I.

Company Background

Cola-Cola (Coke) was found on May 8, 1996 by Dr. John Pemberton in Atlanta, Georgia. It
was considered as an innovative and new type of beverage – a drink that is made by
combining syrup and carbonated water, it was known for being delicious and refreshing. it
also created different brands and beverages such as water, coffee, tea, juices, and hydration
drinks to cater the public demand.

Throughout the years, Coke had been a catalyst for social interaction and inspired innovation
such as having the empowering women, launching nutrition projects, by creating the Coca-
Cola Foundation and empowering racial equality.

II. Statement of the Problem

With the Senate Bill 202, how can coke align its core values of supporting local
communities to achieve more and to empower people by providing them access to equal
opportunities and become more inclusive with activism.

Marketing Objectives

● To embrace activism and make it part of the brand.

● Create a marketing strategy incorporating the social changes the people call for.
● Increase revenue while staying true to its values.
III. Areas of Consideration

A. Porter’s Five Forces Theory

Threat of New  Significant funding is needed for beverage companies

Entrants  Having a huge number of loyal customers that doesn’t
(Low) want to try a new drink.

Threat of Substitutes  There are several beverages that coke cannot cater, such
(High) as hot coffee, blended drinks, and the likes.
 Dislike of several consumers to the brand or to the
beverage itself.
 Consumers tend to not drink coke’s beverage due to its
stance; they may opt to buy the competitors beverages
that align with their advocacies.
Bargaining power of  Switching costs are not that high.
buyer  Since coke’s products are made to quench thirst,
(Low) individuals don’t mind the price, for they only buy small
volumes of its products.
Bargaining Power of  No supplier can switch away from coke easily due to its
the suppliers demand, the supplier may suffer loses if they intend to
(Low) manipulate coke’s raw materials for, they can easily switch
to another.
 Raw Materials used by Coke has a huge volume of
suppliers.

Competition between  Coke has been in an intense marketing and promotion war
existing players against Pepsi
(High)  More people are leaning with the companies in which
support the prevalent issues now, with that support they
mostly side with Pepsi since Coke do not make a stand
with the prevalent issues.
 B. PESTEL Analysis

Political Factors  Coke must research political trends for a new leadership
may affect Coke’s long-term plans
 It is crucial for coke to research about the policies in which
the government is keen on implementing.

Economic Factors  With growing the growing economic, most individuals have
more disposal income to indulge themselves to a coke
beverage, however more people are leaning to healthier
options.
 Rising costs of raw materials due to natural calamities may
affect the operations of Coke.
 Wage and Labor research must be done to bring down
unemployment rates.
Social Factors  Coke align itself to the mentality change of its consumers.
 Empower changes that has huge social impact such as
supporting innovations in controversial issues.
 Conduct research about the pressing social interests and
align Coke’s vision with it.
Technology Factors  Coke utilizes social media platforms to perform its
marketing campaigns to reach its target market. However,
Coke should research more about technological
advancements that may help them with production as well
as with their campaign.

Environmental Factors  Coke has been drilling off water taps to pump out
freshwater to use for production leaving the community
around it without steady freshwater supply
 It is crucial for coke to adapt smart water farming
programs to avoid backlash from the public.
Legal Factors  New Taxation laws such as Sin Tax laws must be
researched early on to know what its effect to Coke.
 Coke must provide protection to their employees to
prevent sanctions provided by the Labor Code.
 C. SWOT Analysis

Strengths Opportunities

1. Introduce new protects

1. Strong Brand Identity
2. Increase Social presence on social
2. Global Reach of brand
issues
3. Dominant player in the market
3. Develop new water supply that is not
4. Customer Loyalty
harmful to the environment
5. Superb Marketing strategy
4. Align the brand’s advocacy to
6. Established brand
support pressing social issues.

Weakness Threats

1. Health Concerns 1. Raw Material Shortage

2. Products not diversified enough like 2. Silence towards social issues
Pepsi 3. Indirect Competitions
3. Legal woes with health concern, 4. Environmental disputes.
intellectual property infringement and
labor disputes
4. Environmental Concerns

D. SWOT Matrix

STRENGTHS-THREATS
STRENGTH-OPPORTUNITIES
Activism may increase market
Alignment of Coke’s Brand with Activism
competitiveness

S1O2. Social Intervention S5T3. Marketing Campaigns

Coke should be more present and vocal With its outstanding marketing campaigns
about social issues. It also should make a and promotions, it may be used against
stand against issues that leaves a negative indirect competitors.
impact to the community.

S4O4. Customer Loyalty S3T4. Production Dominance

Customer Loyalty may be strengthened if Being one of the most dominant beverage
consumers feel like that, they are fighting a companies in the world – Coke’s production
good cause with the brand.
 S6O1. Diversity may put a strain in the preservation of the
Being an establish brand, product environment programs being held by
diversification may be of help to promote government and other agencies.
further the brand.

WEAKNESSES-OPPORTUNITIES
WEAKNESSES-THREATS

W3O1. Address Health and Social W3T1 Public Opinion

issues connected with the brand
Use the health concerns of the general
public into the company’s advantage by
researching ways to address them.
W2O2. Development of Plans for long term
sustainability
Develop water facility that doesn’t affect the Create programs in which are tailored to
supplies of the community outside the
production plants.
Support the public opinion on social issues
as well as concerns of the public against the
company, to induce brand loyalty as well as
to promote the awareness of the brand to
social issues
W4T4 Environmental Sustainability
the public’s concerns towards the company.

W4O3. Legal Activism

Improve the conditions of the departments
in which are prone to lawsuits as well as to
introduce solutions for the present
challenges

IV. Alternative Courses of Action

Alternative Courses of Action Pros Cons

ACA #1: Development a marketing plan  Increased  Expensive

in which capitalizes social issues and customer  Risky for making
induces the company to make a stand – support the stand may
its voice regarding the matter will be the around the affect the
driving force on why the customers world company revenue
loyalty be strengthened. More people will  Increase in
also support the brand for their feelings
are swayed by the stand of the company revenue
in the social issue.

 Research pressing social

matters this may help the
 It will be an  Expensive
marketing team plan out
advantage to  May result in
the possible ways to
the brand boycott
capitalize on it.
marketing
team on
which issues
to tackle
 It will show
key issues
that the
company
must stand
on

 Create Surveys in which

will show how many  This will
consumers will be  Expensive
provide the
affected by such stand – it marketing  Prone to false
should be created through team on who results due to
o Facebook Polls bots
is the target
o Twitter Polls groups to
o YouTube ads consider
Survey before
o Website Surveys making the
stand.

Aca #2: Make use of its core values as  Increased  Expensive – this
the highlight of the campaign in customer aca may entail
supporting social issues that matter. In support sponsorships to
such cases, like the situation of the around the the concerned
 Voting Rights Act coke should be world groups
providing support in that issue for it  Increase in
mirrors the values that Coke fight for – revenue
Empowering the people.  Boost of
morale
amongst the
workers

 Empowerment of Employees  May entail costs

 Reduced
through policies in which will due to adjustment
Labor
enhance their way of life
Disputes of the
 Low Attrition compensation
 Promotes
good brand
image

 Sponsor civic groups in which are  Good Brand

promoting change and  May entail cost
Image to the
incorporate such in the marketing public
plan of the company  Free
Marketing
promotion
from the
people who
the brand
had help.

V. Conclusion

Coca-Cola Company must market their brand as one of the companies in which
supports rights and advocate for a better world. It cannot go out in public giving support
to the issues regarding labor, discrimination, health concerns, and equality when the
company itself is plagued with the issues surrounding it. Coke should rebrand itself into
a company in which is socially woke about pressing social matters such as the Voting
Rights Act. It must also take it into consideration that by supporting the primary enablers
of labor, discrimination, health and equality disputes may drive loyal customer away.
VI. Recommendation

We recommend on using ACA#1 and ACA#2. The two courses of actions are
complements each other. ACA#1 may stand on its but using them both brings out the
best of each other. Consumer Sympathy plays a big role in brand loyalty. If the company
they choose to buy products for sympathizes with their advocacy it may drive them to
stay loyal to the product and further promote it.