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Group 6: Cindy S. Wijaya (06) Fajar Sasmita Wulandari (12) Linda Setyawati (18) Zalina (24) Reference: http://www.mobilemarketer.com/cms/news/advertising/4948.

html http://www.underconsideration.com/brandnew/archives/coca-cola_vs_pepsi_revised_edition.php http://www.articlesbase.com/management-articles/coca-cola-marketing-2124317.html Coca Cola Marketing A. Past and current advertising campaigns within Coca Cola The coca cola company was invented by John Pemberton in 1886. During these years Pemberton advertised at a cost of 77 dollars while his profits amounted to 50 dollars only and this led to a loss and he was forced sell a portion of his company, due to this he sold a portion of the company to Candler who later acquired the whole company. Coca cola brands are sold in over two hundred countries and have over 6 billion consumers all over the world. The company today is worth approximately 60 billion dollars as per the stock market. This growth in worth and in terms of market share has been attributed to advertisement strategies that the company has adopted over time. Advertising in these early years of the company was done on billboards and newspapers, the newspapers had a coupon which consumers would claim a free drink at any distributor, this was one of the methods that led to the success of the company in those years Candler sold the company to Ernest Woodruff who later gave the company to his son Robert Woodruff, Robert had very influential marketing strategies, and he focused on contributing in colleges, universities and organisations, despite never leaving any name for the contribution this really increased sales level of the company, radio advertising of coca cola started in the year 1930 and in 1950 coca cola started advertising its product on television. Christmas promotion of the company started in the year 1931. This involved the use of coke Santa to promote the product in the market. From the above marketing strategy discussed it is clear that coca cola advertising first started advertising through bill boards and newspapers and as technology advanced the company further started advertising over the radio and television. Other changes were made to the product and this include branding, the packaging of the companies product has evolved through the years example in 1923 the six bottle carton was introduced, in 1960 the coke can, in 1915 the contour bottle and in the 1978 the two litre bottle. In 1985 however the company tried to change its formula and its royal customers reacted negatively to this change, the company planned on introducing a new product for the market but this failed and the company lost its market share to other companies such as Pepsi, realising the mistake the company switched back to its original formula. The company has also tried to market itself through the sponsoring of sports activities, over the years the company has sponsored the Olympics and other sporting activities and this is how they have been able to achieve popularity all over the world because today the company sells its products in over two hundred countries, other sporting activities that the company has sponsored include the NBA, NASCAR, NCAA, FIFA world cup and the English Football League. One of the major competitors of the coca cola company is Pepsi, Pepsi was invented by Caleb Braham in 1890, and Pepsi was advertised in newspapers starting 1929 where its advert unlike the coca cola promotional coupon the Pepsi company advert portrayed a race driver as a bully drink before a race. In 1929 the company went bankrupt and it was sold to Roy Megargel and again in 1937 and it was sold to Charles Guth, the rise in sales level of the product of the company was as a result of a cut in the price of drink by half and this was made public through a radio advertisement, the reduction in price led to a substantial increase in popularity and sales level. The Pepsi advertisement campaign was different in the 1940 where the company realised that adverts ignored certain groups in the society, Pepsi targeted the African American community, this helped create a niche market for their product, however in 1950 the adverts failed following a criticism that the drink was only meant for a certain group in the society.

Both companies therefore used the same marketing strategies although coca cola succeeded in creating a drink for all, although the coca cola company failed in changing the formula for its drink in the past it has maintained the lead in the soft drink market. However this shows how the advertisement and marketing strategies have evolved over the years, today both companies have still maintained television and radio advertising and also the sponsoring of sport activities. B. Coca Cola approach to advertising Advertising has played a major role in marketing products of the coca cola company, the use of radio advertising has been one of the oldest means of advertising used by the company, the main aim of this type of advertising is to reach a large portion of the population, the mass media is a means of shaping the popular culture of the population and if people are changed to think that drinking coca cola drinks is the way of life then the advertisement is successful. Television advertising is another means of advertising, this form of advertising is a more expressive form due to the use of both sound and film, the aim of this form of advertising is convince and persuade the consumers that coca cola is the number one drink and it is the only refreshing drink. Other adverts by coca cola involve the mixing of the brand with football, the company realises that there are very many football fans and for this reason they advertise their product using the game. The use of testimonials is one of the best methods used in advertising, this is the use of famous people to advertise the product and for this reason the consumers will transfer the feelings of those people into the product. An example is where Pepsi uses a popular race driver to advertise its product as a way of gaining advantage over its rival. Coca cola has also used the coke Santa during Christmas period as a way of creating a positive opinion over its products. The use of band wagon is another form of advertising strategy, this strategy is aimed at showing the consumers that the product is number one and because consumers always want to be on the winning side they will purchase the product, this has been used by the coca cola company whereby in its advertisement the company tends to portray that it is the number one drink and that it is the largest company in the world. Name calling is also another form of strategy used in advertising, it involves the use of negative labels on competitors in order to place them in unfavourable position, this is evident in the coca cola case whereby it changed its formula and Pepsi used this opportunity to show that coca cola was only aiming at making its drinks taste like Pepsi. The use of Glittering generalities is another form of advertising strategy, this involves the use of appealing words which look attractive, advertisements are prepared in such a way that they are appealing to the genera public, example in the coca cola company a 1970 advertising campaign used a song that had such words as "perfect harmony". This word phrase has no much meaning but it sounds attractive, for this reason therefore the company over the years has used this strategy to win a larger market share. The company therefore tend to show the consumer that their products are the most widely consumed and that it is the number one product, it also tends to show that their products are the best, other products tend to be on the losing side and because consumers want to be on the winning side they will choose the product. The use of popular people such as football players and the sponsoring of such events tend to place the drink in a better position because people tend to transfer their feelings toward their heroes into the product. Concluding the advertisement strategy analysis it is clear that coca cola has achieved its objectives, it acts as a monopoly in most countries as the provider of soft drinks, the change in the formula in the early years led to a mass protest that oversaw the company switching back to its old formula, this shows that the product has royal consumers who prefer the drink over other products. Advertising have played a major role in the success of the company and technological advancement have led into even more success to the company. C. The company's future advertising Advertising involves the persuasion and informing consumers on the available products, the company has not succeeded in the use of card slacking in its advertisement campaign, card slacking is the use of facts to convince the consumers that the use of the product will result into certain advantages, example a company would state that it had been proved that the consumption of product A has resulted into the reduction of the occurrence of disease B. the coca cola may state that their drinks are refreshing and an individual will gain essential nutrients but they do not provide information on what other facts on advantages gained from the consumption of their product. For example a coca cola brand may be said to reduce hangover after a drinking spree and this would really increase the consumption level of the product, this message should be used to market the product and

the facts being provided about the product should be those aimed at solving problems faced by the masses. Market segmentation has not been of much emphasis in the company, the company should subdivide its market and provide products that meet special needs of its products, this is already evident in the fast food market whereby purchases can be made online and delivery is made within a few hours, for this reason therefore the company should try to make products that are to be consumed by specific groups and also that the price level should differ depending on the market segment. Advertising should also be accompanied by promotional activities that are offered by the company, in most cases advertisement only inform the consumers but promotions such as periodical price cuts of the product are not included in this adverts, example buy one coke and get one free are not evident in the companies strategy, this would be a means in which to share with the customer the profits made by the company. This is possible because in most cases the advertising costs are even higher than the production costs, most of the funds are used up in advertising. Other forms of advertising should include extensive internet advertising, due to the changes in technology many companies have decided to advertise online but coca cola tends to lag behind in this strategy, there should also be the extent to which one can purchase and order products online and delivery made at home like in the fast food industry, for this reason therefore there is need to change the mode of advertising and adopt with the current change in the world today. Having considered the above discussed likely solutions to improve the current advertisement strategy there is need for the company to involve the card slacking technique in their advertisement, this should involve providing facts to the consumer regarding the advantages gained from drinking the products, this benefits should not only be monetary gains through discounts but also gains in terms of health and also to solve certain problems, when consumers are provided with this information then the ales levels will definitely rise and this will create a niche market. Coca-Cola: Mobile integral to 360-degree marketing strategy Sprite lets the ZOOZbeat drop The Coca-Cola Co. has launched an application to promote its Sprite brand, emphasizing that mobile has become an integral part of its 360-degree marketing strategy. Sprite has teamed with Zooz Mobile Inc., developers of a mobile music studio application, to launch Zoozbeat Sprite, the first iPhone application to be offered through Sprites ongoing Under the Cap promotion. Whenconsumers enter Sprite cap codes via text message, they receive mobile rewards, including the new Sprite-branded, music-focused Zoozbeat application. If youre a smart marketer today, you have to be looking at all the different ways you can communicate with peopletraditional, in-store, out-of-home, online and mobile, said Susan Stribling, Atlanta-based spokeswoman for Coca-Cola North America. You have to be tapping into all of the resources you have available. Since the Sprite brand is focused on youth, we want to focus on mobile in particular, and this is the first big Under the Cap program weve launched in the U.S., which were looking to grow moving forward, she said If youre not taking that 360-degree approach today, then youre not marketing effectively. The Coca-Cola Co. is the world's largest beverage company, with nearly 500 sparkling and still brands. The company's portfolio includes Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid and Georgia Coffee. Zooz Mobile is the developer of Zoozbeat, a music recreation and remix studio. Zoozbeat has been downloaded more than 1 million times since launching in the Apple App Store in November 2008. Sprite recently signed on as the applications sponsor. The ZOOZbeat Sprite app is intended to engage young multicultural consumers Sprite targets music-lovers with iPhones Zoozbeat Sprite transforms iPhones into mobile music studios, letting users create their own tracks with downloadable beats and samples from music producers and artists such as Dallas Austin. Zoozbeat Sprite works by shaking, tilting or tapping the iPhone screen to create and combine rhythmic and melodic tracks that can be uploaded to the Web for listening and sharing in mp3 format with friends. Users can unlock additional beats within the application by twisting the cap off any Sprite or Sprite Zero bottle and texting in the keyword ZOOZ followed by the code under the cap. Sprite will then provide consumers with a Zoozbeat Sprite code that can use be used to unlock more

beats. Additional artists being featured on the Zoozbeat Sprite application include hip-hop producer Khayree, Alex Christie, SY Scott, Novel, Sheed, Laron Brant and Spree Wilson. The target demographic for the iPhone application is the same as overall target demographic for Spritemulticultural youth ages 13-24. First and foremost its music, and music is something thats very appealing to young people, Ms. Stribling said. This is something thats completely on the go and accessible via their mobile phone, and young people have their iPhones attached to their wrist, so an app was a natural fit for that consumer. Coca-Cola will run mobile advertising across the mobile Web sites and within other iPhone applications to promote Zoozbeat Sprite. Coca-Cola vs. Pepsi

In the last couple of weeks, a JPG has been making the internet rounds and, in the process, has gathered more than 6,500 Diggs (not that that is any measure of successful success, but still) and has been mentioned in dozens of design and culture blogs, including many which I frequent and respect. The problem is that the JPG is wrong and disingenuous. It comparatively illustrates the evolution of the Pepsi and Coca-Cola logos from their beginnings in the late nineteenth century to their current state at the end of the 2000s. The comparison chart mocks the ever-changing personality of the Pepsi logo in contrast to Coca-Colas stoic script logo, unaffected by the effects of time. The philosophical point it makes is indeed funny and, for the most part, accurate: Coca-Cola has long been the steady brand that triumphs over Pepsi as the latter attempts to gain ground with brand gimmicks and changes. And I will be the first to admit that the Coca-Cola logo and its consistency over the years is far more supreme than Pepsi, but every time I saw this JPG come up in more and more web sites and blogs I couldnt help but cringe at the inaccuracy and deception it engenders.

Pepsi vs. Coca-Cola Logo Evolution chart with a fat X from Brand New. True, no one will die and the lasting effects of this JPG mean nothing, really. But I felt a burden of duty to correct a few things. The biggest problem is that the chart puts the same logo in 1885 as it does in 2008. This is not only wrong but idiotic. Technically, the Coca-Cola logo as it exists today can not be replicated with the tools of 1887 which, by the way, is the year the script logo was introduced. Not 1885. Coca-Cola was first served in 1886 and even then, the first official logo of Coca-Cola was not the script logo. It first appeared in the Atlanta Journal Constitution in 1886 as both a slab serif and chunky sans serif it wasnt until mid-1887 that Frank Robinson, Coca-Colas bookkeeper, drew the first traces of the Spencerian script logo that we all know.

First Coca-Cola logo appeared in the Atlanta Journal Constitution on Saturday May 23 1886. The chart, for comic and poignant effect, then leaves a 120-year gap between the first and last logos. It makes for a great viral JPG, but not for telling the real story. For the first ten to twenty years you could probably find a dozen different executions of the Coca-Cola script as the logo was probably drawn over and over for different applications. It isnt until the 1930s and 1940s that a clear interpretation of the logo appears and is used consistently. During the late 1950s and early 1960s the script logo is placed within a shape, referred to as the fishtail logo, which is as off-brand as anything that Coca-Cola has ever done. The chart also fails to mention the introduction of the wave, a ubiquitous visual today, that was first implemented in the 1960s when Lippincott Mercer was in charge of making the Coca-Cola identity more consistent. More than any Pepsi blunder, the chart ignores the introduction of New Coke in 1985 with a new formula marketing and set of logos that completely ignored the script logo that left a bad taste in their consumers mouths. Around the same time, in 1986, Landor began rolling out an even more developed brand identity that modified the wave among other subtle changes. Missing from the chart in the Coca-Cola evolution is the penchant for Coca-Cola to use the shape of its bottle as an icon, acting on and off as the logo or complementary logo or subsidized logo of the main script logo, sometimes to a confusing fault. Todays Coca-Cola logo is, of course, amazingly similar to what it was 124 years ago but its not quite fair to idolize them for a flawless consistency that they havent actually earned. Once more, I will say that the Coca-Cola evolution is admirable and few companies probably just GE can claim to have extended their identity heritage across three centuries, but Coca-Cola isnt perfect and as much as I despise the new Pepsi identity which in no way am I trying to defend I believe a fair comparison is in order. So, here is the new chart. Its not ideal, since I didnt have a document as clean and specific as this one for Pepsi (scroll to last page of PDF) and I had to cobble the logos from different sources. The reds are all over the place and some are in black and white.

Selling and Marketing Candles (Part 2) One of the most appealing things to me has always been the ability for a candle company to compete in certain markets, regardless of its size. Even the smallest candle maker has the ability to succeed because of their personal attention, potential for offering a wide range of fragrances and colors, and their ability to react to small orders in a rapid manner. When starting out it would be best to service local accounts--your small gift store, family-owned pharmacies, furniture stores and even consignment shops. These are always a good starting point. By selecting local markets, you have the ability to deliver the product, thus eliminating freight cost (this will be covered later). You also have the ability to work out arrangements with the owner to track their inventory level. And finally, many of these types of business enjoy the fact that the candles are made locally and they will promote that fact. You may want to look at local craft and art shows also. This is always a good starting point to build local interest in your products.

A well designed web site is always a good idea too. However, keep in mind that many candle companies have their own web site, thus it is hard to get your product in the forefront. A good source for selling candles is through fund raisers with local organizations. This is a win win situation for both parties since payment typically is received at the time goods are sold. This lets you start to build a local following in the community with the fund raising organization serving as sales representatives. The good thing is that after the event is over, many people still will be interested in purchasing your candles. One critical element is not to over extend yourself or take on orders that are well beyond your production capability. While it is always very appealing to have your product accepted into mass retailers, it can hurt a growing or small company. In many instances it is very difficult for smaller companies to have the same purchasing power as the larger ones when purchasing the waxes, scents and colors. It comes as a shock to many candle companies that when making a highly scented candle, the scent can cost more than the wax itself. Selecting the percentage of scent used and where you purchase your scents is critical in controlling cost. The determination on how much scent to use is almost always a personnel preference decision. During this determination process, you should keep in mind that scents do have a point of diminishing return. This means you could probably get the same scent throw with 6% as you would with the 8% scents. However, this difference will make a sizeable impact on the cost of the finished candles. You should go through this process with each fragrance you use. As you probably have found, certain fragrances by nature are stronger than others, i.e. cinnamon, mulberry and French vanilla all have a tendency to have a stronger impact. When possible you should buy the largest quantity available (price breaks are generally found at 25 pounds and 55 gallon drums) to obtain the best pricing levels. Sometimes, this can be difficult when buying fragrances that do not sell as well as your more popular ones. When purchasing waxes, you have two options--blends or straight paraffins. You should select the one that works better for you at the most efficient price. Once you have selected your wax, one of the key aspects is shipping. It is important that you control this aspect as much as possible. Undoubtedly, the price per pound for shipping wax is much higher than most other products. Therefore, it is important that you look at each pricing level when making that determination. You may have to purchase more up front but you will save both on the discounts offered on the wax and the shipping. For example 200 pounds of wax shipped at one time is approximately 16% less than if you were to get 2 shipments of 100 pounds each. If you are able to take 500 pounds it is 45% less for shipping than if you took 5 shipments of 100 pounds! Once you get over 500 pounds, you should look at cost comparison from UPS or Federal Express to common carriers. In some zip codes you can get very good rates from trucking firms. To summarize some of the points identified, it is imperative that you review all costs--both direct and indirect costs. Some of your indirect costs will include items such as inner/master cartons, labeling requirements, skids and utilities. While individually they are not a lot they can add up over a number of candles.