Coca-Cola is Changing Its Marketing Priorities to Fight Back From a Pandemic Slump
The global COVID-19 crisis undeniably had a massive impact on many businesses around the world. Whether they had to quickly pivot to allow employees to work remotely, or close their doors entirely, companies had a steep learning curve and no end of challenges to negotiate during the period.
Of course, it’s easy to forget the impact these closures have on the peripheral brands which either rely on them for supply or indeed provide them with the products and/or services necessary to go about their business.
This is exactly the position Coca-Cola found itself in at the top of 2021 and the world-famous soft drink brand knew it had to switch up its marketing strategy to make sure it came back swinging from the negative effects of the pandemic.
Coca-Cola
Because of its strong position in out of home settings such as bars, restaurants, and sporting arenas Coca-Cola experienced a steep decline in sales as a result of lockdown related business closures.
While B2C sales held steady during the period and the company gained market share overall, it knew it wouldn’t see a return to previous levels of revenue until vaccines were widely available in its key markets such as North America and Europe. This led Coca-Cola to revise its marketing spend and procurement and search for ways to better connect with its core demographics.
"We believe that there is a tremendous opportunity for us to drive a greater efficiency across the marketing spend portfolio," said Coca-Cola CFO, John Murphy, while also pointing out the need to be flexible among its various markets worldwide. "We will continue to focus on what our markets need, both in total investment terms as well as in the mix of spend that’s appropriate for each of these markets."
The plan was to enhance its B2C marketing with a range of data-driven, occasion-based experiential campaigns. One example of these campaigns can be found in Coca-Cola brand Sprite’s "Let's be Clear" campaign which invites customers to “reset and refresh," through a TV advert airing in GB depicting young adults arriving home after a busy day, looking to reset, relax and enjoy some much-needed chill-out time. As well as launching on TV in more than 50 countries, the campaign featured engaging social media content, alongside out-of-home and print executions.
Real Magic
The next stage in Coca-Cola’s refocused marketing was to transform its philosophy and iconic logo to reflect the new world we find ourselves in. Real Magic is Coca-Cola’s way of reaffirming its position in the experiential lives of its customers.
“Through our campaigns we want to create more Real Magic,” said Coca-Cola Company President, Selman Careaga. “Individual moments aligned to people’s passion points, aligned to culture and aligned also to our core, key occasion as a business, which is meals and having a break from work, school, your daily life.”
The revised logo sees the classic Coca-Cola brand shifted to a new yet very familiar perspective. By presenting the logo in the form it is most commonly seen on cans and bottles, it creates a hug which the company feels represents the drink’s position as a comforting treat after a busy day.
This change of direction for Coca-Cola demonstrates that even the biggest soft-drink brand in the world needs to be constantly reassessing how it procures and presents its marketing to stay relevant in a constantly shifting marketplace.
“Coca-Cola is a brand defined by dichotomies – humble but iconic, authentic yet secret, real yet magical,” says CMO Manol Arroyo. “The Real Magic philosophy is rooted in the belief that dichotomies can make the world a more interesting place – a world of extraordinary people, unexpected opportunities, and wonderful moments. At the same time, it captures the essence of Coca-Cola itself – a real taste that is indescribable, unique, a touch of real magic.”
Final Thoughts
The global COVID-19 crisis has challenged us all and every professional operating in marketing procurement has had to reconsider how they connect with audiences in this new operational landscape.
Customer priorities have shifted, and we have all realised we need to focus on the more important parts of life. However, that doesn’t mean there isn’t room for luxuries such as Coca-Cola products, but rather than brand selling those kinds of products need to tap into thought processes of their customers in this new normal.
“The new brand platform reflects bigger changes in the way the brand communicates,” concludes Careaga. “We want to move away from primarily broadcast communications to create an ecosystem of experiences for our consumers and people everywhere.”
You can hear Coca-Cola Global Head of Social Media, Duarde Garrido speak at ProcureCon Marketing EU 2022, being held in June at County Hall, London.
Download the agenda today for more information and insights.