This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Coca-Cola Looks to Crowdfunding to Raise Social Media Awareness

NEW YORK (TheStreet) --Coca-Cola (KO - Get Report) is tapping into the $90 billion crowdfunding market, not to raise corporate funds, but as a powerful tool to reap the social media and branding benefits.

In doing this the beverage giant, which releases second-quarter 2014 financial results Tuesday before the market opens, joins Proctor & Gamble (PG), American Express (AXP) and other companies tapping into crowds to drive innovation, increase sales and improve results for investors.

At the Monday close of $42.40, Coke stock is up 2.6% for the year to date compared with the S&P 500, up 6.8% for the same period.

Richard Swart, director of research on crowdfinance at the UC Berkeley and author of the World Bank's Report On Global Crowdfunding, said engagement techniques like crowdfunding can be "the deepest form of social engagement," allowing companies to learn more about what customers, distributors and employees are socially passionate about.

Greenberg: Allergan's Dilemma

How Coca-Cola Stock Will Satisfy Investors' Thirst for Profit

Jeff Bezos' Most Important Project Is Amazon Prime, and Everyone Is Watching

Most companies want to be perceived as socially responsible and caring. By giving seed money to crowdfunding projects that focus on what Coke lovers care about, the company forges both a stronger rapport while advertising to the world that it's a company with a conscience.

As Swart explained, "Brand loyalty is increased with a social media marketing effort than with most other forms of marketing. Crowdfunding creates collaboration and cohesiveness with a company's customers and the general public, and that's worth a fortune."

For example, Coca-Cola sponsored a crowdfunding effort in Mexico to provide more clean water sources in rural areas. This project fit well with the World Bank's enthusiasm for crowdfunding as a means to promote economic growth in developing countries and gives positive publicity for the sponsoring company.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
KO $41.08 1.28%
AAPL $121.30 -0.87%
FB $94.01 -1.26%
GOOG $625.61 -1.10%
TSLA $266.15 -0.24%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs