Coca-Cola and its Use of AI for Christmas and Beyond

As the holiday season approaches, Coca-Cola is set to unveil its iconic 'Holidays Are Coming' Christmas advert with a groundbreaking twist. 

This year, the beloved festive campaign will be "fully created with artificial intelligence", marking a significant milestone in the brand's marketing history.

For decades, Coca-Cola's Christmas adverts have been a hallmark of the festive season, featuring the familiar red delivery lorry and jolly Santa Claus. Now, the soft drinks giant is pushing the boundaries of creativity by harnessing the power of AI to reimagine this classic. 

This bold move not only showcases Coca-Cola's commitment to innovation but also reflects a broader trend of AI integration across its global operations.

Bringing AI to beloved advert 

Javier Meza, President of Marketing and Europe CMO at The Coca-Cola Company, revealed the AI-driven approach at the campaign's launch in London. 

"We recreated it by combining human ingenuity and human creativity with artificial intelligence tools to deliver the first-ever Coca-Cola ad, fully created with artificial intelligence," Javier explained.

While the specifics of the AI's role in the advert's creation remain under wraps, Coca-Cola has described it as an "interpretation of the classic advert". 

Beyond the television screen, Coca-Cola is extending its AI-powered festive experience to consumers. 

By scanning a QR code on Christmas-themed Coca-Cola bottles or cans, shoppers can engage in conversations with Santa or a snow globe avatar to create a personalised, shareable snow globe animation, based on a personal memory. 

But beyond the precedent of AI being used to handle one of Coca-Cola’s most beloved marketing campaigns, this innovative approach demonstrates the company's willingness to embrace cutting-edge technology into its operations.

A broader AI strategy

Coca-Cola's foray into AI-generated Christmas adverts is not an isolated experiment but part of a comprehensive strategy to leverage AI across its operations. 

In 2023, the company formed a global services alliance with Bain & Company and OpenAI, the creators of ChatGPT, signalling its commitment to AI-driven innovation.

This partnership led to the development of Create Real Magic, an online platform that combines the capabilities of GPT-4 and Dall-E. These advanced AI engines can produce human-like text and generate images based on textual descriptions, respectively. 

Last Christmas, Coca-Cola invited fans to use this platform to create digital greeting cards, showcasing the potential of AI in fostering consumer engagement.

Whilst the Christmas advert captures public attention, Coca-Cola's use of AI extends far beyond seasonal marketing. 

The company has been quietly revolutionising its vending machine network, transforming these ubiquitous dispensers into smart, data-gathering devices.

In 2014, Coca-Cola embarked on an analytics journey that would reshape its approach to retail.

A trial in Newcastle, Australia, involving 60 vending machines connected to an AI algorithm, yielded impressive results. 

By analysing transaction patterns and optimising product placement, the company saw a 15% increase in transactions and an 18% reduction in restocking visits.

This successful experiment led to the founding of HIVERY, an AI firm that has since deployed its vending analytics platform across Australia, New Zealand, and the US. 

The platform's ability to place the right products in the right locations has significantly improved operational efficiency and sales performance.

Coca-Cola's AI initiatives extend to personalised consumer experiences. The introduction of the Freestyle touchscreen soda fountain in 2009 was a game-changer. 

These AI-enabled machines, connected to the cloud and accessible via a mobile app, allow consumers to create custom drink mixes from a selection of 100 beverages.

The data gathered from these interactions provides Coca-Cola with invaluable insights into consumer preferences. 

By analysing social media content of app users, the company can identify trends in product consumption patterns, informing both marketing strategies and product development.

AI in improving the bottom line

As Coca-Cola continues to push the boundaries of AI integration, from Christmas adverts to vending machines, it's clear that AI is becoming an integral part of the company's DNA. 

Manolo Arroyo, Coca-Cola's global chief marketing officer, believes they are "just scratching the surface of what we believe will help create the industry's most effective and efficient end-to-end marketing model".

The upcoming AI-generated Christmas advert is more than just a festive gimmick; it's a glimpse into the future of marketing in the beverage industry. As AI technology continues to evolve, we can expect to see even more innovative applications that blur the lines between creativity, technology, and consumer engagement.

In embracing AI, Coca-Cola is not just staying relevant; it's redefining what it means to be a global brand in the digital age. From personalised experiences to data-driven decision-making, the company is ensuring that its products remain within "an arm's reach of desire" for consumers worldwide, just as Robert Woodruff envisioned decades ago.

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