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belgium Advertising and promotion campaigns of coca-cola in the euro

Advertising & Promotion Campaigns of Coca-Cola in the European Union
Executive Summary                1

Coca-Cola, which was named Beverage Industry's 1999 Company of the Year, has embraced a decentralized operating philosophy, recognizing that each market in which they operate has "different demands which must be met in unique ways"1.  Coca-Cola Enterprises (The European bottler for Coke) CEO Henry Schimberg has stated that although they have well-defined general policies, much of the responsibility to succeed and make decisions has to come from each local market, not headquarters in Atlanta.2
While it may seem that firms have to choose between the extremes of a global vs. customized approach, in practice the method used is often a combination of both, "blending uniformity with individual area differences".3  Coca-Cola, for instance, has previously had a successful international soccer-star campaign which featured the same common theme, but with a different celebrity athlete for each targeted country.  Such pan-European advertising is becoming increasingly popular and common. 4   This strategy has built a strong global brand awareness not only in Europe but throughout the world.  Based on this strong brand awareness, Coca-Cola tailors each ad to a specific country to achieve global sales success through local penetration.
 EU Promotional Campaigns         2

Coca-Cola uses a multitude of promotional vehicles to attract new coke drinkers and retain current ones.  One of the strongest promotional venues has been through television and sporting events (mainly soccer) but in the nineties the internet is strongly becoming a popular means to increase promotions.
 Sports Promotion
 Coke takes a global approach to its sports promotion.  In 1997 they established managers for each of the different sports that Coke sponsors worldwide.5  This global coordination effort helps to oversee major marketing campaigns, however it also still allows unique advertising techniques and messages to be conveyed in each country.  
 Television
Recently, Coca-Cola has hired the services of TeleVest, a New York media agency specialized in purchasing television airtime, to select and locate TV series to purchase or sponsor in order to more effectively reach European television viewers.  By purchasing programs, Coca-Cola will be able to license them to various markets with contracts stipulating that Coca-Cola receive a certain amount of free ad-time spread across other shows on the station.  This strategy seems attractive especially as most international markets have national networks (such as TF1, A2, or FR3 in France) but no local stations. 6
Website Promotion
As expected, Coca-Cola has not just a European website, but several websites for certain countries in the EC; the countries offering such sites are France, Belgium, Denmark, Spain, Germany, and Norway.  Upon examining these various sites, we concluded that they are another example of Coca-Cola's decentralized marketing campaign.  Each country's management team has the freedom to market itself the way they want, as long as certain guidelines are followed.  In France, the site (www.coca-cola.fr) is presented as a web-zine, offering the latest in music and sports-related news, obviously targeting a young public; In Spain, the site (www.siempre-on.com) offers coupons which you can print out at home, indicating that Coca-Cola reaches a price conscious audience.  Denmark's site (www.coca-cola.dk) is primarily a contest site currently featuring trips to Australia.  Thus, Coca-Cola customizes its web campaign for each country in order to more effectively tap into people's feelings, integrating any culturally relevant issues or preferences into the sites' presentation.
Specific Promotional Activities
The following are specific promotional activities that are currently being done in the various countries in the European Union.
Spain
Telefonica Interactiva entered into a promotional arrangement with Coca-Cola Espana aimed at boosting Teleline's user base.  Telefonica Interactiva, Internet subsidiary of Telefonica, has entered into a promotional arrangement with Coca-Cola Espana aimed at boosting Teleline's user base. Under the deal, people who buy 20 half-litre Coca-Cola bottles will receive a year's Internet access for only Pta4k Vs Pta13k/y on average at present. 7
Coca-Cola launched "Dress-up with Coca-Cola Light" promotion in Spain in co-operation with clothing retailer Cortefiel.  A consumer who buys the soft drink at a bar can have a special card marked by the waiter, building up points giving discounts of up to 20% at outlets of Cortefiel's Springfield and Women's Secret chains.  The promotion ... more

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Great Depression

The Great Depression was the worst economic slump ever in U.S. history, and one which
spread to virtually all of the industrialized world. The depression began in late 1929 and
lasted for about a decade.
Many factors played a role in bringing about the depression; however, the main
cause for the Great Depression was the combination of the greatly unequal distribution of
wealth throughout the 1920's, and the extensive stockmarket speculation that took place
during the latter part that same decade. The lack of distribution of wealth in the 1920's
existed on many levels. Money was distributed in equally between the rich and the
middle-class, between industry and agriculture within the United States, and between the
U.S. and Europe. This imbalance of wealth created an unstable economy. The stock
market was kept artificially high, but eventually lead to large market crashes. These
market crashes, combined with the lack of distribution of wealth, caused the American
economy to capsize.
The roaring twenties was an era when our country prospered tremendously. The
nation's total realized income rose from $74.3 billion in 1923 to $89 billion in 1929.
However, the rewards of the Coolidge Prosperity of the 1920's were not shared evenly
among all Americans. In 1929 the top 0.1% of Americans controlled 34% of all savings,
while 80% of Americans had no savings at all.
Automotive industry mogul Henry Ford is one example of the unequal distribution
of wealth between the rich and the middle-class. Henry Ford reported a personal income
of $14 million in the same year that the average persons income was $750. By present day
standards Mr. Ford would be earning over $345 million a year!
This lack of distribution of income between the rich and the middle class grew
throughout the 1920's. A major reason for this large and growing gap between the rich
and the working-class people was the increased manufacturing output throughout the
1920s. From 1923-1929 the average output per worker increased 32%. During that same
period of time average wages for manufacturing jobs increased only 8%. As production
costs fell quickly, wages rose slowly, and prices remained constant, the bulk benefit of the
increased productivity went into corporate profits.
The federal government also contributed to the growing gap between the rich and
middle-class. Calvin Coolidge's administration favored business. An example of legislation
to this purpose is the Revenue Act of 1926, which greatly reduced federal income and
inheritance taxes. Andrew Mellon was the main force behind these and other tax cuts
throughout the 1920's. Because of these tax cuts a man with a million-dollar annual
income had his federal taxes reduced from $600,000 to $200,000. Even the Supreme
Court played a role in expanding the gap between the socioeconomic classes. In the1923
case Adkins v. Children's Hospital, the Supreme Court ruled minimum-wage legislation
unconstitutional.
The large and growing difference of wealth between the well-to-do and the
middle-income citizens made the U.S. economy unstable. For an economy to function
properly, total demand must equal total supply. Essentially what happened in the 1920's
was that there was an oversupply of goods. It was not that the surplus products were not
wanted, but rather that those who needed the products could not afford more, while the
wealthy were satisfied by spending only a small portion of their income.
Three quarters of the U.S. population would spend essentially all of their yearly
incomes to purchase goods such as food, clothes, radios, and cars. These were the poor
and middle class. Families with incomes around, or usually less than, $2,500 a year. While
the wealthy too purchased consumer goods, a family earning $100,000 could not be
expected to eat 40 times more than a family that only earned $2,500 a year.
Through the imbalance the U.S. came to rely upon two things in order for the
economy to remain on an even level: credit sales, or investment from the rich. One
obvious solution to the problem of the vast majority of the population not having enough
money to satisfy all their needs was to let those who wanted goods buy products on credit.
The concept of buying now and paying later caught on quickly. By the end of the 1920's
60% of cars and 80% of radios were bought on installment credit. Between 1925 and
1929 the total amount of outstanding installment credit more than doubled. This strategy
created a non realistic demand for products which people could not usually afford. People
could no longer use their regular wages to ... more

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