Back-to-basics marketing approach reaps rich rewards

Back-to-basics marketing approach reaps rich rewards

A canopy of red and white Coca-Cola banners fluttered along
Surabaya's streets to herald the launching of yet another Coca-
Cola marketing blitz.

In Indonesia, as with the rest of the world, the marketing of
the soft drink is shaped to fit the particular interests of the
local consumer market. For Indonesia, this encompasses sponsoring
special promotions, such as marketing blitzes and events held
during national celebrations.

In September 1993, the local bottler, PT Coca-Cola Tirtalina
Unit East Java, launched the Terima Kasih Surabaya (Thank You,
Surabaya) marketing campaign in Indonesia's "City of Heroes". The
drive followed previous ones in key cities in Indonesia.

The strategy of community-based marketing was adopted to
achieve the maximum impact on the local market. According to John
Brady, Managing Director of PT Coca-Cola Indonesia, the approach
is founded on back-to-basics.

"Community-based marketing is designed to impact our
customers, consumers and sales force," Brady says, pointing out
that this is "simply a return to the basic principles of
marketing which helped shape our business around the world".

A team of 300 local staff and others from as far afield as the
United States, New Zealand, Papua New Guinea, Malaysia, Australia
and the Philippines descended on the city. With knowledge gained
from the previous marketing blitzes in other major Indonesian
cities and with the support of national and local administration
officials, the team introduced consumers to the theme of Always
Coca-Cola.

Divided into 50 groups, they visited more than 9,000 outlets
in the one-week period and presented owners with gifts and
certificates of appreciation. Many customers said these meetings
gave them fresh insight into sales strategy.

"I was advised on techniques to generate sales and satisfy
customers," said dealer Basuki. "I now find myself looking at the
market differently and seeing better opportunities."

Hitting the Streets

Over 400,000 drinks of Coca-Cola were distributed at different
sites, including schools, shopping centers, movie theaters,
places of worship, local markets and roadsides.

Coca-Cola dazzled onlookers as floats and marching bands wound
their way across the city. A children's drawing competition, fun
bike rallies, an aerobics contest, canoe racing and beach
volleyball games involved more than 7,000 people and drew more
than one million spectators.

When the flags were lowered at the end of the week, it became
clear that the Surabaya campaign was the largest marketing drive
of its kind anywhere in the world. The message about company
products had reached millions of people in ways that were
interesting and engaging.

Celebrations

Coca-Cola in Indonesia also devises specific marketing
activities for important annual events. This year, bottlers of
the company launched an activity during Ramadhan, the Moslem holy
month of fasting and atonement.

Traditional holiday drums were mounted on multi-pack displays
of the products of Coca-Cola, Sprite and Fanta at food stores in
Jakarta.

In Bali, local bottler PT Coca-Cola Pan Tirtalina Unit Bali
also actively supports the Galungan and Kuningan religious
holidays. Working closely with local youth groups, the company
provides product and promotional concepts for banjar, village
communities, to raise funds for projects.

Local bottlers in Jakarta also act as the exclusive sponsor
for the Jakarta Fair held annually at the Jakarta Fairgrounds. A
special can was designed for the event and pushcarts sold Coca-
Cola products to fair visitors.

The bottlers also provide beverages for the annual
Independence Day celebration at the State Palace and are giving
out Coca-Cola products free to delegates and participants at the
Asia-Pacific Economic Cooperation Summit in Bogor this week.

Successes

Figures for Indonesia from December 1992 until September 1993
read like a text book on successful marketing. A total of 19,172
dealers were merchandised and point-of-sale placements registered
132,275. No less than 422,871 complementary drinks of Coke were
handed out and 29,064 door-to-door sales recorded.

Telling evidence of Coca-Cola in Indonesia's success was its
selection by the Indonesian business magazine SWA for a cover
story earlier this year. Coca-Cola, Fanta and Sprite were cited
as the top trademarks in Indonesia by an independent marketing
team.

Brady emphasizes that the blitz activities achieve lasting
gains.

"This outstanding activity helped us develop and train our
sales force and energized and motivated them by exposure to
working in the field," Brady says. "There are very good prospects
ahead for our products. Indonesia's population is the fourth in
the world, and the majority of the people are below 50 years of
age. Per capita income is also increasing, and the Coca-Cola
system in Indonesia is working to attain new goals."

This advertising section was written by Bruce Emond.