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COMPARISON BETWEEN TRADITIONAL MARKETING & SOCIAL MEDIA MARKETING CASE STUDY: THE COCA-COLA COMPANY

SAHEEM SALEEMB12090003BACHELOR OF BUSINESS ADMINISTRATION (HONS)SEPTEMBER 2012 INTAKE

1.INTRODUCTION

RESEARCH QUESTION

What are the differences between traditional marketing and social media marketing?The study will focus on Coca-Cola Company.RESEARCH OBJECTIVESHow does traditional marketing and social media marketing differ in terms of communications?How does traditional marketing and social media marketing differ in terms of frequency?What is the effectiveness of traditional marketing and social media marketing?

CommunicationFrequencyTraditional MarketingSocial Media MarketingEffectiveness of marketing tool Marketing Communications ElementsTHEORETICAL FRAMEWORK

CONSTRAINTS OF STUDYLack of direct contact with the case company.Geographical constraint.

SIGNIFICANCEOF STUDYLimited understanding of the effects of the penetration of social media on traditional marketing and how it changed firms marketing strategies. Primary purpose of thesis to explore exponential opportunities in commercial marketing.

2.BACKGROUND OF STUDY

COMMUNICATIONExisting firm-to-customers and customers-to-firm relationships.Helps to achieve ease of contact, speed, volume and reach of marketing message.MARKETING COMMUNICATIONS ELEMENTS(Derived from McGraws Marketing Communications Framework)

FREQUENCYThe number of times and duration in which an individual is exposed to a message during a specific period correlates with reach. Crucial to measure brand awareness.Creates traffic for the web site and generate more online sales - firms can reach out to larger audience.

EFFECTIVENESS OF MARKETING TOOLSMeasured by brand awareness and brand engagement - indirectly affects the brands ROI. In traditional marketing - more is better - word-of-mouth among consumers.In social media marketing marketplace impact, brand value, brand loyalty and consumer engagement - the number of comments, wallposts and retweets.No statistically significant relationship between marketing and short-term sales - ROI has to be measured in terms of business performance over a longer period of time which will be the real mark of marketing success.

TRADITIONAL MARKETINGAdvertisements conducted through

Other techniques/names: direct and brand marketing, one-way, push-based, and interrupt-driven.SOCIAL MEDIA MARKETINGUses social networks such as

A process that gives organisations the availability to present their own services and products to the new or existing customers through online social channels.

3.RESEARCH METHODOLOGY

Comparative analysis approach a deterministic, theory-driven and non-probabilistic method.

Divided into two stages: Exploratory analysis of the existing literaturedata gathered from the knowledge base of marketing communication practitioners/scholars due to the relatively early stage of development.Comparatively exploring the tools and strategies of social media marketing and traditional marketing in the case company Coca-Cola from both qualitative and quantitative perspectives. for data collection, annual reports (from Coca-Colas website) were collected and analysed in intervals of decades despite using a qualitative research methodology due to the secondary research nature of the thesis.Also used quantitative information, figures and statistics from various credible online sources to establish calculative elements of thesis.

4.RESULTS & ANALYSIS

COMPANY PROFILEFounded and invented in 1886 by John Pemberton. After Pemberton's sudden death, Asa Griggs Candler became the sole owner of Coca-Cola in 1891 bringing real vision into the business brand.Produces four of the world's five best-selling soft drinks - the worlds most valuable brand. More than 500 beverage brands that includes diet, regular and still beverages.Supports global sports such as FIFA World Cup and Olympics amongst others.

COKES TRADITIONAL MARKETING

Past strategic objective: Coca-Cola connected its brand to fun, carefree American lifestyle, and applied an imagery of advertising that connected with the spirit of post-war America.

COKES CURRENT MARKETING

Current strategic objective: Coca-Colas main objective is maintaining a trust worthy local presence in every community its serving.

COMPARISON 1: COMMUNICATION

ANALYSIS

(the Communication Matrix Model)

COKES TRADITIONAL MARKETINGPAUSE THAT REFRESHES CAMPAIGN (1929)Awareness: The campaign first appeared in national magazines in 1929; ran through the 1950s reaching out to entire America. The message was appealing and uplifting to a country that was at war. Knowledge: Pause" became synonymous with Cokes brand image.Consideration: People would consider Coke in making purchase decisions because the advertisements made Coke familiar to Americans.Preference: 84% of consumers continued drinking Coke - no longer having trouble in selling during the winter season.Action: People continued to associate and drink Coca-Cola into the Great Depression. Business Result: Advertising Age ranked it No. 2 on its list of the top ad campaigns of the 20th century in 1999.

COKES SOCIAL MEDIA MARKETINGSHARE A COKE CAMPAIGN (2011)Awareness: 17,000 virtual name bottles were shared online across Europe. Knowledge: 998 million impressions on twitter; Cokes Facebook traffic increased by 870%, with page likes growing by 39%.Consideration: More than 230,000 tweets from more than 110,000 fans using the #shareacoke hashtag. Preference: More than 150 million personalized bottles were sold. Action: People loved to see their names on branded products. People would scour retail locations and even resort to eBay in the hopes of finding their name or a friends name on a Coke bottle.Business Result: 7% increase in Coke consumption; 2.5% increase in total sales and soft-drink volume went up by 0.4%.

The success of communication with target audience in social media marketing is more successful than in Coca-Colas traditional marketing.Traditional approach relays on creative excellence that links the brand image to fun and lifestyle (entertainment) has traditionally guided the brands communication success; while social media relays on communication excellence that connects the brand image to customers.Although the humorous ads and unique slogans were authentic to the brands goal, the sensation of entertainment message is short-lived because it entertains consumers rather than communicating with them. With social media, Coca-Cola gains better communication grounds with the consumers to build brand loyalty and maintain brand preference beyond traditional methods.KEY FINDINGS

COMPARISON 2: FREQUENCY

ANALYSISCOKES TRADITIONAL MARKETINGCoke persistently created advertising campaigns from the 70s till the 90s - forced people not to forget them as the leaders who brought happiness to their consumers. The frequency of advertising is most crucial for increasing sales and maintaining Cokes superiority in the market.With a budget of $180 mil, the Company decided to use pulsing strategy not only for more reach, but also to maintain and increase the levels of frequency for their advertising; and use reminder advertising from time to time. Pulsing strategy differed in the traditional marketing and social media marketing of Coke. Traditionally, Coke was consistently using advert prints, TV commercials and radio by talking to (or at) the customer. Television - the dominating media mix occupying 97% of advertising and producing the highest frequency rate among consumers compared to other traditional tools. The frequency level was limited to the exposure of TV commercials and the word-of-mouth resulting from the brand awareness helped Coke to maintain the desired level of frequency.

COKES SOCIAL MEDIA MARKETINGCoke launched the Christmas truck tour campaign online (for the first time) in 2014 - encouraged followers to share tweets on the Cokes Twitter page.Coke transmits its advert online mainly through Twitter, YouTube and Facebook - much faster and has a much wider reach viral advertising.Due to the exposure of the campaign in social media and the frequency of consumers sharing the campaign tweets and related campaign posts, the Coca-Colas Truck Tour website received nearly two million page views, while 50,000 official customer photos were taken across the tours 46 stops, higher than the reach achieved using the traditional marketing tools.The frequency of Coca-Colas advertising increased in 2012 due to customer-generated advertising and content that went viral through online shares and tweets.

KEY FINDINGSFrequency rate in social media marketing is higher than traditional marketing due to the presence of viral marketing in social media platforms.Coke have always focused on the frequency of advertising to boost sales and have shifted into pulse strategy in its maturity stage to increase and maintain the frequency level. In the traditional approach, the frequency level and consumer reach was limited to TV commercials, billboards, etc - a result of interrupted marketing, which pushes the marketing message onto consumers - more advertising was needed to maintain the goodwill effect of Coke on consumers. Social media marketing that operates in pulsing strategy incorporates less of push marketing and more of viral marketing that allows consumers to share and associate the brand to their peers.The frequency level attained at this level is obtained and heightened through consumer generated content and advertising of the brand through viral advertising (moderating variable), which is a much effective and convincing approach.

COMPARISON 3: EFFECTIVENESSConsidering Coke to be one of the bigg