Coca-Cola has dedicated to rising shopper advertising and marketing spend to pre-pandemic ranges, having already “considerably stepped up” funding in comparison with final yr.
Coca-Cola’s overhaul of its advertising and marketing and innovation mannequin is bearing fruit, the corporate mentioned in the present day (10 February) at its fourth quarter and full yr 2021 outcomes presentation.
The drinks big unveiled a new advertising and marketing mannequin on the finish of final yr and revamped its company mannequin, appointing WPP as its world advertising and marketing community accomplice to assist stop siloing and drive long-term development.
Group chairman and CEO James Quincey mentioned in the present day that the transfer is already displaying optimistic outcomes.
“Our community advertising and marketing mannequin, with world class groups and native working items, is permitting us to deal with end-to-end shopper experiences which are data-driven and at all times on,” he mentioned.
“Our announcement of WPP as our world advertising and marketing community accomplice is a foundational element of our new advertising and marketing mannequin. This new company method provides us entry to the most effective artistic minds no matter supply and is underpinned by forefront knowledge and expertise capabilities.”
We anticipate to extend consumer-facing advertising and marketing spend towards ranges just like 2019, whereas bettering the standard of that spend and allocating it in a extra focused method
John Murphy, Coca-Cola
As a part of this drive he highlighted the significance of Coca-Cola’s ‘Actual Magic’ model platform, which it launched in September. It’s designed to alter the way in which the model communicates with customers, by transferring away from broadcast communications to create an ecosystem of experiences.
“The Actual Magic marketing campaign is the primary marketing campaign to be co-created internally, leveraging this new end-to-end method and the marketing campaign is displaying sturdy outcomes with customers,” added Quincey.
“The method will enable us to ship best-in-class consumer-centric advertising and marketing experiences throughout our classes and around the globe.”
Coca-Cola has additionally dedicated to returning advertising and marketing spend to the extent it was in 2019, as outlined in its Q3 outcomes. Chief monetary officer, John Murphy, mentioned in the present day the enterprise had “considerably stepped up” funding in comparison with final yr.
“From a advertising and marketing perspective, we anticipate to extend consumer-facing advertising and marketing spend towards ranges just like 2019, whereas bettering the standard of that spend and allocating it in a extra focused method,” he mentioned.
“We’ll proceed to take a position purposefully in our manufacturers and markets to help top-line development, with spend extra closely weighted in the direction of consumer-facing actions.”
Disciplined innovation
A extra disciplined method to innovation has additionally proved efficient, Quincy mentioned. “Income per launch and gross revenue per launch had been up 30% and 25% respectively versus prior years,” he added.
General, Coca-Cola skilled what Quincey described as “dynamic working circumstances” by 2021, however achieved one other quarter of sequential enhancements on the finish of the yr.
It ended 2021 with greater quantity gross sales than in pre-pandemic 2019, with world quantity gross sales up 9% within the remaining quarter and eight% for the complete yr. In the meantime web revenues had been up 10% within the quarter to $9.5bn (£6.97bn), and by 17% to $38.7bn (£28.4bn) for the complete yr.
“In 2021 our system demonstrated resilience and suppleness by efficiently navigating by one other yr of uncertainty,” mentioned Quincey.
“We centered on our key methods and emerged stronger. We’re assured that progress on our strategic transformation has made us a nimbler complete beverage firm. Whereas the atmosphere stays dynamic, we are going to construct on the momentum from 2021 to drive high line development and maximise returns.”