ko 2020 marketing overview
TRANSCRIPT
The World’s Most Innovative
And Effective MarketingJoe Tripodi
Chief Marketing and Commercial Officer
Forward-Looking StatementsThis presentation may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal
securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-
looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from The Coca-Cola Company’s historical experience and our present expectations or projections. These risks
include, but are not limited to, obesity and other health concerns; scarcity and quality of water; changes in the nonalcoholic beverages business
environment, including changes in consumer preferences based on health and nutrition considerations and obesity concerns; shifting consumer tastes
and needs, changes in lifestyles and competitive product and pricing pressures; impact of the global credit crisis on our liquidity and financial
performance; our ability to expand our operations in developing and emerging markets; foreign currency exchange rate fluctuations; increases in
interest rates; our ability to maintain good relationships with our bottling partners; the financial condition of our bottling partners; our ability and the
ability of our bottling partners to maintain good labor relations, including the ability to renew collective bargaining agreements on satisfactory terms
and avoid strikes, work stoppages or labor unrest; increase in the cost, disruption of supply or shortage of energy; increase in cost, disruption of
supply or shortage of ingredients or packaging materials; changes in laws and regulations relating to beverage containers and packaging, including
container deposit, recycling, eco-tax and/or product stewardship laws or regulations; adoption of significant additional labeling or warning
requirements; unfavorable general economic conditions in the United States or other major markets; unfavorable economic and political conditions in
international markets, including civil unrest and product boycotts; changes in commercial or market practices and business model within the European
Union; litigation uncertainties; adverse weather conditions; our ability to maintain brand image and corporate reputation as well as other product issues
such as product recalls; changes in legal and regulatory environments; changes in accounting standards and taxation requirements; our ability to
achieve overall long-term goals; our ability to protect our information systems; additional impairment charges; our ability to successfully manage
Company-owned bottling operations; the impact of climate change on our business; global or regional catastrophic events; and other risks discussed
in our Company’s filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K, which filings are available
from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made.
The Coca-Cola Company undertakes no obligation to publicly update or revise any forward-looking statements.
The following presentation includes certain “non-GAAP financial measures” as defined in Regulation G under the Securities Exchange Act of 1934.
A schedule is posted on the Company’s website at thecoca-colacompany.com (in the “investors” section) which reconciles the non-GAAP financial
measures included in the following presentation to the most directly comparable financial measures calculated and presented in accordance with
Generally Accepted Accounting Principles.
Reconciliation To US GAAP Financial Information
The Winds Of Change Are Blowing
What Some People Think The New Reality
Source: Leo Burnett
We Are Capitalizing On New Rules
Of Engagement With People
Ease Of Use Access Utility Personalization
PEOPLE DEMAND VALUE
FOR THEIR TIME &
ATTENTION
Portability
Entertainment
Self Expression
We Are Building Brands Differently
Flexibility And Customization
5
One Size Fits All
We Are Reaching And Inspiring
People Differently
Strong TVC / Weak Shopper Marketing
Balanced And Integrated Marketing
We Are Changing from TVC Producers
To Content Managers Driven By Big Ideas
TV-Centric “Big Idea”-Centric
OOH
Radio
Events BIG IDEA
Sports Music
Retail Licensing
WOM
CSR
Mobile
Internet
7
Marketing Is Changing
Spray-N-Pray Precision Marketing
8
Precision Marketing = Messaging Media Consumer Segments Geography Timing
Siloed Countries
The Internet Is The Great Democratizer…
Externally And Internally
Global Tribes
Leading To A
Unique New
Approach For
The Coca-Cola
Company…
People are no longer defined by lifestage, gender, socio-
economics or geography
New Foundations For Defining Identity
New Foundations For Defining Identity
Today, consumers define their identity by values,
attitudes and beliefs
Winning As A
Total Beverage
Company In
This New
World…
Core & New
Coca-Cola TM
The Epicenter
and
Coca-Cola TM
Growth(CAGR 2005 - 2008)+3%
Core & New
Growth(CAGR 2005 - 2008)+7%
We Are Delivering Against This Strategy
and
Winning With Coca-Cola TM + Core And New
In Developed And Emerging Markets
Volume CAGR 2005 – 2008
Coca-Cola TM
Core and New
Mexico
3%
12%
Turkey
5%
24%
Russia
7%
13%
Brazil
8%
18%
S Africa
4%
6%
China
11%
20%
Winning With
Coca-Cola In
This New
World…
Coca-Cola Is At Our Epicenter Today
And Our 2020 Ambition
12 BnUnit Cases
51%of KO Volume
$78 BnRetail Value
Source: Retail Value Coca-Cola TM 2008
The Most Valuable Brand On The Planet…
Timeless Relevance and Refreshment
20091990
Coca-Cola1
Kellogg’s2
Kodak4
Marlboro5
IBM6
American Express7
Sony8
Mercedes Benz9
Nescafe10
McDonald’s3
Coca-Cola1
IBM2
General Electric4
Nokia5
McDonald’s6
Google7
Toyota8
Intel9
Disney10
Microsoft3
Source: Annual „Best Global Brands‟ Survey, Interbrand, 1990 & 2009
Our Reasons
To Believe In
Coca-Cola
No artificial flavors
No added preservatives
since 1886
The Best Tasting Beverage
Coke is the pause that
refreshes, inspires and
energizes
Uplifting Energy And Spirit
Coke is forever young
timeless and fun
A Youthful Brand
Perfect Complement To Food And
Family Occasions
Coke connects us, no matter the
culture, country, or continent
The world may be divided, but
we can all agree on a Coke
Coke = Unity And Optimism
The great taste of Coke comes from all
natural flavors
Universal icon of happiness for 123 years
Now enjoyed 805 million times a day
Happiness is special… So is a Coke
A Wholesome Product
The refreshing antidote
to modern day woes
Coca-Cola “Open Happiness”
With This (Secret) Formula We Are Winning!!
5:12009 YTD Favorite Brand Score
3:12009 YTD Sparkling Volume Share
Favorite Brand Score - Coca-Cola vs Pepsi Cola Regular, B3 YTD 2009 Top 35 Markets;
Market Share: Coca-Cola vs Pepsi Cola Regular, Core Sparkling Volume Share, Nielsen/Intage YTD July 2009
Coca-Cola TM Growth
Potential Is Just Beginning
To Be Unlocked…
44
8 1632
4666 75
107 112 122134 137
198214 217 225
265
387
0
50
100
150
200
250
300
350
400
Wo
rld
wid
e
Ch
ina
Ru
ssia
Jap
an
Ph
ilip
pin
es
Co
lom
bia
Tu
rkey
Ge
rma
ny
Fra
nc
e
Gre
at
Bri
tain
So
uth
Afr
ica
Bra
zil
Sp
ain
Un
ite
d S
tate
s
Arg
en
tin
a
Au
str
ali
a
Ch
ile
Me
xic
o
2008 Per Capita
Our Epicenter In 2020Our Epicenter Today
Winning With Coca-Cola
In This New World…
Four Core
Principles
1. Fully
Leveraging
The Power Of
Coca-Cola TM…
Three Differentiated Brands. ONE Icon
Standing For Optimism And Positivity
2. Win The Heart
Of Every
Generation…
Especially
Teens
We Are Winning The Hearts
Of A New Generation Of Drinkers
12-19 Year Old Contribution to Brand Coca-Cola
Volume (Sept 2009 YTD)
1 Bn
Additional 8oz bottles of Brand Coca-Cola Enjoyed
By Teenagers The World Over (Sept 2009 YTD)
+475 MM
Unit Cases
Bottles*
* 8 oz bottles
3. Making
Sustainability Part
Of The Coca-Cola
Promise. Forever.
Marketing Responsibly
2005
Giving People Choice
1963 1982
750+Low And No CalorieBeverages, Led By
Diet Coke And
Coca-Cola Zero
Encouraging Physical Activity
Inspiring… …And Facilitating
Delivering Sustainability
4. Winning
Occasion By
Occasion,
Transaction By
Transaction…
Franchise
Leadership
Customer &
Commercial
Leadership
Delivering Through Our Unique
Global System Capabilities
Consumer
Marketing
Consumer
System Shopper
Growth
To Grow Core Occasions And Capture New
Ones Through Precision Marketing
Occasion Brand Price Pack Channel
USA China
Winning Marketing Means…Emotionally Driven Consumer Engagement
Precision Marketing
delivering enhanced segmentation/targeting and personalized experiences
Productivity
leverage global scale to maximize efficiency and effectiveness
* “Twitter” and “Facebook” are trademarks of Twitter, Inc. and Facebook, Inc. respectively.
Innovation
in all we do, from product, package, equipment and consumer engagement
*
*
Enhanced Integration and System Collaboration
Balanced Inspirational and Operational Marketing
SKU Rationalization
Our Conviction Is That The Best Is Yet To Come…