Therefore in as much Coca Cola as a company have the presence and market share in the beverage industry in a lot of countries doesn’t stop it from continuous advertisements.
One of the important reasons why companies like Coca Cola or betterstill companies who are very popular needs to continue advertising is to create awareness. Awareness creation is very vital in achieving the long term goal of advertising which is to tell as many people as possible about a product, in the hope that they will buy it.
Also brands like Coca Cola which is a commodity can be easily be replaced by a competitor brand hence the need for its constant awareness creation.
Secondly persuasion is one the factors why a brand like Coca Cola still advertise.
It’s imperative for a company to continue to convince its consumers of the benefits they derive by patronizing its products regardless of its popularity or market share and Coca Cola is no exception. Lack of constant reminders about the importance or benefits of a product can lead to a switch to other similar products hence the need for persuasion which advertising does so well.
Competition is very keen in the current market dispensation. There are a lot of similar products on the market therefore for a company to maintain its market share or increase its consumer base it needs to compete. Interestingly switching between similar products is not that a difficult decision to take. For example decisions like a consumer switching from Apple to Samsung, Lenovo to HP or Coke to Pepsi is not that difficult.
As a result beverage giants like Coca Cola needs to advertise in other to fend off competition from similar products like Pepsi, AfriCola, and VirginCola etc. For instance as Pepsi, being Coca Cola’s major competitor, uses soccer stars like Lionel Messi, Didier Drogba and others for advertisements; it becomes vital on Coca Cola to constantly advertise to maintain its market share which goes a long way in increasing profits.
Furthermore companies like Coca Cola use advertisement to announce a change be it in a product or in a price. On many occasions that the Coca Cola Company have introduced other cola drinks under the Coke brand like the Diet Coke, Coke Lite, Coca-Cola Cherry and the others; they did it through advertising. Advertising is needed to trumpet the benefits of such new products.
Recently Coca Cola Ghana used advertising to announce its new price change on the market. Advertisements on television, radio and the print media were used to announce the change in the price of Coke from 80p to 1GHC.
It widely assumed that Coca Cola which was adjudged the world’s most valuable brand by Interband’s best global brands in 2011 is very popular. That’s truism. However not everyone is aware of the Coca Cola brand hence the need for continuous advertisements embedded with slogans like “Life begins here” and “Open happiness”.
In addition advertising is very important to a company when it wants to appeal to a new market which includes the Coca Coal Company. Advertising will be used to create the necessary awareness needed for the new market. Also advertisement can be used to spell out the benefits of the product to these new markets which can go a long way in triggering a purchase.
Finally a company like Coca Cola needs to continue advertising because it can help build brand equity. Though brands are not tangible in nature, its real value on paper cannot be underemphasized. Because a company’s value is calculated with its number of consumers or clients therefore in case of any takeover or merger, there will have been a consumer base which won’t be the case for start-up companies and those who lack brand presence. Thus advertising goes a long way in increasing the stock of a company.
As part of the marketing tool, advertising is very important in any organizational structure, with popularity or market share notwithstanding; therefore companies like Coca Cola need to continue and advertising in order to consolidate their market share and possibly expand it.
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