ACL Direct Promo · We know about Relationship Marketing We are experts in loyalty and incentives · We like to create unique experiences Master in Strategy and Creative Brand Management – UPF-BSM Learn to conceptualize a brand and define its creative and communication strategy. The coronavirus pandemic has completely changed consumption. It is something that SMEs have noticed in a remarkable way, for whom the situation has not only left them in a complicated position but also have much less room for maneuver to get out of the way than large companies. But, perhaps, to understand the scope of this crisis and how it is impacting consumption, one can use a piece of information. Even the big brands, those with heart attack markets and a global reach, are suffering its consequences. Coca-Cola may be one of the most recognized brands in the world and one of the most commonly sold. In this crisis, it is one of those that are seeing sales drop sharply.
Coca-Cola has seen Germany Phone Number List sales plummet. “We may be at the beginning of the end of the great global confinement, but we have a long road ahead towards the new normal”, acknowledged in an investor conference James Quincey, the CEO of the company, and includes The Wall Street Journal .Coca-Cola has seen its sales plummet at a double-digit rate. Since the beginning of April, worldwide sales of its products have fallen by 25%. In the quarter that ended in March, they already noticed the impact: they lost 1% in sales. Its managers also believe that things will not return to normal when life is returned to normal: the end of confinement will not imply a return to spending. The reasons for the fall Why have your sales dropped?
They have done so because the hospitality / entertainment channel has disappeared and because consumers are buying less soft drinks. Half of Coca-Cola’s turnover, they point out in the Journal , is made in purchases outside the home, such as in restaurants, cinemas or sporting events. Sales have also fallen in the so-called “convenience stores” in English, those mini supermarkets for last minute purchases. If to that we add that the recession that is expected post-coronavirus will reduce the consumption of things that are not essential, we have the complete analysis. Coca-Cola is already thinking about potential reduced packagings and multiple packs, cheaper and with more traction in these times (although they continue to believe that in the long run the healthiest and most expensive drinks will triumph).No advertising during the crisis Coca-Cola is one of the companies that have reduced or eliminated advertising and marketing campaigns these days.
At the end of March, they assured investors that to cut costs they were going to limit their marketing spending (“marketing campaigns are often less effective in times like these”) and to reduce or change their spending on outdoor advertising and experimental marketing. (moving to television and digital advertising if they decided to continue with media campaigns in the short term). They were one of the big companies that were putting the handbrake on.Weeks later, that is still the strategy. Coca-Cola has decided to eliminate all ads in some markets for the entire second quarter and reduce marketing spending.