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Ad Represents Coca-Cola Brand

1. The brand that was selected for this assignment is Coca-Cola. This brand is well known all over the world and it represents different types of soft drinks that are sold in most countries of the world. In order to analyse three elements of brand equity for Coca-Cola, Aakers model will be applied. Three elements selected in this model are brand loyalty, brand awareness and brand associations. For Coca-Cola, brand loyalty is very high, because this brand of soft drinks is sold all over the world and has many loyal customers. In order to prove that brand loyalty for Coca-Cola is high, some statistics on its sales will be analysed. Currently, revenue of Coca-Cola is on the level of about $41 billion. It declined compared to year 2012 (about $48 billion). Nevertheless, this volume is very high on the global level. Moreover, Coca-Cola, together with PepsiCo, is a leading beverage company. Recently, it managed to increase its market share in comparison with Pepsi. Currently, Coca-Cola sells its drinks in most countries all over the world more than 200 countries. Its operations are divided into five operating regions). Thus, it can be stated that brand loyalty for Coca-Cola is very high, because without high brand loyalty, such high market share and sales are impossible. The company managed to reach customers globally and has high sales volume because customers are loyal to its brand and products under the brand.

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As for brand awareness, it is also high for Coca-Cola. It creates and supports high level of brand awareness due to promotion, advertising campaigns, sponsorships and other strategies. Due to them, publicity is raised and many customers all over the world know about Coca-Cola. Some facts will be provided to prove high brand awareness for Coca-Cola. According to business insider information, nearly 94% of people from all countries recognize logo of Coca-Cola. Moreover, the brand of Coca-Cola is considered most valuable brand in the world. Thus, most people all over the world are aware of the brand of Coca-Cola, and due to that, the value of brand is very high. In order to increase brand awareness and make it as high as possible, the company has high spending on advertising and promotion. For example, during year 2016, it spent nearly $4 billion on all advertising expenses. In addition to creative advertising campaigns. Coca-Cola is highly involved in various sponsorships, including sponsorships of sports events. For example, Coca-Cola is a constant sponsor of Super Bowl a famous sports event in the US. Due to sponsorship, Coca-Cola increases brand awareness among people who are interested in sports, as well as other watchers.

Brand associations for Coca-Cola are various. Due to high attention of the company to advertising and promotion, the main association for Coca-Cola is that is brand is powerful and expensive. Thus, its products are associated with high quality and high attention to the needs of customers. It is obvious, because the company that lacks money and resources for expensive promotion cannot guarantee high quality of its products. Thus, as Coca-Cola drinks are associated with high quality, customers form reasons to buy them. Coca-Cola drinks have relatively high prices compared to competitive drinks. Thus, customers buy them due to high brand loyalty and brand associations related high quality and good taste. Coca-Cola brand creates a feeling of good taste and relax, and most ads of the company stimulate such associations. In order to form positive associations and prove that it takes care of customers, Coca-Cola uses brand extensions and regularly offers new products to its customers. For example, recently, demand for carbonated drinks began declining, because they are widely considered unhealthy. Coca-Cola introduced some new products in order to show it takes care of customers health and to create new associations. In particular, it introduced low-calorie drinks that are considered healthy. Thus, associations with the brand are positive, and the company tries to change and improve them.

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2. The ad for Coca-Cola selected for analysis was published in the U&S and is often associated with Super Bowl sponsorship. The ad is provided in Appendix 2.

The purpose of this ad is to advertise Coke as the most popular drink produced by Coca-Cola Company. The ad depicts two young women are drinking Coke. They are dressed in swimsuits only and it seems that they are sunbathing, because the weather is warm and sunny. They are lying on the roof in a large city and it is clear that their location is placed high, and large buildings are seen on the horizon. The text of the ad is Taste the feeling. In general, ad is attractive due to unusual scene people rarely lie on roofs. Thus, the purpose of the ads discloses via an unusual scene that is demonstrated in it. The drink is advertised, because customers are attracted by the ad. Thus, Coke is advertised as a drink that is natural for young and active people women represented in the ad are active and even extreme, and they combine their relax with drinking Coke and having fun.

It seems that the target market for this ad includes mostly young people or teenagers. It is clear from the picture of the ad and how it is represented. First, two women represented in the ad are young, and they are likely to appeal to potential customers who are also young, as well as teenagers. Second, activities that are done by women are unusual and extreme they are lying on the roof, and it is unusual for common people, and may even be dangerous. It is natural that young people like something unusual or extreme more in comparison with older people. For teenagers, the tendency is similar. The target market of the ad is formed by its characters and their behaviour, because customers are likely to pay more attention to ads that represent characters who are similar to them or have behaviours that are examples for potential customers or liked by them. As most young people like something unusual or extreme, even if they do not such things in real lives, they are likely to pay attention to this ad of Coca-Cola.

The appeal used in the ad is emotional appeal and personal emotional appeal. Actually, the ad appeals to positive emotions and the ad shows that drinking Coke provokes positive feelings and emotions of an individual. Those emotions are mostly individual, because a person drinks a drink individually. However, emotions can be collective and social, if the drink is consumed in group. The ad represents two women who drink Coke and feel satisfied and relaxed. Thus, such emotions are transferred to potential customers, when they watch the ad and associate Coke with the emotions of satisfaction and relaxation. Moreover, as two women drink Coke and have fun together, this ad can also appeal to social emotions, because it shows that consuming the product in a group provokes positive emotions for all group members. Moreover, the ad creates emotions related to extreme and adventures. As characters of the ad lie on the roof, such actions are associated with taking risk and adventuring. As customers see the ad, they may feel emotions related to adventures, and such emotions may be associated with drinking Coke. Adventurous emotions may be individual, as well as collective, if Coke is consumed in a group.

Other findings related to the ad are connected with the text it contains. The text is Taste the feeling. It may mean that the taste of Coke is associated for its customers with particular feelings. As the ad represents, those feelings are related to relax, because two women represented are relaxing and lying. One more feeling that should be tasted is the feeling of pleasure. As characters are lying and sunbathing, they are likely to feel pleasure, and they also drink Coke, that will be associated with that pleasure. Finally, the text of the ad can be associated with the feeling of adventure. Lying on the roof is risky and dangerous; thus, customer may perceive tasting Coke as something related to extreme. In general, such text is appealing mostly to youth, because it is laconic and related to the picture that appeals to young and active people.

In general, the ad under consideration can be considered positive to appeal to young people, especially active ones. However, it may be controversial because different groups of customers may decode the ad in different ways. It is obvious that the purpose of ad creators was to promote Coke as a drink that is associated with pleasure, relaxation and adventures that can be taken by everybody. Active and brave people are likely to understand this appeal correctly. However, for older people who do not like extreme, as well as for young people who are not risky, the ad may be understood in a different way. They may decode this ad as one that promotes dangerous and risky behaviour and associates it with drinking Coca-Cola drinks. Such understanding of the ad may create some issues for its creators, and such risks should be considered before the ad is published and seen by different groups of people with different attitudes to risk and adventures.

3. It seems that this ad of Coca-Cola is successful in helping the company to build its brand equity. Brand equity of Coca-Cola is based on high customer awareness, high loyalty to the brand, high quality of products, global reach and wide choice that is adapted to changing market conditions. The ad represents Coca-Cola brand as something modern and trending, because extreme is popular in our days, especially among young people. As ad appeals to extreme, it brand equity of Coca-Cola as a modern company that takes care of customers and adapts itself to new needs and demands. The ad also helps to build a brand equity, because its characters and situation represented is positive for understanding by young people. For soft drinks, most customers are young people and teenagers, especially in developing countries. Thus, the ad creates positive emotions and stimulates purchasing Coca-Cola products among young people who are the largest target market. Finally, this ad successful in helping the company to build its brand equity, because it represents the situation that can be understood easily by people from different countries and from different cultural backgrounds. The feeling of relaxation and pleasure is universal for people from different parts of the world. Moreover, in different countries, people like adventures and extreme. Thus, brand equity can be built via this appeal to adventuring. However, some risks may be associated with this ad, because it may not be understood correctly with older customers, and brand equity will not be supported in such situation.

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