Coca-Cola Boosts Media Spending as Demand Slows
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Demand for Coca-Cola’s soft drinks is shrinking in North America, while growth in emerging markets shows signs of slowing. CEO Muhtar Kent believes increased marketing and media investment is the answer.
During an earnings call with analysts, Mr. Kent said that by 2016 the company plans to increase media spending and brand-building initiatives by up to $1 billion. He noted the marketing investments would be felt “in every country that we operate in large or small.” Those investments will be funded through a combination of cost-cutting initiatives and improved utilization of the company’s global marketing network.
Some analysts balked at the decision, however, questioning whether the headwinds facing the company can be offset with increased marketing.
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