By Gregory Comolli, Charles Schwab & Company, Inc.
The second morning of the ANA conference kicked off with Joe Tripodi, CMO of the Coca-Cola Corporation. Like other speakers this year, Joe began his presentation with a snap shot of the current economic crisis and what impact it will likely have on consumers. So far, Coke seems to be weathering the storm quite well as Joe reported that Q3 earnings were strong and profits were up 14%.
What can brands do to survive rough patches in the economy? Joe discussed how the key is to compete for the long-term. At Coca-Cola, they do this in 3 ways: advertising, building brands and inspiring consumers. Rather than focus on one TV spot or one single print ad, at Coke, Joe and his team challenge their agency partners to focus on the ‘core creative idea’ which can be adapted across various media platforms (i.e. TV, radio, online etc.). When thinking about building brands don’t think so much as ‘one size fits all’ rather think how your brand can become flexible and its ability to customize itself. Lastly, inspiring consumers is the key to keeping your brand healthy and able to adapt to future events.
Growth is the theme of this year’s ANA conference and Joe presented Coke’s 4 keys to growth: Lead, Innovate, Engage and Collaborate.
· Lead: Rather than letting others speak for them in the marketplace, Coca-Cola has formulated a singular, unified platform – Live Positively – which they use when telling their corporate story. Whether that is telling consumers of their sustainability capabilities or inspiring people to lead active lifestyles, Coca-Cola has taken the lead and maintained a unified front when presenting their story to the market.
· Innovate: Stop chasing the Holy Grail, Joe told the crowd. Rather, look at your core business and tap into consumer insights to truly innovate your brand. Coca-Cola has had recent success with their Coke Zero brand. The sparkling beverage industry had grown somewhat tired of offerings in the marketplace and people were looking for something new. Coca-Cola responded with Coke Zero which not only helped them increase the bottom line but has also helped them make inroads among the male target which they had seen decline in recent years.
- Engage: Engagement with consumers is a key trend mentioned at this year’s conference. Coke has taken on this approach in a couple of different ways. One of the more Web 2.0 tactics Coca-Cola has employed is using mobile marketing campaigns in China. China has the world’s most cell phones and Coca-Cola has tapped into this potential by serving up coupons on people’s mobile devices.
· Collaborate: The 2008 Olympics were a tremendous opportunity for the Coke brand to solidify their world leadership. Coca-Cola collaborated with partners around the world to create a unified brand presence. Over 61 markets participated in the world wide campaign and using common visual elements and branding, 151 markets produced special packaging for the event.
In closing, Joe brought everything back to unstable economic times but provided valuable insight when marketers are presented with such an issue:
· Invest in your brand now
· Invest in emerging platforms and be comfortable with failure
· Balance inspirational and operational marketing
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