Coke Withdrawing from Coke Fest – What will be the Affect?
The “coke fest”, biggest music and food attraction of the year, won’t be coke fest anymore. A collaboration of Active Media, Coca Cola and other big names like Jazz, is a fest organized to encourage both music and food, as the fest said in 2018 #EatToTheBeat. There can’t be any food without a coke, so here we are with the biggest food festival in Pakistan collaborating with the biggest beverages company in the world. Seasons 1 and 2 were extremely appreciated by people and by the looks of it there was going to be a third season as well. Now there is news that Coca Cola has withdrawn from the Coke fest due to the change in management of Active Media and the decline in market, now the coke fest will now be called “Soul Food Festival”
There can be two perspectives of this decision. One is that “Soul Food Festival” may not survive without coke in its name or Coke loses the greatest opportunity it had in the market to grow, below discussed are details.
Soul Food festival:
The event is a brain child of Facebook Sensation & Founder of “Foodies R Us” Asad Sheikh. The popularity of this concept is not hidden firm anyone, but being famous doesn’t cover all your costs of organizing a festival. From a business point of view, a powerful investment is always needed to make something successful and big. With coke withdrawing, the costs won’t be covered by Active Media all alone; they need a powerful and recognized sponsor. Even if costs are bore by someone new as the event is successful, when the name that had coke with it is removed, the trust of many people who trust coke is also removed. Soul Food Festival is going to have to start from rock bottom, and it can be harder without coke being a part of it. But us being a foodie nation can be winning factor, no?
Coke’s Final Chance:
Coke withdrew from the event and said that they were not earning profit from it. This might prove to be a wrong step by coke. A fest this popular and huge, the name coke itself is a advertising strategy that no billboard is going to give to them that easily, A finance rule says, the greater the risk greater the return. A 30000 people in 2018 came to Coke fest, enjoyed coke, saw coke and they told everyone that they were at “coke festival” a trust that develops though this word-of-mouth is a key factor that covers all negative points. By withdrawing, the trust that customers had on coke being the food partner might be compromised as well.
Coke might’ve saved their costs, but they have allowed their competitors an edge that coke fest can be a centre from competitors like Cola Next and Pepsi to provide the sponsorship and take the remaining market share that coke had. It’s alarming isn’t? With Pepsi always a bit behind this show might have been a last hope to increase that decline in the market share.
Being foodie nation, we are, always geared up to eat something, somewhere. Coke Fest AKA Soul Food festival can sponsor by a new competitor but can coke create something new to capture its share it may lose?