Coca Cola Marketing
Autor: ssj666 • February 9, 2016 • Case Study • 2,126 Words (9 Pages) • 926 Views
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[pic 2] THE NEW VENDING MACHINE DEBACLE
| ABSTRACT A public relations gaffe by the CEO of Coca-Cola in 1999 had some serious repercussions for the company’s brand image. GROUP
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About Coca-Cola
The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.
The company is headquartered on Atlanta, Georgia, United States and operates in over 200 nation, making it one of the most recognizable global brands.
Coca-Cola: The Brand
Coca-Cola positions itself as a refreshing and thirst-quenching beverage that brings out the effervescent you through its own effervescence. The products are portrayed to represent having a fun time with family and friends.
Customers’ perception of Coca-Cola:
- Refreshing
- Thirst Quenching
- Tasty
- Economical
- Readily Available
- Convenience Product
- Customer usually buys frequently, immediately and with minimum comparison and buying effort.
Case Summary
The then CEO of Coca-Cola in, M. Douglas Ivester had to resign from his post in April 2000 because of loss of the board’s confidence. This loss of confidence was a cumulative result of Mr. Ivester’s inefficiency in handling difficult situations, which were causing the brand’s image to fall in the consumers’ eyes.
The situation discussed in this particular case is regarding the possible introduction of new technologically advanced vending machines by Coca-Cola, which would change the prices of the beverage, based on ambient temperature. For example, in summers or in tropical regions which face comparatively higher temperatures, the prices would be higher as compared to other seasons or regions respectively.
In an interview with a Brazilian magazine Veja in 1999, when this question was raised to Mr. Ivester, an accountant by nature, ended up justifying such a step by the company, going so far as to say that “it is fair that it (Coke) should be more expensive (in the summers).” This all but cemented the notion that Coca-Cola was planning to introduce such machines, and what followed was nothing short of a disaster for the company.
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