Boston, MA 06/17/2014 (wallstreetpr) – The Coca-Cola Company (NYSE:KO), following increasing competition in its industry that has led to decline in soft drink sales in the recent past quarters, announced earlier this year a plan to spend $400 million more this year in media campaigns to reinvigorate its sales. Where is the company spending that money?
It is good to know that Coke keeps its promises, of course except when it is about meeting revenue targets where it occasionally falls below the target on a day when the rival PepsiCo, Inc. (NYSE:PEP) gets rough on the market. Well, as Coke promised to boost its media spending kitty this year, the company is putting a significant portion of that money to increase the sales of its products through various marketing campaigns and promotions related to the ongoing FIFA World Cup event.
The company announced that a small fraction of the additional media spending allocation, at 5 percent, was spent in 1Q.
Insider the Coca-Cola campaign efforts
The company, which has sponsored World Cup since 1978, has tapped American soccer superstar DaMarcus Beasley to be part of its FIFA 2014 World Cup marketing program. Under the partnership with Beasley, the soccer superstar will be involved in a reward program where Coca-Cola Company (NYSE:KO) will ask people who buy its soft drinks to donate a soccer ball to schools of their choice. Consumers of Coca-Cola products also stand a chance of winning prizes through the program.
In addition to encouraging healthy living among the youth, the program will also help drum up publicity for the company, which should in turn support bigger sales.
More during the World Cup
Besides the soccer ball donation, Coca-Cola Company (NYSE:KO) is also spending the additional media budget through a partnership with bottlers in a program that leads to an award of about $15,000 to support local soccer fields.
All in all, the company expects to make the best out of the big sporting event so that it can increase its revenue and bottom line.
