Coca-Cola Arctic Home Evaluation and Recommendation
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MBA cause marketing project presentation My contributions included: - Designed the presentation - Research: Arctic Home mission, Coca-Cola's; history, sustainability actions, marketing tactics - Designed creative mock-ups - Originated the idea that Arctic Home should be used as an entry point for consumers to learn about Coca-Cola's Golden Triangle platform
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Coca-Cola Arctic Home Evaluation and Recommendation
- 1. “Could we develop a galvanizing act? Something that would rally our consumers, our customers at retail and our associates into action.” Peter Cerallo, Group Director, Integrated Marketing, Coca-Cola Mike Arkin Kristin Bloomstran Kelly Bowker Elizabeth Tanefis Colleen Walsh Victoria Weismann
- 2. CAMPAIGN BACKGROUND COMPETITIVE ANALYSIS ISSUE ANALYSIS SWOT GO-TO-MARKET PLAN CAMPAIGN CREATIVE AGENDA
- 3. A WWF partnership to raise awareness & funds to help protect polar bears and their habitat CAMPAIGN GOALS In 2011, Coca-Cola commits to $2M in resources over 5 years Match consumer donations with additional $2M over two winters Increase sales & brand equity Encourage consumer engagement PARTICIPANT AUDIENCE Consumers Retail customers Suppliers/Distributors BENEFICIARY AUDIENCE Polar Bears WWF “Last Ice Area” Arctic residents
- 4. WHAT’S THE ISSUE? THE ARCTIC IS MELTING AND POLAR BEARS ARE FACING EXTINCTION Arctic is experiencing the warmest temperatures in 4 centuries Scientists predict a mostly Arctic-free summer by 2040 There is no other natural habitat for the polar bears Drop in cub survival rates Polar bears added to list of Threatened Species in 2008 WHY DOES IT MATTER? Polar bears are at the top of the food chain in the Arctic Important for overall health of marine environment Polar bears are representative of the larger climate change issue Gives the audience a specific endangered animal to associate with the cause
- 5. WHY POLAR BEARS? BUSINESS FIT Coca-Cola utilizes the polar bear as an icon in advertising 1922: Polar Bear first used in a French advertisement Early 90’s: Polar bears used in “Open Happiness” campaign SOCIAL IMPACT Fund research and preservation of polar bears and the Arctic Educate locals on polar bears and keys to assisting in their survival Preserve marine life and food chain in the Arctic 2007 2009 2011 WWF & Coca-Cola form partnership Chairman visits polar bears Campaign Kick-off Coca-Cola: CONSUMER REACH Retail partners: 7-11, McDonalds Supply and distribution networks Products sold in over 200 countries Marketing expertise/budget WWF: GLOBAL REACH Extensive history in conservation efforts Active local community relationships Advocated for a polar bear management plan – government engagement Active research on polar bear movement
- 6. Utilize existing awareness and loyalty to the classic Coca-Cola brand to engage soft drink consumers in building awareness of and driving funding towards ‘Arctic Home’ cause in North American and European markets. Strategy implementation includes: Donations through PRODUCT codes Retail displays and experiential installations in varying PLACES Customer engagement through interactive customer PROMOTIONS MARKETING TACTICS SUMMARY CUSTOMERS PARTNERSHIPS AD CAMPAIGNS PACKAGING WEB/MOBILE CROSS PROMOTION SOCIAL MEDIA EXPERIMENTAL INITIAL MARKETING SUMMARY
- 7. SOFT DRINK INDUSTRY OVERVIEW Mature market: $28B per year US industry growing yearly at 2% Growing emerging markets Increasing FDA regulation Complex supply chain encourages vertical integration TRENDS: Taste & Tech Health conscious consumers/diet craze Bottled water, energy drinks, juice, bottled tea consumption is growing Changing technology: new ways to manufacture, deliver, and sell PENETRATION: High 48% of Americans drink more than two soft drinks a day Social media keeps consumers connected Red Bull LOYALTY: Strong Coca-Cola High-volume consumers perceive soft drinks to be essential beverages Low brand switching among consumers COMPETITION: Commodity Price-based competition Lots of competition from other ready-to-drink beverages 29% Pepsi 20% Dr. Pepper- Snapple 10% 8% Other 33% MARKET SHARE
- 8. SOFT DRINK INDUSTRY COMPETITION Pepsi: Pepsi Refresh Project $20M cause marketing campaign; diverted internal brand resources to solicit consumer ideas and fund community improvement projects Dr. Pepper Snapple Group: We Believe in Balance Series of partnerships with national nonprofits and foundation giving to make an impact in health and nutrition, education and the environment Red Bull: Wings for Life Focused charity sporting events dedicated to fundraising for research on traumatic spinal cord injuries BRAND CITIZENSHIP CORPORATE CITIZENSHIP Cause-Related Marketing Cause Branding CSR & Sustainability Creating Shared Value
- 9. ISSUE SPACE COMPETITION BRAND CITIZENSHIP CORPORATE CITIZENSHIP Cause-Related Marketing Cause Branding CSR & Sustainability Creating Shared Value Canada Goose: Arctic Program Partnership with Polar Bear International to provide high end gear and monetary support to benefit PBI’s scientist/staff; annual contribution of $100,000+ Disney: Disney Worldwide Conservation Fund Serve as a corporate partner and investor in broad of conservation portfolio; includes forest conservation, carbon tax credits and community education Macy’s: Macy’s & Nature Conservancy Give, Get and Save The Rain Forest May 2012, In-store cause promotion generated awareness, support, and capital for the Amazon Rainforest through a point of sale tactics; raised $3M in 15 days
- 10. STRENGTHS Coca-Cola’s global market penetration The Coca-Cola Company’s CSR and Sustainability Portfolio World Wildlife Fund is a highly reputable organization specializing in conservation WEAKNESSES Absence of purchase triggered donation program Narrow campaign scope and small financial allocation limits business and social impact Coca-Cola’s diverse philanthropic portfolio may result in brand dilution or donor fatigue OPPORTUNITIES Satellite cause tempers potential negative brand perceptions White space advantage (polar bears) Rising trend in social giving and mobile donation Wide spread acceptance of global climate change theory THREATS Backlash over donations vs. ad spending Perceived lack of dedication due to Coca-Cola’s small capital allocation Seasonality of the cause Coca-Cola is one of the largest emitters of Green House Gases
- 11. WHAT’S WORKING? WHAT’S NOT? LESSONS LEARNED Leverage global scale to drive business and social objectives Integrate sustainability initiatives with marketing campaign Allocate larger marketing budget to match consumer donations STRATEGIES/TACTICS FOR FURTHER INVESTMENT Retail customers: Continue display marketing but with revised message Match fundraising: Promised increase up to $3M for a total of $5M Active social media accounts Experimental installations including repurposing existing assets STRATEGIES/TACTICS TO DECREASE Product Packaging: Coke can redesign caused widespread confusion Snowball Effect mobile app doesn’t align with proposed messaging STRATEGIES/TACTICS TO IMPLEMENT Launch purchase triggered donation – 1% of unit case price New product logo for sustainability aligned campaign Increase employee engagement with incentivized volunteer hours
- 12. LOOKING AHEAD Arctic Home is a great cause platform and would benefit Coca-Cola by being integrated into their overall CSR mission.
- 13. Coca-Cola’s SUSTAINABILITY JOURNEY 2020 Golden Triangle Program ME: Help consumers make informed choices Support global activity programs in 200 markets WE: 5by20TM Empower 5M women entrepreneurs WORLD: Global leader in water sustainability Returned a calculated 108.5 billion liters Source: Coca-Cola 2013-14 Sustainability Report
- 14. ALIGN ARCTIC HOME WITH GOLDEN TRIANGLE GOLDEN TRIANGLE SIGNATURE CAUSE AWARENESS IMPACT ENGAGEMENT/ FUNDRAISING
- 15. ARCTIC HOME INTEGRATION Water sustainability is one of Coca-Cola’s highest priorities Arctic melting Improving water efficiency Share findings from multiple partnerships Integrate water & CO2 research CO2 is a top cause for a smaller Arctic Home Reducing in-hand beverage carbon footprint PlantBottle Sharing innovations with others – Heinz, Ford … More that 700K associates ~130K global workforce WWF partnership field visits Invigorate community engagement/activities Source: Coca-Cola 2013-14 Sustainability Report
- 16. PROPOSED MESSAGING PLATFORM COMMUNICATING SUSTAINABILITY EFFORTS AUDIENCE AWARENESS AND ENGAGEMENT CLIMATE CHANGE EDUCATION
- 17. KEY CONSIDERATIONS MESSAGING Focus on Coca-Cola’s water-related corporate social responsibility initiatives Slowing climate change will affect arctic ice melt TARGET AUDIENCE New purchases by millennials and other socially/environmentally conscious consumers Increase purchases of existing customers BUDGET Increase financial commitment Leverage Coca-Cola’s marketing and corporate social responsibility dollars ICON/IMAGES Reestablish polar bear icons as a representative of larger climate change issues PARTNERS Continue work with WWF on Arctic Home international campaign Expand partnership with Disney and their Worldwide Conservation Fund for specific tactics COMPETITION Coca-Cola should continue narrow focus on climate change Pepsi and Dr. Pepper/Snapple have broad campaigns, allowing Coca-Cola to differentiate
- 18. MARKETING MIX: PRODUCT On-product symbol/logo representing sustainable production practices Coca-Cola acts as a thought leader by creating cross-industry symbol and standard sustainable production practices Tagline with symbol includes message about climate change reduction Consumers are more likely to purchase products/brands with CSR This bottle was created using sustainable production practices. is committed to conserving water and saving the arctic.
- 19. MARKETING MIX: PLACE RETAIL PARTNERS Coca-Cola vending machines wrapped in Arctic Home polar bear images Display messages about Coca-Cola’s climate change efforts through the utilization of zero emission vending machines Seasonal retail displays featuring polar bear icons with messaging about Coca-Cola’s climate change and water conservation efforts Repurpose Coca-Cola’s existing ‘Ice Station Cool’ attraction at Disney’s Epcot Center to an educational and interactive Arctic Home and climate change focus Experience what it’s like to be a arctic scientist or polar bear Establish co-branded Disney Worldwide Conservation Fund and Coca-Cola traveling pop-up educational exhibits
- 20. MARKETING MIX: PRICE Price premium during winter Arctic Home campaign to benefit WWF Coke raises its price to retail customers by 1% which is donated to Arctic Home Price premium helps increase donations over course of holiday season Consumers willing to pay a price premium for sustainable products/brands/causes Triggers Donation Audience buys Coke Helps Polar Bears
- 21. EMPLOYEE COMMUNICATION Create internal employee newsletter to share updates on arctic home campaign and how to get involved SOCIAL MEDIA Arctic Home specific Facebook & Twitter Encourage social sharing via contests, climate change facts, videos, etc. Twitter trivia Arctic Home campaign facts, Coke sustainability efforts, general climate change questions Facebook button for Arctic Home Instagram: “Day in the Life” posts Day in the life of a polar bear, scientist, Coke sustainability individual MARKETING MIX: PROMOTION ARCTIC HOME ADS & COMMERCIAL Showcase integration of Coke’s sustainability efforts and climate change issue SUSTAINABILITY BLOG Blog show Coca-Cola as industry leader in sustainability and water renewal efforts ALLOCATED VOLUNTEER HOURS Give employees time to volunteer during work hours with climate change organizations
- 22. Coca-Cola IS KNOWN FOR CREATIVE ADVERSTISING It’s time to highlight their innovative efforts that make a positive impact Encourage purchase through automatic donation $0.25 of every purchase of a Coca-Cola product goes towards the Arctic Home project ARCTIC HOME RETAIL DISPLAY
- 23. ARCTIC HOME PRINT CREATIVE
- 24. ARCTIC HOME COMMERCIAL Climate change is causing the sea ice that makes up the Arctic to melt faster than expected Scientists estimate a mostly Arctic-free summer by 2040. Without sea ice polar bear mothers are forced to travel much farther for food affecting cub nutrition and reproduction. This holiday season donate to the Arctic Home a 6 part program to improve the polar bears’ natural habitat. World Wildlife Foundation on new environmental goals primarily reducing our carbon emissions. While we do our part we need your help As a global organization we recognize the part we’ve played in climate change and are working with our longtime partner
- 25. ARCTIC HOME SOCIAL MEDIA
- 26. ARCTIC HOME EDUCATIONAL EXHIBIT AT DISNEY Repurpose current ice station cool at Disney to an educational journey Intro movie to arctic ice and climate change Interactive games/quizzes > win prizes (swag, coke, etc.) Greeted by polar bear – explains life in arctic Meet an arctic scientist – learn about research Interactive “last ice area” station Unique way to show how much arctic ice has been lost
- 27. The Arctic Home campaign is a solid platform for Coca-Cola to communicate its sustainable mission to consumers Strengthening awareness and engagement in other Golden Triangle initiatives Arctic Home Campaign Goals: 2015 and beyond Coca-Cola commits an additional $350+ million in resources to Arctic Home Match consumer donations with additional $2+ million each year Increase awareness and education About climate change as it relates to the Arctic About other Coca-Cola Golden Triangle initiatives Encourage consumer action to be part of the solution Strengthen Coca-Cola’s association with sustainable production
- 28. WHAT’S THE RETURN? Increase budget $$$ Expand partnerships Tradeoffs Social Business & Outcomes Increase in sales (expand whole customer base) Increase in socially responsible customers Increase Coca-Cola brand & CSR awareness Increase Climate Change awareness Increase in donations DONATION/CAUSE ANALYSIS Current (2013) (in millions) With Increased Campaign Spend (in millions) Online donations $2 Online donations* $2.89 Purchase donations $0.00 Purchase donations $65.6 Coca-Cola Match $2 Coca Cola Match $2.89 TOTAL: $4 TOTAL: $71.38 ROI ANALYSIS Current (2013 Winter Season) Increased Campaign Spend Unit Case Sales 2.75 Unit Case Sales 3.98 billion Unit Case Cost $0.6396 Unit Case Cost $0.6742 Unit Case Price $1.63 Unit Case Price $1.73 Unit Case Profit $0.9873 Unit Case Profit $1.0896 Total Profit $2.71 billion Total Profit $4.34 billion Increased Profit $1.62 billion Total cost of increased campaign $381 million ROI 325.65%
- 29. QUESTIONS
- 30. STOP START AND CONTINUE STOP START CONTINUE Mobile App New Logo for sustainability campaign Matching Donations (Increase Cap) Packaging Changes Repurpose Ice Station Cool Retail Displays Paid Employee Volunteer Hours Purchase Donation by Coca Cola (1% of unit case price)
- 31. ROI ASSUMPTIONS: TABLE 1 & 2 Table 1 (in millions) Net operating revenues $46,854.00 COGS $18,421.00 Gross Profit $28,433.00 Selling & G&A $17,310.00 Other operating exp $895.00 Operating income $10,228.00 Total Cases 28.8 b revenue per case $0.99 COGS per unit $0.64 Price Per unit case $1.63 Table 2 Coca Cola Cases 11b Coca cola revenue $10,859,826,388.89 current market share 29% total available switiching share (Pepsi) 20% switchers (2/3) 13% coke = 11 billion cases 29% = 11b cases $379,310,344.83 1% = 379m increase of 13% = additional 4.93 b casses $4,931,034,482.76
- 32. ROI ASSUMPTIONS: TABLE 3 & 4 Table 3 2013 $4,455,943,098.83 Estimated total marketing spend across Coca Cola for 2013 2012 4125873240 2011 3820253000 2010 3537271296 2009 3275251200 2008 3032640000 2007 2808000000 ave annual increase in mkt spend over last 13 years 0.080613721 2006 2600000000 0.04 2005 2500000000 0.136363636 2004 2200000000 0.222222222 2003 1800000000 0.058823529 2002 1700000000 -0.15 2001 2000000000 0.176470588 2000 1700000000 0 1999 1700000000 0.0625 1998 1600000000 0 1997 1600000000 0.142857143 1996 1400000000 0.076923077 1995 1300000000 0.181818182 1994 1100000000 0.1 1993 1000000000 Purchase Donations (1% of unit Case Price) Total Unit Cases Sold 3.9825 (billion) Price Per Unit Case 1.6463 TOTAL Purchase Donations 0.065563898 (billion) $ $65.56 million Table 4 assuming 2.5% of total coke maketing spend for arctic home spent in 2013 $3,014,314.45 Discontinue packaging change (est savings of) -$1,000,000.00 New Logo for sustainability campaign $500,000.00 Repurpose Ice Station Cool $1,000,000.00 Paid Employee Volunteer Hours $250,000.00 Purchase Donation by Coca Cola (1% of unit case price) $379,310,344.00 Continue matching donations (increase by increased rate of sales) $890,000.00 Continue retail displays (included in 3.01 initial budget estimate) $0.00 increase in campaign spend $380,950,344.00 additional cost per unit case 0.034631849 Total updated cost per unit case 0.674231849 Updated unit case price 1.6463 updated unit case profit 0.972068151 total additional profit from campaign $1,621,533,000.00 ROI (gain from investment - cost of investment) / cost of investment) 325.65%
- 33. EXHIBIT 1 Source: Coca-Cola 2013-14 Sustainability Report
- 34. EXHBIT 2 Source: Coca-Cola 2013-14 Sustainability Report
- 35. EXHBIT 3 63% of consumers don’t know how find a firm’s Corporate Sustainability Report Source: Environmental Leader 2012 Consumer Survey
- 36. EXHBIT 4
- 37. EXHIBIT 5 Arctic Home Website USA Homepage UK Homepage
- 38. Polar Bears Arctic Circle World Wildlife Foundation Coca-Cola Sub-brands Awareness Engagement Consumers Retail Customers Donations Education The Last Ice Area Retail Partner Non-profit Partner
- 39. COCA-COLA’S SUSTAINABILITY INITIATIVES Coca-Cola: “To give back at least 1% of operating income annually.” • $124M charitable contributions in 2011 Large portion focused on water conservation, recycling, environmental initiatives Education, community initiatives and humanitarian aid combine for 57% of contribution • 2020 Goals • Improve water efficiency by 25% • Reduce carbon emissions by 25% • Recover 75% of bottles produced on developing markets • Sustainably source key agricultural ingredients • Introduction of plant bottle
- 40. References https://sites.google.com/site/softdrinkindustrysaranalysis/pest-analysis http://www.statista.com/statistics/225464/market-share-of-leading-soft-drink-companies-in-the-us-since- 2004/ http://www.beverage-digest.com/pdf/top-10_2014.pdf This article references a projection from Ibis world for 2013 @ $197.7B for the global market http://www.benzinga.com/pressreleases/13/08/p3872118/global-soft-drink-and-bottled-water-manufacturing- industry-market-research http://www.mediapost.com/publications/article/186127/why-pepsi-canned-the-refresh-project. html http://adage.com/article/news/pepsi-tackles-identity-crisis/234586/ http://www.pepsico.com/Purpose/Performance-with-Purpose http://www.pepsico.com/Assets/Download/PEP_2013_Sustainability_Report.pdf http://www.pepsico.com/Purpose/Global-Citizenship Norton, M. and Avery, Jill. “The Pepsi Refresh Project: A Thirst for Change, HBP, 2011. http://project7.com/pages/mission
- 41. References http://www.wingsforlife.com/en/about-us/#organization http://www.jamesallenonf1.com/2012/09/red-bull-offering-fans-unique-opportunities-through-wings-for- life-charity-initiatives/ http://www.jamesallenonf1.com/2013/10/wings-for-life-and-red-bull-set-up-2014-charity-campaign/ http://www.redbull.com/en/events/1331613675743/wings-for-life-world-run http://www.polarbearsinternational.org/about-polar-bears/essentials/climate-change http://www.arctichome.com/showLBE.do?id=arcticHome&type=pillar&size=3&exp=html& http://www.worldwildlife.org/species/polar-bear http://www.polarbearsinternational.org/our-friends/corporate-sponsors http://thewaltdisneycompany.com/citizenship/act-responsibly/environmental-stewardship/disney-worldwide- conservation-fund https://thewaltdisneycompany.com/blog/walt-disney-company-recognized-nature-conservation-leadership http://www.jamesallenonf1.com/2013/10/wings-for-life-and-red-bull-set-up-2014-charity-campaign/ http://www.redbull.com/en/events/1331613675743/wings-for-life-world-run http://www.causemarketingforum.com/site/c.bkLUKcOTLkK4E/b.6381409/apps/s/content.asp?ct=131 57381
- 42. References http://www.coca-colacompany.com/stories/our-2020-environment-goals-infographic http://www.coca-colacompany.com/sustainabilityreport/we/charitable-contributions. html#section-giving-through-the-cocacola-foundation-and-through-the-cocacola-company http://assets.coca-colacompany.com/d0/c1/7afc6e6949c8adf1168a3328b2ad/2013-annual-report- on-form-10-k.pdf http://www.coca-colacompany.com/annual-review/2013/img/TCCC_2013_Annual_Review.pdf
Hinweis der Redaktion
- https://www.youtube.com/watch?v=aiCuN02hD7o Potential issues with campaign goals: $2M commitment plus $1M match seems small in comparison to overall philanthropic giving budget. 2011-2012 - $124M in charitable contributions (Arctic Home = 2% of charitable contributions). Coke focusing on mitigating risks based upon own contribution to global warming through strong philanthropic focus on environment, water conservation, etc. http://www.coca-colacompany.com/sustainabilityreport/we/charitable-contributions.html#section-giving-through-the-cocacola-foundation-and-through-the-cocacola-company Coke’s social impact on Arctic Home and other projects can be quantified through its own products, promoted, etc. For example, new green bottle from recycled material, posting facts under caps, etc. Highlighting Coke’s work to reduce stigma of soft drink company into work of reducing its environmental impact as potential opportunity. Campaign goals: Create a place where polar bears and people can thrive in the Arctic. Coca-Cola asked Leo Burnett for a galvanizing act. Didn’t want just a campaign but a campaign that would reside with customers and generate passion for. Objectives: Arctic project will cost $10 million over 5 years. Coca-Cola pledged $2M over 5 years and will match $1M = $3M matched since campaign started and will match $1M in 2014. 10 weeks of promotion in 2011 = $1.79M donated Participant audience engaged through developed Coca-Cola networks while Beneficiary audience developed through WWF research and work.
- The Artic is Melting: Linked to greenhouse gases build up in atmosphereDecrease in seal population increasing difficulty for polar bears to find food and reproduce Why does it Matter? Polar bears marked as vulnerable, added to list of threatened species in 2008 due to climate change affecting their habitat Polar bears are at the top of the food chain in Arctic and are important to overall marine life – they also serve as valuable predictors of climate change With climate change and melting of sea ice, polar bears are having a difficult time finding food (mostly a decreasing seal population that are also facing survival issues with melting ice) Polar bears hibernate during the winter but stay close to sea ice for summer so they can easily reach food for their cubs – are being forced to den farther away from sea ice, once they reach the sea ice there are less seals around Recent expedition to Arctic Norway by WWF found few mothers with cubs and polar bears suffering from malnutrition WWF has chosen 500,000 sq miles in Canada/Greenland as “Last Ice Area” where sea ice may persist the longest as specialty zone for preserving polar bears and their habitat. World Wildlife Foundation. https://www.worldwildlife.org/species/polar-bear.
- Business Fit Polar bears give audience tangible thing to relate to when considering climate change issues “Open Happiness” – commercials, Super Bowl ads, additional marketing Worked with WWF since 2007 on freshwater conservation Social Impact Polar bear impact at top of food chain in arctic and survival of marine life. Affect on climate change not just on polar bears but their food for survival, i.e. seal population decreasing or moving from Arctic areas. Less polar bears reproducing/becoming malnourished. Money donated has been used to further monitor polar bear populations. Current estimate at 25,000 polar bears. What people can do to reduce impact: Donate Carpool, biking, walking Collect rainwater from plants Plant trees to absorb carbon emissions Use rechargeable batteries Take shorter showers Recycle empty bottle containers Key Assets Coca-Cola: CONSUMER REACH Retail partners: 7-11, McDonalds Supply and distribution networks Products sold in over 200 countries Marketing expertise/budget WWF: GLOBAL REACH Extensive history in conservation efforts Ability to engage stakeholders Active local community relationships Advocated for a polar bear management plan – government engagement Research and data on polar bear movement Volunteers/Supporters AWARDS, ACCOLADES & ACHIEVEMENTS Year one of campaign: $1.79 million raised in 10 weeks Increase in share; Brand score up 9% Celebrating 3 years of Arctic Home campaign with WWF 583 expressions to networks; 380 million earned impressions 2012 GOLD Halo Award Best Environmental or Animal Campaign 2013 Best PSA in the Mashie Awards 2013 Best Social Media Marketing in the Summit Awards Consumer Reach: 7-Eleven and Coke developed “Snowball Effect App” for customers to learn more about polar bears, connect with friends and play games. More friends connected, more visibility to polar bears and their needs. Customers can download codes on Coke bottles to play. Included special Sprite Snowball Blast Slurpee flavor. 7-Eleven also giving away prizes for amount of points accumulated and check-ins. App directs customers to Arctic Home and how to donate. Global Reach: WWF has global impact addressing multiple threats with a refined approach Focus on 6 key areas: forests, marine, freshwater, wildlife, food, climate. WWF has been monitoring polar bears since 1992. Pre-established and tracking polar bear movements. Polar bears are marked as vulnerable, specifically 8 subpopulation groups are in decline. WWF working on new technology of taking DNA in polar bear footprints to track their recent meals and more information about the polar bear to use for research. Details about economic impact: A previous four-year partnership supporting polar bear conservation began in 2007 and raised $1 million globally. “Arctic Home” Campaign officially began in 2011. Measuring success in year 1 (2011) Economic value: value to business, increases in share in favorite brand scores – displays, up 9% compared to a year ago translates into real dollars Engagement value or how did consumers and views take the info and pass it along: 583 expressions to networks, 380 million earned impressions – on any other campaign may only see 50m Social value: what did we actually raise? In 10 weeks of promotion raised $1.795 million for the cause – and that’s just year 1. Source: Peter Callaro video: http://www.sustainablebrands.com/digital_learning/event-video/inside-coca-colas-arctic-home-campaign Coca-Cola. “Arctic Home.” http://www.arctichome.com/showLBE.do?id=arcticHome&type=pillar&size=3&exp=html& (US website down for Arctic Home replaced with http://www.coca-colacompany.com/coca-cola-unbottled/a-happy-anniversary-celebrating-progress-promising-to-achieve-even-more?id=arcticHome&type=pillar&size=3&exp=html&). Hughes, Kim. “WWF-Coke Arctic Home Initiative Puts Polar Bears First.” Samaritan Mag. 4 March 2013. http://www.samaritanmag.com/1508/wwf-coke-arctic-home-initiative-puts-polar-bears-first#sthash.IEQzAYPQ.dpuf. Coca-Cola. “Arctic Home.” http://www.arctichome.com/showLBE.do?id=arcticHome&type=pillar&size=3&exp=html& (US website down for Arctic Home replaced with http://www.coca-colacompany.com/coca-cola-unbottled/a-happy-anniversary-celebrating-progress-promising-to-achieve-even-more?id=arcticHome&type=pillar&size=3&exp=html&).
- Coke needed a very simple and direct call to action. “The notion of protecting polar bears homes was a great way to communicate what they were doing, but “we wanted people to get involved so we developed the mechanic of texting our package codes to donate.” (Peter Carallo). During that time, the threshold for mobile giving was $5 so coke worked with US mobile carries to lower it to $1 to invite a lot more participation, and get younger consumers involved with the cause. SOURCE: http://www.sustainablebrands.com/digital_learning/event-video/inside-coca-colas-arctic-home-campaign
- IBIS World Industry Report – April 2014 Soda Production in the US https://sites.google.com/site/softdrinkindustrysaranalysis/pest-analysis http://www.statista.com/statistics/225464/market-share-of-leading-soft-drink-companies-in-the-us-since-2004/ http://www.beverage-digest.com/pdf/top-10_2014.pdf This article references a projection from Ibis world for 2013 @ $197.7B for the global market http://www.benzinga.com/pressreleases/13/08/p3872118/global-soft-drink-and-bottled-water-manufacturing-industry-market-resea Soft drink consumption is expected to decrease in 2014; Americans turning to healthier beverages. Emerging markets, such as Mexico, are gaining speed in the soft drink industry. Price-based competition results from weaker demand for soft drinks as consumers move toward healthier options. Consumers are turning to diet soda, juices or energy drinks. Energy drinks are becoming more and more popular. Because of complex supply channels efficient marketing tactics are needed to help lower costs.
- WHY IS PEPSI A TOP INDUSTRY COMPETITOR Pepsi is the largest direct competitor in the soft drink industry Pepsi has the 2nd largest market share Area for Citizenship Focus: Primarily cause marketing focused at the time Arctic Home was launched Now have expanded to Performance with a Purpose; their CR/Sustainability Reporting Initiatives KEY CAMPAIGNS/PROGRAMS Pepsi Refresh Cause Campaign Allocated $20M to funding cause marketing campaign; diverted internal brand resources for Pepsi Refresh execution Several thousand consumer submitted Refresh Project ideas, 300,000+ new Facebook friends as a result of campaign Ended in 2012 due to lack of ROI for the high marketing spend Key: ground breaking from cause marketing perspective because Pepsi solicited customers ideas for community improvement projects through multiple channels; campaign engaged many agency partners, distributors, employees; utilized many channels to reach consumers campaign did not drive sales Performance with Purpose CSR Environmental Sustainability is one of three pillars Program includes corporate grants, employee volunteering Employee volunteer programs related to environmental sustainability include several initiatives to improve clean water access OVERLAP Direct product overlap Pepsi Refresh was focused on local communities, state and nation; Coca-Cola has a different focus THREATS Coca-Cola limited customer and employee engagement in campaign, while Pepsi had successful strategy to increase customer engagement and community impact DIFFERENTIATE Coca-Cola could dedicate increased financial resources to the cause to cement Coca-Cola’s brand association with Arctic Home COLLABORATE Unlikely to collaborate on externally focused campaigns Sources: http://www.mediapost.com/publications/article/186127/why-pepsi-canned-the-refresh-project.html http://adage.com/article/news/pepsi-tackles-identity-crisis/234586/ http://www.pepsico.com/Purpose/Performance-with-Purpose http://www.pepsico.com/Assets/Download/PEP_2013_Sustainability_Report.pdf http://www.pepsico.com/Purpose/Global-Citizenship Norton, M. and Avery, Jill. “The Pepsi Refresh Project: A Thirst for Change, HBP, 2011. WHY IS DR. PEPPER SNAPPLE GROUP: Dr Pepper Snapple Group is #3 in the soft drink market share with 2013 share growth of +0.1% Area for Citizenship Focus: Primarily cause marketing focused with elements of CSR KEY CAMPAIGNS United Way Partnership: Dr. Pepper/Snapple engages employees to volunteer and donate; $2.175M raised in 2013 including a corporate match 7 Up + Project 7 partnership: enhances consumer engagement; customer chooses 1 of 7 areas of need for 7 Up to donate (i.e. Save the Earth, Quench the Thirsty, Heal the Sick) Dr. Pepper Tuition Giveaway: annual $1M donation for college scholarships OVERLAP 7-Up’s Save the Earth initiative addresses environmental causes THREAT Increasing consumer preference for juice drinks (Snapple) Dr. Pepper / Snapple has a strong brand awareness and marketing budget DIFFERENTIATE Coca-Cola is focusing resources on one issue Dr. Pepper / Snapple distributes resources broadly among causes COLLABORATE Collaboration possible but unlikely since 7-Up partners with specific non-profits WHY IS REDBULL A TOP INDUSTRY COMPETITOR Demand for energy drinks is threatening market share for more traditional soft drink producers Red Bull has 8% market share and growing KEY CAMPAIGNS/PROGRAMS Wings for Life: a narrow-cause charity Red Bull owner Dietrich Mateshitz is a founding partner Focused on increasing funding for research on traumatic spinal cord injury Various fundraising tactics, but all focused on sporting events Area for Citizenship Focus: Primarily single charity events/campaigns Recent evolution into sustainability following the life cycle of a can KEY CAMPAIGNS/PROGRAMS Wings for Life: a narrow-cause charity Red Bull owner Dietrich Mateshitz is a founding partner Focused on increasing funding for research on traumatic spinal cord injury Various fundraising tactics, but all focused on sporting events OVERLAP Coca-Cola and Red Bull have different intended social and business impacts Coca-Cola has a broad target audience; Red Bull has a narrow target focus on millennials THREATS Rise in popularity of energy drinks could threaten Coca-Cola’s market share Wings for Life programs are primarily centered in Europe; possible competition for Coca-Cola in Europe DIFFERENTIATE Polar Bears and the Arctic are easy for customers to identify with Spinal cord injury is a narrow participatory audience with low opportunities for affinity COLLABORATE Event based techniques to increase engagement and donation
- WHY Canada Goose Arctic Program AN ISSUE COMPETITOR Canada Goose, an outerwear manufacturer, partners directly with Polar Bear International (PBI) to provide high end gear and monetary support to help PBI’s scientists, Leadership Camp students, instructors, volunteers and support staff Canada Goose provides a special edition coat to help with polar bear research in the arctic; Coca-Cola uses coke cans and product to bring awareness to climate change through polar bear icons and the melting arctic. The main differentiator is that Canada Goose is providing a product directly related to helping climate change. Their coats protect researchers and scientists in the arctic. Coca-Cola’s product, a soft-drink, does not directly help people in the arctic with climate change issues. The fact that Canada Goose provides a product that directly helps research efforts in the arctic may convince consumers to purchase coats by that brand more than a person would be convinced to buy Coca-Cola for their efforts in the arctic. Buying a Coca-Cola does not directly help, may not resonate as well among the audience. PARKAS FOR SCIENTISTS / FIELD AGENTS Every year Canada Goose, donates special edition PBI Expedition Parkas to PBI Research Advisory Council scientists who work in the arctic The purchase of a parka includes a donation to PBI and a PBI membership Annual contribution to PBI of $100,000+ OVERLAP Similar strategy in product-oriented promotion of climate change Polar bears as icon for climate change THREATS Canada Goose provides exactly what scientists need to do research Threat to Coca-Cola in soft drinks do not directly impact work in arctic PBI specialized focus on polar bear habitats vs WWF more diverse focus DIFFERENTIATE Coca-Cola has wide consumer base to connect with A separate cause campaign helps educate consumers on the issue more clearly COLLABORATION Increase awareness of the research that PBI is doing through a collaborative campaign WHY Disney’s Worldwide Conservation Fund an ISSUE COMPETITOR By focusing on climate change the partnership is broadly serving the same issue space CLIMATE CHANGE EFFORTS TO REDUCE CARBON EMISSIONS $10M+ investment in international forest conservation work; includes carbon tax credits and youth empowerment workshops for community education on protecting natural environment Partner on conservation work at Disney’s Animal Kingdom Disney is Conservation International’s largest corporate partner and received a Conservation Leadership Award 1)http://www.causemarketingforum.com/site/c.bkLUKcOTLkK4E/b.6381409/apps/s/content.asp?ct=13157381 In an effort to expand its marketing strategy in Brazil, Macy’s partnered with The Nature Conservancy to both generate awareness, support, and capital for the Brazilian Amazon Rainforest and drive sales for Macy’s through a point of sale cause marketing promotion.1 Macy’s sold $3 shopping pass in all stores to customers in May, 2012. 100% of the proceeds were donated to The Nature Conservancy. In exchange, shoppers received a 15-20% discount on their purchase. Additionally, local chapters of the nature conservancy visited Macy’s associates to inspire and educate staff. And finally, staff were rewarded when they met their goals of selling designated amount of shopping passes. Top sellers were awarded prizes from the Nature Conservancy. Tactics Direct Mail Radio Spots In Store Signage Receipt Messaging Promoted Across Internal and External Platforms OVERLAP Climate change issue overlap; but campaigns focusing on different aspects of issue Campaigns use similar tactics: app/game and production of conservation documentaries THREATS Disney owns multiple channels that could scale cause marketing though only a few channels currently utilized Coca-Cola not as strong as Disney at demonstrating direct impact on its cause DIFFERENTIATE Disney has many other causes while Coca-Cola is primarily putting cause marketing dollars behind Arctic Home Focused efforts don’t ‘confuse’ Coca-Cola’s cause message COLLABORATION Could partner on similarly used tactics for bigger impact (e.g. conservation documentary films, live experiences at parks) WHY Macy’s & Nature Conservancy is an ISSUE COMPETITOR Concurrent campaign to raise awareness and funding for land conservation and wildlife protection facing imminent threat as a result of anthropological forces Partnership with The Nature Conservancy, a nonprofit leader in same issue space KEY CAMPAIGNS: GIVE GET AND SAVE THE RAIN FOREST! In-store promotion to generate awareness, support, and capital for the Brazilian Amazon Rainforest and drive sales for Macy’s through a point of sale tactics Raised $3M+ from customers in 15 days; donated 100% of proceeds from sales of $3 shopping passes, which were exchanged for a 15-20% discount purchase OVERLAP Partnered with a nonprofit leader that established authenticity, provided content expertise, and designated beneficiary participants Raised awareness and engaged consumers regarding the impact of human behavior on the environment Reliance on consumer participation to raise funds THREATS Macy’s initiative further saturates support for environment specific causes Coca-Cola’s partnership with the WWF is more extensive Repeated annually for three years and aggregated $1M more in consumer donations DIFFERENTIATE Coca-Cola can differentiate by emphasizing a sense of urgency regarding global climate change symbolized by the melting polar ice caps Coca-Cola can leverage company marketing resources through use of multi-year, strategic partnerships to create stronger social and business impacts COLLABORATION The two firms compete in distinctly separate markets Macy’s could collaborate with Coca-Cola for in-store seasonal displays to broaden campaign exposure
- S: B1: Global distribution, bottling, store shelf space, supplier power, Tremendous exposure; participating in such a vast number of markets B2: Brand Equity, Online, TV/Media Presence, Social Media B3: an excess of liquid assets to support cause marketing campaign; can exert influence downstream to B4: Largest Beverage Company Leveraging Global Supply Chain, Partnership with 7-11 (largest chain convenience store) W: B1: Entry Points to Donate: Requires user to donate via text, online, or transfer of coke rewards points B2: singular regional focus on specific issue; limited capital allocation particularly in consideration of their overall philanthropic budget B3: Reduce emissions, change consumer behavior, on the ground presence (interaction with local population) B4: Bio plastic feedstock alliance, WWF for polar bears, for water etc… O: B1: difficulty in addressing food or nutrition related social issues; previous failure in addressing nutrition B2: very few organizations working to save the polar bear, which allows Coke to establish a differentiated campaign B3: progressive fundraising tactics B4: consumer awareness of underlying cause; low barriers for consumer participation T: B1: Allocating equal capital for marketing the campaign and matching consumer donations B2: Coca-Cola recorded free cash flows of 6.55B at end of 2011 B3: Cause could potentially be year round B4: Consumer backlash, potential for subjection to hypocrisy
- Lessons Learned •Coke should capitalize on its scale – in terms of global reach and financial/marketing capacity to really invest dollars in a cause campaign •Wise for Coke to leverage existing sustainability work as part of a cause marketing campaign because authenticity is a key factor in campaign success •If building off actual CSR initiatives, Coke can ‘back up’ their cause messages with action Further Investment •Success with retail displays during initial campaign – build on that but with messages tying in Coke’s CSR work •As mentioned above, leverage global brand and scale for bigger financial investment in cause •Social media is a necessity – but needs to be active and engaging; Arctic Home FB page is still live but has not been updated in years; Coca-Cola FB page has not mentioned Arctic Home since launch of white cans •Coke has existing assets that could be leveraged for interactive experiences, like IceStation Cool at Walt Disney World Strategies to Decrease •Coke’s product/packaging is iconic, so any product tactic must be thoughtful and not be a substantive change •Decrease investment in tactics for which there is not obvious alignment between Arctic Home and Coke’s CSR/climate change work, e.g. Snowball Effect mobile app New Strategies •Purchase triggered donation has potential to raise serious cash for WWF, while also directly engaging consumers •A product logo can help build integrity and authenticity for Coke’s brand and Arctic Home campaign, especially if Coke leads the development of cross-industry logo •Employee engagement is highly utilized by competitor’s campaign – while Coke does employee engagement initiatives, they are not integrated into a larger program nor related to current cause campaign
- Looking head from our learnings while arctic home is a great cause platform it would benefit from being integrated into coke’s overall CSR mission through the framework provided by The Network for Business Sustainability: embedding sustainability in organizational culture A How-to Guide for Executives Based on our research we recommend coke utilize the following strategies
- 2020 plan: exhibit 4 Coke now uses a 6 P model to structure its company wide goals: Profit, People, Portfolio, Partners, Planet and Productivity The Golden Triangle is Coke’s CSR program name – they’ve taken ownership over their global reach and how they effect the world, thus they want to make sure they’re giving back in a relatively balanced way – thus the ME (health) WE (improving lives of others) WORLD (sustainable innovations) lens.
- Arctic home is presented during the winter: NA & Europe Integrate Coca-Cola’s current CSR efforts into Arctic Home/climate change campaign in order to create better alignment with Coca-Cola’s core CSR values Unknown to consumers, Coca-Cola has extensive sustainability initiatives in place Artic Home will invite consumers to learn more about Coca-Cola’s sustainability efforts and how they can help prevent further loss to the Arctic. Source: Environmental Leader 2012 Consumer Survey, Ibis World Reports, Team Analysis A company’s sustainability efforts impact consumer purchase decisions Consumer purchase factors moving towards: Increased focus ethical and environmental manufacturing techniques General lifestyle trend towards healthier consumption choices Increased regulation in displaying ingredients and documenting sourcing 63% of consumers don’t know how to find a firm’s CSR 86 % of consumers are more likely to trust a company that communicates the results or impact of its CSR efforts 82% are more likely to purchase a product that clearly demonstrates the results of its CSR initiatives than once that does not 40% of consumers will not purchase a company’s products or services if it doesn’t communicate the results of its CSR efforts
- Water sustainability is one of Coca-Cola’s highest priorities, however, they’re evaluating water as it relates to manufacturing and consumer use. Coca-Cola’s is focusing on short term goals: consumer use of water. They have long term goals but are still in the research phase: manufacturing affect on water, CO2 impact, sharing knowledge/innovations, water sustainability in global economies. Science & Research The 100 Circular Economy: http://www.ellenmacarthurfoundation.org/business/ce100 Sustainability CO2: has been determine as one of the major causes of the Arctic Ice Mass to decrease – causing its inhabitants to migrate in unsafe conditions and change habits Coke is starting to evaluate the cost of its distribution network alongside its vending machines. Consumer & employee Awareness - Coke needs to minimize the barrier/ encourage people to read their public reports – less positive PR and more data – they should communicate the good & bad Positive incentives for employees to get involved and share their stories with others provides coke with a stronger platform Coke has the risk of appearing to be unfocused since they support a variety of initiatives - by planning events tactfully and being more transparent about their projects they’ll have more credibitility
- Proposed messaging platform for Phase II of the Arctic Home campaign – a new Go To Market Plan that should hold more authenticity Messaging reflects key learnings from existing Arctic Home campaign, alignment with Coke’s core values around CSR climate change efforts, and is integrated into revised marketing tactics for Phase II Three pillars of the messaging platform: Audience Awareness and Engagement: Building stronger relationships with both customers and employees around Arctic Home Communicating Sustainability Efforts: Tying in Coke’s actual CSR work related to climate change reduction with the Arctic Home Phase II marketing campaign Climate Change Education: Utilizing the Arctic Home Phase II campaign to better educate Coke stakeholders around climate change Three pillars are aligned with Coke’s CSR initiatives discussed on previous slide – and are used to designate tactical alignment with the messaging platform in upcoming marketing mix slides
- These are key things for Coke to consider and/or integrate into tactics in order to build a successful Arctic Home cause campaign going forward: •Messaging must tie together Arctic Home/climate change with Coke’s own sustainability initiatives •Beneficiary audience should engage millennials who with buying preferences for socially responsible products/companies, while also increasing purchases from brand loyal customers •In order to be taken seriously by consumers and ‘watchdog’ analysts (and for Arctic Home to be perceived as authentic), there must be serious financial backing for both the marketing budget but also contributions to the cause/WWF •The polar bear icon/image is key to Coke’s brand (though primarily in the winter season); these must be kept as part of the cause campaign, but tied into new messaging •Continue WWF partnership, but also leverage other existing partners where appropriate – e.g. Disney (more details on marketing tactics slides) •Coke can distinguish itself from competitors in terms of cause by keeping a narrow focus on the Arctic Home and climate change; both Pepsi Refresh and Dr. Pepper Snapple’s initiatives have broad campaigns and therefore their messages are a bit unfocused
- Must be careful when considering product changes due to the immense backlash around the white Coke cans as part of the launch of Arctic Home campaign – product change affected sales Proposed tactic does not change label, but adds to the label by including logo communicating Coke’s sustainable production practices and its effect on Arctic Home Developing cross-industry logo allow Coke to position themselves as a thought leader, further raising the profile of their CSR and cause marketing work Note: Product tactic utilized, but not focus of Phase II of campaign; Earlier change to white Coca-Cola can as part of Arctic Home campaign caused consumer confusion and backlash
- Arctic Home Campaign Retail focuses on adding communication about Coke’s climate change efforts to traditional Arctic Home retail displays i.e. vending machines: instead of being wrapped in only polar bear images w/Arctic Home logo, include messages about Coke’s goal of zero emission vending machines and how that work affects the Arctic Home polar bears Communicate not only about polar bears/Arctic, but what Coke is doing internally to address its own contributions to these problems Arctic Home Campaign Partners focuses on repurposing existing assets/partnerships to help communicate around climate change and Arctic Home Coke is the enterprise vendor for Disney World – and can repurpose their existing ‘Ice Station Cool’ exhibit at Epcot to focus on Arctic/climate change education; already nice cause alignment in that its an ‘ice station‘ attraction Extend partnership with Disney Worldwide Conservation Fund to traveling pop-up educational exhibits Conversations should be had with WWF about engaging a new partner, but these two tactics are focused on education and so should not diverge funding/donations from WWF to Disney Worldwide Conservation Fund
- We are making the assumption that retailers will pass the price increase to consumers by raising the retail price. Retailers would benefit with more sales and customers would ultimately be paying the premium, which is really the donation to WWF
- Arctic Home print and digital advertising would revolve around impactful and emotional creative that would resonate with the audience, especially the environmentally friendly segment. The Arctic Home commercial would show the impact of climate change on the polar bears and how their life is affected on a daily basis. The commercial would also highlight how Coke’s sustainability initiatives, such as water conservation, are helping the improve climate change and restore polar bears habitat in the arctic. The sustainability blog would be maintained by Coca-Cola and explain and educate the audience on Coke’s current sustainability efforts and how they are helping to solve climate change issues. The blog would frequently give specific examples of what Coke is doing to help, such as new manufacturing techniques that conserve water. Coke has a huge employee base and could benefit from allocating volunteer hours to employees. Arctic Home has not really capitalized on resources available through employees. Employees would be able to volunteer in any climate change org during work hours. On that note of engaging employees, Coke should develop an internal newsletter to let the entire company know what's happening with Arctic Home. This way more people will get involved and understand the importance of Coke's efforts. Coke has a Facebook page set up for Arctic Home, but it has been ignored since 2011. We recommend re-vamping this page and adding a Twitter, Instagram and YouTube Arctic Home pages. These pages will actively engage the audience provide an easy and accessible place for consumers to find the latest information and content about Arctic Home. Interactive contests and trivia will educate the audience on climate change as well as engage them with the Coke brand. Instagram is a great place to start "Day in the Life" posts. The images would showcase what it’s like to be a scientist in the arctic and what kind of research they do. This strategy could also be used to show a day in the life of a polar bear, so the audience can see first hand how their environment is changing and their habitat is being destroyed. Arctic Home Ads & Commercials: create visually stimulating advertising creative that resonates with audience. Show impact of climate change on the arctic and how Coke’s sustainability initiatives are helping. Coke’s water conservation efforts help…. Sustainability blog would explain Coke’s current sustainability efforts and how they are helping to solve climate change issues – giving specific examples of manufacturing techniques that conserve water, etc… Coke has a Facebook page set up for Arctic Home, but it has been ignored since 2011. We recommend re-vamping this page and adding a Twitter, Instagram and YouTube Arctic Home pages. These will keep the audience connected to the issue and allow an easy place for consumers to find the latest information and content. Interactive contests and trivia will educate the audience on climate change as well as engage them with the Coke brand. Day in the life posts on instagram will show the audience what it’s like to be a scientist in the arctic and what kind of research they do. This could also be used to show a day in the life of a polar bear, so the audience can see first hand how their environment is changing and their habitat is being destroyed.
- Coke has admitted HFC-Free coolers are off track with their goal. (They are phasing out the use of HFC because of the high global warming potential of hydrofluorocarbons.) As well as displaying HFC-free coolers, Coke should also develop creative to add to their retail displays. The retail display will entice consumers to buy Coke's product's since they can see visuals of what the campaign is exactly about.
- We recommend using images of polar bears wherever possible as this is the key icon for the campaign. As well as the image, we recommend using very impactful short statements to quickly get the point across that polar bears are losing their home and we can help.
- This is the story board for a possible Arctic Home commercial. The commercial focuses on polar bears first to bring in the audience and grab their attention then moves towards Coke's efforts and ends with how everyone can help. These commercials would run during the holiday season.
- These are examples of social media posts Coke could use during the winter Arctic Home campaign. The first is a twitter trivia post. During the campaign Coke would host "Twitter Trivia" contests and the first five to answer would win a special prize. The second is an example Facebook post of a possible campaign Coke could run - donating $1 for every new like on Facebook. The third is a "Day in the Life" Instagram post. The text sounds like it's coming from a polar bear, hopefully connecting with the audience even more.
- Coke currently has "Ice Station Cool" set up at Disney, but it really is just a place where consumers can taste different Coke products. We recommended repurposing this into an educational and interactive exhibit for the Arctic Home campaign. The audience would be taken on an educational journey and learn more about climate change, polar bears and how Coke's sustainability initiatives continue to help the cause.
- To view Arctic Home Coca-Cola Commercial click Polar Bear N26132 http://www.sustainablebrands.com/digital_learning/event-video/inside-coca-colas-arctic-home-campaign https://www.youtube.com/watch?v=aiCuN02hD7o Potential issues: $2M commitment plus $1M match seems small in comparison to overall philanthropic giving budget. 2011-2012 - $124M in charitable contributions (Arctic Home = 2% of charitable contributions). Coke focusing on mitigating risks based upon own contribution to global warming through strong philanthropic focus on environment, water conservation, etc. http://www.coca-colacompany.com/sustainabilityreport/we/charitable-contributions.html#section-giving-through-the-cocacola-foundation-and-through-the-cocacola-company Coke’s social impact on Arctic Home and other projects can be quantified through its own products, promoted, etc. I.E. new green bottle from recycled material, posting facts under caps, etc. Highlighting Coke’s work to reduce stigma of soft drink company into work of reducing its environmental impact. Create a place where polar bears and people can thrive in the Arctic. Coca-Cola asked Leo Burnett for a galvanizing act. Didn’t want just a campaign but a campaign that would reside with customers and generate passion for. Objectives Arctic project will cost $10 million over 5 years. Coca-Cola pledged $2M over 5 years and will match $1M = $3M matched since campaign started and will match $1M in 2014. 10 weeks of promotion in 2011 = $1.79M donated
- Implementation more expansive including money allocated to the Arctic Home campaign (increased budget) Tradeoffs of giving more money to Arctic Home campaign – If spending more on campaign, where is money coming from? Will other campaigns lose attention/focus? – hard to determine, because there is such an extreme ROI generated from this. But it’s not clear what Coke usually sees as an ROI for other campaigns. Sales volumes are so high that campaign spend has to come close to the billion dollar range before ROI is negatively impacted. Coke will spend more money on this campaign, but social outcomes will be great STOP: Mobile app packaging change CONTINUE: Matching donations (increase) START: New logo for sustainability campaign Repurposing ice Station Cool Volunteer hours REALLOCATE: Retail displays *Assume online donations increase at same rate as increased sales See back up slides for full ROI analysis Assume that both consumers and coke donated 2m each NEW: purchase donation of 1% unit case price Online donations – estimate increase in line with increased sales CC online match increases to $5m
- STOP: Mobile app packaging change CONTINUE: Matching donations (increase) START: New logo for sustainability campaign Repurposing ice Station Cool Volunteer hours REALLOCATE: Retail displays
- Table 1Sources: http://assets.coca-colacompany.com/d0/c1/7afc6e6949c8adf1168a3328b2ad/2013-annual-report-on-form-10-k.pdf Table 2 Sources: http://www.coca-colacompany.com/annual-review/2013/img/TCCC_2013_Annual_Review.pdf “We strengthened our brand portfolio, ending 2013 with 17 billion-dollar brands led by . In fact, brand alone was a billion-dollar brand in 19 countries. … with 20 other brands now generating more than $500 million in “annual retail sales. “Record volume of 28.2 billion unit cases, including record volume for coca cola brand of nearly 11 billion unit cases” b. CSR AND CAUSE-RELATED MARKETING IMPACTS Document on SMG Tools: The perception that a company is doing good raised the premium consumers are willing to pay for a brand by an average of 6.1%. Brands that engage people emotionally command prices as much as 20 to 200 percent higher than competitors’ and sell in far higher volumes. (Fast Company study 2007) 61% have bought a brand that supports a good cause even if it wasn’t the cheapest brand Two out of three (67 percent) say they would switch brands if another brand of similar quality supported a good cause When choosing between two brands of similar quality & price, a social purpose ranks highest at 43% and is placed higher in order of importance above design & innovation (34%) and brand loyalty (24%) Coca-Cola’s CRM campaign increased sales by 490% In 1997, Coca-Cola donated 15 cents to Mothers Against Drunk Driving for every case of Coca-Cola bought during a 6-week promotion in more than 400 Wal-Mart stores. Coke sales in these stores increased 490% during the promotion. Cause Marketing Forum - http://www.causemarketingforum.com/page.asp?ID=345
- Table 3 Sources: http://www.coca-colacompany.com/contact-us/faqs Can you share your marketing strategies with me? What is the target market for your products? How much money do you spend on advertising?Unfortunately, we are not at liberty to disclose detailed marketing information for any of our 400 brands. The only marketing information that we publicly disclose can be found in press releasesfor marketing initiatives and new product launches. You can find some of the information you seek through publications including Beverage World, Beverage Digest, The Wall Street Journal,Advertising Age and AdWeek. As for expenditures, we expense production costs of print, radio, internet and television advertisements as of the first date the advertisements take place. The following amounts reflect the total worldwide amounts spent on print, radio, internet, and television advertising. Advertising expenses included in selling, administrative and general expenses were approximately: 2006: $2.6 billion 2005: $2.5 billion 2004: $2.2 billion 2003: $1.8 billion 2002: $1.7 billion 2001: $2.0 billion 2000: $1.7 billion 1999: $1.7 billion 1998: $1.6 billion 1997: $1.6 billion 1996: $1.4 billion 1995: $1.3 billion 1994: $1.1 billion 1993: $1.0 billion **Assuming cc annual marketing spend increases by .08% each year = total annual marketing spend in 2013 $4.45 billion** Table 4: Internal assumptions for ROI calculation Annual reported sales = 11b Cause marketing / market share data from table 2 shows estimated increase to 15.39 b annually. Divide by 4 to get winter season/winter quarter sales Estimated increase marketing spend over course of campaign Updated sales * updated unit case profit = total increased profit for campaign ROI = (gain from investment - cost of investment) / cost of investment) = 325% Huge ROI realized due to minimal increased spend offset by extremely large volumes. Proposed increased spend barely impacts their profit margin on a unit case basis, and effect is negligible when spread across such large sale volumes.
- www.arctichome.com (no longer active for US ip addresses www.arctichom.co.uk
- Awareness: Polar Bear plight and endangerment Engagement: Monetary involvement to support WWF, Polar Bears are at the top of the food chain in the marine environment, loosing them will have a large impact, since 1992 WWF has been working with partners to sustainable preserve the rich biodiversity of the arctic. WWF now work is with local people to establish and appropriate management plan for this “Last Ice Area” in Canada and Greenland. Donations: Provided through text messaging product codes, Donate button on Arctic Home website, and WWF website The Last Ice Area: Is 500 sq miles (Texas x2) The catalyst for partnership and Arctic Home initiative Education: Of local residents, consumers, partners – how they impact the health and rejuvenation of the arctic Partners: In addition to consumer partnerships, Government organizations and researchers partnered with WWF to improve the effectiveness and impact of the Arctic Home campaign.
- http://www.coca-colacompany.com/stories/our-2020-environment-goals-infographic http://www.coca-colacompany.com/sustainabilityreport/we/charitable-contributions.html#section-giving-through-the-cocacola-foundation-and-through-the-cocacola-company