Coca Cola 0 – Gintonic 1

The unprecedented crisis of Coca Cola in Spain

To those who never drink Coca-Cola sounds strange to us as everything that is happening in recent months with the brand. On the one hand Coca-Cola has been the aspirational benchmark in communication for many years. Even campaigns are remembered “The spark of life” or the great Christmas campaign 70 “the whole world I want to give a message of peace...” whose video I recovered for the nostalgic.

[youtube]https://www.youtube.com/watch?v = YHf6I2kwP0o[/youtube]

On the other hand Coca-Cola has always been behind major events, sports, The musicals, national, regional, locales. Coca-Cola achieved the desired positioning a mark on our planet: the brand of happiness.

But just a crisis affecting all quisque, and Coca-Cola is no exception. Marcos de Quinto, director of the brand in Spain and great conversationalist, He said a few days ago from his account Twitter “The ERE Iberian Partners resulting from the fusion of 8 Spanish companies. We support your business logic even if it hurts their labor impact”. The words are beautiful, but recently The Economist stated that The seven former Coca-Cola in Spain -fusionadas today in the new Iberian Partners- They were obtained from 2010 and 2012 a operating profit set 860,9 millions. However, The company justifies the restructuring plan launched, it will affect 1.250 workers and will involve dismissal or early retirement of 750 people, because their profits are shrinking.

Do you lose money Coca-Cola?

Following the Economist, in the first nine months 2013 She earned a profit of 127,5 millions of euros. And not only that. margin, Besides, is increasing. In 2012 was the 50 percent and now, despite the arguments used by the company, It is placed in the 54 percent sales. So we know something, perhaps Coca-Coca has reduced the percentage growth, but nothing is in the red. And many companies would like Ibex 35 have those benefits. It is clear, Coca-Cola does not lose money.

What about the president?

We have read in various media sun Daurella, the president of Coca-Cola Iberian Partners closed 2012 with a personal profit of more than 23 million and shareholders' equity 50,7 millions. But as said Andrés Toledo Puro Marketing, Daurella's reputation is in tatters because of their tax shirking (taxed in Luxembourg).

The social response

As expected, social movements and unions are chirping, because they do not understand that a company that has no losses and whose president is nothing in abundance and “deceives” the Spanish tax authorities can organize an ERE affecting 1.250 workers. But this time they have been the social networks which they have heated debate and is beginning to generate an anti-Coca-Coca campaign unprecedented in our country.

Response Coke

Click to enlarge

Click to enlarge

Today Coca-Cola Iberian Partners published this ad to justify its decision ERE: The truth is that it seems to put more fuel to the fire, since I am convinced that the 80% Spaniards did not know the existence of a crisis in Coca-Cola. Plus, the effect derived from his reading does not convince too if you're one of those directly affected by ERE.

The models are reviewed. Is this the beginning of the end of Coca-Cola?

Spaniards have passed the “cubata” the gin and tonic. This reality can not deny anyone. On the other hand, Mediterranean diet recommends unsweetened drinks or carbonated: Water, wine in moderation , juices… The consumption model is reviewed, and the hundreds of millions of euros invested by the brand in recent years can not curb the phenomenon of returning to the consumption of proximity.

Coca-Cola will not die, at least in the short and medium term, but should regain his human side, the side that prompted, to return to enjoy a special place in our minds. As I mentioned in the article published last Friday in Soymimarca Corporate Branding + Personal Branding = Full Branding, useless to mark a major effort in Corporate Branding if the image then give their managers (Personal Branding) not accompanied. Coca-Cola needs to regain its model “Full Branding”, and will not do with advertisements in the press, it will use weapons Attraction marketing and the integration of a model of corporate branding one staff. The die is cast. At the moment, who will think better standing of this crisis is the gin and tonic.

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About me Guillem Recolons

Convinced that everything leaves a mark, I help companies to better connect with their stakeholders through personal branding programs (personal brand management) and employee advocacy (internal brand ambassadors programs).

Partner at Integra Personal Branding and Soymimarca, I also collaborate with Ponte en Valor, Brandergizers,, MoreThanLaw, Noema Consulting, AdQualis and QUIFER Consultants.

As lecturer, participated in the Graduate Social Media of UPF and UVic, in various programs in ISDI, speaker at the IESE EMBA, among other. Advertising man, Master en Marketing. Grade student of Humanities.

My DNA comes from advertising 20 years in agencies: BBDO, J.W.T., Bassat Ogilvy, Saatchi & Saatchi, Altraforma and TVLowCost among others.

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6 replies
  1. of Pau Samo
    of Pau Samo says:

    It's said: Who to buén tree gets good shade shelters him. By this I mean the fact that the spark of life is very cool, the advertisements of very vitalist aquariums and those of the fantaus for granujillas in power sson very “divers”.

    But the question is, -How of rancio is the tree that shelters all this good?-

    Those you know about brands, branding and people you may see that a gap between the values they project and those who practice. A sin that eventually passes a bill.

    Going back to the sayings, “Tell me who you're going with and I'll tell you who you are.”

    Reply
  2. Ramón Lombera
    Ramón Lombera says:

    There is no doubt that the attitude of a company's managers permeates the brand. Or as you say well, personal branding can positively or negatively influence the brand of the company you work for.
    If you add to that an explanation about the ERE that contradicts the company's economic data, the damage to the brand is already done and can be profound.
    Coca-Cola as a brand, it's strong and the addictive product, but nothing lasts forever if you don't take care, renews and reinforces the values that have made you great.
    And the most important and dangerous thing about the case is when you forget that the vital thing for a brand is not to position yourself in the mind of the consumer but, above all, position yourself in your heart.
    And there, the attitude of the company and its executives in this ERE issue, are the ones that can cause that emotional rupture that, Until now, had been the great strength of the brand.

    Reply
    • Guillem Recolons
      Guillem Recolons says:

      Certain Ramon, nothing hard forever, not even for a brand as ingrained in our lives as Coca-Cola. In the heart you nail it: a brand is as strong as the place it occupies in your heart, not in your head. Thank you for writing!

      Reply

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