Coca-Cola has decided to take a break on marketing spend due to a reduction on “return in investment” during the coronavirus pandemic. CEO James Quincey contacted investors on April 21 has seen a “significant and profound impact” on the business as a result of Covid-19. Thus, the company has made the decision to halt the majority of its marketing according to MarketingWeek’s article.
Quincey stated that “Many markets are taking a pause as we focus on communities and other priorities. [Whether they are] back later in the year looks dependent very much on the recovery.”
The decision for a pull back on marketing spend stems from the “limited effectiveness” in marketing spend. “We have determined that in this initial phase there is limited effectiveness in broad-based brand marketing. With this in mind, we have reduced our direct consumer communication, paused sizeable marketing campaigns through the early stages of the crisis and will re-engage when the timing is right,” explained Quincey.
Although the company says it’s too soon to know how the coronavirus will fully impact its business, they believe that “pressures will only be temporary”. They are optimistic that the second half off it’s financial year will be successful.