WHY SHOULD A COMPANY LIKE COCA COLA CONTINUE TO ADVERTISE?

Coca-Cola is a carbonated soft drink sold in more than 200 countries. It is produced by the Coca-Cola Company of Atlanta , Georgia, and is often referred to simply as Coke. Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. Millward Brown’s 2005 report on the world’s most valuable brands placed Coca-Cola at number one with a value of $55 billion. Millward Brown’s seventh annual BrandZ report of 2012 published on 24th May 2012 once again placed Coca Cola at number 6 of the world’s most valuable brands. Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand. These points are indications of Coca Cola’s success as a company. This company has created a brand that is over 100 years old. However this has not stopped the global giant in the soft drink industry from advertising. So the big question is why? This presentation attempts to explain some of the reasons why a company like Coca Cola should keep on advertising. First of all, it must be made clear that Coca Cola is not the only player in the soft drink industry as such the company must continue to advertise in order to create awareness. This is particularly important because for a vintage brand such as Coca Cola staying fresh in the minds of the younger generation is important. If the company entertains the notion that it is a well known brand as such it will not advertise, it will only be forgotten. This point ties in with the second which is that the company must advertise to persuade. Why should a consumer choose Coca Cola over a competitor? The answer is simple; Coca Cola’s advert says Open happiness whereas the competitor advert says something else. So if the consumer is searching for happiness, the product that will deliver satisfaction will certainly be Coca Cola. It must be said that the assertion that Coca Cola makes in respect with Opening happiness might not be true. Infact, drinking coke might not be any different from another product in the same product category. However because an advert says ‘Open Happiness’, a consumer who is going to make a purchase decision will go for Coca Cola because it comes with an added value: Happiness. The third reason why I think a company like Coca Cola should continue to advertise after more than a century of existence is to announce a change in the product. From the very first product was made, the Coca cola product has undergone a lot change to take on its present look. The content has changed, the appearance has change. The product itself has moved from glass bottles to cans and now to plastic bottles. Whenever such a change is about to occur, it is imperative for the manufacturers to inform their consumers so that they do not get confused. Take a situation where you go out to purchase your favourite Coke and you realize the glass bottle you are used to is not on the shelf. The feeling can be unsettling. For some, not knowing before the company implements a change can be unpardonable. Again for a global giant like Coca Cola, adding new products to their portfolio is a constant feature. Originally not part of Coca cola products in Ghana, Minute Maid was introduced quite recently. The advert that announced the new product mentioned that Minute Maid was a product of the Coca Cola company. This minor detail means a lot. For a consumer in search of a good product, coming from a time tested family such as the Coca Cola Company is just about the right cue you might need to reach out and place the product in a shopping cart. Another reason why a global giant like Coca Cola must continue to place adverts in the media has to do with the issue of competition. Since it was first made Coca cola has faced stiff competition from companies such as the Pepsi company. Created and developed in 1893 and introduced as "Brad's Drink", it was later renamed as Pepsi-Cola on August 28, 1898, then to Pepsi in 1961. Product portfolio of the Pepsi company is similar to that of the Coca cola company. In markets such as the United States the competition has been so fierce that some pundits have described it as the cola wars spanning decades. In continuously making itself relevant to the consumer and staying in the cognitive of the consumer, the company must continue to advertise. The risk is that if the company stops advertising for a day, it will be overtaken by its competitor and it must be said that there is more than one Company that laying in wait to jump to number one spot if Coke slips. Advertising in several forms has made Coca Cola a household name today. One can imagine the amount of money the company has spent in advertising budgets over the century. It has featured in movies such as “The Gods are not to blame” and the famous “Home Alone” series. All these are actions were targeted at placing the product at the top of the consumer’s list and today that has paid off. Be it after a meal or a social gathering you can be sure to find someone willing to ‘Open Happiness’ Reference 1. Brand Fact Sheet . Coca-Cola official website. December 1, 2008 2. Houpt, Simon (October 4, 2011). "Apple cracks Interbrand’s best global brands top 10 list. 3. The History of Pepsi Cola. Soda Museum (archived April 15, 2001)