Marketing
15 February 2023
5 Coca-Cola digital marketing campaigns from around the world
The CPG activated content with voice, the metaverse and Gen Z insights to localize marketing.
Photo by Felix Zhao on Unsplash
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Coca-Cola is a global company. But when it comes to marketing, the CPG is harnessing digital tools to reach local consumers.
On an earnings call to recap the fourth quarter of 2022, CEO James Quincey detailed digital marketing initiatives the company is undertaking in Vietnam, India and Latin America.
“Our new marketing model is working with linked occasions and passion points to drive engagement,” Quincey said. “We're experimenting to optimize marketing. This is driving deeper connections with consumers, reaching them in unique and new ways. We are tying our beverages to consumption occasions and engaging consumers through local experiences.”
Quincey outlined several of the initiatives, and the results:
Content generator
In Vietnam, the Coke is Cooking campaign aimed to drive traffic back to stores. Coca-Cola partnered with more than 700 food shops, and created thousands of combo deals that combined food and Coke. The event also included digital support from local influencers, and merchandising within stores.
“This was the first time we used an on-ground event as a commercial asset, creating a social and digital content generator,” Quincey said.
The results: The campaign resulted in more than 1 million combo transactions, as well as 20% uplift for participating merchants.
Immersive experiences
In Latin America, Coca-Cola partnered with the massive music festival Rock in Rio to create new content in livestreams and the metaverse. The goal was to combine in-person and digital experiences, and increase engagement with consumers as a result.
The results: Coca-Cola boosted its reach from the roughly 700,00 attendees at the festival to more than 45 million people in the region. Ultimately, sales inside the festival increased 23%.
Personalized content
In India, Coca-Cola launched the Thums Up Stump Cam for cricket fans. Through the app, consumers could scan a QR code on a product label, and get access to match moments at the ICC T20 Cricket World Cup broadcast from a camera installed on a wicket.
“Throughout the 45-day tournament, we used first-party data and artificial intelligence to send personalized content to consumers based on their favorite matches, and we amplified the experience through sports influencers,” Quincey said.
The results: The cola brand Thums Up had growth that outpaced the full sparkling portfolio in India during the activation period. In all, it drove about one quarter of India's total volume growth of the year, and Thums Up saw its highest monthly market share jump during the activation period.
Voice shopping
In Germany, Coca-Cola created voice-based experiences with a technology partner that allowed people to shop and learn more about Coca-Cola products using only their voice.
The results: The campaign had 11 million impressions, and consumers engaged with the experience had a 25% add-to-cart rate.
Gen Z insights
As it launched Minute Maid Aguas Frescas, Coca-Cola leveraged Gen Z insights for a digital media marketing campaign.
The results: The campaign propelled the product to quickly scale from a launch phase in cans into Coca-Cola’s freestyle platform and fountain offerings. In 2022, the product recorded a 60% repeat rate.
Digital insights
When it comes to revenue growth, Coca-Cola is also seeking to leverage insights that can help it better understand customers.
“There is still much work to be done to maximize revenue by further segmenting our markets and consumers based on additional variables,” Quincey said. “We are leveraging digital and data-backed insights to better understand our consumers.This will help drive affordable propositions for basket incidence growth and recruit new drinkers. It will also lead to premiumization to drive price and mix.”
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Marketing
09 June 2023
'There's a lot of ways to frame value'
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
Photo by Kelly Common on Unsplash
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.
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