Leveraging Owned Media to Manage Marketing

Complexities

Hiroto Ebata

Vice President, iMarketing

Coca-Cola Japan

Self Introduction

Self Introduction

Coca-Cola (Japan)

5

Coca-Cola’s Global Mission

6

Over 200 Countries

1.7 Billion/day

Anywhere Anytime Anyone

Sprite

Fanta

Qoo

Minit Maid

Real Gold

Aquarias Ilohas

Love Body

からだ巡茶

Coca-Cola

Water Sports Drink

Sokenbicha

Tea

Kochakaden

Huang

Canada Dry

Asian Tea

Diet Tea

Blended Tea

Japanese Tea

Flavor Soda

Fruit Juice

Cola

Coffee Clear Soda

100%Juice

Energy Drink

Ayataka

Hajime

Fitness

Aquarius Vitamin Guard

7

GEORGIA

CCJC has the largest Portfolio

8

Coca-Cola System in Japan

Produc -tion

Logistics Sales Collect Waste

Recycle Planning Concentrate

Development Product

Development

Coca-Cola Japan Bottlers

CCJC Tokto R&D Conter CCJC National Beverageﾞ Coca-Cola Customer Marketing

Brand

20+ No. of bottlers

12

Factories

29

Vending Machines 980,000

Store Accounts

1.13 Million

Sales Force 93,000

Sales Offices

466

Employees

23000

Ronute Cars

7500

Central Japan

Hokkaido

Micihnoku

Sendai

Mikuni

Hokuriku

Tone

Minami Kyushu

Shikoku

Okinawa

Tokyo

West Holdings

FV Corporation

Woodruff Cup Winner 2011

Japan Business

Unit was named the best among

Coca-Cola in 2011

Coca-Cola’s Introduction of IMC Communication

1

1

Coca-Cola’s Traditional 360o Marketing

Marketing Model in 1960’s

Magazines

Sponsorships

Point of Sale

TV Advertising

In Person

Consumer Hotline

Brand

Direct MailEvents

Radio

Newspapers

Newsletters

Promotions

Magazines

Sponsorships

Point of Sale

TV Advertising

In Person

Consumer Hotline

Brand

Direct MailEvents

Radio

Newspapers

Newsletters

Promotions

3600

12

Long Term Decline of Mass Media (USA)

Our Economics Are Changing

• #1 rated TV Show in U.S. had a 60.2 Rating

• In 2006 the #1 rated show only achieves a 16.0 Rating

1965 1974 1981 2000

35%

30%

25%

20%

15%

10%

5%

0

34%

24%

13%

9%

Source: NAB / Nielsen

Message Recall Has

Been Steadily Dropping

% of adult evening viewers who could name a brand advertised on a show they watched last night

Becoming Consumer Centric

360o Marketing Integrated Marketing

Communication （IMC）

Consumer’s View Consumer Values, Experience

TV

Mobile

PC POP

Package

OOH Magazin

e

13

Manufacturer’s View Maximize Exposure

Integrated Marketing Communication (IMC)

• Integrating all connection points with CORE CREATIVE IDEA (CCI).

• Messaging at each contact point with relevancy to consumer within the CCI.

• Cross functional team working together to execute holistic plan.

Corporate CMO Mr. Joe Tripodi

15

We Must Build Brands Differently

ONE SIZE FITS ALL FLEXIBILITY & CUSTOMIZATION

16

We Need To Reach & Inspire Consumers Differently

STRONG TVC, WEAK IN-STORE BALANCED

17

We Must Change The Way We Think About Advertising

TV-CENTRIC “BIG IDEA”-CENTRIC

OOH

Print

Radio

Events BIG IDEA

Sports Music

Retail Licensing

WOM

CSR

Mobile

Internet

18

Our Marketing Must Change

SPRAY-N-PRAY PRECISION MARKETING

19

ONLY FOR TALKING

We Must Quickly Adapt As Marketing

Moves To The Palm of Your Hand

REMOTE CONTROL FOR LIFE

20

21

Getting back Teens to Coca-Cola

• Global launch of the Coke Side of Life Campaign – Teen were alienating Coca-Cola all over the world

– It was necessary to establish Digital Communication Channels

– Digital/interactive marketing departments emerged globally

• Japan’s Introduction: Jan. 29th 2007

Happiness Factory Japan Version

Coke Side of Life Campaign (CSoL)

• Global sales of Coca-Cola was shrinking especially among Teens.

• Crafted a campaign for teens using digital.

• Introduced IMC for CSoL.

• Conducted Tie-ups with teen relevant content

– Mobage Town (May)

– iTunes (July, Aug.)

– 7-11 / Mobage Town (Dec.) etc.

Coke x Mobage 2007 Teen Recruitment Program TV Ad/Radio

【Exclusive】

・Games

・Decome

・Avatar Items

Magazine Vending

CCJC Web

Mobile

MOBAGE Town

mbga.jp

Games

Directed all Traffic to Tie-up site

Package

Instore

CC Park

Coca-Cola section in Mobage Town

Coke Digital Activation 2007 Video

Japan Coca-Cola TM Sales Volume

2000

2001

2002

2003

2004

2005

2006

2007

2008

26

Unit Cases

Sales Recovered

COCA-COLA JAPAN’S DIGITAL OWNED MEDIA

Coca-Cola Park

J-League

Teens

Moms/Shoppers

Baseball

FIFA WC

Olympics

Portfolio Marketing for CCJC

Development Background/Merits

1. Introduction of IMC

2. Siloes of Websites.

– Retain within CCJC portfolio

3. Redundancies among sites.

– Common Membership/Point System Infrastructure.

4. Platform for Partnership necessary

– Collaboration Campaigns.

– Links with Social Media

5. Lower Cost of Communication

– E-mail membership, Social Fans.

Growth for Coca-Cola Park

0

2

4

6

8

10

12

2006 2007 2008 2009 2010 2011

Membership (MM)

0

1

2

3

4

5

6

7

8

9

10

2006 2007 2008 2009 2010 2011

Page Views (Bil.)

Coca-Cola Park (2008) Video

CONSUMER ENGAGEMENT

1980’s 1990’s 2000’s 2010’s

Mass Target

Segmented One to one

Social

CONSUMERS ARE DRIVING THE

CONVERSATION

Coca-Cola Views

Impressions Coca-Cola Created Expressions Consumer Created

26 MM

146 MM

120 MM

AN EVOLVED CONSUMER ENGAGEMENT MODEL

TV | Outdoor | Mobile

Equip | Websites | Pack | Trucks

In-store | Shopper | POS

Blogs | Social | Brand PR

CC Park to evolve Into 4 media model

Think this Way

- EMERGENCE OF SOCIAL MEDIA

Liquid & Linked, Owned, Earned, Shared, Paid

• Social Button Explanation & Metrics

Owned media

Earned media Paid media

2009 - Outside

Advertisement

2010- Community

Social Application

Official Blogger

2011- Happy Button

2007

CCJC Community

Shared media

Why Owned Media is HUB

1. You have 100% control

– Only media you control 100% of content.

2. Real time contents

– ONLY media that can change anytime.

3. Long-Tail Content Aggregation

– Able to Stock Content

4. Works best if you have communication arms.

– E-mail, Social Accounts etc.

41

Coca-Cola Park

TV program

Product

Celebrities/Olympians

Happiness Quest

CCParkTV

CLC

Social media

Coca-Cola Olympic supporters Park

functioning as Hub for IMC activities

Promotion

Global contents

Olympic supporters’ Park

VMAJ

Kato Miliyah

Thank you!