Tag Archives: Coca-Cola

Coca-Cola Will Enter Japanese Low-Alcohol Market

9 Mar

As we discussed before, Coca-Cola is a great marketing company. See How Coca-Cola Creates Stories and A Clever Ad: Coke and Recycling. Now, due to interest in healthier beverages, Coca-Cola keeps expanding its other product categories, such as juices and bottled water. As a result, Coca-Cola will enter Japanese low-alcohol market .

Is this a good idea? On the one hand, the company will market a new product in a country where local-alcohol beverages remain popular. On the other hand, there are ethical implications. Why? These sweeter beverages (“alcopops”) sometimes are consumed by those under age 21 (or 18). Thus, will Coca-Cola’s image take a hit? The company has no plan to offer this  beverage outside out of Japan, where there is cultural acceptance of such beverages.


A Good Idea? Coca-Cola Will Enter Japanese Low-Alcohol Market

Consider this from Business Insider: Coca-Cola has been battling falling sales globally as consumers shun fizzy drinks. Coca-Cola Japan is launching a version of a local low alcohol drink Chu-Hi. The regional head says the new drink is ‘a modest experiment’ and likely won’t travel.”

And according to Bloomberg News:

“Coca-Cola Co., which has sold its famous soft drink for more than 130 years, wants customers in Japan to try something harder. The company is launching a canned version of Chu-Hi, an alcoholic drink. It is made with shochu, a distilled beverage. And it is typically made from rice, barley, sweet potatoes, and other ingredients. The move is a first for Coke. The firm has stuck to cola and other non-alcoholic drinks except for its brief ownership of a wine subsidiary that ended in 1983.”

“Chu-Hi is considered a low-alcohol beverage. But proofs can range as high as 18 (9 percent alcohol by volume). The company wants to appeal to consumers at different times of the day. People drink an average of eight, 8-ounce drinks a day. And Coca-Cola seeks to be the source of more of those servings.”

One distribution channel in Japan may be the vending machine. Where Coca-Cola beverages remain popular.


Coca-Cola Will Enter Japanese Low-Alcohol Market

Tokyo residents purchase soft drinks from a Coca-Cola vending machine in Tokyo Credit: Tatsuyuki Tayama/Bloomberg News


Finally, as News 24/7 notes:

“The world’s largest soft drinks company is currently experimenting with an alcopop-style beverage which will have a low alcoholic content of three to eight per cent ABV. Alcopops, ready-made sweetened alcoholic drinks, often resemble soft drinks because of their bubbly and fruit-flavored nature. But the low-alcohol drink will only be available in Japan. Chu-Hi, an abbreviation for sochu highball, has been marketed as an alternative to beer.”

Check out the video.



How Coca-Cola Creates Stories

1 Mar

In October 2017, we talked about Ikea’s introduction of pet furniture. And we looked at its clever ad campaign. As part of our Ikea discussion, we showed a YouTube video on the making of its ads. Today, we consider how Coca-Cola creates stories to communicate with consumers.

First, view the Ikea video.


Background of Coca-Cola Advertising

For years, Coca-Cola has regularly appeared on lists of the world’s most valuable brands. And it dominates PepsiCo among soft drink brands. In large part, two reasons account for this. One, Coca-Cola’s massive distribution channels. Coca-Cola’s especially strong in restaurants, fast-food outlets, and other such firms. Two, Coca-Cola spends a lot on advertising; and its advertising is effective.

The following chart from Statista, based on Advertising Age and Kantar data, shows Coca-Cola’s ad spending just in the U.S. And it includes 2009-2016.

How Coca-Cola Creates Stories -- Annual U.S. Ad Spending

Behind the Scenes: How Coca-Cola Creates Stories

Besides spending so much on ads, Coca-Cola prides itself on it ad prowess. And it has the revenues and awards to bear this out.

Recently, Clare McDermott wrote (for the Content Marketing Institute) about Coca-Cola’s use of story telling. Other firms could learn about best practices from Coca-Cola:

“Kate Santore took the stage at Content Marketing World to share Coca-Cola’s storytelling ethos – and to inspire marketers to ask, ‘What if?’ ‘Sharing our strategies and approach to marketing has been a tradition at Coca-Cola to open the door for other brands to learn from our 130 years of marketing experience. Sharing collectively raises the bar for every brand and therefore makes us strive for bigger, better, bolder.’”

Here are a few of Santore’s remarks. To learn more, read McDermott’s full article:

“At Coca-Cola, we want to create Coca-Cola stories and not stories by Coca-Cola. That holds true when our product is a character in the story with a credible role to play. There are four typical archetypes that we look to: object of desire, embodiment of an attitude, social connector, and functional offering or benefit. If you read a script or even partner-created content and say to yourself, ‘Can I tell this story without Coca-Cola?’ and the answer is yes, then it’s a not a Coca-Cola story.”

Here’s an interesting story-telling chart from Content Marketing Institute.

How Coca-Cola Creates Stories

A Clever Ad: Coke and Recycling

17 Aug

In Great Britain, Coca-Cola has been running an entertaining and clever commercial to encourage recycling. Below are two videos: one that shows the commercial itself and another that describes the making of the ad.

As reported by Alexandra Jardine for Advertising Age:

“Coca-Cola Great Britain is encouraging people to think more about recycling with an animated film, portraying a love story between a plastic Coke and Fanta bottle, that is crafted entirely out of recyclable packaging. The set for ‘Love Story,’ by Ogilvy & Mather Berlin, was created by Berlin-based duo Cris Wiegandt and Lacy Barry who used more than 1,500 Coca-Cola, Fanta, Sprite, Smartwater, and Honest bottles and cans during production. In the story, the two plastic bottles banter about their romance, and how they kept giving another a ‘second chance’ after being recycled again and again.”




Zarb at 50 (6): Presentation by Michael Venuti, Distinguished Alumnus

15 Apr

This year, Hofstra University is celebrating the 50th anniversary of its recognition of the business school as a distinct entity within the University, hence “Zarb at 50.” One of the anniversary events comprised well-attended videotaped presentations by President Rabinowitz and five distinguished alumni, followed by a reception.

We are making the videos available in three ways: (1) We are posting 6 separate videos over the next couple of weeks that are divided by speaker. (2) At the Hofstra YouTube channel, a special playlist with each of the separate presentations is available. Click here. (3) At the Hofstra YouTube channel is the entire 1.5 hour event in one video. Click here.

Today, we are highlighting the presentation by Mr. Michael Venuti, a Hofstra MBA in Finance, who is president of Agua Brands – the maker of Agua Active Hydration and Agua Fruit Essence. With colleague and Agua Brands co-founder Dr. Carol Dollard, Mr. Venuti is leveraging his expertise to grow Agua Brands from the ground up. The Agua Active Hydration line is powered by guarana, a natural source of caffeine. Containing as much caffeine as a cup of coffee, each bottle contains only 25 calories. In his role as chief financial officer of Glaceau from 2002-2009, Mr. Venuti helped the Vitaminwater and Smartwater brands expand to create the fastest-growing company in the history of the beverage industry. Under his leadership, the firm developed into a $1 billion brand and was ultimately acquired by Coca-Cola for $4.1 billion. At Glaceau, Mr. Venuti oversaw all financial functions. He also oversaw major contracts, including marketing initiatives, distribution contracts, and celebrity endorsement deals. 


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