Case Study of Coca-Cola's Sustainability Marketing to Connected Consumer

1. Donna Reiser
CMN 6015 70715
WK6 – Case Study
December 19, 2015

2.  Changing demographics - non-whites, women,
Millennials, Gen Z are more concerned with
corporate responsibility
 Global economy/emerging economies/strain on
natural resources
 Attracting talented candidates
 Consumer demand for “green” products/eco-
friendly lifestyles
 Strong commitment from emerging markets
 Innovation stimulator
 “It’s the right thing to do”

3. According to Frank-Martin
Belz & Ken Peattie, authors
of Sustainability Marketing,
there are 8 C’s to successful
promotion of sustainability
concepts to large groups of
consumers. Coca-Cola
achieves all 8 C’s in their
sustainability practices.

4. 1. Core values
• Every level of the business must be committed to
sustainability—socially, environmentally and economically.
2. Cooperative
• A brand’s contractors, suppliers and vendors must also be
committed to sustainability through cooperative strategies.
3. Credibility
• Consumers must trust and recognize the brand as an advocate
for sustainability.
4. Consumer benefits
• Consumers want to know they are receiving high quality goods
and services while simultaneously helping their local or global
community.

5. 5. Conversational
• Consumers want to discuss sustainability practices with
trusted brands and engage in two-way conversations.
6. Consistency
• To avoid sending mixed messages, make sustainability
part of the culture, not just part of marketing
communications.
7. Commitment
• Ensure you can commit to sustainability before you make
it part of your marketing campaign.
8. Continuity
• You brand must demonstrate a long-term commitment to
sustainability.

6. Fifty-five percent of global online consumers across 60 countries say they are
willing to pay more for products and services provided by companies that are
committed to positive social and environmental impact.
The propensity to buy socially responsible brands is strongest in Asia-Pacific
(64%), Latin America (63%) and Middle East/Africa (63%). The numbers for
North America and Europe are 42 and 40 percent, respectively.
Millennials (age 21-34) appear more responsive to sustainability actions.
Among global respondents who are responsive to sustainability actions, half
are Millennials; they represent 51 percent of those who will pay extra for
sustainable products and 51 percent of those who check the packaging for
sustainable labeling.
Nielsen Global Survey on Corporate Social Responsibility

7.  Live online, mostly through a portable device
 Empowered, informed and demanding
 Compare prices and read reviews
 Readily share experiences in social networks
 Expect a sense of exclusivity, privilege and
access to special offers not available anywhere
else
 Most often rely on recommendations from
people they know or consumer opinions posted
online

8. Listen
Learn
Engage
Adapt

9. Coca-Cola Sustainability Connections
http://www.coca-colacompany.com/sustainability/
http://www.coca-colacompany.com/ekocenter/
http://www.coca-colastore.com/5by20/

10. “I say that the chief sustainability officer of the Coca-Cola
Company is me. That’s my responsibility. It starts at the top, and it
is driven and permeates through the entire organization from the
top.”
“What will make us very successful in the next 10 years is our
entire set of values, how we think of business from an
accountability perspective, from an integrity perspective, how we
think of the planet in terms not just of getting our house in order but
of how we look at the street, and how we look at the role we play in
making our city and our country and our world a better place.”
“Every single person in the Coca-Cola system, we believe
wholeheartedly that we cannot have a sustainable business and a
growing business unless we have sustainable communities. We
have a role and responsibility to play in helping to create
sustainable communities, whether it’s a village in Kenya or a
metropolis like Mexico City. That’s what we believe, and those are
the values of the Coca-Cola system.”
Muhtar Kent
Chairman and CEO
The Coca-Cola Company

11. Coca-Cola strives to create value for consumers and
shareowners by making a lasting, positive difference in
people’s lives through the integration of sustainability efforts
and daily actions.
For 2014, the organization reported significant progress in
three sustainability priorities—Women, Water and Well-
Being.

12. GOAL:
Coca Cola is on track with its commitment to enable the economic
empowerment of 5 million women entrepreneurs throughout the Coca-
Cola value chain by 2020, hence the name 5by20™. The initiative
includes small businesses that the Company and its bottling partners work
with in more than 200 countries around the world.
313,000
Women
impacted in
2014.
52
Countries with
5by20™
programs.
865,000
Women
impacted since
2010.

13. GOALS:
Coca Cola is ahead of its 2014 target to return to communities and
the environment the amount of water equivalent to what it uses in the
production of its finished beverages.
Beginning with a 2010 baseline, Coca-Cola has improve water
efficiency in operations by 25 percent.
209
Community
partnership
projects.
153.6
Billion liters of
water
replenished.
61
Countries in
partnership
projects.

14. GOALS:
Offer low- or no-calorie beverages in every market to build a
stronger business and meet the evolving preferences of
consumers. Increase the number of smaller package-size
offerings.
Support physical activity programs in every country where
Coca-Cola does business.
25
Percent of new
beverage
options
reduced-, low-
or no-calorie
330
Active, healthy
living programs
supported in
markets around
the world.
77
Countries where
reduced- or no-
calorie products
represent 20% of
the local
portfolio.

16. Socialized on:
• Facebook
• Twitter
• YouTube
• Website
• Microsites
Coca-Cola creates
emotional connections
through compelling,
engaging content.
• Inspirational stories of
empowerment
• Videos tales of success
• Infographics
• Blogs
• Imagery

17. • News directly to mobile
devices
• Exclusive offers and
discounts
• Online store, 5by20
merchandise

18. Coca-Cola listened to connected stakeholders and adapted to create the
EKOCENTER kiosk, in cooperation with innovative partners. EKOCENTERs
are “empowering well-being through social enterprise systems” bringing solar
energy, water purification, basic goods, refrigeration, internet access, vaccine
storage, sanitation and health check-ups in developing communities all in one
locations with locally assembled parts.

19. “Customers expect values to match their own core values. What used to be a
necessary checklist of community focus, such as corporate social responsibility is
now rebooted. Philanthropic capitalism is a business model where companies
contribute to worthwhile causes on behalf of customers as part of the transaction.
Additionally, customers are expressing that they will also invest in companies where
employees are “treated well,” pledging trust and loyalty as a result. The empathetic
business model on the horizon requires charitable and sustainable decisions as part
of everyday business where customers naturally become stakeholders.”
Brian Solis

20.  A joint effort of The Global Water Challenge and Coca
Cola.
 Designed to support communities where EKOCENTER
kiosks are located.
 Crowdsourcing project “leveraging the reach of Coca-
Cola and the passion of millennials to help those less
fortunate.
 Students, faculty and consumers purchasing single-
serve Coca-Cola beverages will donate 2 cents* when
they purchase a product.
 Coca-Cola and its licensed bottlers, the local food
service provider and the university will each have the
option of matching these 2 cents up to a $5,000 capped
amount, creating the ripple effect.
 These funds will be channeled to partners supporting
either women’s economic empowerment, safe drinking
water initiatives or projects that enhance the well-being
in EKOCENTER communities in Africa.
 When the campaign ends, the university will help decide
where to direct the funds among those three pillars of
the EKOCENTER initiative.

21. Aundretsch, et al. (2012) Sustainability nears a tipping point. MIT Sloan Management Review.
Retrieved from http://sloanreview.mit.edu/reports/sustainability-strategy/ December 16,
2015.
Belz, F., Peattie, K. (2012) Sustainability Marketing: A Global Perspective, 2nd Edition. John Wiley
& Sons, Inc., Hoboken, New Jersey.
Gudernatch, S. (2013) What America’s new demographics mean for corporate social responsibility.
Retrieved from www.greenbiz.com/blog/2013/01/22/corporate-social-responsibility-new-
america December 15, 2015.
Nielsen (2014) Global consumers are willing to put their money where their heart is when it
comes to goods and services from companies committed to social responsibility. Retrieved
from www.nielsen.com/us/en/press-room/2014/global-consumers-are-willing-to-put-their-
money-where-their-heart-is.html December 16, 2015.
Solis, B. (2013) What’s the future of business? Changing the way businesses create experiences. John
Wiley & Sons, Inc. Hoboken, New Jersey. pgs. 84, 85, 177.
www.coca-colacompany.com/sustainability/