Market Communication CASE 1

8/12/2019 Market Communication CASE 1

1/5


2/5


3/5

Price Usually expensive in mostcases

Not very expensive in mostcases

Suitable for Medium or largecompanies, smallcompanies cannot pay

All company

Sales Assumption that is willlead to sales, increasing theintention

Directly related to sales

Example TV, newspaper, magazine,internet, light box, etc.

Discount, buy one get one,free delivery, free gift, etc.

Purpose Increasing sales and brand building

Increasing sales

Result Slowly Very soonClassified Brand advertising, direct-

response advertising,corporate image

advertising, sponsorships

Manufacturers, retailers oreither of two types ofmarketers(direct market)

Promotion is one of the four key aspects of the marketing mix. Advertising may be oneform of promotion. Advertising is a one-way communication whose purpose is to inform

potential customers about products and services and how to obtain them, which is build a brand awareness in customers mind. Promotion is disseminating information about a product, product line, brand, or company, which is an awareness about early consumption provide by company. For example, advertising can be divided two type, emotionadvertising and functional advertising, which both to build the brand value in customersmind. In contract, using promotion can let consumer early consumption, eg. Give free gift.

Advertising need a long-term to implement, and sometimes they have a high-budget inthat. Because for people to receive a new thing or lifestyle cannot during one day or twoday. Increasing the adspend and quality of advertising can be increasing the effect, thususing the advertising usually need spend much money. For promotion, usually its ashort-term event to increasing the sales, for example, the LINE promotion they give alimited time to give discount, compare with the advertising, promotion has more effetelyincreasing the sales. However, all brand campaign should base on budget, give morediscount means company have to undertake risks.

The effect of adverting is slowly than promotion, advertising for sales, on average, a 10%

increase in adspend produces a cumulative sales increase over the year of 3.6% forindustrial products and consumer durables and 1.4% for fast-moving consumer goods.However, promotions on sales, for example, a 10% price reduction produces, on average,a 21.4% increase in unit sales for durables and 16.4% increase in unit sales for FMCG.Thus we can easily find that promotions is directly increasing the sale effect.


4/5

1.3 Go to Coca- Colas Website and find out what major Sponsorships the brand Cokeis cur rent ly engaged in . Select one of th ese and explai n wh ether you bel ieve it to be agood choi ce for Cok e.

Fifa 2014 World Cup Brazil Coca Cola Commercial Ads Film

http://www.youtube.com/watch?v=iG_LG_cQf0g&index=12&list=HL1402573042

Coca-Cola: FIFA 2014 - Welcome to The World's Cup

http://www.youtube.com/watch?v=hTxrknHfxZA

Official Coca-Cola "Big Game" Commercial 2014 - America Is Beautiful

http://www.youtube.com/watch?v=443Vy3I0gJs

Coca-Cola was the most popular brand in the world, Even everyone know it, but they still published new advertising stimulate consumer to strength they brand preference.

There are three reasons why coca-cola need publish they brand.

The need of customers

Coca-Cola was the most popular brand in the world, Even everyone know it, but they still published new advertising stimulate consumer to strength they brand preference.

The need of retailers

Increasing the sales according the advertising

The need of enterprise

Build the brand image, position the brand value in customers mind

Gaint benefit and Gaint investment
http://www.youtube.com/watch?v=iG_LG_cQf0g&index=12&list=HL1402573042http://www.youtube.com/watch?v=iG_LG_cQf0g&index=12&list=HL1402573042http://www.youtube.com/watch?v=hTxrknHfxZAhttp://www.youtube.com/watch?v=hTxrknHfxZAhttp://www.youtube.com/watch?v=443Vy3I0gJshttp://www.youtube.com/watch?v=443Vy3I0gJshttp://www.youtube.com/watch?v=443Vy3I0gJshttp://www.youtube.com/watch?v=443Vy3I0gJshttp://www.youtube.com/watch?v=hTxrknHfxZAhttp://www.youtube.com/watch?v=hTxrknHfxZAhttp://www.youtube.com/watch?v=iG_LG_cQf0g&index=12&list=HL1402573042


5/5

The global partners of FIFA total has six, Adidas, Coca-Cola, Hyundai Kia AutomotiveGroup, Sony, VISA and Emirates airline. They have power to use all FIFA logo inanytime and anywhere. in 2014, these six companies each should provide $120 millionsponsor fee.

According the Associated Press (AP) predict the total commercial income of 2014 BrazilFIFA world-cup will over 4 billion USD, and Brazil will profit $ 14 billion, while thechampion team will get $35 million as the bonus. The main income of FIFA main comefrom the media and sponsors, the media will be $2.6 billion and sponsors will be $1.4

billion. The basic commercial requirement of FIFA sponsors will be over $6.8 million, ifwant to be the main sponsors the investment will multiple.

Suceesful case for sponsor FIFA

FIFA World cup, F1, Olympic can be the three largest enents in the world. They havestable and large audience in the world.

In 1950, the Coca-Cola was the first company sponsor with FIFA, now there already haveover 50 years corporation relationship.

In opening ceremony of the 1974 world cup, Adidas bidding the main sponsors than Nikein cloth, Adidas beat Nike in global sales.

In 2002 Japan-Korea world cup, Hyundai Kia Automotive Group invest 1,500 millionEuro, at same year, they sales in America increasing 40% and the brand awarenessincreasing from the 32% to 67%.

According the YINGLI reported, YINGLI was the Chinese sponsor of 2010 world cup,the sales in 2010 has 50% increasing. The share stock price of YINGLI increased $3.8,increasing 40% in one mouth.

Thus, sponsor FIFA for Coca-cola company is a good chioce.

Reference

John R Rossiter and Steven Bellman, 2005 Marketing communications , marcons and brand p4-8 published: Prentice hall

Online FIFA 2014, FIFA Partners and Sponsors , available at:

http://www.fifa.com/aboutfifa/socialresponsibility/fifapartners/index.html (9 April, 2014)
http://www.fifa.com/aboutfifa/socialresponsibility/fifapartners/index.htmlhttp://www.fifa.com/aboutfifa/socialresponsibility/fifapartners/index.htmlhttp://www.fifa.com/aboutfifa/socialresponsibility/fifapartners/index.html

Documents

Market Communication CASE 1