• Ad Age , Friday, July 18, 2008 10 AM

New CEO Muhtar Kent says that as Coca-Cola undergoes an aggressive review of spending, it will look to reduce "nonconsumer-facing" programs through increased use of global campaigns. It will also leverage best practices for creative and overall execution, as well as optimize its use of agencies. Kent admits the company is facing challenges around the globe, as volume increased just 3% in the second quarter.

Coca-Cola recently completed a global marketing research agreement that will replace a number of local agreements. "Our objective is to reinvest marketing efficiencies ... that we realize into efficient brand-building activities to drive the long-term health of our business," Kent says.

The company does not intend to reduce the flow of the spending spigot; it just plans to spend differently. In acknowledging that the its beverages are an "affordable luxury," Kent notes that it's important to remain relevant. "By continuing to invest in difficult economic times, our system is seeking to build a stronger bond with consumers and a stronger share position for the long term," he says.

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