1 Introduction Activating Processes in the Brand Communication of Valuable Brands on the example of Coca-Cola. Author: Marie-Luise Pöhler Examiner: Sascha Thieme Prof. Dr. rer. pol. Carl-Heinz Moritz Berlin, April 2017 I Bachelor Thesis Activating Processes in the Brand Communication of Valuable Brands on the example of Coca-Cola. Author Marie-Luise Pöhler (Student-Number: 380801) Degree course Bachelor of Science International Business Administration Exchange Submission Berlin, April 3rd 2017 II Acknowledgements This thesis would not have been possible without the guidance and the help of several indi- viduals who in one way or another contributed and extended their valuable assistance in the preparation and completion of this study. I owe my gratitude to Sascha Thieme, whose en- couragement, guidance and support enabled me to develop an understanding of the subject. Secondly, I also owe special thanks to all my family and friends who have always supported me. Marie-Luise Pöhler Berlin, April 2017 III Abstract Everyone in the world, from the streets of Paris to the villages in Africa, knows the logo with the white letters that are written on a bright red background. Coca-Cola was intro- duced in 1886. In that year, only nine glasses of the soda drink were sold per day. So how did the little company from Atlanta become the world’s most valuable and popular soft drink? One of the company’s secrets is its emotional and memorable advertising strategies. Therefore, this thesis explains and analyzes how Coca-Cola uses activating processes in its brand communication to achieve customer loyalty. The study illustrates how a com- pany can become one of the most valuable brands in the world by influencing consumer buying behavior, and hence retain its power in the beverage industry. Keywords: Consumer Behavior, Consumer Perception, The Coca-Cola Company, Coca- Cola, Purchase Decision Process, Activating Processes, Activation, Emotion, Motivation, Attitude, Cognitive Processes, Role of Activating Processes in Advertising, Marketing, Advertising IV Table of Content 1 Introduction ............................................................................................................. 1 1.1 Motivation .................................................................................................................... 1 1.2 Purpose ......................................................................................................................... 3 1.3 Research Questions ...................................................................................................... 4 1.4 Outline of the Thesis .................................................................................................... 5 2 Consumer Research ................................................................................................ 6 2.1 Prevailing Approach to Consumer Behavior – SOR Model ........................................ 6 2.2 Psychological Determinants of Consumer Behavior .................................................... 7 2.2.1 Activating Processes ................................................................................................ 7 2.2.2 Cognitive Processes ............................................................................................... 18 2.3 Role of Activating Processes in Advertising .............................................................. 25 3 The Coca-Cola Company ..................................................................................... 28 3.1 Historical Background of The Coca-Cola Company .................................................. 28 3.2 Culture of Coca-Cola .................................................................................................. 30 4 Campaigns of Coca-Cola ...................................................................................... 34 4.1 Introducing Three Different Campaigns .................................................................... 34 4.2 Analysis of the Intention of the Campaigns ............................................................... 39 5 Empirical Evidence ............................................................................................... 49 5.1 Research Method and Strategy ................................................................................... 49 5.2 Data and Sample Collection ....................................................................................... 52 5.3 Data Analysis and Results .......................................................................................... 53 5.4 Limitations of the Research ........................................................................................ 66 6 Conclusion ............................................................................................................. 67 6.1 Conclusion for Research Questions ............................................................................ 67 6.2 Recommendations ...................................................................................................... 71 6.3 Direction for Future Research .................................................................................... 72 Appendices ..................................................................................................................... 74 References ...................................................................................................................... 91 Affidavit ....................................................................................................................... 100 V List of Figures Figure 2.1 - Psychological Determinants of Consumer Behavior .................................... 6 Figure 2.2 - Coherence between the components of activating processes ........................ 8 Figure 2.3 – Inverted U-Hypothesis ................................................................................ 10 Figure 2.4 - Hierarchy of Needs according to Maslow ................................................... 14 Figure 2.5 – Multi-Store Model of Memory ................................................................... 18 Figure 3.1 - Advertising of Candler in 1889 .................................................................. 28 Figure 4.1 - Advertising of "Always Coca-Cola" in 1993 ............................................. 35 Figure 4.2 - Advertising of "Share A Coke" in 2014 ..................................................... 36 Figure 4.3 - Advertising of "Taste The Feeling" in 2016 .............................................. 37 Figure 4.4 - Can Design of 2016 ..................................................................................... 38 Figure 4.5 – Always Coca-Cola ...................................................................................... 39 Figure 4.6 - Share a Coke ............................................................................................... 43 Figure 4.7 - Taste the Feeling ......................................................................................... 46 Figure 5.1 - Age and Gender of Respondents ................................................................. 54 Figure 5.2 - Level of Education ...................................................................................... 55 Figure 5.3 - Preference for Coca-Cola ............................................................................ 56 Figure 5.4 - Consuming Coca-Cola ................................................................................ 57 Figure 5.5 - Focus when Purchasing Beverages ............................................................. 59 Figure 5.6 - Knowledge of Cola Brands (supported) ...................................................... 60 Figure 5.7 - Association with Coca-Cola ........................................................................ 62 Figure 5.8 - Assessment of the aim of the three campaigns ........................................... 64 Figure 0.1 – Example Bus Station 1 Figure 0.2 - Example Bus Station 2 ........... 74 Figure 0.3 – Example Humboldt Box ............................................................................ 74 Figure 0.4 –Taste The Feeling Color Usage 1 ............................................................... 75 Figure 0.5 - Taste The Feeling Color Usage 2 ............................................................... 75 Figure 0.6 - Taste The Feeling Color Usage 3 ............................................................... 75 Figure 0.7 - Family Status .............................................................................................. 86 Figure 0.8 - Employment Status .................................................................................... 86 Figure 0.9 - Consuming Coca-Cola according to Gender .............................................. 87 Figure 0.10 - Knowledge of Cola Brands (unsupported) ............................................... 87 Figure 0.11 - Brand Likability ....................................................................................... 88 Figure 0.12 - Criteria that makes Coke Strong .............................................................. 88 VI Figure 0.13 - Knowledge of Coke Campaigns ............................................................... 89 Figure 0.14 - Preference of Campaigns ......................................................................... 89 Figure 0.15 - Most Successful Campaign ...................................................................... 90 Figure 0.16 - Situation Analysis ...................................................................................