Marketing Strategy: Five Things The Coca-Cola Company Can Teach Us

When Neville Isdell became The Coca-Cola Company CEO in 2004, sales were declining. Trends seemed to indicate that the lag in sales was due to shifts in consumer tastes and habits, and a growing belief that carbonated beverages were unhealthy. As a result, the company had moved away from "anything that wasn't carbonated," according to this article from the Atlanta Journal Constitution.

Isdell reportedly spent "hundreds of millions of dollars" on marketing for carbonated soft drinks and new cola innovation. The result? "The company's global soft drink sales grew faster last year than they have since 1988, despite falling sales in the U.S." The company's success suggests this advice for marketers who are promoting mature brands:

1. Don't Let Emotion Rule Your Marketing Strategy. Isdell notes that a "lack of belief" in carbonated soft drinks became a "self-fulfilling prophecy" when innovation and marketing support for carbonated brands faltered. New product innovation, such as Coke Zero and added marketing dollars are credited with helping to reverse the negative sales trend. True, carbonated beverage sales still declined in the U.S. according to the article. But added marketing support and new product innovation lessened the decline.
2. Stand On The Balcony Once In Awhile. A former boss used this expression to reinforce the importance of learning to separate yourself from the day to day issues that cloud your thinking and vision. Being 'on the balcony' helped Isdell to reaffirm the company's vision and coalesce the company's strategy.
3. Don't Let Others Define You. Isdell is "reframing the category as"sparkling beverages" from "carbonated," a term that has been repositioned as unhealthy by critics.
4. Dance With Who Brung You. Even "aggressive" growth in The Coca-Cola Company's portfolio of non-carbonated drinks won't offset overall sales declines, Isdell points out in the article. It's a mistake to withdraw support from your core while it's still bringing in the lion's share of revenue.
5. Stick To Your Knitting. One of Coke's biggest recent successes has been, you guessed it, a carbonated beverage: Coke Zero. Before you abandon a category or product, consider the ways you can innovate the category to meet changing tastes or trends.