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June 10, 2004 Issue

For Coke, Is Heyer Exit a Pause That Refreshes?

Finally, it's "Real": Steve Heyer is leaving Coca-Cola, a move that could cause the brand indigestion and stir up bubbles on Madison Avenue in a fight over one of the world's most prestigious advertising accounts. The departure of Coke's No. 2 executive raises the prospect of a newly pitched battle between two Madison Avenue heavyweights - Interpublic Group and WPP Group.

When Mr. Heyer joined Coca-Cola in 2001, the company all but lost ownership of the teen market to rival PepsiCo, which relied on flashy ads that played up humor and celebrities such as pop star Britney Spears. Coke long had burnished a touchy-feely image, replete with animated polar bears and slogans such as "Life tastes good". After the arrival of Mr. Heyer, a brash, hard-nosed marketing executive, the company got rid of some of the syrup and tested a host of new ideas. Among the most interesting: strengthening Coke's ties to the entertainment business through music and movie tie-ins.

Recent Coca-Cola ads have been more edgy. One sexy Diet Coke ad, though it was toned down before it hit the air, showed a scantily clad Kate Bechinsale, star of "Van Heising," sipping her soda at poolside and unleashing a trail of bubbles. A recent Coke commercial showed a young man giving his buddy a Coke that had been stashed under his arm was pulled entirely from the airwaves.

Still, Coke has run a sugary spot featuring a girl walking down the street handing out bottles of Coke as she sings. The result: confusion.

Young people are experiencing two kinds of Coke when it comes to advertising, says David Morrison, president of TWENTYSOMETHING Inc., a Philadelphia-based young adult marketing consultant.

"They are watching the prime-time Coke ads aimed for the [the mainstream], and then they are getting their MTV-ESPN-specific advertising that is more urban-based and it's kind of confusing," Mr. Morrison says. "What does Coke stand for?"

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