This is a paper I wrote for my Advertising class. I put about 3% of effort into it, and got a 100. I assume that means it was a good paper… or that my professor was feeling very generous that day. Either way, Coke is something everyone is familiar with, and I figured I’d share.(Don’t be too hard on me, it’s definitely not my best work!)
This paper is based on a One-Hour television special on CNBC called “Coca-Cola: The Real Story Behind the Real Thing”
You can watch the special (for a limited time) by clicking [Here]
Introduction:
On CNBC’s “Coca-Cola: The Real Story Behind the Real Thing,” they go deep inside the world’s most recognizable brand. This one-hour special focused on the history of Coca-Cola, how it became the words most recognizable brand, its ups, downs, successes and failures. It was the first time television cameras were allowed in the company’s hidden corporate testing facility, where they study the psychology of consumer buying patterns.
The psychological studies of their customers are only a small part of the marketing phenomenon that is Coca-Cola. The company is considered the “planet’s most recognizable brand,” and the CNBC special takes a look at all the aspects that have made it such. (Dauble 1).
Key Learning Points:
A very big part of Coca-Cola’s status as the most recognizable brand on the planet is their study of the psychology of their customers. They believe that part of their success is the fact that they aren’t just selling a product, they’re selling positive feelings and memories.
In addition to selling memories and positive feelings, they have also created a specific shape for their bottle, further evoking memories. Feeling a regular bottle evokes no specific memories, but feeling a distinctly shaped bottle that you’ve been feeling for years, every time you have a family gathering, etc, reminds you of the memories created at those gatherings. Coke said in the special that they’re bringing that specific shape and feeling back.
Coke changed their formula when Pepsi started outselling them. They figured they would do what it took to be successful. Such a move, though, was actually a negative decision on Coke’s part. People were outraged by the change in formula. One woman even claimed that by changing the formula, they had “taken away” her “youth.” Coke eventually brought their original formula back as “Coke Classic,” and actually began outselling Pepsi.
Another big way Coke started selling positive feelings was during World War II. They made it a point to get their product to the soldiers fighting in the war. It was a small pleasure to the soldiers, like getting a letter from home, only it was soda.
Application of Key Learning Points:
Packaging is a big reason why Coke has had such immense success. In the very beginning, they were so popular, other companies started copying them, and it was difficult to tell them apart. To rectify the situation, Coke designed a unique bottle, so the consumer could know they were holding a bottle of Coke, even in the dark. “Packaging is another potent means of providing product identification… the Coca-Cola bottle is recognizable both by shape and by touch,” (Jamieson 201).
“When one product evokes more positive associations than competing products, the intended audience will tell surveyors that a brand name is an important factor in determining which product to buy,” (Jamieson 205). This is a big part of Coca-Cola’s selling factor. Their secret lab is proof that they understand this. They specifically say in the special that they are selling positive associations. The one example of getting Coke to the soldiers in the war was a huge factor in positive association for Coke.
Referencing BPSF:
This special specifically addresses the Economic aspect of BPSF, which is “relating to or based on the production, distribution, and consumption of goods and services, having practical or industrial significance or uses; affecting material resources; the business cycle that fluctuates among four stages.”
Coca-Cola is hugely involved in the economics of not only the United States, but countries all over the world. It has a huge market in South Africa. For some people, it is their main source of income.
When I was in West Africa this past January, Coca-Cola was the main drink available in restaurants, and it was sold at all the local markets at stands run by people whose main source of income was whatever they were able to sell that day. Cases of Coke were brought over on the Ferry each morning and sold throughout the day. It was amazing to see something I’m so familiar with as someone’s main source of income in a country in Africa.
The special also addressed the Quality aspect of BPSF, which is “peculiar and essential character; a degree of excellence; superiority; distinctive properties or character.” As stated several times prior, Coke is the most distinguishable brand on the planet. It’s bottle shape and feel is universally recognizable.
When Coke changed their product to compete with Pepsi, they got millions of complaints because people felt they were taking away what made Coke so special in the first place. “The new formula is as forgettable as Pepsi,” was a line in a complaint letter when Coke introduced their new product to compete with Pepsi.
Conclusion:
Coca-Cola has been around for hundreds of years, and even in these harsh economic times, it proves to be a market that will not die. It serves as the livelihood for people all over the world, and remains the most recognizable brand on the planet.
They continue to find new ways to reach their customers and never stop striving to better themselves. This is a company who’s got it figured out. Even if they struggle sometimes, one thing is quite clear: Coca-Cola isn’t going away.
Sources
Dauble, Jennifer “CNBC Presents Coca-Cola: The Real Story Behind the Real Thing”
<http://www.cnbc.com/id/33507487/CNBC_PRESENTS_COCA_COLA_THE_REAL_STORY_BEHIND_THE_REAL_THING >
Jamieson, Kathleen and Karlyn Campbell. The Interplay of Influence: News,
Advertising, Politics, and the Internet. Belmont: Wadsworth Publishing, 2005.
Tags: Advertising, brand, Branding, Buying Patterns, CNBC, Coca-Cola, Customers, Marketing, Pepsi, Pepsi-Cola, Psychology
You might enjoy this dissection of what makes Costco so popular: http://www.sfgate.com/cgi-bin/blogs/dollarsandsense/detail?entry_id=60155