Zunaib Ali

Selected Company for Case Study

Objectives:
To study How Coca Cola Company survived for 100 of years. How has it changed over the years? From study/research draw conclusion that how this research could help you to be a better manager. Coca Cola Success Story The world has changed in many ways since pharmacist; John Styth Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. However, the pure and simple magic of one thing remains the same - Coca-Cola. The name and the product mean so many things to hundreds of millions of consumers around the globe. Coca-Colas are served more than 705 million times every day, quenching the thirsts of consumers in more than 195 countries in every climate. That's a long way to come after such a modest beginning... May 1886 - Pemberton concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first "distributed" the new product by carrying Coca-Cola in a jug down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the soda fountain. Whether by design or accident, carbonated water was teamed with the new syrup, producing a drink that was proclaimed "Delicious and Refreshing." Dr. Pemberton's partner and bookkeeper, Frank M. Robinson, suggested the name and penned, in the unique flowing script that is famous worldwide today." 1886 - Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the No. 1 soft drink brand ever since. 1891 - Atlanta entrepreneur Asa G. Candler had acquired complete ownership of the Coca-Cola business. Pemberton was forced to sell because he was in a state of poor health and was in debt. He had paid $76.96 for advertising, but he only made $50.00 in
1 Principles of Management

profits. Candler acquired the whole company for $2,300. Within four years, Candler's merchandising flair helped expand consumption of Coca-Cola to every state and territory. 1893 - In January "Coca-Cola" was registered in the U.S. Patent office. 1894 - The first syrup plant outside of Atlanta was opened in Dallas. 1899 - Chandler's great achievement -- large scale bottling of Coca-Cola 1906 - The first two countries outside the United States to bottle Coca-Cola were Cuba and Panama 1915 - The Root Glass created the Coca-Cola contour glass bottle. 1917 - 3 Million Coke's sold per day. "" is the worlds most recognized trademark. 1919 - The Coca-Cola Company was sold to a group of investors for $25 million. 1923 - The Coca-Cola Company was sold after the Prohibition Era to Ernest Woodruff for 25 million dollars. He gave Coca-Cola to his son, Robert Woodruff, who would be president for six decades.

Woodruff's leadership took the business to unrivaled heights of commercial success, making Coca-Cola an institution the world over. Woodruff was an influential man in Atlanta because of his contributions to area colleges, universities, businesses and organizations. When he made a contribution, he would never leave his name, this is how he became to be known as "Mr. Anonymous." During the Woodruff era, Mr. Woodruff made a promise to the armed forces of the United States to supply Coca-Cola to every serviceperson. He said that costs and location did not matter, he supplied 5 billion bottles to the service. Robert Woodruff did have one dubious distinction, he raised the syrup prices for distributors. But he improved efficiency at every step of the manufacturing process. Woodruff also increased productivity by improving the sales department, emphasizing quality control, and beginning large-scale advertising and promotional campaigns. Woodruff made Coke available in every state of the Union through the soda fountain. For all of these achievements he earned the name, "The Boss" 1923 - Woodruff introduced the six bottle carton 1925 - 6 Million Coke's sold per day. 1927 - The first Coca-Cola radio advertisement. 1928 - Sales of bottled Coca-Cola surpassed fountain sales for the first time. 1929 - Coca-Cola was made available through vending machine.The Coca-Cola bell glass was made available 1931 - The Coke Santa was introduced as a Christmas promotion

2 Principles of Management

1934 Johnny Weissmuller, and Olympic champion swimmer, and Maureen O'Sullivan, a motion-picture star, appeared on a metal serving tray for Coca-Cola. 1940 - Coke is bottled in over 40 countries. 1943 On June 29, an urgent cablegram arrived from General Dwight Eisenhower's Allied Headquarters in North Africa, requesting 10 Coca-Cola bottling plants to serve American servicemen overseas. Eventually, 64 plants were set up during WWII. 1950 - Advertising on on the television began. Currently Coca-Cola is advertised on over five hundred TV channels around the world. 1952 - "The Big Beverage", the first novel about Coca-Cola, was written by William T. Campbell. 1960 - The twelve ounce Coke can was introduced. 1961 - Sprite was introduced. 1971 - The song "I'd like to Buy the World a Coke" was released. 1977 - The Coca-Cola contour bottle was patented 1978 - The two liter bottle was introduced, and during that same year the company also introduced plastic bottles 1979 - Fifteen hundred employees moved to the new corporate headquarters in Atlanta located on North Avenue. The new corporate headquarters came to be known as "The Tower." 1982 - Diet Coke was introduced in July. 1985 - The Coca-Cola Company made what has been known as one of the biggest marketing blunder. They stumbled onto a new formula in efforts to produce diet Coke. They put forth 4 million dollars of research to come up with the new formula.

The decision to change their formula and pull the old Coke off the market came about because taste tests showed a distinct preference for the new formula. The new formula was a sweeter variation with less tang, it was also slightly smoother. Robert Woodruff's death was a large contributor to the change because he stated that he would never change Coca-Cola's formula. Another factor that influenced the change was that Coke's market share fell 2.5 percent in four years. Each percentage point lost or gain meant 200 million dollars. This was the first flavor change since the existence of the Coca-Cola company. The change was announced April 23, 1985 at the Vivian Beaumont Theater at the Lincoln Center. Some two hundred TV and newspaper reporters attended this very glitzy announcement. It included a question and answer session, and a history of Coca-Cola. The debut was accompanied by an advertising campaign that revived the Coca-Cola theme song of the early 1970s, "I'd Like to Buy the World a Coke" The change to the world's best selling soft drink was heard by 81 percent of the United States population within twenty-four hours of the announcement. Within a week of the change, one thousand calls a day were flooding the company's eight hundred number. Most of the callers
3 Principles of Management

were shocked and/or outraged, many said that they were considering switching to Pepsi. Within six weeks, the eight hundred numbers was being jammed by six thousand calls a day. The company also fielded over forty thousand letters, which were all answered and each person got a coupon for the new Coke. Many American consumers of Coca-Cola asked if they would have the final say. When Pepsi heard that the Coca-Cola Company was changing its secret formula they said that it was a decision that Pepsi tastes better. Roger Enrico, the president and CEO of PepsiCola wrote a letter to every major newspaper in the U.S. to declare the victory. Coca-Cola management had to decide: Do nothing or "buy the world a new Coke". They decided to develop the new formula. 1985 - July 10, eighty-seven days after the new Coke was introduced, the old Coke was brought back in addition to the new one. This was greatly due to dropping market share and consumer protest. The market share fell from a high of 15 percent to a low of 1.4 percent. This was said to be a classic marketing retreat. Coca-Cola executives admitted that they had goofed by taking the old Coke off the market. The Coca-Cola company's eight hundred number received eighteen thousand calls of gratitude. One caller said they felt like a lost friend had returned home. The comeback of old Coke drove stock prices to the highest level in twelve years. This was said to be the only way to regain the lead on the cola wars. 1988 - Coca-Cola was the first independent operator in the Soviet Union. 1993 - Coca-Cola exceeds 10 Billion cases sold worldwide. 1993 - Advertising slogan -"Always Coca-Cola". 1995 - Coke was consumed aboard the Space Shuttle Discovery -- marking the third trip into space for Coca-Cola and the first for Diet Coke. 1996 - The Summer Olympics will be held in Atlanta, Georgia, the home of Coca-Cola. 1998 - The Coca-Cola Company announces a 100-year partnership with the National Basketball Association. 1999 - The Coca-Cola Company acquires Peruvian soft drink Inca Kola and Schweppes beverages in many markets around the world. 2000 - The Coca-Cola Company sponsors the Olympic Games in Sydney, Australia. 2001 - The Coca-Cola Company and Nestle create a new company, Beverage Partners Worldwide, to market ready to- serve coffee and tea beverages. Simply Orange, a notfrom-concentrate orange juice, is introduced. The Coca-Cola Company joins the fight against AIDS in Africa with the joint United Nations Program on HIV/AIDS, UNAIDS. Coca-Cola France sponsors the Tour de France for the 15th consecutive year. The CocaCola Foundation and Coca-Cola bottlers contribute $12 million in disaster relief following the September 11 terrorist attacks in the United States.
4 Principles of Management

2002 - Vanilla Coke is introduced in the United States. The Coca-Cola Company sponsors the FIFA World Cup competition in Japan and Korea. American Idol, a singing competition sponsored by Coca-Cola, debuts. It becomes one of the most popular shows in the history of television. 2004 - Diet Coke with Lime is introduced. Continuing a presence that dates back to 1920, a 3D, high-tech, six-story sign lights up Times Square in New York City. 2005 - An aluminum contour bottle is introduced for use in nightclubs and at special events. Coca-Cola Zero, a zero-calorie cola, makes its debut. 2006 - The Bottling Investments Group is established. This organization manages the operations of Company-owned bottling plants around the world. 2007 - The new World of Coca-Cola opens at Pemberton Place in Atlanta. The CocaCola Company acquires Energy Brands Inc. (glaceau), maker of vitamin water and smart water. The 20-ounce PET contour GRIP bottle joins the packaging ranks. 2007 The new World of Coca-Cola opens at Pemberton Place in Atlanta. The Coca-Cola Company acquires Energy Brands Inc. (glaceau), maker of vitamin water and smart water. The 20ounce PET contour GRIP bottle joins the packaging ranks. 2008 - Sponsorship of the Beijing 2008 Olympic Games connects with more than 500 million consumers in China. A Coca-Cola Face book page is established by two fans. The site has over 22 million fans worldwide as of January 2011 and continues to grow. Sprite becomes the third Company product to sell more than 2 billion cases annually, joining Coca-Cola and Diet Coke/Coca-Cola light. The Coca-Cola Conversations blog launches. 2009 - Coca-Cola Freestyle, an innovative fountain dispenser that allows consumers to select from more than 100 beverages, is unveiled. Two-liter contour packaging is introduced. Plant Bottle PET packaging is introduced. Made partially from plant-based materials, Plant Bottle plastic bottles are completely recyclable. Simply becomes a billion-dollar brand. 2010 - In the aftermath of a devastating earthquake, The Coca-Cola Company launches the Haiti Hope Project, a public-private initiative that aims to develop a sustainable mango industry in Haiti. The Coca-Cola Company acquires the entire North American bottling operations of Coca-Cola Enterprises. 2011 - The Coca-Cola Company celebrates125 years of brand Coca-Cola.

For more than 65 years, Coca-Cola has been a sponsor of the Olympics. One great earmark that the Coca-Cola Company has is helping the people of Atlanta. They accomplish this through scholarships, hotlines, donations and contributions. Another large accomplishment that the Coca-Cola has, is being the first company to make and use recycled plastic bottles. One way to see all of the achievements of the Coca-Cola Company is to visit the
5 Principles of Management

World of Coke in Atlanta. It houses a collection of memorabilia, samples of the products, exhibits, and many other exciting items. All of what has been said is the basis of what Coca-Cola was built on. Without societies help, Coca-Cola could not have become over a 50 billion dollar business. Keep on consuming the world's favorite soft drink, Coca-Cola. Until the 1960s, both small town and big city dwellers enjoyed carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the drug store, the soda fountain counter served as a meeting place for people of all ages. Often combined with lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft drinks, and fast food restaurants came to the fore. The term "soda water" was first coined in 1798. In 1810, the first U.S. patent was issued for the manufacture of imitation mineral waters. The first soda fountain patent was granted to Samuel Fahnestock in 1819 In 1858, G.D. Dows invented and operated the first marble soda fountain, which he In 1883, James W. Tufts patented a soda fountain, which he called the Arctic. Tufts went on to become a huge soda fountain manufacturer. On January 25, 1870, Gustavus Dows patented a modern form of the soda fountain. In October of 1874, Robert M. Green created the first ice cream soda. In 1903, a revolution in soda fountain design took place with the front service fountain patented by Dr. Heisinger.

More fun facts and trivia Coca-Cola can be used to bake a ham. Pour one can into the baking pan, rap the ham in aluminum foil, and bake. Thirty minutes before the ham has finished cooking, remove the foil, allowing the drippings to mix with the Coca-Cola to make a delicious brown gravy. Mexico and Iceland have the highest per capita consumption of Coca-Cola. Coca-Cola translated to Chinese means, "To make mouth happy". Every second over 7,000 Coca-Cola products are consumed. The tallest Coca-Cola bottling plants are in Hong Kong. The plant in Quarry Bay is 17 floors, and the plant in Shatin is 25 floors. The bottling plant at the highest elevation in the world is located in Bolivia, at 12,000 feet. The world's longest Coca-Cola truck is in Sweden. It is 79 feet long with a four-azle trailer. The best selling non-carbonated soft drink in Japan is a product of The Coca-Cola Company named "Georgia", a coffee flavored beverage. Coca-Cola first crossed the Atlantic on board the Graf Zeppelin, the German dirigible.
6 Principles of Management

The Varsity Restaurant in Atlanta, Georgia, has earned the distinction of serving the highest volume of Coca-Cola anywhere. It dispenses nearly 3 million servings of CocaCola annually. If the Coca-Cola Company constructed a sign like the ones McDonald's uses to count their millions of customers, by 1983 it would have read "over 1 trillion served." If all the Coca-Cola . o Ever produced were in 6 1/2 oz. bottles and placed end to end they would wrap around the earth more than 11,863 times. o Sold in 1994 were in 8-ounce bottles laid end-to-end, those bottles would reach to the moon and back 76 times. o Vending machines in the U.S. were stacked one on top of each other, the pile would be over 450 miles high. o Ever produced were to erupt from "Old Faithful" at its normal rate of 14,000 gallons per hour, the geyser would flow continually for 1,577 years. o Products sold in 1994 were flowing over Niagara Falls at its normal rate of 1.5 billion gallons per second; the falls would flow for three hours.

What is Help for us to be a Good Manager: There are many factors contributing to Coca-Cola's success which guide us to become a good & efficient manager, however, I believe that their key factors are Marketing, Innovation, and Globalization. Marketing: Coca-Cola is seen as one of the founding fathers of the modern day marketing model. They were among the pioneers of advertising techniques and styles used to capture an audience. They were also one of the first companies to offer a gimmick with their product, this being a mini yo-yo. It was around 1900 when Coca-Cola began presenting their signature drink as a delicious and refreshing formula. This slogan has been repeated for over the last 100 years selling Coke all over the world. Through its intense marketing campaigns, Coke has developed an image that is reflected in what we think of when we buy Coke and what we associate with drinking Coke. This image has been subconsciously installed in our brain by the advertising campaigns that show Coca-Cola associated with "good times." So to become a good manager we must develop our marketing skills so that we can promote our product in the market and achieve the organization goals efficiently and produce revenue for the company.

7 Principles of Management

 Innovation: Coca-Cola has been able to survive and grow in an ever-changing market because of its ability to systematically innovate and deliver new products. In the late 90s the company, typically showing earnings growth of 15-20% per year, turned in three straight years of falling profits. It was apparent that the market was changing and in order to keep up with these changes, Coca-Cola had to move from a single core product to a total beverage company. So from this point of view, for becoming a good manger we must be systematically innovative so that they can launch new products in the market. We must have make changes in our rules and regulations, in our product manufacturing techniques, reliability of product and cost effectiveness in order to synchronize with the demands of people. By doing this we will always be at the top in market and people will always prefer our company. Globalization: Coca Cola is asymbol of globalization. Your shirt was made in Mexico and your shoes in China. Your CD player comes from Japan. You can travel to Moscow and eat a Big Mac there and you can watch an American film in Rome. Today goods are made and sold all over the world, thanks to globalization. Globalization lets countries move closer to each other. People, companies and organizations in different countries can live and work together. We can exchange goods , money and ideas faster and cheaper than ever before. Modern communication and technology, like the Internet, cell phones or satellite TV help us in our daily lives. Globalization is growing quickly. A German company can produce cars in Argentina and then sell them in the United States. A businessman in Great Britain can buy a part of a company in Indonesia on one day and sell parts of another business in China the next, thanks to globalization. Fast food companies open shops around the world almost every day. So another point in Coca-Cola Company which helps us is Globalization. Factors that have contributed to globalization include increasingly sophisticated communications and transportation technologies and services, mass migration and the movement of peoples, a level of economic activity that has outgrown national markets through industrial combinations and commercial groupings that cross national frontiers, and international agreements that reduce the cost of doing business in foreign countries. Globalization offers huge potential profits to companies. So for a manager to be good must have good globalization skills.

8 Principles of Management

References:
[1] [2] [3] [4] http://www.stonebtb.com/News/Coca-Cola-Success-Story-16598.shtml Coca-Cola_125_years_booklet. http://wiki.answers.com/Q/What_are_the_key_success_factors_of_coca_cola http://www.english-online.at/economy/globalization/advantages-and-disadvantages-ofglobalization.htm

9 Principles of Management