Coca-Cola is an American beverage corporation with its headquarters in Atlanta, Georgia. The product Coca-Cola was invented in 1886 by John Stith Pemberton. Today, the company now offers more than 500 brands in over 200 countries, and Coca-Cola is the best-selling beverage in most of these countries. In 2010 Coca-Cola was recognized as being the number one global brand.
The Coca-Cola Company noticed a post on Twitter (a social media network) from a frustrated customer regarding difficulty claiming his prize from the My Coke Reward Program. The customer had more than 10,000 followers on Twitter, so many people were aware of his frustration with Coca-Cola.
Situation (SWOT) Analysis
Strength: Coca-Cola is a very large company with a good reputation and strong customer loyalty.
Weaknesses: Word spreads fast on social media networks, and there were already 10,000 people who could have read the dissatisfied customer’s comment.
Opportunities: Coca-Cola had the opportunity to make it right with the dissatisfied customer, and they wanted to show that they were going to do what was right.
Threat: Many followers on Twitter could have read the dissatisfied customer’s comment and spread the news to others or even made posts of their own, which would have made the issue grow larger.
Strategies (decisions and behaviors)
- Coca-Cola’s head of social media, Adam Brown, posted an apology on the customer’s Twitter page and offered assistance in getting the prize he was trying to redeem from the My Coke Reward Program.
- Brown also called the dissatisfied customer.
- The customer received the prize he was trying to redeem.
- The customer also changed his Twitter avatar to a picture of himself holding a Coke.
Even though this wasn’t a major crisis, I think it’s still important to study this issue because crises can occur on social media networks and spread very rapidly. Coca-Cola took action early and wanted to make a dissatisfied customer satisfied again. They did a good job of settling this issue before many more customers heard word and also starting spreading the news. Even though is wasn’t a fatal issue, they still could have lost many customers, and Coca-Cola wanted to do what they could to prevent that. They understood that a satisfied customer only tells one or two people, but a dissatisfied one tells MANY!