Coca-Cola Sees Pay-Off From Increased Marketing Spend

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Coca-Cola revenues in North America for the second quarter were $5.92 billion. Increased advertising spending is part of the reason, CEO Muhtar Kent told analysts Wednesday, the Associated Press reports. The company’s advertising spending went up by a double-digit percentage in the quarter, the company reported, without giving specifics about how much was allocated to specific campaigns.

Part of the marketing effort was directed toward pushing Coke mini-cans and glass bottles as well as the global Share a Coke campaign, which inserts words such as “Friend” and “Legend” as well as people’s names on cans, wooing consumers with personalization in a made-for-social ongoing campaign. To help pay for its increased marketing expenses, the company has been cutting costs elsewhere, the AP notes.

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The 7.5 ounce mini-cans “cost consumers more on a per-ounce basis,” the Wall Street Journal reports. “Such smaller packages still make up less than 20% of the product mix but are growing at a nearly 20% rate.”

The uptick in marketing is also in response to the great increase in competition in the overall beverage industry as well as continued attacks on the healthiness of soda, which has some consumers making other beverage choices.

It’s continues fighting bad publicity and misinformation such as the blog post that has gone viral this past week showing what a British pharmacist believes a can of Coke does to the body within an hour of consumption, as the Telegraph notes. For more on that, read BuzzFeed’s fact-checking of the blogger’s infographic below.

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