+1 862 207 3288 SYNOPSIS
In late 2008 executives at The Coca-Cola Company (TCCC) had to decide what to do with a fan-created page on Facebook that had accumulated over one million followers in three months. Facebook told TCCC that the page, created by fans and not the company, was in violation of Facebookís Terms of Service. It asked Michael Donnelly, Group Director, Worldwide Interactive Marketing at TCCC to either take down or take over the page.
The case records Donnellyís response, and describes the consequences. The case leaves Donnelly in early 2011, when Coca-Colaís fan base on Facebook has grown to almost 20 million. Is he right to refuse to buy fans for the Facebook page with discounts and coupons despite the apparent success of that strategy by Starbucks? Should he centralize control of the page as he grows the fan base in 206 countries? How can he achieve global scale with local relevance?
YOUR TASKS
Preparation:
1. Read the case at least twice.
2. Visit the official Starbucks Facebook page at http://www.facebook.com/home.php#!/Starbucks and the official Coca-Cola Facebook page at http://www.facebook.com/home.php#!/cocacola. What are the kinds of message posted by the respective companies/page administrators, the types of message posted by fans, and the overall nature of the discussion?
3. Type ëCoca-Colaí into the search box on Facebook. How many fan pages exist for Coke? Do the same for Pepsi Cola for comparison.
4. Skim the article ìThe Power of Like2îon social media marketing, posted on Canvas. Think about what they say about the value of a Facebook fan.
Individual or Group Written Assignment:
Answer the following questions succinctly (no more than four pages total, typed,Times New Roman, 12-point font, single-spaced,submitting on Canvas by Midnight 02/29 Monday).
1. What is/are the main issue(s) presented in this case? In a couple of sentences, briefly explain why.
2. In 2011, Coca-Cola and Starbucks each have about 20 million Facebook fans, but they got there by following very different strategies. How different are the two companiesí approaches on the social media site?
3. What should Michael Donnelly do in 2011? (In other words, is Donnelly on the right path when he declines to use discounts and coupons to attract fans? How can he build on the momentum that has made the Coke Facebook brand page to 20 million fans?î)
4. What is the value of these million of fans to Coke? (In other words, what can Coke try to accomplish with the Facebook platform?)
Case Study #1 Grading Rubrics
Total possible grade is 20 points. Each question weighs 5 points.
CRITERION STRONG (5 points) AVERAGE (4 points) WEAK (3 points)
Your answer Presents a convincing and thorough answer; Supports diagnosis and opinions with strong arguments and well- documented evidence; interpretation is both reasonable and objective. Presents a fairly convincing and thorough answer; Supports diagnosis and opinions with limited reasoning and evidence; Presents a superficial or incomplete answer; Little action suggested and/or inappropriate solutions proposed to the issues in the case study.
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