0% found this document useful (0 votes)
5K views17 pages

Case Study HND II

This document provides information about advertising case studies. It defines a case study as an in-depth analysis of a person, group, or event that seeks to understand behavior through examining nearly every aspect of the subject. Case studies are useful in various fields including advertising to demonstrate how objectives were achieved, challenges overcome, and successful results obtained. The document then provides two examples of advertising case studies that describe campaigns run by dental clinics to attract new patients through direct mailouts and incentives.

Uploaded by

SOMOSCO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
5K views17 pages

Case Study HND II

This document provides information about advertising case studies. It defines a case study as an in-depth analysis of a person, group, or event that seeks to understand behavior through examining nearly every aspect of the subject. Case studies are useful in various fields including advertising to demonstrate how objectives were achieved, challenges overcome, and successful results obtained. The document then provides two examples of advertising case studies that describe campaigns run by dental clinics to attract new patients through direct mailouts and incentives.

Uploaded by

SOMOSCO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Introduction to Case Studies: Discusses the concept of case studies as in-depth analyses of subjects, and introduces advertising case studies that explore agency achievements.
  • Types of Advertising Appeals: Explores various advertising appeals including musical, sexual, humor, fear, and rational methods utilized to influence consumer decisions.
  • Creating and Using Effective Case Studies: Provides guidelines on developing and utilizing case studies to enhance advertising strategies.
  • Writing Advertising Case Studies: Offers comprehensive insights into crafting compelling case studies with focus on proposals, solutions, and identifying audience needs.
  • Coca Cola Case Study: Examines Coca Cola's advertising and sales strategies, challenges faced, and proposed solutions, emphasizing their branding and marketing techniques.

ADVERTISING CASE STUDIES

MAC 424
HND II MASS COMMUNICATION

Aliyu Damri
Department of Mass Communication
Abdu Gusau Polytechnic
Talata Mafara

1
The Term Case Study:

A case study is an in-depth study of one person, group, or event. In a case study, nearly every
aspect of the subject's life and history is analysed to seek patterns and causes of behaviour.
Case studies can be used in various fields, including psychology, medicine, education,
anthropology, political science, and social work and advertising.

The purpose of a case study is to learn as much as possible about an individual or group so
that the information can be generalized to many others. However, case studies tend to be
highly subjective, and it is sometimes difficult to generalize results to a larger population.

Some of the advantages of a case study is that it allows researchers to investigate things that
are often difficult to impossible to replicate in laboratories; allows researchers to collect a
great deal of information; give researchers the chance to collect information on rare or
unusual cases and permits researchers to develop hypotheses that can be explored in
experimental research

However, case study has shortcomings including: case study cannot necessarily be
generalized to the larger population; case study cannot demonstrate cause and effect; case
study may not be scientifically rigorous and a case study can lead to bias.

Researchers may choose to perform a case study if they are interested in exploring a unique
or recently discovered phenomenon. The insights gained from such research can help the
researchers develop additional ideas and study questions that might be explored in future
studies.

However, it is important to remember that the insights gained from case studies cannot be
used to determine cause and effect relationships between variables. However, case studies
may be used to develop hypotheses that can then be addressed in experimental research.

Advertising Case Study:

An advertising case study describes how an advertising agency can achieve its
marketing objectives, overcome challenges, and attain successful results. Case
studies are therefore applied by organizations in the sales process and demonstrate
their skills, capability, and approach and to show how they are dealing with

2
customers. The case studies can be useful in print, on your website, in your
advertising kit and when sales staff is meeting prospective companies selling those
spots.
When it comes to effectiveness, case studies are considered superior selling tools
than testimonials and because they contain specific information describing, how a
company solved marketing and advertising problems.
In most cases, advertising case studies encompass impressive features that have
great and impressive details. As such, they must be very captivating to the reader.
The study can be more on the best marketing tools that adopt new channels to
generate the much-needed leads. Remember you are advertising to attract more
potential customers.
Talk about the “who” more than the “what.” For instance, it can be a case about
segmentation solution that they can implement. As such, the strategy would be to
target a niche audience via sharable content. Most of the client’s success story in
the advertisement world is big on return on investment and rates of conversion.
However, the design has to be right in this scenario.
The Advertising Appeals
Advertising appeals are used to influence the purchasing decisions of consumers:

 Musical Appeals:

Music can help to capture the attention of a listener because music is often linked to
emotions, experiences, and memories, grabbing the attention of those not previously engaged.
The use of musical appeals allows for a connection between the product or service and a
catchy jingle or piece of music. As an example, Nationwide Insurance uses the well-known
'Nationwide is on your side' jingle as an appeal. And since these musical memories are often
stored in the long-term recall areas of the brain, many consumers remember the jingles for
extended periods of time. The selection of music can involve an already familiar tune or can
involve the creation of an original composition specifically for the ad.

3
 Sexual Appeals:

Sexual appeals provide another method for breaking through ad clutter. Nudity and other
sexual approaches are common and are often employed using various methods. By using
subliminal techniques, the advertisement attempts to affect a viewer subconsciously. For
example, an advertisement may use sexual cues or icons in order to affect the viewer's
subconscious, which is seen in ads where men purchase beer in order to gain the attention of
an attractive woman.

Likewise, nudity or partial nudity are often used to promote the sale of items such as
perfume, cologne, or even clothing. Other techniques include overt sexuality, which is often
used in ads for products that are sexual by nature, sexual suggestiveness, and sensuality. It
should be noted that while ads that use sexual appeal do attract attention, there tends to be a
lower level of brand recall than with other appeals.

 Humor Appeals:

Humor is a proven appeal type for grabbing attention and keeping it. When consumers find
something humorous, it has value because it causes them to watch, laugh and, most
importantly, remember. By capturing the viewer's attention, humor appeals cut through
advertising clutter and allow for enhanced recall and improved moods; consumers who are
happy associate the good mood with the product and service. E-Trade's talking baby ad
campaign provides an example of this appeal, with a goal of attracting viewer attention
through humor. However, humorous ads can be tricky to design because those that aren't
received well result in only the ad being remembered, rather than the product or brand.

 Fear Appeals:

appeals are widely used because they simply work. Fear can increase a viewer's interest in an
advertisement and can heighten persuasiveness, causing consumers to remember these ads
more so than upbeat, warm ads. Fear appeals fit particularly well with certain types of goods
and services, particularly those products that Fear can eliminate threats or provide a sense of
personal security. For example, fear is often used in insurance company ads, focusing on the
consequences of an untimely death. Or, a mouthwash ad can invoke a fear of bad breath.

4
 Rational Appeals:

Rational appeals place emphasis on facts, details, and product benefits. The goal is moving
from product awareness and knowledge to liking, product preference, conviction for the
product and, finally, purchase. By transmitting basic product information, a rational appeal
provides product knowledge. In order to promote liking and preference, a rational appeal
provides logical reasons as to why a particular brand or service is superior to another.

Advantages of Using Advertising Case Studies:


Case studies have been used in different areas. When it comes to advertising case
studies, several benefits abound. They include:
Creating helpful resources for sale:
Case studies are great collateral for sales. If you have a system for marketing
automation, you can include case studies to your drip campaigns to send your
prospective customers examples of how to use your products. This can help sales
members close many deals.
Identify Your Brand Evangelists:
When you create a case study, you have to approach your clients and ask for their
participation. This can lead you to people who are willing to be brand
ambassadors. If you have customers who can vouch for you, then your products are
meant to make inroads into the market.
Turning Your Product or Service in to a Story:
Case studies use a typical format that introduces your clients, tells you about the
conflict the face, and provides you with a solution. Make customers the heroes of
this story and let them see how your product is going to help them in saving the
day.
As such, advertising case studies are crucial in getting the brand of a product
forward.
Advertising Case Studies Exampes:

Advertising Case Study Example #1


CampaignName:
Direct Mailout advertising New Patient Promotions
Duration:
February 1, 2012 – March 31, 2012

5
Objective:
The goal for the dental clinic was to effectively differentiate itself from local competitors
through print, website and direct mail.
Strategy:
The Campaign was created to reinforce awareness of Maple Place Dental’s community
presence, while simultaneously advertising the exclusive availability of Air Miles reward
miles. The prime objective for the dental clinic was to dominate the local marketplace in
order to increase brand awareness and new patient promotion, while also informing local
residents about child sedation.
Results:
From the direct mailout alone, the dental clinic received well over 40 new patients. The
marketing tools and communication efforts were incredibly effective in driving sales,
introducing new services, driving traffic to social media and keeping existing patients
engaged.
Advertising Case Study Example #2
Brand:
Langley Dental Clinic
Campaignname
Free Incentive with New Patient Appointment
Duration:
November 1st – December 30, 2011
Objective:
A Langley Dental Clinic wanted to create a print and digital media campaign as a marketing
vehicle to increase brand awareness and stimulate new patient flow. Through a variety of
integrated creative content, the campaign worked to reinforce awareness of the Dental
Clinic’s signature branding messages and key services.
Strategy:
The goal for the dental clinic was to effectively differentiate itself from local competitors
through print, social media, website and direct mail.
Results:
At the end of the promotion, the Dental Clinic had increased its patient base by 412.6%. In
addition, their Facebook page received over 150 new “Likes” while their website received
over 250 new unique pageviews.
The marketing tools and communication efforts were incredibly effective in driving sales,
introducing new services, driving traffic to social media and keeping existing patients
engaged.

Sources of Data for Advertising Case Studies:

There are a number of different sources and methods that researchers can use to gather
information about an individual or group or a company. Six major sources that have been
identified by researchers are:

 Archival records: Census records, survey records, and name lists are
examples of archival records.

6
 Direct observation: This strategy involves observing the subject, often in
a natural setting. While an individual observer is sometimes used, it is
more common to utilize a group of observers.
 Documents: Letters, newspaper articles, administrative records, etc., are
the types of documents often used as sources.
 Interviews: Interviews are one of the most important methods for
gathering information in case studies. An interview can involve structured
survey questions or more open-ended questions.
 Participant observation: When the researcher serves as a participant in
events and observes the actions and outcomes, it is called participant
observation.
 Physical artifacts: Tools, objects, instruments, and other artifacts are
often observed during a direct observation of the subject.

Using and Promoting Case Studies in Advertising for Maximum Effect:

You can use case studies in myriad of ways. When thinking about how to use case
studies in advertising, get creative. Don’t just park your case study on your website
—though you can certainly make it available there. Use it in your interactions with
customers, in your sales pitches and in your marketing kits.
Give prospects every opportunity to find and read it by promoting your case
studies in these ways:

1. On your website:
Promote your case studies on your website. Place a teaser—this could be a callout
with a call to action—and a link to your case study right from your home page.
Anyone considering your services will be interested in clicking through.
Or dedicate a full page to promote your case studies. For each, include a headline,
summary and perhaps a callout, with a call to action.
Relevant case studies are also great content for landing pages. Consider the value
of a credible and substantial testimonial right on a sales page for your services.

7
2. On your blog
Promote your case studies through your blog. Tell your audience about your
recent success. Use your own voice to tell the story behind the story and highlight
the strategy behind your customer’s success. As when you were writing the case
study, focus on the customer and their experience, not your own company. Don’t
forget to link to your case study from the blog post.
3. Email Advertising:
If your email list is organized by industry or other segments, send an appropriate
case study to those who may find it useful. This is a great way to re-open a
conversation with a customer or prospect that has gone silent.
4. Arm your sales team:
Your sales team will benefit from having targeted case studies at their fingertips as
a convincing tool they can use. Your sales people can promote your case studies to
prospects—it’s a sure-fire way to show prospects how another organization in their
industry found success with your service.
5. Social media:
Another way to promote your case studies is through social media. The most
impactful quotes and stats in your case study are perfect nuggets to share via social
networks. Be sure to tag the featured customer in the post.
6. The follow-up sales email:
That important email you send to follow up on a sales call is a great time to
promote your case studies by sharing a few applicable ones. Too often, those
follow-ups are vague “just checking in” messages. Give the email some value.
After your sales call, select a relevant case study and tailor it for the prospect. Tell
the prospect exactly how it applies to their situation.
This gives the prospect new information about the service you offer and how it
delivers solutions specific to their use case. It’s a great way to spark continued
dialogue.
7. Include case studies in all proposals:
Especially when you are chasing new business, you want to showcase your
services, experience and success—and a case study is proof you can deliver results.

8
There is no better way to show prospective customers you can do what you say you
can do than by promoting your case studies in your proposal.
Proposal writing can be a sprint, too often done under a tight deadline. That’s why
it’s so important to have case studies at your fingertips that you can pull out when
required. Some hints:
1. Use at least 1 and no more than 3 case studies per proposal.
2. Select case studies that tackle similar challenges to those your prospect is facing.
3. Consider customizing the case study. For example, you could highlight a different
quote or benefit in your case study to target a specific solution the prospect seeks.
In some cases, tweaking the content slightly and asking the designer to update the
design will be worth the investment.
Writing an Advertising Case Study:
A carefully crafted advertising case study tells potential advertisers how your medium helped
a company build their brand or make more sales. Case studies are useful on your website, in
print, in your advertising kit and when sales staff meets with a company to sell them spots.
Before you begin writing, decide what you want the case study to achieve so the piece
becomes an effective marketing tool for convincing more businesses to advertise with you.

Provide Background:
Write about your market, such as who your advertising medium appeals to and the challenges
and trends the market faces. For instance, if you publish a local parenting magazine, explain
that the products and services that appear in the publication appeal to parents of newborns,
toddlers and grade school children. Add in that the booming population means subscriptions
are increasing, although parents also use the Internet for information. This helps potential
advertisers who read the study see that you understand conditions in the market and the
problems that you need to overcome to help advertisers make money from their spots. Talk
about competing mediums, such as print, radio, television, billboards or digital media, as a
way of showing how your solution differs from other types of advertising options.
Explain the Problem and Objectives:
Specify the problem or challenge your customer brought to you, such as needing to reach a
sales goal or finding new customers in a certain segment of the market. Then, describe the
objectives of the advertising campaign, such as promoting a new product or building name
recognition among customers and prospective buyers.

9
Detail the Solution:
Describe the advertising solution you provided, and use the client’s words to explain why
they chose to advertise with your company. Look for statements about how your salesman
helped them choose the best ad for their budget and put together a frequency plan so the ad
ran enough times to get attention. If you provided creative services, mention the strategies
you came up with and how you listened to the client to come up with the most effective
advertisement Provide details about the results the client received, such as the number of
sales made or how many people called the company or visited their store after seeing the
advertisement.
Make it Readable:
No one wants to read a long chunk of copy, so use formatting that makes the case study easy
to read. Make it easy for the reader to get the gist of the study without having to read the
entire thing. Include headlines to break up the sections of your case study. For the most
impact, the headlines should mention problems, solutions, benefits and results. Give the piece
a strong title that makes prospective advertisers want to learn more. For example, a case
study about a hair salon advertising campaign might use “How XYZ Salon Gets 15 New
Customers per Week” to explain the outcome of buying and running an advertisement with
your company.
Writing an Advertisement for Advertising Business:

Creating an advertisement for your agency is similar to developing ads for your clients. The
ad gives you a way to convince prospects that your agency’s design and copy writing skills
can be used to get their message across, too. The key in creating an effective, business-
generating ad is that potential clients must understand it in five seconds, according to Robert
W. Bly, author of dozens of books about marketing and advertising.
Determine Audience:
The first step in creating your ad requires identifying your target market. Are you working
with companies that sell products or those that primarily sell services? Break your market
down further. Small businesses differ from large businesses when it comes to budgets and the
amount of advertising work available. Determine the position within the company of the
person to whom you want the ad to appeal. A small-business owner likely requires full
creative services while a marketing manager at a major corporation may want you to work
with their advertising department.
Develop a Headline:

10
As you start developing your ad, look for ways to grab the prospect’s attention with the
headline. For instance, ask a question related to her need for increasing sales or getting better
results from her promotional efforts. Or consider using direct headlines. “We Create Ads for
Small Businesses” lets readers know you’re talking to them.
Focus on Benefits:
The copy that follows the headline needs to focus on the benefits your ad agency offers
clients. Base benefits on the desires and fears of your prospective clients. Creating ads for a
small business involves helping them look professional with the assistance of your agency’s
strong design skills and familiarity with the market. If you work with larger companies,
benefits may include prestige and creativity, especially if you mention success you’ve had
with other players in the industry or awards your agency has received.
Use a Call to Action:
No matter how beautiful your ad looks and reads, it needs a clear call to action. For instance,
you may want readers to go to your website to view your portfolio of design work for other
clients, so say “visit our website” and provide the link. Consider offering a free consultation
to discuss a client’s advertising needs, and provide your phone number and email address so
it’s clear how to contact you to make an appointment.
Design:
When you design your ad, this is not the time to use abstract art or images, says Robert W.
Bly. Instead, use artwork and layout that makes sense to your target market. For instance, if
your ad runs in a specialized industry publication, use imagery that reflects the technical
nature of the market to show you understand what’s required for creating ads in that field.
Advantages of Research when Drafting Business Messages:

Some people start writing business messages without giving one thought to the reader. But
savvy businesspeople know that the focus of any message is on the reader, whether he’s your
customer, a prospect or a vendor. Figuring out what your reader is all about requires research.
That way, your message is more effective, keeping the focus on the customer and not your
company.
Developing Tone:
Researching the audience to whom your message will go helps you figure out the best tone to
use. For instance, creating a conversational tone is important when dealing with customers,
but you also need to be aware of using lingo only certain audiences understand. If you’re
writing a letter to your attorney, use more sophisticated business language. But if you want to

11
convince a senior citizen to buy your products, you should refrain from using jargon that
young adults often use, but which older people will not understand.
Identifying Reader Needs:
Finding out what your reader needs to know to take the action you want makes research an
important tool before you put pen to paper. For instance, if you’re writing a sales message,
you need to know what type of problem the reader is experiencing for which your company
has a solution. That way, your research helps you find ways to establish rapport with the
reader by pointing out their problem and showing you understand their pain.
Making You Aware of Competition:
When it comes to creating business messages related to your products and services, knowing
how your company’s offerings differ from your competitors is key to creating effective
messages. Research the features and benefits your competitor’s products or services provide.
Review their pricing structure, and find out what their customers like about what they offer.
Once you do your homework, you’ll be ready to create messages that make it clear how your
company differs –– and is better –– than other companies that sell similar products or
services.
Keeping Focus on Benefits:
Your customers don’t want to hear about how great your company is or how wonderful the
features of your product are. What they do want to hear about is how your product makes
their lives easier. Researching benefits comes in particularly handy when you want to
convince a prospect to buy from your company, so focus on what your product does for
customers, not how it does it, to keep the readers’ interest and get them to pull out their
wallet. The same idea applies to customer service issues. Don’t focus on the excuses or
reasons why your company did not deliver. Instead, research the problem first so your
message clearly explains how you’re going to make things OK again.
Attracting Advertising:
Generating advertising revenue gives you a way to pay for your publication or online efforts
without bearing all of the costs yourself. For potential advertisers, though, they want to know
how running an ad with your company will generate revenue for their business. Whether you
want to attract advertising to a print publication, website or blog, you must develop messages
that help explain the benefit of advertising with you.
Implement Sales Tactics:
Finding companies willing to advertise in your publication may require you to make sales
calls or send letters of introduction. Start by identifying businesses that advertise in similar

12
publications to find out what types of companies spend their money on advertisements.
Contact the same companies or their competitors to explain what you offer if they advertise
with you. Look for companies that appeal to the same target market as your publication or
blog, such as looking for kitchen appliance companies or businesses that teach cooking
classes if you write a foodie blog.
Develop a Media Kit:
Gather statistics on how many people visit your site or read your publication. These statistics
help convince potential advertisers why your site makes a good choice for their ads. Include
these statistics in a media kit that uses your company’s branding, and provide a list of the
rates you charge for advertising in your publication. The packet should also contain the
specifications required to create and submit the ad, including dimensions, number of pixels
required and the type of print or digital files you accept.
Post Ads:
Let people know you accept advertising by posting an ad in the appropriate place. If you want
online advertising, add a blurb to your website or blog that invites inquiries about advertising.
Provide a link to your email address to encourage potential advertisers to contact you about
rates and requirements. If your print publication needs advertisers, include a message about
the available advertising space and provide your full contact information to encourage
inquiries.
Accept Online Ads:
One way to get advertisers on your website or blog requires signing up for Google AdSense.
Once you set up your free account, you add html code to your website or blog that allows ads
to appear on the page. Another option is to sign up with sites such as BlogAds to get listed in
a directory used by companies looking for blogs on which to advertise their services or
products.
Case study on Coca-Cola Company Advertising & Sales Management:
Coca Cola is a leading company in the beverage sector. The Company was founded in
Atlanta USA by Doctor John Pemberton in 1886. It provides its esteemed customers globally
over 500 brands with over 1.6 billion drinks per day. Coca Cola as a brand has differentiated
itself in the world markets through cost leadership. By doing so the company has managed to
extremely lower its cost of production in the industry. In spite of the successes that Coca
Cola has had in marketing in the last six decades it is not the dominating brand in the US;
however, it is amongst the most powerful brands in the world today. . It has been rated third
on Forbes magazine following Apple and Microsoft.

13
As a matter of fact Coca Cola has been so perfect in its differentiation that people today do
collect Coca Cola brands. These include; gracious novelties like bookmarks and toys,
merchant products such as coolers and bottles, point purchase items such as calendars and
trays as well as print advertisements and signs (Doole and Lowe, 2008).
Coca Cola’s Selling Strategy:
Coca Cola should start considering adopting another brand image. This is because most
specialties in the industry perceive its brand as outdated. This Rockwell branding has as a
matter of fact segregated youthful consumers. On the other hand its main rivals Pepsi have
been employing young people in their adverts. For instance they have used Britney Spears
who has great appeal amongst youthful Americans (Wall and Rees, 2010).
The company also employs the marketing mix strategy to sell its products globally.
Through the 4Ps of marketing mix place, promotion, price and product the company has
managed to ensure that their products appeal to different consumer segments. The company
makes heavy investments not just in its brands but also in their quality. Apart from that it
sponsors charities to ensure the sustainability of its products. The company has been
employing cost leadership and branding strategies in most of its new markets (Bell, 2004).
However, branding has been a challenge to western firms that have chosen to invest in China.
This is because the meaning and sound of the branding can be deeply affected by Chinese
linguistics and this is likely to in the end impact consumer perceptions and brand identity. In
Belarus the company’s branding strategy concentrated on the quality of its products. In Peru
the company’s brand as well as quality was acknowledged through its employment
excellence an additional feature to its long history and products (Bennett, 1998).
The Company succeeded in Peru when it presented itself as a Peruvian company with
headquarters in the US rather than an American multinational. This is what endeared it to
Peruvians and earned it their trust for they believed that it was an international company. In
addition the company decided to increase its penetration to all avenues whether they were
retail stores or sporting events (Doole, 2008).
In addition to that it attached its soft drink to all kinds of meals that were being advertised
through the cobranding strategy. The company’s key strategy in the US was also to market
its soft drink with food products; today the soft drink can be found in all restaurants. Social
responsibility activities in Peru endeared it to more consumers for it not only created
employment for the jobless masses but also started relief programs to fund the less fortunate
in society as well as those who were economically disadvantaged. As part of the company’s
marketing strategy it provided market development of its soft drinks throughout the country.

14
It gave most of its partnering retailers and wholesalers free product supply services,
promotional materials, trade equipment, booths and refrigerators as well as general marketing
and promotional support (Bell, 2004).
Problems faced by Coca Cola:
The company has experienced a lot of challenges in its attempt to brand its various products.
In the 80s it attempted to come up with a new recipe for its numerous products. This
flavorcompletely transformed the taste that consumers were used to. However, the
companymanaged to make the best of the situation. In the recent past the company reported
declines in its Thailand and Indonesia markets unit case volumes as a result of decreased
purchasing power of its consumers. Japan, Latin America and South East Asia produce 36%
of the company’s volumes yet none of them are performing well. Japan’s case was scary
because it contributes 5% of the company’s global volume and 15% of its profits yet it also
reported a fall in unit case sales (Kotler, 1991).
In the last decade in spite of the fact that the company has an invaluable brand name and is
most visible globally it has encountered numerous ethical crises which has made it unable to
obtain its financial objectives. Warren Buffet a key investor in the company resigned from
the board in 2006 after many social responsibility issues were unresolved. Doug Invester
who took over as CEO in 1997 was heralded for effectively handing the company’s financial
flows. He was groomed to this position by Roberto Goizueta a former CEO. However, after
Roberto’s death things started nose diving (Doole et al., 2008).
Invester did not have the leadership skills to handle a number of ethical issues. Doug Daft
who replaced Invester in 2000 had a rocky tenure includingallegations that the company was
involved in the disruption of long term contract plans with distributors, racial discrimination,
the manipulation of earnings and the misrepresentation of market tests (Wall et al., 2010).
The worst crisis faced by the company was in 1999 when 30 children fell ill after consuming
its soft drink. This problem escalated even after the recall of the product. The Belgium
govern issued an order for allCoca Cola products to be recalled and this resolution was also
passed in other neighboring countries including France, the Netherlands and Luxembourg.
The company’s reputation was destroyed by its failure to provide a quick response and
recognize the seriousness of the crisis (Kotler, 1991).
The company’s market dominance has worked against it in various countries where its
marketing techniques have been questioned. The French government declined to approve its
acquisition of its leading beveragecompany Orangina. It was also not allowed to acquire
Cadbury.

15
Possible Solutions to Coca Cola’s Problems:
The company should come up with a new marketing plan. All aspects of this marketing plan
should be seriously evaluated and researched. This should entail assessing the current
situation, analyzing market research and auditing its business. In addition the company
should cautiously scrutinize the soft drink industry and its market possibilities. Upon
analyzing its domestic and global business environment and critically assessed the industry it
should then select the most appropriate marketing strategies which should be executed
through efficiently and incessantly supervising external threats and opportunities while
modifying its internal procedures (Wall et al., 2010).
It is important for Coca Cola to cautiously monitor its external and internal business
environments since their influences are critical to the company’s success as well as survival
in the beverage industry. To successfully manage and supervise its internal business
environment it should conduct progressive assessments of its business operations and act
upon emerging issues that are the causes of inefficiencies in the manufacturing and consumer
phases (Bennett, 1998).
The company must also monitor changes in the external environment since they are likely to
create either opportunities or setbacks. Demographic patterns, economic fluctuations and
dynamic customer tastes and preferences will impact the success of the company’s products
on the market as well as their reception (Bell, 2004).
The company’s brand is known to 95% of the world the only way out is to get ways of
making it better known. The company should diversify into other substitute markets such as
milk, tea, hot chocolate, coffee and juices. This is because the threat of substitutes in this
industry is real. The fact that consumers are becoming health conscious would adversely
affect the company if it does not start doing other types of beverages on a large scale basis.
The competition between Coke and its perennial rivalry Pepsi has realized a very slow
moving sector where the management must progressively respond to the consumers’ dynamic
tastes and preferences or lose their market share to the rivals (Bennett, 1998).
The company should move into market segments that have the utmost potential. Coca Cola
should package its products with incentives and labeling endorsements for this would work
well as a promotional strategy in order to increase its sales volumes and revenues. The
company should employ the penetration pricing strategy in order to grab a foot hold in new
markets and win huge market shares. Upon establishing customer loyalty it should then start
increasing the prices gradually. The company should also ensure it effectively communicates

16
with targeted market segments in order to guarantee the success of its products. This can be
done through informed advertisements (Bell, 2004).
References:
Bennett, R (1998). International Marketing Strategy; Planning, Market entry and
Implementation. Second edition
Bell, L., (2004). The Story of Coca Cola. Mankato: Smart Apple Media
Doole, I. & Lowe, R. (2008) international marketing strategy; analysis,development and
implementation. Fifth edition
Kotler, P., (1991). Marketing Management. 7th edition. Englewood Cliffs: Prentice-Hall
Wall S. Minocha S. & Rees B.(2010). International Business. Third edition

17

Common questions

Powered by AI

To address challenges in these markets, Coca-Cola should develop a new marketing plan involving thorough market research and audits, assessing both domestic and global business environments, and selecting appropriate marketing strategies. This approach should include diversification into substitute markets, adapting product offerings to meet health-conscious consumer trends, employing penetration pricing strategies, and enhancing communication with target segments through informed advertising .

Customizing case studies in proposals can enhance effectiveness by ensuring they address specific challenges similar to those faced by potential clients, thus making the solutions presented more relevant and compelling. Highlighting different quotes or benefits targeting the client's specific needs can further tailor the case study to the client's context, increasing the likelihood of convincing them of the service's value and suitability .

Coca-Cola has faced numerous ethical challenges, including allegations of racial discrimination, disruption of long-term contract plans, manipulation of earnings, misrepresentation of market tests, and a health crisis in 1999 when children fell ill after consuming its product. These ethical issues have adversely affected its reputation and ability to achieve financial objectives, leading to significant crises such as product recalls in Europe and high-profile resignations, which ultimately impacted its market performance and investor confidence .

Coca-Cola's social responsibility initiatives in Peru, which included creating employment, starting relief programs, and supporting the economically disadvantaged, significantly improved its public image and consumer trust. Such initiatives demonstrate the company's commitment to societal welfare, fostering a positive reputation and greater acceptance among local communities. They illustrate a strategic alignment with corporate values that resonate with consumers' expectations, thereby enhancing brand loyalty and market position .

Understanding the cultural and linguistic context, such as in China, affects branding strategies through potential challenges like the meaning and sound of brand names, which can alter consumer perception and brand identity. Companies must tailor their branding efforts to align with local cultural nuances to maintain brand integrity and acceptance, as misalignments can negatively impact consumer perceptions and hinder market entry efforts .

The problem-definition stage of advertising campaigns improves effectiveness by clearly identifying the specific challenges or objectives that the campaign aims to address, such as reaching sales goals or enhancing brand recognition. This clarity ensures that the solution is tailored to meet these objectives, increasing the relevance and impact of the advertising message. It aligns campaign strategies with client needs, enhancing the likelihood of successful outcomes .

Effective strategies for promoting case studies include placing teasers and dedicated pages with case study links on your website, promoting through your blog by telling the story behind your customer's success, targeted email advertising, equipping sales teams with relevant case studies, sharing impactful quotes and stats on social media, and including case studies in follow-up sales emails and proposals . These strategies benefit sales teams by providing tangible proof of success, demonstrating the service's value, fostering credibility, and aiding in personalized pitches to potential customers .

Consumer research plays a pivotal role in developing effective business communications by providing insights into consumer needs, preferences, and language. This knowledge enables the crafting of messages with appropriate tone, avoiding jargon unfamiliar to certain demographics, and highlighting benefits that align with consumer desires and fears. Such tailored communication increases engagement and effectiveness, as it speaks directly to the audience's interests and challenges, fostering better alignment with the company's offerings .

Demographic shifts, such as changes in age distribution and population growth, and economic fluctuations can significantly impact consumer purchasing power and preferences in the beverage industry. To remain competitive, companies should continuously monitor and adapt to these changes by diversifying product lines, shifting market focus to high-potential segments, and adjusting branding and pricing strategies to align with evolving consumer demands. These actions help in seizing opportunities and mitigating setbacks .

A diversified marketing mix strategy, incorporating elements like place, promotion, price, and product customization, enhances global business expansion by enabling companies to appeal to diverse consumer segments and adapt offerings to local preferences. It supports effective brand positioning across different markets and can involve leveraging local cultural nuances, varying promotional tactics, competitive pricing strategies, and adapting products to meet local demands, contributing to stronger market penetration and consumer loyalty .

You might also like