Coca Cola currently utilizes a web-based design tool that allows users to create customized marketing ads globally. This system cuts the time it takes to reach the consumer and also saves the company a lot of money. The process for creating the marketing designs is quite simple. A user must simply log into the system, choose a template, select the desired images, and then choose from one of seven languages to use. The file created is then sent to the coca cola printing facility where the information is uploaded into the printing machines. An experienced user can reportedly produce an ad in ten minutes.
This design machine is part of a larger trend termed digital asset management systems. These commonly web based applications are banks of marketing information that are easily tapped into. They store information like logos, texts, images, and the alike for people to choose from in creating their designs. The first of these systems was created in 2001 for IBM.
In the past, it took a team of marketing professionals several weeks to produce one such ad. Due to this fact, coca cola also routinely employed ad agencies which charged hefty fees for their services. With the advent of this system, coca cola no longer needs to hire these agencies and can produce hundreds of ads in the time it used to take to make one. The design system also cost less to launch globally than one ad costs to create. The company did not disclose the amount it paid to these agencies or how much it saved in switching to the system but the number is most likely in the millions. With the globalization of the system, about 3,000 employees of coca cola and its affiliates can access the system from anywhere and create ads.
Benefits other than saving time and money are improved communication across the organization and improved brand control maintenance. By allowing so many people from all over to access the system, the flow of ideas has been amplified. A worker at a coca cola affiliate could create an ad in a few minutes and then send it to someone across the globe. That person can then tweak the ad as he or she sees fit to produce the desired result. The speed with which these ads can be created also improves the communication with the customer. Marketers can strike while the iron is hot and bank on emerging trends, rather than wait till they are a few months old to try and capitalize.
Improved brand control maintenance is crucial for any consumer product company. With the advent of this new technology, the overall image the coca cola wishes to convey is more easily achieved. With 450 brands globally, this is a major challenge for coca cola. It must make sure that the marketing techniques for each of those brands reflect its overall strategy. The beauty in the web based system is in the fact that it allows that strategy to be applied to local markets and target more specific demographics with ease.
http://www.businessweek.com/innovate/content/oct2008/id20081013_466588.htm
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2 comments:
This innovation for Coca Cola is amazing. I never thought how important it is to eliminate costs in marketing. It is often said in business that marketing gets the short end of the stick when it comes to budgets and rationale for importance. Obviously without marketing a product can not succeed, however some may argue that marketing lowers costs not only for businesses but also consumers.
I think the two most important aspects of this innovation is that the company can quickly, cheaply, and efficiently send and receive the ads all over the world. There isn't just one location where all the marketing takes place, which is very important for Coke since only 30% of their sales come from America. Secondly, this application allows user input and creation from outside Coke's company. If people have ideas for Coke's marketing department, they can easily help design or market a marketing campaign to Coke Executives.
I found this article to be extremely interesting. Due to our current economic crisis, I believe that it was necessary for Coca-Cola (and many other companies) to find a more affordable way to market to consumers. It seems like Coca-Cola has struck gold with this new technique. Aside from cutting costs in the Coke’s marketing and design department, I feel that this new system will be especially beneficial because most of the ads are produced by consumers who buy Coca-Cola products. This is significant because the people designing these ads are loyal Coke customers and probably know what other consumers want from the company. This in turn makes Coca-Cola’s advertisements a bit more effective (and makes the consumer researcher’s job a lot easier)!
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