COCA COLA - PROJECT TEAM REPORT

Final team report is posted on Andre Grachev's blog. Here is the link.
http://mktg-411-agrachev.blogspot.com/2005/06/final-group-post-coca-colas-marketing.html
Team thank you for all the great effort researching and posting entries to make this happen. Great working with you all.

Identifying my blog in Google & Yahoo

Hope to get extra credit -- more then hope need to get extra credit -- so here is the hyperlink to my blog from the Google & Yahoo search engine

Google
http://www.google.com/search?q=Marketing+411+%40+Wharton+School&hl=en&lr=&start=10&sa=N

Yahoo!
http://search.yahoo.com/search?p=Marketing+411+%40+Wharton+School+marketing+search.blogspot&sp=1&sm=Yahoo%21+Search&toggle=1&ei=UTF-8&fr=FP-tab-web-t&SpellState=n-3168974321_q-U4fWvXyl0wh9LPMckzIcYQAAAA%40%40


Article picked up by Technorati
http://www.technorati.com/cosmos/search.html?rank=&url=THE+COCA+COLA+COMPANY+%E2%80%93+CORPORATE+SOCIAL+RESPONSIBILITY

Brand Equity

Brand Equity is a key strateigc asset and high brand equity provides a company with many competitive advantages. http://tammygowans.blogspot.com/2005/06/marketingtech-blog-postnike-says-no-to.html

The concept of brand equity is not only for products and services...but in my view.....also relevant for individuals. Popular public figures, who endorse products like sports stars, movie stars and music stars etc are huge and powerful "brands" in themselves. The public in general and consumers, strongly associate specific positive qualities in these individuals and admire them. These individuals represent high aspirational qualities & are perceived to set the standards. They are looked upto, liked and admired by consumers. It is the brand equity of these individuals which gets transferred to the products they endorse, and in turn helps build or maintian product brand equity.

Psychological Pricing http://rachelbarrett.blogspot.com/2005/06/topic-post-2-price-when-higher-price.html

Psychological Pricing, in my view, is one of the most interesting concepts in consumer marketing! In certain product categories, eg clothes, cosmetics, perfumes, accessories, costumer jewellery etc, consumers almost always perceive high prices as indication of better quality and it is this perception which savvy marketers leverage on and position their products at higher prices.

Very high prices often become symbolic of exclusivity in the minds of consumers. Consumers are willing to pay in multiples, since they perceive they are buying exclusive products/ brands which are above most people's reach. This satisfys their need of self esteem and status. If its costs four to five times of average price, then it must be a premium product. It is this belief which creates a market nice for very highly priced consumer products. In these categroies, consumers do not particularly compare the quality/ features with other less expensive products. It is the high price itself which is for them the most key indicator of quality and exclusiveness.

GROUP PROJECT - COCA COLA

THE COCA COLA COMPANY – CORPORATE SOCIAL RESPONSIBILITY

“We recognize the need to contribute more than just jobs and investment to the communities that sustain us as a company.” The practice of Corporate Social Responsibility (CSR) has grown exponentially in the last decade. More and more companies are recognizing that CSR is more than just an optional extra - it is the key to a successful business.

For the Coca Cola Company, Africa is more than just another market. It has contributed more than 40 million dollars on community work in the continent. http://www.africacommunity.coca-cola.com/

The Coca Cola Africa Foundation: Established in 2001, the Foundation funds and coordinates the Company’s community initiatives across Africa.

The Coca Cola Company states that it recognizes the need to contribute more than just jobs and investment to the communities that sustain it as a company. In 2001, The Coca-Cola Africa Foundation was established to coordinate and fund this community work with a focus on three vital areas of development -- Healthcare, Education and the Environment. With over 75 years’ experience of working in Africa, the Company seems well placed to understand the challenges facing the continent, and the role that companies like itself can play in responding to them. In tandem with other partner organisations, they continue to commit time, money and energy to community initiatives across the continent.

Health - HIV/AIDS is without a doubt a great threat to Africa’s development. The Foundation is sponsoring several NGOs and grassroots organisations, as well as UN initiatives, to provide education and treatment to HIV/AIDS patients. The Foundation is a key partner in the Men as Partners (MAP) programme, which is being run by Hope Worldwide and aims to help men of all ages identify the role they can play in fighting AIDS. The Foundation has donated $55,000 to Hope Worldwide in support of this programme.

Education - Education has the potential to make such a lasting difference, especially in the long-term to help alleviate poverty. The Foundation believes in the power of education and the right of Africa’s children to have an opportunity to learn. They are involved in a number of projects to renovate infrastructure and provide educational resources, particularly in rural communities that have been neglected in the past. As a result of the Foundation’s work, students in countries across the continent have benefited from better classrooms, books and residential buildings.

Environment – The Company believes it has a duty to ensure that development is sustainable and preserves the environment for future generations. Their plastic recycling scheme in Tunisia received an award from the Ministry of Environment. In Angola, threy helped to recover several hundred million cans for can recycling. In South Africa, their play-pumps draw up bore hole water for rural villages. The Foundation also provides assistance in times of crisis. They provided money, logistical support and supplies in the wake of the Algerian earthquake in 2003 and the Mozambiquan floods in 2001.

Business & HIV/ AIDS: “The struggle against AIDS is a moral imperative; it is also a commercial imperative” Kofi Anan.

The AIDS epidemic in Africa, clearly is the greatest obstacle facing the continent at the start of the 21st century. No one is isolated from its effects, least of all business. The rationale for business making a decisive response to tackling AIDS is straightforward – AIDS increases costs, reduces productivity and threatens economic prosperity. What makes AIDS such a potent threat is that the people it most affects – the young and active – are the very people that will drive forward Africa’s development. Along with other Companies (GBC), Coca Cola is taking a lead in trying to minimize the damage caused by, and reduce the rate of spread of this fatal disease.

The Global Business Coalition on HIV/AIDS (GBC) is the pre-eminent organization leading the business fight against HIV/AIDS. The rapidly-expanding alliance of over 200 international companies is dedicated to combating the AIDS epidemic through the business sector's unique skills and expertise. Their mission is to harness the power of the global business community to end the HIV/AIDS pandemic. http://www.businessfightsaids.org/site/pp.asp?c=nmK0LaP6E&b=89994

In addition to the various initiatives in Africa, the Company also has foundations, set up for other regions across the world which are dedicated to making a positive difference to society. http://www2.coca-cola.com/citizenship/foundation_asia.html

Promoting Healthy Lifestyles - Coca Cola

The Coca-Cola Company, founded in 1886, is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverages, concentrates and syrups, used to produce nearly 400 beverage brands. It operates in over 200 countries around the world. As a global leader in the beverage industry, it offers nearly 400 brands, including soft drinks, fruit juices, bottled water, and sports drinks.

As part of its endeavor to be socially responsible, the Company has developed and launched programs which address the growing concern with health and wellness particularly amongst young people. The most recent such program, Live It! was launched last month. http://www2.coca-cola.com/presscenter/nr_20050526_americas_liveit.html

Live It! Is a new health and fitness initiative for middle school students across the country. This initiative is designed to help students build healthy lifestyles by encouraging physical activities as part of their daily lives as well as providing nutritional information in schools. The new Live It! Campaign features inspirational figures, including six time Tour de France champion Lance Armstrong, to promote healthy eating and physical activity.

The key components of the program are:

Endorsing Healthy Lifestyles: Schools will be given "Live It!" posters for the cafeteria and school, featuring inspirational figures endorsing proper nutrition, physical activity and balanced lifestyles.

Encouraging Daily Physical Activity: Students will receive a personal Stepometer™, a student activity guide to log their steps, and activity cards that suggest fun ways to achieve 10,000 steps daily. Whether students are running, dancing, stepping or walking, the idea is to make physical activity fun even for those who aren't involved in athletics.

Emphasizing Healthy Choices: Students will receive activity cards that provide food tips for each day, helping them choose their meals and snacks according to the new Dietary Guidelines. For example, a tip from the milk and grain groups suggests students try a whole grain cereal with low fat milk for a snack rich in vitamins, minerals and fiber.

“There are many factors at play in helping our young people build balanced lifestyles,” said Don Knauss, president of Coca-Cola North America. “Because of our long-time partnership with America’s schools, Coca-Cola wants to play a positive and effective role in helping to promote healthy, active lifestyles among students nationwide.”Live It! is expected to reach more than 2 million sixth graders when it is implemented this fall.

The program builds on the success of The Coca-Cola Company’s Step With It!® program, which has reached more than one million kids to date. Live It! expands on Step With It! by adding a new focus on tips for healthy food choices based on elements of the revised U.S. Dietary Guidelines.Participating schools will be offered posters featuring Live It! celebrities offering their personal tips on how to incorporate physical activity and healthy eating into everyday life. In addition, the program features Lance Armstrong in a short school video explaining the program and its importance for students.

"Proper nutrition and physical activity in our schools are vital components in teaching young people how to maintain a healthy lifestyle for the long-term," said Barbara Belmont, executive director, School Nutrition Association. "The School Nutrition Association is proud to be collaborating on the "Live It!" program with The Coca-Cola Company and other national organizations that care about the health and well-being of our student population." "The National Association of Sport and Physical Education is pleased to support the continued commitment by The Coca-Cola Company to healthy lifestyles with the exciting new Live it! program," said Charlene Burgeson, Executive Director. "NASPE members enthusiastically implemented the program's predecessor, Step with It!, and are looking forward to using the new program to motivate kids to be physically active."Another similar program initiated from The Coca-Cola Company earlier is Your Power To Choose www.yourpowertochoose.com.

It seems that the company recognises the societal need of health and wellness and is thinking long term, strategically positioning itself, its image and products as part of healthy life styles.

Social Responsibility of Marketing: Consumerism and Environmentalism – Illustration on BP

“A sustainable business is by definition a responsible business. Responsibility isn't an add-on or luxury; it's an integral part of the way we run our business to achieve profitable, consistent and sustainable performance” http://www.bp.com/subsection.do?categoryId=4446&contentId=3072000

As an organization BP adopts a very conscious and methodical approach towards ensuring minimal impact to environment, across their operations of exploring, extract and refining oil and gas products. In particular BP’s approach to environmentally sensitive areas seems comprehensive and has a well recognized processed methodology as provided below:

BP’s approach to sensitive areas can be organized into three parts:
Access - how to decide whether or not to operate in an area
Operating - how to run business in a responsible and constructive way
Conservation - how to support conservation through the BP Conservation Program
When BP’s operations come to an end and they exit an area the aim is to clean up the environment and leave a positive legacy behind.

BP clearly stands out as a socially responsible Company in consumers’ minds worldwide. They have created a strong image of their Company and brand, which has become a benchmark of environment consciousness across the globe.

Apart from the overall approach and processes, which govern their operations, BP has also developed products which are environmentally better to use. Their range of cleaner fuels specifically reduces the damage caused to air. In the US, BP markets low-sulfur premium gasoline in its 'Clean cities' program.

Reducing the amount of sulfur in gasoline enables the catalytic converter to work more efficiently. And that results in lower nitrogen oxides, or NOx, emissions and reduced ozone pollution. BP has reduced the sulfur content of its premium gasolines years ahead of the 30 ppm federal sulfur requirement. In BP's Clean cities that require reformulated gasoline or low sulfur gasoline, reducing these emissions beyond EPA or state requirements is the equivalent of eliminating the NOx emissions from 100,000 cars every summer day. This calculation is based upon actual sales of BP premium fuels for the 12-month period before BP introduced its low sulfur gasolines. BP's new and improved fuel products that help reduce air pollutants are now available in more than 40 US 'Clean cities'.

In their constant pursuit to operate & develop products that cause minimal damage to environment, BP has also grown and outperformed as a business, its key competitor’s. It is today the world’s largest integrated oil companyhttp://www.hoovers.com/bp/--ID__58872--/free-co-factsheet.xhtml a feat accomplished and admired by all consumers and society in general, around the world.

The Smart Spot Symbol From PepsiCo

PepsiCo is one of the world's largest food and beverage companies with annual revenues of $29 billion. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. Its portfolio includes 16 brands that each generates $1 billion or more in annual retail sales.

Last year, the Company launched "Smart Spot" program, a green symbol on packaging designed to help consumers identify food and beverage products from PepsiCo that contribute to healthier lifestyles. Products receiving the Smart Spot symbol meet nutrition criteria based on authoritative statements from the U.S. Food and Drug Administration (FDA) and the National Academy of Sciences. The Smart Spot criteria include limits on the amount of fat - including saturated and trans fats - cholesterol, sodium and added sugar. The Smart Spot symbol also serves to identify products reduced in ingredients, such as sodium or added sugar, or products formulated to have specific health or wellness benefits. The criteria represent consensus opinion among numerous health and nutrition experts, based on credible nutrition science.

Vice President Nutrition Technology, PepsiCo, Nancy Green, Ph.D. states, "Consumers have told us they want simple, clear and positive information to help them identify food and beverage choices that contribute to healthier lifestyles. The Smart Spot symbol is an important step in our long-term efforts to improve product choices and encourage healthier lifestyles." http://www.smartspot.com/

The Smart Spot program is part of PepsiCo's ongoing commitment to health and wellness - a commitment that acknowledges the importance of both food and physical activity as the keys to a healthier lifestyle.

In February this year, PepsiCo unveiled a major retail promotion for the Smart Spot initiative featured at grocery, mass and club stores across the country and supported by a national print campaign. Significant in-store displays will bring together Smart Spot products ranging from snacks to breakfast products to sports drinks, juices and other beverages. Meredith Vieira, host of TV's The View and Who Wants to Be a Millionaire, is a central figure in the national promotion which features a sweepstakes, a rebate and a consumer education piece, "Guide your family to a healthier lifestyle."

In addition to offering more product choices, PepsiCo is promoting active lifestyles. The company is the National Presenting Sponsor for America on the MoveT, the innovative program that recommends small changes to achieve a healthier lifestyle through the concept of energy balance - burning as many calories as you consume. Working together, PepsiCo and America on the MoveT have launched Balance FirstT, lesson plans that teach children the concept of energy balance. The Balance First lesson plans have reached 2.5 million elementary school children to date.

Key Concepts:

Consumerism, an organised movement of citizens and government agencies to improve the rights & power of buyers in relation to sellers. Traditionally, buyer’s rights included:

The right not to buy a product that is offered for sale.
The right to expect the product to be safe.
The right to expect the product to perform as claimed.

Critics and consumer advocates feel that the balance of power lies on the sellers’s side. They call for the following additional consumer rights:

The right to be well informed about important aspects of the product.
The right to be protected against questionable products & marketing practices.
The right to influence products & marketing practices in ways that will improve the “quality of life”.

It is this consumer desire for more information and specific information that has led to Companies like Pepsico to provide not only information on ingredient labeling, nutritional value of foods, product freshness but also now with Smart Spot the true benefits of the product. Consumers have not only the right, but also the responsibility to protect themselves instead of leaving this function to someone else.

Social Responsibility of Marketing

Hello fellow Bloggers, I am enrolled in a marketing course at Wharton School. At the end of this semester I hope to be knowledgable of the basic concepts of Marketing and be able to effectively apply them in my future career. I have been assigned a topic on Marketing and Society and will be posting articles on this subject matter. In light of that I would appreciate any feed back and comments that you wish to make which would greatly help me.

Over the course of next few weeks I will be posting my views on "Social Responsibility and Marketing Ethics" and how it affects "Marketing Strategies" based on the concepts I learn during the course. I will also share the concepts of "Consumerism and Environmentalism".