Friday, January 23, 2009

Coca-Cola Co. plans to launch new marketing campaign on 'American Idol'


NEW YORK - Coca-Cola Co., the world's biggest beverage maker, launched a new global marketing campaign on Wednesday to try to draw consumers back to soft drinks.
The campaign raises the stakes in Coke's competition with rival PepsiCo Inc. Both have increased marketing efforts — changing logos and running more ads — to shift their messages back to soda. They had put greater focus on pricier bottled water, energy drinks and sparkling juice drinks but amid the economic downturn both companies are returning to their roots.
Soda sales fell about 4.8 percent in the U.S. during the first nine months of last year, notes Beverage Digest Editor John Sicher. But Coca-Cola Chief Executive Muhtar Kent has asserted that soft drinks are key to the company's success, and both Kent and PepsiCo Inc. CEO Indra Nooyi have unveiled rebranding campaigns that, in part, are designed to slow the decline.
"The cola wars are back in high gear," says Sicher.
Coke's new "Open Happiness" ad campaign, tied to its "Coke Side of Life" ad slogan, is scheduled to launch on "American Idol." Ads will continue to show up on TV spots, billboards and in stores over the next few weeks. Part of the campaign includes three ads to run during the SuperBowl on Feb. 1.
"A lot of people have left the category," Sicher says. "Also a lot of young people have not entered the category, so these ads may help Coke both recruit new, young consumers and rerecruit some lapsed consumers."
As part of its marketing campaign, Coke said it will sell 12-ounce plastic bottles of Coke, Coke Zero, Diet Coke, Sprite and Fanta for just 99 cents. The lower price appeals to recession-weary consumers.
The Atlanta-based company plans to have TV commercials, outdoor ads and a song that is a collaboration of Gnarls Barkley's Cee-Lo, Patrick Stump from Fall Out Boy, Brendon Urie from Panic at the Disco and others.


1.What are your thoughts about Coca-Cola's new marketing campaign to push people back towards softdrinks?

2. Do you think it will be successful?

3. Will the new bottle and lower price be enough to attract customers back to softdrinks?

4. Do celebrity spokespersons really help sell goods or services? will it work here?

Thursday, January 22, 2009

G vs. Gatorade

GAINESVILLE, Fla. — The “Gatorade bath” is synonymous with championship celebrations. But when University of Florida football coach Urban Meyer was doused with a bucket of the sports drink after the Gators won the national title last week, he technically took a “G bath.”
That’s because Gatorade Co. is re-christening its product simply as “G” — a bold move that has angered the family of the man credited with inventing the legendary beverage.
“We’re mad about it, if you want to know the truth,” said Mary Cade, 79, a Gainesville resident and the widow of Dr. Robert Cade, a former UF professor who helped create the drink in 1965. “I don’t think I talked to anybody that wasn’t upset about it.”
About Gatorade
The drink, created to help hydrate Florida football players, has become an iconic brand over the years and has provided more than $150 million in residuals to UF. Jeremy Foley, the school’s athletics director, did not return a call seeking comment.
Several years ago, Gatorade introduced a commercial that retraced the origin of the drink. The ad featured footage of Gator games at Florida Field, legendary college football announcer Keith Jackson and Robert Cade.
The new bottles and packaging feature a dominant “G” with “Gatorade” appearing in small type.
The TV marketing campaign, launched in the past two weeks, features past and present sports icons, including Muhammad Ali, Billie Jean King, Tiger Woods, Derek Jeter and others. The athletes appear on the screen in black and white, and the commercials end with the letter “G.”
Those ads, produced by actor/director Spike Lee and voiced over by rapper Lil’ Wayne, have created a buzz — not only for the impressive lineup of legends, but over confusion about what product is being sold since the word “Gatorade” is never mentioned.
Cade wonders how someone will spot their favorite sports drink in a store.
“I said, ‘How are people going to find it on the shelf?”’ Cade said. “Why do we need to change this? Why change something that is a success?”
The “G” marketing campaign is the brainchild of Sarah Robb O’Hagan, who was named the company’s chief marketing officer in June.
In a release, Gatorade Co. said it is “redesigning everything from the sidelines to the shelf to appeal to a broader range of athletes and active people,” while using “bold new packaging.”
Reached at the company’s headquarters in Chicago, a Gatorade official, who asked that his name not be used, assured that, “It’s not a name change. It’s still going to be called Gatorade. It’s just a design change on the bottle.”
Cade is not so sure.
At a November meeting in Tampa for the Gatorade Trust — the family members and shareholders of the five scientists credited with inventing Gatorade — the new marketing representatives tried to sell everyone on the “G” marketing strategy, Cade said.
“‘It’s ‘Good.’ ... It’s ‘Glorious.’ ... It’s ‘Grand,”’ Cade said. “It was every ‘G’ word they could think of, except ‘Gatorade.”’
Robert Cade died in November 2007, and his wife knows how he’d feel about the “G” campaign.
“He’d be pretty upset,” she said. “I wouldn’t want to say the words that he might say.”

After reading this article, what are your thoughts about:
1. Changing an iconic name like gatorade that has been successful over the years
2. Do you think it could work?
3. Do you think it will have an overall effect on the consumption of Gatorade?
4. What could have spawned this sort of change in marketing? ex.losing business, younger crowds, etc.

Post your thoughts on your blogs and be sure to be thoughtful. You may copy and paste this article and questions to your page. Be thoughtful in your responses and responses to others. Remember your response quota!