Coca-Cola strategy review puts agencies on alert

by Jemima Bokaie, Marketing 22-Jul-08, 10:00

LONDON - Coca-Cola is reviewing its global marketing strategy, which could lead to an overhaul of its worldwide agency arrangements.

At the company's second-quarter earnings call last week, chief executive Muhtar Kent said it will increase its use of global campaigns and ‘optimise its use of agencies' to reduce costs.

The company aims to save $400m-$500m (£200m-£250m) a year by the end of 2011, in the face of a consumer slowdown.

Chief financial officer Gary Fayard said: ‘We will maintain a disciplined approach to marketing unless it offers a long-term return on investment.'

The drinks company recently made a global marketing research deal that will replace several local agreements. It also plans to boost direct marketing and re-allocate marketing spend to selected markets to drive growth.

Coca-Cola currently uses Argentinian agency Santo for global campaigns. In the UK, it works with Mother, VCCP, Wieden & Kennedy Amsterdam and Santo London.