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QUESTION 1:
Based on the case, briefly summarize the initiatives of Coca Cola? Why is it
necessary for a marketer like Coca Cola to take such kind of initiatives?
Answer: Coca-Cola is one of the most recognizable brands in the world with
a range of products, from water to juices and of course carbonated drinks, to
suit the non-alcoholic drinking needs of everyone. Among the many
initiatives that the company takes, one of the most important is that of social
responsibility; it must act in a sustainable manner so that people, partners
and the planet all benefit.
3. Developing partnerships
a. The Coca-Cola Company has developed partnerships with not-for-
profit organisations, industry peers, governments and
international agencies to pursue its environmental commitments.
This includes USAID with which it began the Global Community-
Watershed Partnership in 2005 and the Global Environment and
Technology Foundation. The company also helped form the
Global Water Challenge
Answer:
The initiatives that Coca-Cola has taken to carry out its corporate social
responsibility through effective water management is likely to affect the
brand image of the company by creating strong, favourable and unique
associations with the brand. This in turn should affect the brand knowledge
of the target customers and result in positive brand equity for the brand. The
method through which this occurs is outlined below;
The customer based brand equity model, commonly known as the CBBE
model, states that brand knowledge is an essential and important part of
creating brand equity. In fact brand equity is defined as the differential effect
that brand knowledge has on consumer response to the marketing of that
brand.
Brand awareness is related to the strength of the node in the mind of the
consumer and can be measured by the customers ability to identify the
brand under different conditions. This is an essential part of creating brand
equity but is not sufficient alone.
If we look at the Coca-Cola Company, the brand is one that is extremely well-
known and therefore at the forefront of consumers minds. The brand
awareness is already extremely high and so there is not much scope to
increase it. Thus, the company focuses on retaining current levels of
awareness and improving its brand image through various initiatives.
Coca-Cola uses its various marketing strategies to link strong, favourable and
unique associations to the brand. In this case, the company has taken
various initiatives which should succeed in affecting the brand knowledge of
consumers regarding the brand by improving its overall image in each of the
aforementioned 3 dimensions;
Thus, Coca-Colas brand image should improve with the strong, favourable
and unique associations created through this water management program.
This in turn, will have a positive effect on the consumers brand knowledge
and result in positive brand equity for the firm. The attitude of the Australian
customers to the social responsibility that Coca-Cola shows through these
varied initiatives should be positive and reflect the constructiveness of the
activities that the company is carrying out. Overall, the program should
create a more positive attitude for Coca-Cola.