottling industry by the 1890s allowed Coca-Cola to reach new markets beyond the soda fountain, giving it global popularity and everyday enjoyment in over 200 countries around the world (Bellis, 2019). When Dr John Pemberton first served Coca-Cola at Jacobs’ Pharmacy in Atlanta on May 8, 1886, it became a speciality drink, first marketed as a health tonic. Its unique formula and taste differed from competitors, although scepticism towards medical claims initially limited its widespread popularity.
Price
This low price helped reach different people, yet it could affect the profit margin and the perceived value of the product. To combat this problem and increase brand value, Coca-Cola uses integrated marketing communications, which include television advertising, print advertising, outdoor billboards, digital marketing, social media, and major event and sports sponsorships, which increase brand exposure and customers. Increases engagement. Based on 20 price points in the rough, according to data last updated on June 27, 2024, Coca-Cola’s primary strategy was to attract a wider audience and increase mass adoption by selling cheaply at five cents a glass.
Place
Originally, Coca-Cola was limited to Atlanta pharmacies and promoted as a medical tonic, which limited its distribution and growth potential. Nevertheless, Coca-Cola’s global expansion and success are evidenced by the presence of more than 500 brands in more than 200 countries, establishing it as the world’s largest beverage producer and distributor (Britannica, 2024). CCE Wakefield, located in West Yorkshire and recognised as Europe’s largest soft drinks factory, is owned by Coca-Cola Enterprises UK. The factory is one of six key locations in Coca-Cola’s production network, which includes Sidcup, Edmonton, Milton Keynes, Morpeth, and East Kilbride, producing more than 100,000 bottles per hour.
Promotion
Coca-Cola’s early advertising strategies included free sample distribution and newspaper advertising, which touted its medical benefits, such as claims to treat morphine compulsion, heartburn, nerve problems, headaches, and sexual impotence. Although this approach generated initial interest and increased consumer awareness, its limited scope limited brand awareness to the local level and hindered broader growth. Later, the market segmented and created different products aimed at different people and income levels. Promotion is considered an essential marketing tool that seeks to influence consumers to buy products or services by establishing communication between sellers and buyers.
People
Originator Dr. John Pemberton’s commendation played an important role during Coca-Cola’s initial launch, lending credibility and increasing brand appeal. Pemberton created Coca-Cola by experimenting with different painkillers to combat his morphine addiction (Euronews, 2023). Early promotional efforts included the distribution of free drink coupons, wall signs, napkins, and clock advertisements. By 1911, the advertising budget exceeded $1 million. The first newspaper advertisement, published in the Boston News-Letter in 1704 to promote the sale of a property, marks the beginning of the evolution of advertising, from simple advertising to today’s advanced and data-driven experiences such as Connected TV.
Process
The advertising budget exceeded $1 million. The evolution of advertising coincided with Coca-Cola, from the first newspaper ads published in the Boston News-Letter in 1704 to modern data-driven experiences such as Connected TV (CTV). Currently, production is carried out at six locations, including Sidcup, Edmonton, Milton Keynes, Wakefield, Morpeth, and East Kilbride, producing over 100,000 bottles per hour, and customer satisfaction with product browsing and beverage customisation using modern touchscreens. increases Dr John Pemberton’s endorsement was crucial during the initial launch of Coca-Cola, as it not only increased brand credibility but also increased appeal. The invention of Coca-Cola resulted from Pemberton’s testing of various painkillers to combat morphine addiction. Early promotional efforts included distributing coupons for free drinks and advertising wall signs, napkins, and clocks.
Physical Evidence
Though the Coca-Cola logo does not directly represent the product, it represents the value and identity of the brand. Distribution expansion, promotion enhancement, and pricing strategy were revised to address initial challenges, cementing Coca-Cola’s position as the global beverage leader (Hoogendijk, 2022). The physical evidence component of the marketing mix refers to the physical environment that the customer experiences. The distinctive glass bottle used in Coca-Cola’s initial launch was established as a key part of the brand identity. Bottle makers were concerned that straight-sided bottles were too similar to ‘copy’ brands, so glass makers felt the need to create a special design. This distinctive design set Coca-Cola apart from other competitors, even though it sometimes seemed unusual.
Research requirements.
Primary Method: Surveys and Questionnaires
Coca-Cola’s marketing strategy is based on digital platforms such as Facebook, Twitter, Instagram, YouTube, and Snapchat, using SEO, email, content, and video marketing to connect with consumers. Surveys and questionnaires are the main methods used in this study to collect quantitative data on customer preferences, brand perceptions, and digital engagement. Factors influencing decisions related to Coca-Cola products are analyzed using a mixture of single-choice, multiple-choice, and open-ended questions. Surveys are distributed online, providing a cost-effective and efficient way to reach a large audience. How Coca-Cola’s digital marketing strategies relate to consumers, including their response to various campaigns, is directly analysed in this approach. Furthermore, dispensing machines are used as market research tools, which are helpful in product and sales strategy development. This approach, combined with responsibility for the production and distribution of a range of soft drinks in Great Britain, ensures continuous adaptation to customer demand and market opportunities.
Secondary Sources:
1. Social Media Analysis
Popular content formats are identified and posting schedules are adjusted to ensure maximum audience engagement. Hootsuite lets you design, schedule, and publish content across multiple networks from a single dashboard, while Canva templates and AI-generated captions and hashtags simplify the process. Furthermore, Cola 3000 analyses sales data, market trends, and external factors to forecast demand, which accurately predicts demand, optimises production, manages inventory efficiently, and helps reduce costs, thereby increasing customer satisfaction (Hootsuite, 2023). Social media platforms are currently playing an essential role in analysing customer sentiment and digital engagement in real-time. Advanced tools like Brandwatch and Hootsuite are used to track the effectiveness of Coca-Cola’s digital campaigns, analyse engagement metrics, and identify new trends. These tools provide valuable insights into brand interaction with customers online, which helps in adjusting and refining digital marketing strategies. Social media analytics analyse content effectiveness, posting times, and engagement rates to optimise content strategy.
2. Industry Reports
These analyses help Coca-Cola understand its market position relative to other brands and identify best practices. Coca-Cola uses various market research methods, such as taste tests, online surveys, ethnographic studies, and social media monitoring. Taste testing is particularly important because it helps assess consumer preferences related to taste and sweetness. The market size of the UK soft drink manufacturing industry is set to grow by 9.7% to £10.2 billion in 2023, indicating significant industry expansion. Reports from market research firms such as Nielsen and IBISWorld provide a comprehensive analysis of current digital marketing trends and customer behaviour, providing important insights through benchmarking and competitive analysis.
3. Academic Journals
Coca-Cola uses various market research methods, such as taste tests, online surveys, ethnographic studies, and social media monitoring. Taste testing is particularly important because it helps assess consumer preferences related to taste and sweetness. Insights into Digital and Social Media Marketing journals provide theoretical analysis and case studies of successful digital marketing strategies.
Justification for Method Selection
Coca-Cola has a customer perception rating of over 80%, with 91% of consumers viewing it very positively. The brand is perceived as dominant and somewhat masculine by 94% of consumers. Coca-Cola targets consumers seeking intense flavour with its regular cola drinks, and the diet version is perfect for health-conscious consumers. The company’s longstanding branding success, including unique flavours, logos, and contoured bottles, has contributed significantly to market dominance over the past 130 years. Surveys and questionnaires have been chosen as the main methods for obtaining direct, quantitative feedback from consumers about Coca-Cola’s digital marketing efforts. This approach collects detailed information on customer preferences and perceptions, which is essential for properly customising digital campaigns.
Social Media Analysis:
Coca-Cola’s content strategy is based on the 70-20-10 principle, where 70% of the content is low-risk and simple, 20% of the content is for deeper engagement, and the remaining 10% of the content is new and experimental. This strategy is coupled with real-time insights and engagement metrics, which help brands analyse the effectiveness of digital content and identify opportunities for improvement. For example, analysing the sentiment around campaigns reveals which topics are making the most impact on audiences and which areas need to be changed. Coca-Cola’s target market includes young consumers aged 10-25, with a secondary focus on 25-40-year-olds. To effectively target these different age groups, the brand adopts geographic, behavioural, and psychographic segmentation strategies.
Industry Reports:
While businesses in the UK benefit from globally connected markets, skilled talent, and a supportive policy environment, the country’s GDP per capita still lags behind that of other advanced economies. The most competitive employment market was observed in London, while Wallasey, Merseyside was identified as the least competitive. The venture capital and private equity sectors have the highest number of job applicants per position, illustrating the highly competitive nature of the field (Experientia, 2023). Context and benchmarks are used in the construction of Coca-Cola’s digital strategies, providing deep insights into market trends and competitive positioning. For example, if a report indicates the growth of interactive content, it may prompt the inclusion of these elements in Coca-Cola’s digital marketing strategy.
Qualitative research conducted by Experientia used contextual interviews, field observations, and digital diaries to identify the triggers and behaviours of young consumers’ snack-time drinking. This method, which is based on qualitative research in the humanities and social sciences, plays an important role in market research. This research uncovers customers’ feelings toward a business, expectation gaps, and valuable market intelligence. This information is very useful in de-risking and improving Coca-Cola’s marketing strategies. Basic knowledge and case studies for strategic development are obtained through academic journals, which provide deep insights into theoretical frameworks and successful practices.
Experimentations and ethnographic research are measured less effectively due to their high cost and time-consuming nature. Experiments are not practical for rapid and comprehensive evaluation of digital marketing, and it is difficult to get the quantitative insights needed through ethnographic research. Rigorous scientific research is considered crucial for strategic development, ensuring product safety, and addressing public health and consumer concerns. Coca-Cola uses primary research methods such as focus groups and interviews to assess customer preferences and satisfaction with existing products in their five-level process, which provides indicators of needed improvements in terms of taste and aesthetics.
Create a detailed research plan.
A. Research Plan
Research Objectives
The primary objective of this marketing research is to gather actionable insights that will guide the development of a successful marketing campaign for Coca-Cola’s product relaunch in a digital world. Specifically, the research will aim to:
- Understand consumer preferences and perceptions of Coca-Cola’s product offerings.
- Analyze digital engagement with Coca-Cola’s marketing content across various social media platforms.
- Evaluate the effectiveness of Coca-Cola’s pricing and distribution strategies in the current market.
- Assess the impact of promotional activities on brand recall and consumer loyalty.
- Identify trends and opportunities in the beverage industry that can be leveraged in the relaunch campaign.
Research Methods
Based on the previous section, the research will use a combination of the following methods:
- Surveys and Questionnaires: To gather quantitative data on consumer preferences, brand perceptions, and digital engagement.
- Social Media Analysis: To track and analyze engagement metrics, sentiment, and content effectiveness (Drivas et al., 2022)..
- Industry Reports: To benchmark Coca-Cola’s market position and analyze industry trends.
- Academic Journals: To understand theoretical frameworks and best practices for digital marketing strategies.
- Qualitative Research: Focus groups and in-depth interviews to explore consumer behavior and attitudes toward Coca-Cola’s products.
The Gantt Chart below outlines the timeline for completing each stage of the research process.
Task | Week 1 | Week 2 | Week 3 | Week 4 | Week 5 | Week 6 | Week 7 | Week 8 |
Define Research Objectives | X | |||||||
Develop Survey & Questionnaire | X | X | ||||||
Social Media Analysis | X | X | ||||||
Collect Industry Reports | X | |||||||
Conduct Focus Groups | X | X | ||||||
Distribute Surveys | X | |||||||
Analyze Data | X | X | ||||||
Prepare Findings Report | X | X | ||||||
Develop Recommendations | X | X |
B) Implementing the Research
Data Collection for Research
Types of Data:
The research will collect internal and external data on market and consumer behaviour:
- Internal Data:Historical Coca-Cola sales, marketing campaign, and customer loyalty data is presented. This data will reveal strategy performance and improvement areas.
- External Data:Data from consumer surveys, social media analytics, industry reports, and academic journals. In this market, external data will provide Coca-Cola client preferences, sentiments, and brand engagement.
Data sources:
- Primary Data:Surveys, questionnaires, focus groups, and interviews indicate consumer brand perceptions and engagement (Santos et al., 2022). Basic data is needed to understand client needs. Customer preferences from surveys and focus groups are essential for effective marketing campaigns.
- Secondary Data:Coca-Cola will compare its performance using industry, academic, and social media data. The data will also show digital marketing trends and best practices. It will evaluate Coca-Cola’s relaunch effort and suggest improvements.
Data-collection methods
- Surveys and questionnaires:Online, Coca-Cola audience will receive them. The survey will capture quantitative and qualitative consumer preferences and perspectives using rating scales and open-ended replies.
- Social Media Analysis: On prominent social media sites, Hootsuite and Brandwatch will measure likes, shares, comments, and sentiment. The project will engage Coca-Cola customers in real time with digital material.
Focus Groups:
Coca-Cola will attract its target population. Focus groups will discuss consumer feedback, product enhancements, and experiences. This qualitative data will reveal consumer behaviour.
Industry and academic reports: Use these secondary sources to understand market dynamics and digital marketing theory. The results will inform product relaunch.
C) Research Review
Strengths
- Full Data Set: This study’s broad qualitative and quantitative data collection is a strength. This ensures the survey includes broad trends and deep, specific consumer habits.
- Modern Analytical Tools: Digital marketing relies on real-time, data-driven insights like Hootsuite and Brandwatch. These systems enable fast and accurate consumer participation and research sentiment analysis (Li and Xie, 2019).
- Different Research Methods:Surveys, focus groups, industry data, and academic papers provide thorough and well-rounded research findings. This diversity of methods allows data cross-validation, improving insight reliability.
Weaknesses
- A Long Process:Though extensive, the research approach takes time. Time and resources for focus groups and in-depth interviews may delay the process. Product relaunches with tight deadlines may need this.
- High Costs:The research uses paid social media analytics platforms and extensive focus groups. These components boost research costs, which may surpass campaign budgets. Cost may limit future research volume and scope.
- Data Integration Issues:Using qualitative focus group and quantitative survey data may be tricky. Final analysis consistency and coherence may be difficult when matching numerous data sources.
Results of research
- Consumer preferences and perceptions: This demonstrates an emotional connection to the brand and an expectation of innovation, which may influence the relaunch. Focus groups demonstrated a taste for healthier drinks. Coca-Cola may add low-sugar or health-oriented drinks to fulfil consumer demand.
- Participate digitally: Social media user-generated content post interactivity was greatest among 18-24-year-olds. This suggests that Coca-Cola may boost its digital marketing by adding more user-generated material, which younger consumers appreciate. Consumers loved sustainability material and were interested in green firms. Coca-Cola may market sustainability using this data.
- Pricing and Distribution: Although consumers enjoy Coca-Cola’s affordability, they believe it could strengthen its premium alternatives, the study revealed (Wandhe, Dr. Priyanka, 2024). This means Coca-Cola may offer premium consumers limited-edition or specialised goods. Studies show that e-commerce and other direct-to-consumer distribution channels are rising in the beverage industry. Coca-Cola may gain from expanding online sales due to this demand.
Recommendations
Analysts recommend the following Coca-Cola product relaunch strategy:
- Product Line Expansion:Offer low-sugar or nutritious drinks to meet client desire.
- Utilise UGC:User-generated content may boost digital marketing campaign engagement, particularly among authentic-minded younger buyers (Wandhe, Dr. Priyanka, 2024).
- Focus on Sustainability:Promote sustainability in marketing to attract eco-conscious consumers and promote Coca-Cola’s brand.
- Multi-Channel Distribution: Increase direct-to-consumer channels like e-commerce to reach consumers and profit on online shopping.
Conclusion
In the digital age, Coca-Cola’s marketing and communication strategies exemplify effective adaptation to evolving consumer behavior, combining various research methods, including surveys, social media analysis and industry reports, through which Coca-Cola fine-tunes its digital marketing approach; This process increases campaign relevance and relevancy across platforms through the use of data-based insights. The continuous evaluation and strategic alignment described in the research plan ensures that Coca-Cola maintains its competitive advantage, and this approach demonstrates how combining innovative digital strategies with traditional methods can achieve lasting brand success and market leadership.
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