In conversation: Nathan Kalumbu, Coke’s midfield marshal

As a business, few companies in history can claim to have matched Coke’s success. “The product itself has not changed for over a century,” Kalumbu explains. “So how do you keep it fresh and new and exciting for both the older and newer generations? The answer is, of course, in your marketing.”

While Coke is obviously a global company, it is also local in terms of what works with different consumers. “There is a global framework and then the local approach – making sure it actually connects on the streets locally is really key,” he argues. “So we will tweak our strategies to ensure that we are addressing local nuances and local dynamics.”

This is where the regional headquarters come into their own. The role they play is in marketing strategy and planning. For instance, he says, “Africa itself is so diverse, Nigeria is not Kenya. What works in one market might not succeed elsewhere. You have to know the local dynamics. So strategy is developed at different levels.”

In each country “we conduct what we call consumer beverage landscape studies. These give us a very good insight into what is happening with consumers and beverages in all these countries. And those dynamics differ by region. We also do pricing research in local markets to inform our pricing.

‘As a company we are very, very focused on ensuring that we find that intersection point between commercial, profitable activities and sustainable initiatives. Our success and the success of communities go hand in hand‘

“We look at day parts to understand what consumers are doing in a given day,” Kalumbu explains. “From the time they wake up to the time they go to bed, we have an opportunity, with our variety of portfolio beverages, to be able to satisfy their needs throughout the day.”

Kalumbu believes that Coca-Cola’s long-lived success can be attributed to its flexibility. “It is a top-down, bottom-up approach. We develop a global strategy but there is plenty of room to adapt and tailor-make.”

He says there is a constant stream of information flowing from consumers into the company and its bottling partners. This includes market distributors, who then feed it through to regional headquarters and on to the group HQs and finally to Atlanta, where the process begins again in reverse.

“There are certain brand aspects that you are not allowed to tamper with,” says Kalumbu. “To run a global business, it is important to have some frameworks within which people operate but there is a lot of freedom for local adaptations. There are checks and balances.

The company’s advertising strategy follows roughly the same pattern. From its outset in the 19th century, Coke has run brilliant and enthusiastic advertising campaigns and has, indeed, often provided the benchmarks for other corporations to follow.

“There is advertising created globally and then there is advertising created in the regions and this is also often shared internationally. For example, if Mexico makes a really strong advertisement that we think resonates with all markets, this can then be adapted to local needs”.

“Understanding that balance between local and international is very, very important for us as a business,” he says. “Unless you get a good handle on local dynamics, you will not be able to succeed on this continent.”

True enough. The African business landscape is littered with the ruins of enterprises that were parachuted in from elsewhere and failed to work.

The company has also made it a point of marketing principle to keep ahead of the times. “The mobile phone, for example,” he says, “has completely changed how people communicate and how information is passed on. Intelligent use of technology is now very much a part of our marketing strategy.”

The African dimension

Africa, he says, is also unique in its combination of the modern with the traditional. “Africans love international brands but they are also rooted in their traditions. While international music is enjoyed tremendously, there is a very strong affinity for local music and musicians.

“There is also the tremendous spirit of togetherness that can be found all over the continent. Africans will come together both in good times and also in sad or difficult situations.”

But the times are changing. Urbanisation is taking over the continent. Communities are being split up, but as Kalumbu points out, they are reforming in different combinations in the new landscapes.

“We try to keep this spirit of togetherness alive through our products. We are invited into people’s homes, into celebrations, into weddings and funerals, in victory and defeat. We are always there as faithful companions of the people.”