Coca-Cola Dialing Up Innovation Pipeline With ‘Intelligent Experimentation’
With regard to the large number of initiatives planned, Quincey acknowledged long-term success isn't expected for all, and some, like the space-themed Starlight, will simply be limited-edition releases. Like many companies, Coca-Cola scaled back its market introductions during the pandemic because of supply chain stress, and this level of new initiatives is likely slightly ahead of its pre-COVID figures.
“In the end, it's about having enough shots on goal of all different types — whether it's in-and-outs, tests, experiments, moving things around, all the bigger bets — such that we can ultimately both support the core brands with the things that are ins-and-outs, and potentially find new avenues for growth with the bigger bets and the bigger innovations,” said Quincey.
Digital & Distribution Execution
Under Coca-Cola’s new marketing structure, a more streamlined approach is further helping scale digital execution and accelerated innovation, and the company expects the model to generate more new consumers and more personalized relationships with them.
Citing last year’s Real Magic brand platform as evidence of its stronger consumer connections, agility, and marketing effectiveness, Quincey said the new global category teams worked intimately with local operating teams throughout the year. This subsequently resulted in more co-creation, experimentation, and impactful messaging, enabling the ability to scale across geographies more quickly. The idea-to-execution timeline was estimated to be three months faster, according to the CAGNY presentation.
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The company is also improving ability to expand distribution and increase transactions via its bottling partners, including optimizing customer solutions by segmenting markets based on channel, price, brand, occasion, and package. It used learnings from its reusable packaging in Latin America to invest in capabilities in its South Africa region to increase both availability and demand for refillable PET packages with a universal bottle — a process that Quincey said has been positive from revenue, transaction and value share standpoints.
Coca-Cola further intends to expand reusable packaging in Germany, a region with higher package collection rates.