Escolar Documentos
Profissional Documentos
Cultura Documentos
Coca Cola
Classic
Communications 352
Dr. Ju-Pak
Section Two
Yolanda Michel
Oscar Perris
Patty Pineda
Iris Preciado
1
Table of Contents:
_____________________
Target Market...Page 1
Media Objectives..Pages 2 - 3
Media Mix Strategy and TacticsPages 4 - 9
Target Market
___________________
The target demographic for Coca-Cola is extensive and broad due to product appeal
and popularity. Given careful consideration and after researching and analyzing consumer
age, household size, marital status, and income, the best target markets for Coca-Cola, are 1834 year-olds and those who live in households of 3 or more.
18-34 year-olds are chosen due to their high ranks and volume potential. Considering
the option of only targeting 18-24 year-olds is not a large enough target for Coca-Cola due to
the brand popularity and consumer base that is already established. For this reason, taking the
first two highest ranking consumer age groups and combining them is the best option. Also,
targeting households of 3 or more is an excellent option due to the high rank (109) and very
high volume potential (7,122,605) of this particular demographic within the Household Size
category.
Table One: Target Markets
Category
A
(000)
B
% of
Users
D
Index
18-24
25-34
3 Person or
more
17381
28605
65345
16.0
26.4
60.3
123
114
109
Rank
with
in
cate
gory
1
2
1
AxD
(VP)
2,197,863
3,260,970
7,122,605
Rank
wi
thi
n
cat
eg
or
y
3
1
1
Within the age demographics, the combination of the first two categories gives a larger
target that best reflects the existing consumer market for Coca-Cola. However, it is best to
assign different weights to these two categories as follows: primary target ages 25-34 at 70%
3
due to its significantly higher volume potential (3,260,970) then the 18-24 category
(2,197,863). As a result, the 18-24 category will be denoted as the secondary target age group
at a weight of 30%.
Media Objectives
______________________
The pulsing strategy is the best method to use for Coca-Colas advertising. Since soft
drinks are consumed year-round, Coca-Cola must continuously advertise to maintain its place
in the consumers mind. Also, the seasonality of sales for soft drinks is an important factor to
consider. The pulsing strategy allows Coca-Cola to advertise heavily during high sales
periods and decrease its efforts during lower sales periods. For instance, during the summer
months, when the weather is warm and people are consuming more beverages, the advertising
efforts will be at their highest. Another important time of the year to advertise for Coca-Cola
is the holiday season because there is a high concentration of sales during this time. By using
the pulsing strategy Coca-Cola will also stay competitive. Competition in the carbonated soft
drink industry is fierce, and Coca-Colas competitors advertise heavily in all markets. In
order for Coca-Cola to maintain its #1 spot in the market it must place advertisements in the
most favorable times relative to competition. For these reasons, the pulsing strategy will be
the most efficient for Coca-Cola.
Table Two: Budget Re-Cap Table
MEDIA GOALS
Time Period
Reach
GRPs
Frequency
Number
BUDGET ($100M)
Per
Period Per Month
1. Jan/Feb
Med ( 50% )
Med ( 6 )
600
$ 9M
2. Mar/Apr/May
Med ( 60% )
Med ( 7 )
1260
20
$ 20M
$ 6.67M
Hi ( 90% )
Hi ( 9 )
2430
38
$ 38M
$ 12.67M
Med ( 60% )
Med ( 6 )
720
11
$ 11M
3. Jun/Jul/Aug
4. Sept/Oct
4.5M
5.5M
5. Nov/Dec
Hi ( 80% )
Hi ( 9 )
Average = 69
Average = 7.5
(about 8)
1440
22
$ 22M
$100M
11M
During the year, the average reach and frequency goals will be high. The average
reach is 69%, even though Coca-Cola is an established brand it must use reach to maintain
brand awareness. Coca-Colas competitors have high reach levels. Therefore, Coca-Cola
must set reach levels equal to or higher than competitors.
The average frequency for Coca-Cola will be a high (7-8). Since soft-drinks have a
short repurchasing cycle, frequency must be emphasized a bit more than reach. Again,
competition is a huge factor when determining frequency. Pepsi-Cola, the # 2 carbonated soft
drink brand is becoming a serious competitive threat to Coca-Cola. Thus, Coca-Cola must
maintain a frequency level that equals or, better yet, surpasses its competitors.
Periods 3 and 5 will be high reach (80-90) and high frequency (9) months. Period 3 is
made up of the summer months, when soft drink consumption is high. During this season
sales are at their highest, and advertising efforts should be strongest at this time. November
and December make up period 5; these holiday months also have very high sales of
carbonated soft drinks. Therefore, reach and frequency must be high for both of these periods.
Periods 1, 2, and 4 will be medium reach (50-60) and medium frequency (6-7) months. Since
advertising efforts are strong in periods 3 and 5 the periods that come before or after dont
have to be as strong.
In order for Coca-Cola to maintain its current market share 44.3, reach must be at least
at a medium level at all times. Frequency should also be at a medium level at all times
because the product has a short repurchasing cycle and the competition is intense.
people will be exposed to TV shows or movies, if these are unsuccessful, then advertising
dollars will not be used efficiently.
In order to better understand just how these budget allocations will be divided amongst
the various media the following table gives a detailed breakdown of all allocations by period
and by medium.
Table Three: Media Mix and Allocation Table
Media
Network
TV
Medium
Period
Cable TV
Medium
Period
Spot TV
Medium
Period
Magazines
Medium
Period
Outdoor
Medium
Period
Internet
Medium
Period
Prod.Plac.
Medium
Period
Period I
Jan/Feb
Period II
Mar/Apr/May
Period III
Jun/Jul/Aug
Period IV
Sep/Oct
Period V
Nov/Dec
150
5.2%
25%
60
9.3%
10%
150
11.6%
25%
60
18.6%
10%
60
9.3%
10%
120
37.2%
20%
0
0%
0%
600
(9%)
504
17.4%
40%
126
19.5%
10%
378
29.3%
30%
189
58.6%
15%
0
0%
0%
63
19.5%
5%
0
0%
0%
1260
(20%)
1215
41.9%
50%
243
37.7%
10%
486
37.7%
20%
0
0%
0%
243
37.7%
10%
0
0%
0%
243
75.3%
10%
2430
(38%)
150
5.2%
25%
72
11.2%
10%
106
8.2%
14.7%
73.5
22.8%
10.2%
242
37.5%
33.6%
76.5
23.8%
10.6%
0
0%
0%
720
(11%)
883.5
30.3%
61%
144
22.3%
10%
170
13.2%
11.8%
0
0%
0%
100
15.5%
6.9%
63
19.5%
4.4%
79.5
24.7%
5.5%
1440
(22%)
Total
GRPs
2902.5
100%
45%
645
100%
10%
1290
100%
20%
322.5
100%
5%
645
100%
10%
322.5
100%
5%
322.5
100%
5%
6450
(100%)
As the table above shows, detailed consideration must be placed on each period in
order for an advertising campaign to be effective and reach its intended audience.
8
Tactics
The tactics we will use include using 20-30 TV commercials so that we can build an
impression on our target audience as well as create an image of the Coca-Cola brand. Our
number one goal would be to advertise during Primetime television hours because our target
audience would most likely be watching during these hours. We would also include early and
late fringe TV so we can catch the younger audience of 18 years and up.
For Broadcast TV, Coca-Cola will advertise heavily during Primetime television hours
because we are more likely to reach our target customer but also increase brand awareness of
the product to the masses. TV sitcom shows like NBCs, Friends, ABCs The Bachelor, CBSs
CSI Miami, and FOXs American Idol are shows that would reach our target audience as well
as many other people. We will also advertise during early fringe hours because of the many
mothers who have young children that come home from school at this time and happen to
watch some TV with their children. When the mothers have time to watch their own shows,
advertising on shows like The Oprah Winfrey Show would reach this audience. Also
advertising during late night TV would catch our younger, adult audience of 18-25 year olds.
This audience is most likely to stay up late and watch shows like The David Letterman Show
or The Tonight Show with Jay Leno.
The types of commercials that would be shown are 20-30 seconds and would include
young, fresh faces and celebrities and also, they would focus on peoples emotions. Young,
fresh faces are effective to show that drinking Coca-Cola will allow our consumer to have a
good time. Celebrities are currently being seen in TV commercials such as actors Courtney
Cox, Penelope Cruz, and rapper Missy Elliot. These commercials are successful, so we would
follow using this format. Concentrating on emotions is also important because people already
know the Coca-Cola product, so we want to show how good Coca-Cola can make our
consumer feel and how it can fill anyones day with joy and fun.
For Print ads, we will mostly use one-page full ads. We think this is sufficient because
most people know the Coca-Cola brand name and using anything bigger than a full page
would be unnecessary. We will have colorful ads, mostly with red backgrounds so people can
associate the Coca-Cola red can with the ads. Red is also attention grabbing and it would be
great as a background to offset a group of smiling people or a full bottle of Coca-Cola. Print
ads offer many ways to be creative at a lower cost than TV commercials. Another great idea is
to use a full page ad on the back of a magazine because this is good placement for getting
attention.
The print ads would be inserted in the top 10 magazines that are read by our target
consumers. Examples of these would be Cosmopolitan, Glamour, and Redbook for our target,
women consumers. For men, Maxim, Sports Illustrated, and Surfer Magazine would be used.
These are all very popular magazines that are read by our target consumers.
For Billboards we would most likely place them in heavily populated cities like Los
Angeles so that Coca-Cola could get as much exposure as possible. The billboards would
feature the Coca-Cola logo with the red background and a large bottle of the product so that
when people drive and see the signs, it will appeal to them.
As for Internet advertising, Coca-Cola would use the new types of pop-up ads to get
the most attention from people that may not pay attention to the TV commercials or the other
types of ads. These would also be good for the younger, teenage crowd who spend a lot of
time online. The pop-up ads would actually look like they are coming out at you. For
example, if you are checking your e-mail, a Coca-Cola bottle would appear and then the bottle
10
would open up and you would see the bottle being poured. The Coca-Cola would look like it
was actually pouring onto the screen. Other ways to use the Internet would be to show a
celebrity drinking the Coca-Cola or have the headline inviting the consumer to visit the CocaCola website to get a coupon or some other type of promotional deal.
Product Placement is very important because it can be a great impact for the product.
We would place Coca-Cola products in such shows as Friends and Will and Grace and any
other show that is popular with our target audience. The characters of these shows would be
using the product or the product would be placed throughout the set; anywhere the audience
could see it. Another great market for product placement is in movies, especially blockbuster
summer movies. Movies that are sure to bring in a large audience such as X-Men 2, The
Matrix, and Terminator 3 would be the best for product placement. These types of movies
generally bring in millions of dollars and this means that many people will be spending their
money to see these movies. The more people who see these movies, the more likely product
placement for Coca-Cola will work.
11