Coke’s European Resurgence
Coca-Cola tried to put the fizz back into its European marketing with a series of promotions aimed at winning over skeptical consumers after a summer of headaches and nausea – suffered by consumers and management alike.
Coke’s new tack is spin control after a bottling mishap caused teens in Belgium and France to get sick after drinking the product. The company recalled millions of Coke bottles and endured a wave of negative p.r.
But Coke is already bouncing back from the staggering 21-percent drop in second-quarter worldwide net earnings that it reported a few months back. Bottles have returned to store shelves in droves. How’d Coke turn it around so quickly? The brand expedited its recovery with a quick apology from ceo Doug Ivester this summer, and is following up with an aggressive promotion campaign.
“We have re-evaluated and re-tailored our marketing programs to meet the needs of consumers on a country-by-country basis, and continue to reach out with marketing programs specifically designed to reconnect the brands with consumers,” says William Casey, president of Coca-Cola’s Greater Europe group.
“We realized there was a short window of opportunity [after the incident] and we had one chance to get it right,” Anne Tasker, Coke’s European marketing manager, told National Public Radio. “That really built the adrenaline and energy within the marketing department.”
Tasker transformed the meeting room at the company’s Brussels headquarters into a “war room” that served as a daily gathering place for p.r. consultants, marketing managers, distribution experts, and others who would brainstorm on the results of nightly consumer polls. Employees were encouraged to dress down to “help break down barriers.”
The next move was to hire 6,000 Belgian “greeters” to hand out 4.4 million coupons to grocery store shoppers while “putting a face with the company’s messages,” Casey says. The coupons were redeemable for free 1.5-liter bottles. To help beat the heat, the brand set up free soda stands in front of 2,000 Belgian grocery stores during the hottest days of August.
“We’re here to reassure consumers,” a Belgian sampler told NPR. TV spots and newspaper ads focused on a “Your Coca-Cola is Back” message.
Coke recognizes the value of winning particular favor with the teen market, and is leveraging the segment’s power with 10 beach parties scheduled to run through February. The mobile events feature sound and light shows, live music and DJs, dance acts, tropical beaches complete with sand, palm trees, and cocktail bars with free Coke. The events are drawing thousands of attendees.
PRIZE STRATEGY
Another promotion was aimed at getting consumers to stock up on Coke by rewarding them with chances to win heavily discounted merchandise by accumulating points found on packaging. Prizes included branded cellular phones, CD players, plush polar bears, and polar fleece jackets. Promotion participants collected their points (each Coke product had an assigned point value) and called a toll-free number to see if they won a prize. Participants had a 50-percent chance of winning each time they called. Winners left their name, age, address, and prize choice in order to receive a confirmation card that told them where to pick up the prize. The program ran through the end of November.
“Trends indicate that consumer-confidence levels are on track to return to pre-incident levels by the end of the year,” Casey says. Considering that Belgium is among the top 20 countries for per-capita Coke consumption, that’s a big deal. The company has been in Belgium since 1927, employs 2,000 local workers, and serves some 30,000 restaurants, supermarkets, and other customers.
Coke is confident it can double European consumption over the next decade. A lofty goal? Perhaps. But not if the company continues to roll with the punches while finding innovative ways to recover all those drinkers it lost last summer.
