Coca-Cola Marketing Plan- London Summer Olympics 2012

Christina Huber Meghan Powers Patrick Ettorre Ben Zupan Devin Kostrzewski

Executive Summary Coca-Cola has come a long way since its small town beginnings in Columbus, Georgia in 1886. Since the first sip over 100 years ago, Coca-Cola has been tasted in over 200 countries today. Cokes global conquest of the soft drink market is the product of brilliant marketing and sales techniques. Coca-Cola heavily invests in advertisements during and around the Olympic Games, the longest running sporting event in history. The Olympics are an international celebration of sport and unity throughout the world; could there be a better vehicle for Coca-Cola to send its message? This perfect match was discovered by Coke in 1928 when they became the first sponsor of the Olympic Games. They even took their sponsorship to another level in 1986 when they became the official drink of the Olympics, ensuring that Coke products would be sold inside the Olympic Village and at all events. The next Olympic Games will be held in London, England; during the summer of 2012 where Coke will continue its Olympic sponsorship streak. The following is a $100 million dollar marketing proposal for Coca-Colas sponsorship of the 2012 London Games. Objectives Utilize outdoor, internet, print, and TV marketing to increase awareness of CocaColas sponsorship and special promotion

Develop new and creative promotions, closely tied to the global aspect of Olympic competition Utilize increased awareness of Coca Cola's sponsorship to increase brand differentiation within 5 target cities At least 25,000 e-montage entries, 100,000 can design entries, 1,000,000 Watch to Win entries and 1,000,000 London or Bust entries Sales of 3 million limited edition Olympic cans in each of the 5 targeted cities over the duration of the limited edition can availability

Reach an increase in overall sales of 10% within our 5 geographically targeted cities Target Market

The segmentations most interested in the Olympics are 55 years old and up, athletic/competitive women, and people living in the West Central and North Eastern regions of the United States. These demographics are important, but we will segment these groups even further and relate them to the Coca Cola brand. Male/Females 55 and Older: The largest viewing demographic for the Olympic games is men and women older than 55 years of age. This older group is nationalistic and classic. This demographic is important to engage with because they may be veering away from Coca Cola products due to health beliefs. Older, classic like Coca Cola commercials may resonate better. Diet products may be more appropriate for the older and more health concerned consumers. Active/ Athletic Women: The more athletic and active women within the United States will be targeted for our sponsorship of the London Olympic Games. The female viewership is higher than the males for the Olympics, but marketing should not be geared only towards females. These women are competitive and sporty with a strong desire for womens sporting events. Energetic advertising that showcases the ease in which Coca-Cola fits in with a lively, active crowd. West Central/ Northeastern U.S. Regions: The areas of West Central and Northeastern United States are where the Olympic Games are watched most. These regions of the

United States (regions in yellow and purple) are more involved in the Olympic Games according to recent polls. Given these statistics we can focus on the climates in these areas along with the popular sports within these areas to better fit the marketing needs.

The 4 Ps Product We are focusing the marketing and advertising for the 2012 Olympic Games on four main products. These four products represent the Coca Cola brand well across the globe. They are recognizable and very popular drinks that resonate well with the viewership of the 2012 Olympics. Focusing on only four brands will send a more unified message from Coca Cola and the association with the 2012 Olympics. Coca Cola Most popular and best selling soft drink in history Most well known product around the world Our Coca Cola target market will be 40+ males. These Coke drinking males are all over the world, creating many international advertisement opportunities. Coca Cola will be the company and also the main beverage that is sponsoring the Olympic Games. Coke will have a large amount of ads and product placement during the games to achieve on-screen time during the ad breaks and the actual events. A limited time torch Coca-Cola can, highlighting the global aspect of the Olympics and longstanding relationship between the Games and Coca-Cola, will be distributed to the five geographic target markets from June through August. The limited time cans will have a promotional code stamped on the bottom for the Watch to Win promotion. (Dallas, Seattle, NY, LA, Chicago). Diet Coca Cola Number one sugar free drink in diet conscious America Coca Cola Light in some countries Number 3 soft drink in the world Diet Coke is mostly consumer by 16+ females who are looking for a soft drink while being weight-conscious. The product will be marketed heavily in the United States and somewhat internationally to raise awareness of a popular diet soft drink. Our target market of 50+ women are often Diet Coke drinkers, so United States advertising will be key.

Sprite

Worlds leading lemon-lime drink Number 4 soft drink in the world

Sprites target market is under 40 years old and energetic segment. Sprites taste is one of refreshment and energy. This product can be international marketed as a refreshing lemonline drink with younger segments PowerAde Second leading sports drink in the world Replenish and Rehydrate athletes during and after competition The target market for PowerAde is high enerfy, sport drink users. A main goal will be to have PowerAde placement during all events with the Olympic Athletes. If athletes drink PowerAde the fans will too. The challenge could be working around Gatorade sponsorships with specific teams. To push PowerAde during the games we need to make it readily available to the athletes as well as spectators at the events. Our product should also receive special packaging for sales in London and throughout the world, incorporating the Coca Cola logo with the Olympic symbols too.

Product Positioning Current Product Positioning Below are examples of current brand positions based on their distribution and healthiness. These beverages are from a variety of companies, the Coca-Cola brands are Dasani, Powerade, Coke Zero, Diet Coke, Sprite, and Coca-Cola. Our marketing plan focuses on just four of those brands; Powerade, Diet Coke, Sprite, and Coca-Cola. These brands are widely distributed, but can be divided into two categories by consumer, healthy and unhealthy. Of our focused brands, Powerade is viewed as the healthiest. However, it is less popular than its main competitor, Gatorade. Our goal is to push Powerade heavily during the games in the athletic settings. This product placement includes athlete representation, teams drinking Powerade during events, and sales at all competitions. Our other brands, all being sodas, are viewed as unhealthy. Although it would take a lot to convince consumers that these sodas are good for you, we can try. A goal of ours is to get Diet Coke over the halfway point between healthy and unhealthy. 5

 Diet Coke may not be as healthy as Vitamin Water, but we can encourage consumers to drink Diet Coke instead of many other beverages, making it seem healthy in comparison. Sprite is also a tough sell on healthy, however consumers tend to view the clear and lemon-lime soda as being healthier than the dark look for cola products. Sprites gentle look, fruity ingredients, and refreshing taste we could definitely improve its health ranking among consumers.

Price Coca-Cola products will be slightly discounted for retailers utilizing our point-of-sale promotions. These discounted retailers will be located in the five target markets of Seattle, Dallas, LA, NYC and Chicago, heavily rooted in Wal-Mart, Kroger and Giant Eagle. The rest of the national market price will remain constant. Place Although the Olympic Games take place in London, our plan will target the US market. Five cities will be specifically targeted for the bulk of advertisement expenditures. These five cities are as follow: City Populations 6

Seattle 608,660

Dallas 1,197,816

LA 3,792,621

NYC 8,175,133

Chicago 2,695,598

These targeted cities will be uniquely exposed to Coca-Cola marketing in the following methods: 1. Outdoor advertisement; billboards, bus shelters, gas pumps. 2. Olympic viewing parties 3. Limited time torch can with point-of-sale displays in local retailers 4. Print advertisement The rest of the national market will also be targeted with general advertisement towards various promotional events through TV and magazine advertisement. SWOT Analysis Strengths: First and oldest sponsor of the Olympic games which means an established relationship with the event Coca-Cola is the best known brand in the world Coca-Cola and the Olympics together and separately hold a positive image amongst consumers Weaknesses: Pepsi sponsors the U.S. Soccer team which is a popular part of the Olympics Coca-Cola could be seen as only an American brand Coca-Cola is a non-alcoholic beverage and the atmosphere of sporting events coincides with alcoholic drinking

Opportunities: Create more brand loyalty with all products advertised Come out as more of a global brand while still maintaining an emphasis on the United States Create emotional appeal that comes with the Olympics and associate it with CocaCola and its products Create an advantage over the competition through sponsorship

Threats: Pepsi sponsors specific teams in the Olympics Alcoholic drinks promote the event as well Competitor brand loyalty Health risks and recent nutrition

Promotions 8 promotions; total budget: $10,781,819 1) Coca-Cola tent at US team trial events prior to Olympics (budget: $206,019.90) - Time frame: per event basis, listed below - 5 groups of paid interns, 7 members per group, 10$/hr - Taking pictures all the while for the online picture montage - Camera equipment: EOS Rebel T3 EF-S 18-55mm ($499.99 each) -Two per intern team, ten total: $ 4,999.90 total - Passing out limited edition Coca-Cola torch cans and Powerade - Attempting to sign fans up for e-mailing list - General Equipment: $10,000 - Passing out cheap, branded swag items - Inventory: 1,000 of each item per day, 22 day of operations total - Mini flyers (frisbees): 37 cents per, $8,140 total - Plastic sunglasses: 81 cents per, $17,820 total - Hats: $4.81 per, $105,820 total - Cost of interviewing, hiring, minimal training: $ 10,000 - Specific Event Locations - Track and Field Olympic Trials (June 22- July 1) - Hayward Field, University of Oregon
- 6 days of operation: June 22-24 and then June 29-July 1 - Six hours per day, times to be determined according to event schedule - Total intern budget: $2,520

- Gymnastics Olympic Trials (June 28-July 1) - HP Pavilion, San Jose, CA

- 4 days of operation, - Six hours per day, times to be determined according to event schedule

- Total intern budget: $1, 680

- Swimming Olympic Trials (June 25-July 2)

- CenturyLink Center, Omaha, NE - 8 days of operation - Six hours per day, times to be determined according to event schedule - Total intern budget: $3, 360

- Wrestling Olympic Trials (April 21-22)

- Carver Hawkeye Arena, Iowa City, IA - 2 days of operation - Six hours per day - Total intern budget: $840

- Taekwondo Olympic Team Trial- Phase 7 (January 12-13)

- Olympic Training Center, Colorado Springs, CO - 2 days of operation - Six hours per day - Total intern budget: $840

2) London or Bust Promotion (budget: $525,000) - Time frame: June through August, same time frame as limited can production - Codes printed on underside of special edition torch can, distributed to Houston, New York, LA, Seattle and Chicago - Enter code online for a chance to win 2 tickets to the Olympic Games in London, 5 contest winner, 10 tickets total - Must also enter email address, added to mailing list - Twitter and Facebook blasts every few weeks - Winner contacted in April - Allocated funds for plane tickets, event tickets, lodging, gift pack, unexpected circumstances: $375,000

3) Olympic Picture Montage (budget: $70,000) - Time frame: July through December - Montage 1: Individuals at the Olympic events will be encouraged to submit their personal pictures of the games to an all-inclusive e-montage - This will give American viewers a frame-by-frame view of a fan at the event. - Montage 2: Those not at the games are also encouraged to submit their pictures portraying how they celebrate national pride for the Olympics - These pictures from all over the globe will be thrown together with intern tent pictures for a separate e-montage highlighting the global aspect of the Olympic games - Budget includes web design, upkeep and monitoring

4) Point-of-Sale Displays (budget: $600,000) 9

- Time Frame: June through August, same as limited can production - Placed end shelf in all 5 major geographic areas, displaying limited time torch can and alerting customers of our various Olympic promotions - Approximately 75 displays per city at all times during time frame - Displays overtly state our sponsorship rights - Total allocated budget for placement rights, display production and installation - Targeted retailers: Wal-Mart, Giant Eagle, Kroger

5) Watch to Win promotion (budget: $230,800) - Time frame: July 27th, entry closes at midnight - Commercial gives code during opening U.S. games, enter online to win a X5 xDrive 35i Sport Activity BMW (4 available) - BMW (also an Olympic partner) donates the vehicles, we match the value of the cars towards the charity of their choice - Heavy social media notifications 6) Design an Olympic Coca-Cola Can Online (budget: $175,000) - Time frame: Site opens June 1st, open end date based upon feedback - 5 well-known graphic designers (one from each demographic target area) will first create their own, a creative template for consumers - Consumers will be encouraged to submit their personal Olympic themed can sketchings - Compatible with multiple drawing softwares, ability to input personal drawings and wrap around can -Xara Photo and Graphic Designer, DrawPlus, Real-Draw Pro, Autodesk Sketchbook Pro, Sketsa SVG Editor - Best 5 global entries though June will be placed on the July cycle billboards in all 5 target geographic areas - With a challenge to consumers: what could you come up with? - Twitter and Facebook blasts every few weeks - Total budget includes 5 graphic designers, design, creation, monitoring, and upkeep 7) Coca-Cola Olympics Viewing Parties (budget: $6,890,000) - Time frame: August 3-12, one location per five target markets - Held in each of the five target markets: Dallas, LA, NY, Chicago, Seattle - Held outside, to relieve ourselves of possible litigation, we will commission an economic impact study for each location in the months preceding the events -Total economic impact study costs: $1,115,000 - August 3- 12, 10 days of operation - 25 interns per event location/ 10 hours per day/ 10$ per hour 10

- Shuttle running from various nearby local hot spots - One local celebrity hosting per location - Per event budget: ( $1,155,000)
-Location bid: $400,000 -Intern wages: $250,000 -Shuttle costs: $115,000 -Host salary: $60,000 -Intern hiring/training: $25,000 -Setup/tear down: $17,000 -Equipment: $115,000 -Equipment upkeep, maintenance: $20,000 -Janitorial upkeep: $8,000 -Swag item giveaways: $115,000 -Unexpected circumstances funds: $30,000

8) Goals for Charity (high-end budget: $3,200,000) -Every goal scored by both the US Mens and Womens Soccer teams matched with a $100,000 contribution from Coca-Cola to the charity of that players choice -Only in the 16-team tournament, four games at the most, qualifiers excluded -High end: 4 goals per game, 8 games between both teams,budget: $3,200,000 -Low end: 1 goal per game, 8 games between both teams, budget: $800,000

Reaching the Customer: Advertisement Overview Television Spots before Olympics Schedule Station Rate Jan Feb Mar Apr May Jun Cost ESPN $25,000 5 10 15 20 20 20

July 30 20 20

Total

Total

120 $3,000,000 90 100 55 80 $360,000 $500,000 $220,000 $400,000

Shows Targeted: SportsCenter, Monday Night Football, 30 for 30

HGTV $4,000

5 10 5 10 0

10 10 5 10 0

10 10 10 10 0

20 20 10 10 0

20 20 10 10 5

Shows Targeted: House Hunters, House Hunters International, Property Virgins, Urban Suburban Shows Targeted: Cash Cab, Curiosity, MythBusters, Dirty Jobs

Discovery $5,000 10

Food

$4,000

5 10

10 20 10

Shows Targeted: Restaurant: Impossible, Iron Chef, Ace of Cakes, Boy Meets Grill Shows Targeted: Bad Girls Club, The Glee Project, Top Model Obsessed, Snapped

Oxygen $5,000 CBS

$300,000 0

15 $4,500,000 11

Shows Targeted: Evening News, 60 minutes, The Early Show, Late Show with David Letterman, Survivor, Amazing race, The Price is Right

NBC

$300,000

10

15

$4,500,000

Dateline NBC, Rock Center with Brian Williams, Chuck, Prime Suspect, Tonight Show with Jay Leno, Late Night with Jimmy Fallon, The Office, Parks and Recreation

Total: $13,480,000

Television Spots During and After Olympics Schedule Station Rate July August Cost ESPN $30,000 5 15 HGTV $15,000 5 15 Discovery $15,000 5 15 Food $15,000 5 15 Oxygen $15,000 5 15 CBS $450,000 5 10 ($300,000 for November) NBC $450,000 5 10 ($300,000 for November) $21,390,000

November 10 10 10 10 10 10 10

Total

Total

30 $900,000 30 $450,000 30 $450,000 30 $450,000 30 $450,000 25 $9,750,000 25 $9,750,000 Total:

TV Advertisements Concept ( budget: $1,842,000) Advertisements will begin slowly in January 2012 and pick up speed as the Olympics get closer. Oxygen, Food network and HGTV specifically target the female market while Discovery targets an older audience and ESPN targets general sport fans. Heavy expenditures will be made in spots on NBC and CBS during and directly around the Olympics. Commercial/spot 1 From February to May we will air our competition commercial. This spot has three intentions; to specifically target females, signal the upcoming Olympic games and express our relationship with the US teams. The advertisement shows two US soccer teammates (Abby Wambach and Hope Solo) playing one on one for the final Coca-Cola left in the fridge. Once they have performed a few visually appealing tricks, they realize their coach (Pia Sundhage) has already drank the beverage. The endorsers must wear Olympic themed jerseys instead of their US team jerseys, due to Pepsis team sponsorship. Endorsement Fees: $500,000 per endorser, $1,500,000 total Production Fees: $200,000 Commercial/spot 2 12

Beginning in June and running through August will be our Its Gametime commercial. This advertisement will show fans drinking Coca Cola at the arena, athletes preparing for the Olympics, warming up to music and preparing to enter a game. The musical tempo will continue to build up until an abrupt ending right before the athlete enters the game where the screen goes blank and then reads Its Game time. We will utilize actors from various races to stress the global aspect of the Olympics. At the conclusion of each episode will be a quick reminder about the London or Bust promotion, showing the limited time can. Video Rights Fees: $100,000 Production Fees: $40,000 Commercial/Spot 3 Condensed Its Game time spot with the last 10 seconds dedicated to displaying the Watch to Win code. Production Fees: $2,000

Print Schedule Newspaper Circulation Cost Dallas MN 404,951 LA Times 600,000 USA Today 1,800,000 Chicago Tribune 440,000 Seattle Times 251,697

Cost $27,500 $30,000 $90,000 $22,000 $18,250

May 5 5 5 5 5

June 5 5 5 5 5

July 10 10 10 10 10

Aug 5 5 5 5 5

Total Total 25 $687,500 25 $750,000 25 $2,250,000 25 $550,000 25 $456,250 Total:

$4,693,750 Magazine Cost Circulation Months to Advertise Impressions Total Cost Cosmo $140,000 2.6 million Mar, Apr, May7.8 million $420,000 Sports Illustrated $220,000 3 million Jun, Jul, Aug 9 million $660,000 13

Womens Day Ladies HJ ESPN Family Circle Newsweek

$130,000 $110,000 $200,000 $160,000 $210,000

3.8 million 3.2 million 2 million 4.2 million 3.1 million

Mar, Apr, May 11.4 million $390,000 Jun, Jul, Aug 9.6 million $330,000 May, Jun, Jul, Aug 7.2 million $800,000 Mar, Apr, May12.6 million $480,000 Jun, Jul, Aug 9.3 million $630,000 Total:

$3,710,000 Print Advertisements Concept 3 magazines specifically target women (Cosmo, Womens Day, Ladies Home Journal), 2 target the older consumer (Family Circle and Newsweek) and 2 target sports fans (ESPN and Sports Illustrated). Print advertisements will portray Coca-Cola as a global brand, with the Olympic torch and limited time Coca-Cola can as centerpieces. They will also explicitly state our sponsorship at the bottom of the advertisement along with a reminder of the London or Bust and Design an Olympics Can promotions. Online Advertisement Upgrade existing Coca-Cola website to utilize torch advertisement Send out email blast to our mailing list at beginning of Olympics to notify them of our sponsorship, wish good luck to the US teams and include our torch advertisement and special promotions Create a Coca-Cola inspired London Olympics website holding: -Both picture montages -Design an Olympic can entry -Watch to Win promotional entry -Info. about Olympic viewing partys and US team trial events -London or Bust promotion entry -Twitter and Facebook blasts for all promtions -Advertise with Google Affiliate Network, providing the correct mix of web site publishers to target the female market - Advertise with Google affiliate network, who will provide the correct mix of web site publishers to target the female market - Twitter and Facebook blasts about all of the various promotional events

Outdoor Advertisement (Total budget: 2,549,400) Clustered in surrounding areas of target markets: Dallas, New York, LA, Seattle and Chicago utilizing the torch advertisement 14

Billboards (budget: $1,757,400) - Seattle, WA. - Seattle (Oregon and Western Washington 407) - 1 panel billboard 4 week rate: $12,000 - Time frame: February-August ($84,000 total) - New York, NY - New York City (General) - 225 panel billboard 4 week rate: $99, 000 - Time frame: June-August ($297,000 total) - Los Angeles, CA - Los Angeles Metro (Los Angeles 415) - 20 panel billboard 4 week rate: $80,000 (240,000) - Time frame: June-August ($240,000 total) - Dallas, TX - Dallas Co Bulletins (Dallas 263) -16 panel billboard 4 week rate: $112,000 - June-August ($336,000 total) - Chicago: - ChicagoLand Bulletins (Cook, DuPage, Kane, Lace and Will counties exposed) - 46 panel billboard 4 week rate: $266,800 - Time frame: April-June ($800,400 total)

Bus shelter advertisements (budget: $252,000) -2 cycles of 35 in each of the target areas -First cycle: May-June -Second cycle: July-August -Production costs per cycle: $35 -Base cost per cycle: $325/month, four months per city -National average on $250/month, increased to $325 due to larger market 15

sizes -Total bus shelter advertisement budget: $50,400 per city, $252,000 total -National average of $250/month, increased to $325 due to large market sizes

Gas pump ads (budget: $540,000) -Utilize torch advertisement May-June, Its Game time ad July-August -30 gas stations in each target area, 4 pumps per station -BP, Mobil and Shell -Time frame: May-August, 4-month contract per station: $3,600

Budget Sponsorship Fee: Promotions: US Team Trial Tents: London or Bust: Picture Montage: P.O.S. Displays: Watch to Win: Design Own Can: Viewing Partys: Goals for Charity: Advertisement: TV spot creation: TV before Olympics: TV during and after: Print: Magazine: Billboard advertisement: Bus shelter advertisement: Gas pump advertisements: Total Budget: $25,000,000 $10,781,719 $206,019.90 $525,000 $70,000 $600,000 $230,800 $175,000 $6,890,000 $3,200,000 $47,665,150 $1,842,000 $13,480,000 $21,390,000 $4,693,750 $3,710,000 $1,757,400 $252,000 $540,000 $83,446,869 References "COCA-COLA." Olympic Games. Web. Nov. 2011. <http://www.olympic.org/sponsors/coca-cola>. 16

"Coca-Cola and the Olympics." Oldskoolmark. 24 Aug. 2008. Web. Nov. 2011. <http://oldskoolmark.wordpress.com/2008/08/24/coca-cola-and-the-olympics/>. "How Much Do Bus Bench Ads Costs? - Bus Bench Advertising Costs - Resources for Entrepreneurs - Gaebler Ventures - Chicago, Illinois." Resources for Entrepreneurs. Web. Nov. 2011. <http://www.gaebler.com/Bus-Bench-Advertising-Costs.htm>. "Lamar Advertising." Lamar Outdoor. Web. Nov. 2011. <http://www.lamaroutdoor.com/index.html>. "Olympic Games: Coca-Cola and the Olympic Games." Coca-Cola: The Coca-Cola Company. Web. Nov. 2011. <http://www.thecoca-colacompany.com/heritage/olympicgames.html>. Smith, Darrell A. "Advertising & Sponsorships During the Olympic Games." The Olympics and Media. 02 May 2011. Web. Nov. 2011. <http://olympicsandmedia.wordpress.com/2011/05/02/advertising-sponsorshipsduri ng-the-olympic-games/>. "The 'Coca-Cola' Brand & Sponsorship." Business 2000, Fifth ed. Print. <http://www.business2000.ie/pdf/pdf_5/coca-cola_5th_ed.pdf> The Nielsen Company. "How Different Genders, Ages, Races and Regions Watch the Olympics." Nielsen Wire. 25 Feb. 2010. Web. Nov. 2011. <http://blog.nielsen.com/nielsenwire/media_entertainment/how-different-gendersages-races-and-regions-watch-the-olympics/>. Zeledon, Max. "Coca Cola: Olympic Sponsorship Is a Profitable Tradition." Seeking Alpha. 09 May 2008. Web. Nov. 2011. <http://seekingalpha.com/article/76452-coca-cola-olympic-sponsorship-is-aprofitable-tradition>.

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