The document summarizes the history and growth of Coca-Cola from its origins in 1888 to the present day. It describes how John Pemberton created Coca-Cola as a medical formula to treat morphine addiction. Over time it became a popular beverage. The document outlines Coca-Cola's early marketing strategies, challenges with leadership and ownership, continued marketing efforts including franchising and brand recognition. It also discusses challenges like competition and health concerns but emphasizes Coca-Cola's commitment to corporate social responsibility through sponsorships that have contributed to its global success.
2. INTRODUCTION.
. The Coca-Cola company of Atlanta Georgia is
best known to be the producers of the
carbonated soft drink, Coca-Cola, which is
often referred to simply as “coke.
The company was
3. HISTORY
The history of this firm dates back to as early as the
19th century when in 1888 John Pemberton a former
confederate soldier in the USA created a formula as
a solution for His addiction to Morphine, which he
had as a result of frequent injuries and pains suffered
through battles fought in the war front.
However this formula that was meant to serve
medical purposes started becoming a beverage that
people wanted to consume for nutritional purposes
As at 1883, three versions of coca-cola sold by three
separate businesses were in the market .This did not
just happen overnight as there had been various
methods used by Pemberton and his associates to
introduce this product into the market.
4. INITIAL MARKET PENETRATION
STATEGIES
Samples of the coca-cola drinks were given
to people for free at a local pharmacy in
Atlanta.
Pemberton also used free coupons to help
promote this beverage.
By 1913 the company had redeemed 8.5
million tickets.
5. LEADERSHIP & OWNERSHIP
CRISES
In the formative years of coca-cola there were
many challenges faced in terms of leadership.
Name ownership was one of them which
Pemberton actually credited to His son Charley
Pemberton
There were also struggles of ownership between
Asa Chandler and and Charley Pemberton after
the death of John Pemberton the inventor of the
Coca-Cola formula
HoweverAsa Chandler became sole owner of the
business immediately after the death of Charley
Pemberton.
6. MARKETING STRATEGIES
Under Chandler and subsequent heads of Coca-Cola various strategies were
adopted to remain in business and gain a fair market share
Franchising Model:This model of business involved the granting of authority by
coca-cola to various bottlers while the formula of Coke was delivered to those
bottlers to fill after various processes.This business model made coca-cola
spread rapidly in over 250 countries of the world.
Price stability for a long Period: Coca-cola kept its consumer price stable for a
period of over 70 years. From 1886 to 1959 a bottle of coke cost just 5 cents.
Coca-cola also held its retailers responsible for maintaining its high standards .
ErnestWoodruff who boughtCoca-cola from Chandler in 1919 focused on
maintaining a standard of excellence that is why the core team decided that its
drinks at that time should be served at 36 degrees Fahrenheit.They did this by
sending salesmen to new retailers to tell them the product should never be
served above 40 degrees.
Branding:When it comes to branding coca-cola uses a timeless font.This Logo
was designed by John Pemberton’s bookkeeper , Frank Mason Robinson.The
font is the spencerian script.This font is still seen on coca-cola logos till date and
this has helped in preserving the brand’s identity.
7. BUSINESS CHALLENGES
Competition:This we all know is a major part of business, especially when it is a free marker
economy and not a monopolistic market. So coca-cola has had its own fair share of competition
and this still runs till today.
PepsiCo has been and still remains the major competitor of Coca-cola and this is evident in the
long fought Cola-Wars in the United States of America. However coca-cola recognizing additional
market potentials pursued international opportunities in an effort to dominate the global soft
drink industry. By 1993 coca-cola controlled 45% of the global soft-drink market while PepsiCo
received just 15% of its profit from international sales.
Today the statistics and numbers still show that coca-cola still has a larger share of the market
through its wider coverage and visibility almost everywhere.
Coca-cola has also faced some problems in the past such as ;Health effects concerns by
consumers , Environmental issues, seemingly wrong business practices allegations and
discrimination among workers as it relates to race.
Contamination Scare: A particular case in point was the contamination scare the company faced in
June 1999 , when about 30 Belgian children became ill after consuming coca-cola products.
Although the company recalled the product, the problem still persisted.The Belgian government
recalled coca-cola products and this had a rippled effect that led to the governments of countries
like Luxembourg and Nether lands to recall all coca-cola products.
Discrimination Dispute:Another problem that rocked coca-cola was a racial discrimination
allegation against the company by African-American employees.This was evident in the wage
gap between African American workers and Caucasian employees which was a difference of
$26,000 a year. However in reaction to that , Coca-cola created a diversity council and paid 193
million dollars to settle the racial discrimination lawsuit against the company.
8. COMMITMENT TO CORPORATE
SOCIAL RESPONSIBILITY
Despite all the hurdles and speed-bumps coca-cola has remained true to
carrying out its corporate social responsibilities that have been instrumental in
its continuous success.
Sponsorships have been one of the major areas where coca-cola has excelled.
They were the first commercial sponsors.
They were the first official sponsors of the Olympic Games in 1928.
Since 1978Coca-Cola have sponsored the FIFA world cup and other competitions
organized by FIFA.
Coca-cola sponsors the annual Coca-cola 600 and coke zero 400 for the NASCAR
sprint cup series.
Coca-cola was one of the official sponsors of the 1996 cricket world cup held on
the Indian Subcontinent. In England coca-cola was the main sponsor of the
football league between 2004 and 2010 a name given to the three professional
divisions below the premier league.
Between 1994 and 1997 coca-cola was also the title sponsors of the Scottish
league cup , renaming it coca-cola cup like its English counterpart.
All these abovementioned have contributed immensely to the success of this
brand.
9. CONCLUSION
In conclusion, all the above points shows how a
simple formula intended for medical purposes
metamorphosed into a consumable beverage,
into a company and now into one of the most
valuable brands in the world according to the
Inter Brands study of 2015.
The road has not been smooth but with good
leadership, good thinking, good product and
good marketing/ management strategies any
business can grow into a global brand just as
coca-cola has done.