The online world is a real threat to companies which don’t operate in the virtual retail world, and even companies like Coca-Cola are feeling the pressure of trying to compete with online giants.
So what exactly is Coca-Cola doing to try and keep up to speed?
Coca-Cola has put a significant focus on creating new brands to drive growth as well as innovation and ‘test and learn’ approaches to keep afloat in the rapidly ever-changing market. One of Coca-Cola’s top marketers believes that creating brands and promoting loyatly among current and potential consumer is what is key when online retailers, such as Amazon, are on the rise.
Javier Meza, CMO of sparkling at Coca-Cola, says:
“The only way to remain in business is creating brands. The moment we stop creating brands then the e-retailers are going to rule.”
In this way, Meza suggests that the moment people decide that they no longer want a Coke, then Amazon, for example, will decide which brand they will have instead. As a result, Coca-Cola has become far more receptive than it used to be when it comes to innovation and the evolving market.
Coca-Cola’s company in Japan has begun launching 2 products a week, and for each launch, the company monitors it for 6 weeks before deciding whether or not it should be rolled out more widely or remove it. As a result, the company has a much better understanding of what products will be successful, and also those that won’t.
By ensuring that the company as a whole is constantly changing, diversifying and aligning itself with consumer trends, Coca-Cola is set to keep the online retailers at bay. Can this last? Only time will tell, however, even as the business becomes rapidly more online, we don’t see a future (or at least in our future) where people aren’t looking to grab a Coke.