This involves connecting shopper passion points – like music, gaming and sports – with specific “consumption occasions” for the company’s products.
“Consumption occasions are basically about explaining, to someone that doesn’t drink our portfolio today, when, where, and why they should consider one of our brands in a unique way,” Arroyo added.
Weekly consumption within the “consumer base”
One key metric in tracking success is looking at penetration rates within the consumer base.
The typical person has 50 “beverage occasions” a week, and anyone who “repetitively” drinks one of the firm’s brands once per seven days is included in its “consumer base”, Arroyo said.
At present, on this metric, the consumer base for Coke stands at “slightly below” 500 million people, from a global population, Arroyo noted, of 7.7 billion people. “So, the growth potential is just phenomenal,” he continued.
Marketing effectiveness rises
A second “critical metric” for The Coca-Cola Co. is the effectiveness of its marketing communications, according to Arroyo.
“We look into, particularly, how much profit are we driving per invested dollar in marketing,” he said.
This metric improved by 7% last year, he noted, suggesting it has made tangible progress in this regard.
Brand equity is a pricing proxy
The equity of the assets within The Coca-Cola Co.’s portfolio is another important indicator, not least as it gives the company potential space to raise prices in inflationary times.
“Equity is very important, because it … is what we define as ‘earning a right’ to take pricing,” Arroyo said.
“Moving forward, you will see how we move more into ensuring that we first drive our consumer base, but also increase our equity at least in line or more than inflation.”
“We’d love to invest more and more in marketing. We’ve going to make sure, first, that the base of our marketing investment, which is very substantial, is as effective and as efficient as it should be” – Manuel Arroyo, global chief marketing officer, The Coca-Cola Co.