Lailanie Kay C.

Jaranay MM6/5:30-6:30PM/MWF
BSBA-MM4

Short History of Coca - Cola Company
In 1886 an American pharmacist named John Pemberton, was looking for a quick cure for
headaches and tiredness. He mixed a couple of ingredients, added carbonated water and took
the mixture to Jacobs Pharmacy in Atlanta, Georgia. People reacted enthusiastically so the
pharmacy decided to sell the mixture for 5 cents
a glass and named it Coca-Cola. The pharmacy
sold 9 glasses in that first year.
Pemberton sold the Coca-Cola Company in 1888
toa businessman who started to promote the
drink by giving pharmacists clocks, calendars and
other products with the Coca-Cola brand on it so
visitors got familiar with the drink and the
company. In 1895 the drink was put into bottles
so customers could enjoy Coca-Cola everywhere.
Because of many imitations, Coca-Cola was put
into special bottles in 1916, the same bottles we
still use nowadays.
Coca-Cola was first exported to Cuba, Puerto
Rico, France and other countries around 1917.
The Coca-Cola Company started big promotional campaigns in the 1920s: the Olympic Games
in Amsterdam in 1928, bullfighting games in Spain and so on. The six-pack was introduced in
the 1930's for at-home-consumption so Coca-Cola became a part of the everyday life.
It was in the Second World War that many Europeans had their first experience with the drink.
The company had sent many so called technical officers with the army to Europe to promote
Coca-Cola. It was a big success. Coca-Cola Germany introduced a new drink in the Second
World War because of the lack of Coca-Cola ingredients: Fanta.
The Coca-Cola Company started promoting the drink as a part of a fun and carefree lifestyle
(the American lifestyle) in the 1950s. New drinks, such as Sprite and Fresca were introduced in
the 1960s, followed by Diet Coke in 1982, Cherry Coke in 1985, and Coca-Cola Lemon in 2001.
The Coca-Cola Company sells its nearly 400 beverage brands in over 200 countries. Well-known
brands are Coca-Cola, Fanta, Aquarius, Sprite, BonAqua, Ciel, Powerade, Minute Maid and
Nestea.
Strength & Weaknesses of Coca - Cola Company
Strengths
1. The best global brand in the world in terms of value. According to Interbrand, The Coca Cola
Company is the most valued ($77,839 billion) brand in the world.
2. Worlds largest market share in beverage. Coca Cola holds the largest beverage market
share in the world (about 40%).
3. Strong marketing and advertising. Coca Cola advertising expenses accounted for more than
$3 billion in 2012 and increased firms sales and brand recognition.
4. Most extensive beverage distribution channel. Coca Cola serves more than 200 countries and
more than 1.7 billion servings a day.
5. Customer loyalty. The firm enjoys having one of the most loyal consumer groups.
6. Bargaining power over suppliers. The Coca Cola Company is the largest beverage producer
in the world and exerts significant power over its suppliers to receive the lowest price
available from them.
7. Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on CSR programs,
such as recycling/packaging, energy conservation/climate change, active healthy living,
water stewardship and many others, which boosts companys social image and result in
competitive advantage over competitors.


Weaknesses
1. Significant focus on carbonated drinks. The business is still focusing on selling Coke, Fanta,
Sprite and other carbonated drinks. This strategy works in short term as consumption of
carbonated drinks will grow in emerging economies but it will prove weak as the world is
fighting obesity and is moving towards consuming healthier food and drinks.
2. Undiversified product portfolio. Unlike most companys competitors, Coca Cola is still
focusing only on selling beverage, which puts the firm at disadvantage. The overall
consumption of soft drinks is stagnating and Coca Cola Company will find it hard to
penetrate to other markets (selling food or snacks) when it will have to sustain current level
of growth.
3. High debt level due to acquisitions. Nearly $8 billion of debt acquired from CCEs acquisition
significantly increased Coca Cola's debt level, interest rates and borrowing costs.
4. Negative publicity. The firm is often criticized for high water consumption in water scarce
regions and using harmful ingredients to produce its drinks.
5. Brand failures or many brands with insignificant amount of revenues. Coca Cola currently
sells more than 500 brands but only few of the brands result in more than $1 billion sales.
Plus, the firms success of introducing new drinks is weak. Many of its introduction result in
failures, for example, C2 drink.
































Coca-Colas marketing strategies played a significant role in successfully globalizing the
company. The companys popular advertising slogans and catchy jingles played into the
hearts and minds of people around the world. Some of the most remembered
advertising slogans include:

-Cola.



-Cola.



Coupled with these slogans, songs were used to have consumers remember the brand.
One of the companys most popular jingles was known as I want to buy the world a
coke, produced in 1971 by Billy Davis. The commercial featuring this song portrayed a
world of hope and love produced by a group of multicultural teenagers on top of a hill.
This commercial went down in history as one of the most well-known commercials of all
time.

In addition to Coca-Colas advertising efforts, Coca-Cola became the first commercial
sponsor of the Olympic Games in Amsterdam in 1928. Coca-Cola continues to be an
Olympic Games sponsor today. Coca-Cola has also sponsored many other sporting
events such as the International Federation of Association Football (FIFA), National
Hockey League (NHL), National Basketball Association (NBA), National Football
Association (NFL), Major League Baseball (MLB), NASCAR, and Cricket World Cup.



Technology

Technology advances contributed to Coca-Colas ability to globalize rapidly throughout
the 20th
century. Product transportation became more efficient and cost effective with
the development of bigger and faster semi-trucks, cargo ships, jet aircraft, and trains.
Coca-Cola was able to manufacture and ship products quicker and farther to market
segments that were unreachable before these transportation improvements. In addition,
technology advances became the driving force behind the ease and speed at which
information was available. Distributors and warehouses were able to more accurately
track inventory levels and fill order shipments, resulting in lower overall operating costs.
Computerization also led to slashed product costs and improved efficiencies.
Computerized and automated manufacturing equipment increased the speed and
volume in which products were produced. These technological advances enabled Coca
Cola to compete on a global scale, selling the well-known brand of products across the
world at competitive prices.