Donna Reiser

CMN 6015 70715

WK6 – Case Study

December 19, 2015

Changing demographics - non-whites, women, Millennials, Gen Z are more concerned with corporate responsibility

Global economy/emerging economies/strain on natural resources

Attracting talented candidates

Consumer demand for “green” products/eco-friendly lifestyles

Strong commitment from emerging markets

Innovation stimulator

“It’s the right thing to do”

According to Frank-Martin

Belz & Ken Peattie, authors

of Sustainability Marketing,

there are 8 C’s to successful

promotion of sustainability

concepts to large groups of

consumers. Coca-Cola

achieves all 8 C’s in their

sustainability practices.

1. Core values • Every level of the business must be committed to

sustainability—socially, environmentally and economically.

2. Cooperative • A brand’s contractors, suppliers and vendors must also be

committed to sustainability through cooperative strategies.

3. Credibility • Consumers must trust and recognize the brand as an advocate

for sustainability.

4. Consumer benefits • Consumers want to know they are receiving high quality goods

and services while simultaneously helping their local or global community.

5. Conversational • Consumers want to discuss sustainability practices with

trusted brands and engage in two-way conversations.

6. Consistency • To avoid sending mixed messages, make sustainability

part of the culture, not just part of marketing communications.

7. Commitment • Ensure you can commit to sustainability before you make

it part of your marketing campaign.

8. Continuity • You brand must demonstrate a long-term commitment to

sustainability.

Fifty-five percent of global online consumers across 60 countries say they are willing to pay more for products and services provided by companies that are committed to positive social and environmental impact.

The propensity to buy socially responsible brands is strongest in Asia-Pacific (64%), Latin America (63%) and Middle East/Africa (63%). The numbers for North America and Europe are 42 and 40 percent, respectively.

Millennials (age 21-34) appear more responsive to sustainability actions. Among global respondents who are responsive to sustainability actions, half are Millennials; they represent 51 percent of those who will pay extra for sustainable products and 51 percent of those who check the packaging for sustainable labeling.

Nielsen Global Survey on Corporate Social Responsibility

Live online, mostly through a portable device

Empowered, informed and demanding

Compare prices and read reviews

Readily share experiences in social networks

Expect a sense of exclusivity, privilege and access to special offers not available anywhere else

Most often rely on recommendations from people they know or consumer opinions posted online

Listen

Learn

Engage

Adapt

Coca-Cola Sustainability Connections

http://www.coca-colacompany.com/sustainability/ http://www.coca-colacompany.com/ekocenter/ http://www.coca-colastore.com/5by20/

“I say that the chief sustainability officer of the Coca-Cola

Company is me. That’s my responsibility. It starts at the top, and it

is driven and permeates through the entire organization from the

top.”

“What will make us very successful in the next 10 years is our

entire set of values, how we think of business from an

accountability perspective, from an integrity perspective, how we

think of the planet in terms not just of getting our house in order but

of how we look at the street, and how we look at the role we play in

making our city and our country and our world a better place.”

“Every single person in the Coca-Cola system, we believe

wholeheartedly that we cannot have a sustainable business and a

growing business unless we have sustainable communities. We

have a role and responsibility to play in helping to create

sustainable communities, whether it’s a village in Kenya or a

metropolis like Mexico City. That’s what we believe, and those are

the values of the Coca-Cola system.”

Muhtar Kent

Chairman and CEO

The Coca-Cola Company

Coca-Cola strives to create value for consumers and

shareowners by making a lasting, positive difference in

people’s lives through the integration of sustainability efforts

and daily actions.

For 2014, the organization reported significant progress in

three sustainability priorities—Women, Water and Well-

Being.

GOAL:

Coca Cola is on track with its commitment to enable the economic

empowerment of 5 million women entrepreneurs throughout the Coca-

Cola value chain by 2020, hence the name 5by20™. The initiative

includes small businesses that the Company and its bottling partners work

with in more than 200 countries around the world.

313,000

Women

impacted in

2014.

52

Countries with

5by20™

programs.

865,000

Women

impacted since

2010.

GOALS:

Coca Cola is ahead of its 2014 target to return to communities and

the environment the amount of water equivalent to what it uses in the

production of its finished beverages.

Beginning with a 2010 baseline, Coca-Cola has improve water

efficiency in operations by 25 percent.

209

Community

partnership

projects.

153.6

Billion liters of

water

replenished.

61

Countries in

partnership

projects.

GOALS:

Offer low- or no-calorie beverages in every market to build a

stronger business and meet the evolving preferences of

consumers. Increase the number of smaller package-size

offerings.

Support physical activity programs in every country where

Coca-Cola does business. 25

Percent of new

beverage

options

reduced-, low-

or no-calorie

330

Active, healthy

living programs

supported in

markets around

the world.

77 Countries where

reduced- or no-

calorie products

represent 20% of

the local

portfolio.

Socialized on:

• Facebook

• Twitter

• YouTube

• Website

• Microsites

Coca-Cola creates

emotional connections

through compelling,

engaging content. • Inspirational stories of

empowerment

• Videos tales of success

• Infographics

• Blogs

• Imagery

• News directly to mobile

devices

• Exclusive offers and

discounts

• Online store, 5by20

merchandise

Coca-Cola listened to connected stakeholders and adapted to create the

EKOCENTER kiosk, in cooperation with innovative partners. EKOCENTERs

are “empowering well-being through social enterprise systems” bringing solar

energy, water purification, basic goods, refrigeration, internet access, vaccine

storage, sanitation and health check-ups in developing communities all in one

locations with locally assembled parts.

“Customers expect values to match their own core values. What used to be a

necessary checklist of community focus, such as corporate social responsibility is

now rebooted. Philanthropic capitalism is a business model where companies

contribute to worthwhile causes on behalf of customers as part of the transaction.

Additionally, customers are expressing that they will also invest in companies where

employees are “treated well,” pledging trust and loyalty as a result. The empathetic

business model on the horizon requires charitable and sustainable decisions as part

of everyday business where customers naturally become stakeholders.”

Brian Solis

A joint effort of The Global Water Challenge and Coca Cola.

Designed to support communities where EKOCENTER kiosks are located.

Crowdsourcing project “leveraging the reach of Coca-Cola and the passion of millennials to help those less fortunate.

Students, faculty and consumers purchasing single-serve Coca-Cola beverages will donate 2 cents* when they purchase a product.

Coca-Cola and its licensed bottlers, the local food service provider and the university will each have the option of matching these 2 cents up to a $5,000 capped amount, creating the ripple effect.

These funds will be channeled to partners supporting either women’s economic empowerment, safe drinking water initiatives or projects that enhance the well-being in EKOCENTER communities in Africa.

When the campaign ends, the university will help decide where to direct the funds among those three pillars of the EKOCENTER initiative.

Aundretsch, et al. (2012) Sustainability nears a tipping point. MIT Sloan Management Review. Retrieved from http://sloanreview.mit.edu/reports/sustainability-strategy/ December 16, 2015.

Belz, F., Peattie, K. (2012) Sustainability Marketing: A Global Perspective, 2nd Edition. John Wiley & Sons, Inc., Hoboken, New Jersey.

Gudernatch, S. (2013) What America’s new demographics mean for corporate social responsibility. Retrieved from www.greenbiz.com/blog/2013/01/22/corporate-social-responsibility-new-america December 15, 2015.

Nielsen (2014) Global consumers are willing to put their money where their heart is when it comes to goods and services from companies committed to social responsibility. Retrieved from www.nielsen.com/us/en/press-room/2014/global-consumers-are-willing-to-put-their-money-where-their-heart-is.html December 16, 2015.

Solis, B. (2013) What’s the future of business? Changing the way businesses create experiences. John Wiley & Sons, Inc. Hoboken, New Jersey. pgs. 84, 85, 177.

www.coca-colacompany.com/sustainability/