Coca-Cola Company (Nan)

COMM 642     Sun Yanan (Nan)

Coca-Cola Company

BACKGROUND:

In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pemberton’s bookkeeper Frank Robinson. Now, the Coca-Cola Company becomes the world’s largest beverage company, ventured into the fast growing bottled water industry. The mission of Coca-Cola is to refresh the world, inspire moments of optimism and happiness, create value and make a difference.

PROBLEM:

Coca-Cola Company hold a My Coke reward program. My Coke Rewards is a customer loyalty marketing campaign for the Coca-Cola soft drink. Customers enter codes found on specially marked packages of Coca-Cola products on a website. Codes can also be entered “on the go” by texting them from a cell phone. These codes are converted into virtual “points” which can in turn be redeemed by members for various prizes or sweepstakes entries. During this activity, the Coca-Cola Company found a post from a frustrated customer in Twitter. This customer complained that it was difficulty redeeming a prize from a My Coke reward program. What’s more, this customer’s profile showed more than 10,000 followers on Twitter. It made the bad reactions in society.

SITUATION ANALYSIS:

Facing to this situation, the Coca-Cola Company send Adam Brown to deal with this crisis. Adam Brown is head of the social media for the company. He posted an apology on the customer’s Twitter profile and offered to assist in getting the prize. I think this is the strength of Coca-Cola, it has great social media department. From this crisis people can found that Coca-Cola pay more attention to social media, and obtain the last information. The company very emphasis on social media, leader apologized to public in first time and also provide solusion methods. The weakness for Coca-Cola Company is the Twitter is a free speech place, public will exaggerate the truth or spread negative sentiments. So Coca-Cola Company should explain this crisis in short time and show the good attitude to public.

STRATEGIES:

The Coca-Cola Company apologized to public in the first time, to stabilize public’s sentiment. Good attitude is very important. It also showed that Coca-Cola is a honest company; To admit a mistake is a noble virtue. At the same time, company also set out the solusions and compensation. Customers can receive the sincerity and responsibility of Coca-Cola Company. Public can feel be respected and welling to forgive the mistake that the Coca-Cola made.

CONSEQUENCES:

At last, the customer received the prize and forgave Coca-Cola Company, in addition, that customer changed his Twitter avatar to a photo of himself holding a Coke. At same time, Coca-Cola Company increased its image and obtain more trust of customers. Coca-Cola Company solved this crisis perfectly.

COMMENT:

Nowadays, social media is used by so many companies, organizations, and individuals to gauge the sentiments of their publics, prevent crisis, or cope with crisis. Social media is not only an effective method for monitoring and participating in proactive public discourse but also a tool for participatory crisis or emergency communications. Blogs, Twitter, Facebook, and podcasts are used to convey messages, they can build trust or they can destroy trust. Therefore, organizations should pay more attention on these social media. For example, I saw an interesting report said that Coca-Cola and Pepsi make nice on Twitter. Coke was first to say a “gracious (but competitive) hello” to Pepsi on Twitter, and follow its rival. Later Pepsi responded with its own greeting, tweeting “Can rivals and tweeps coexist? We’re willing to find out. :)” Both are now following each other. From this news, we can see that social media had became an important Publicity channels for companies. Every company want to keep their good image in social media. Therefore, it is essential for every organizations to learn how to use social media efficiency.

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9 Responses to Coca-Cola Company (Nan)

  1. dijiang313 says:

    “To admit a mistake is a noble virtue”, it also is an effort to defend reputation and protect image. Apology usually is the first step to deal with the crisis as well as an crucial step. The public would like to see how the organization taken steps to cope the crisis and prevent recurrence of the misdeed.

    • synyayayi says:

      Yes, at most of time, public just need a good attitude. Even though company did some wrong thing, if the company has a good attitude, public willing to forgive it.

  2. kurtcomm642 says:

    An indication of Twitter’s power is how big it grew in the five years since it was invented — from zero to 200 million and more. You can express your opinion, or at least a hundred and forty character’s worth, for good or ill, instantly, from almost anywhere. No wonder Coke devotes significant resources to social media.

  3. lilly1989 says:

    Coke was first to say a “gracious (but competitive) hello” to Pepsi on Twitter–I feel it is really interesting for Coke to do this toward Pepsi. Besides that, I think it is also a wise strategy for Coke to win more favors from the beverage customers. The social media can not only prevent crisis, but it also could improve the image of the organization.

    • synyayayi says:

      People also like to see the conflict or friend between Coca and Pepsi. I think these two companies can catch this opportunities. They can corporate together to achieve win-win.

  4. rangmoen20 says:

    I think coca-cola on tired in it’s response to the customers complain, it should do better in creating a forum that will strictly be concerned with reward programs to avoid future occurrence.

  5. duanyafan says:

    “Social media is not only an effective method for monitoring and participating in proactive public discourse but also a tool for participatory crisis or emergency communications.” I think all students should know this better after “high way train crash in China”. The social media gave so much information to the public, and the most effective one is “Chinese weibo”, like “Twitter” in US, it gave us the latest information by any of us. How to use social media became more and more important to deal with crisis.

  6. clarkfeng1987 says:

    I agree with you. I also think Coca-Cola Company had a positive attitude to deal with this crisis. Moreover, its strength is very obvious so that it could reply this crisis immediately.

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