Coca-Cola case study
The Coca-Cola Company was founded in 1892, which its headquarters located in Atlanta in Georgia State of the United States. Coca-Cola Company has binomial drinks in top 3 global drinks and 48 percent of global market share. It is the world’s largest beverage Company.
My Coke Rewards is a costumer loyalty marketing campaign for the Coca-Cola soft drink. Customers enter codes found on specially marked packages of Coca-Cola products on a website. There codes are converted into virtual “points” which can in turn be redeemed by members for various prizes or sweepstakes entries.
Twitter is a website, which was owned and operated by Twitter Inc. It offers a social website and microblogging service, to enable its users send and read messages on the website. The company has rapid growth in years. By March 2010, the company has over 70.000 registered applications.
Coca-Cola Company found a post from a frustrated customer; it revealed that the customer was having difficulty redeeming a prize from a My Code reward program. The customer’s profile showed more than 10,000 followers on Twitter.
Situation Analysis, SWOT:
The strength for Coca-Cola Company for this crisis is that Cocoa-Cola Company is one of the world’s largest organizations with the huge consortium and string advantages of global competitiveness. Its brand image is deeply rooted in people’s mind, and it became one indispensable part of the consumers’ life. Coca-Cola Company has the ability for My Coke Reward and it has ability for its research and make customer satisfied. Coca-Cola Company’s weakness for this crisis is that the company is such a huge organization; it is hard to control this corporation, the soft drink is not healthy, the coke is easy to cause problem for people’s healthy. The opportunity for Coca-Cola Company is that by the development of the networking; people can touch each other freely with those social medias and deliver any kind of information very fast, Coca-Cola Company can use this market to build good image for the company and know the information about its company quickly. And for the threat of the company, if there is any bad information for the company, the social media can deliver that information very fast, it can damage company’s good image. It’s possibility that non-coke beverage can take place of Coca-Cola. Customers’ layout of Coca-Cola makes its sales growth, once Coca-Cola Company’s good image is damaged, they would lose a huge numbers of customers and the company will be in dangerous.
After the company found the “post”, the head of the social media for the Coca-Cola Company Adam Brown took some actions, the detail were:
- Posted an apology on the customer’s Twitter profile.
- Offered to assist in getting the prize.
- After Adam posted an apology on the customer’s twitter profile, a huge numbers of Coca-Cola customer followed on Twitter.
- The customer received the prize.
- The customer changed his Twitter avatar to a photo of himself holding a Coke.
The social media is a two-fact panel. It can be good and bad. Like Facebook and Twitter, everyone can post any information on it, and it has a fast speed to deliver that information. How to use social media to make the company better and better is one of the most important concern organization faces. In the case, the social media affect the good image of the Coca-Cola Company, but the Coca-Cola Company also use the social media to solve the problem and built a good image for the company again.