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Short History

Coca-Cola is more than just a soft drink; this nineteenth-


century-born soda has made its way from a small-time soda fountain
to becoming America’s most iconic refreshment. Coca-Cola, or Coke
as we all know it, has a long history: from its inception in 1886, Coca-
Cola’s ever-changing story has passed through many decades. In
1886, Dr. John S. Pemberton, a pharmacist from Atlanta, returned
from the Civil War with hopes of inventing something that would bring
him success. Because Pemberton’s previous experiments with
medicines had been largely unsuccessful, he opted for a different
angle; he decided to make his own soda fountain syrup.
After stirring up his distinctly flavored, caramel-colored syrup,
Pemberton headed to his neighborhood pharmacy, Jacob’s
Pharmacy, where it was mixed with carbonated water. There, the
drink was sampled by customers who agreed that it was something
special. Jacob’s Pharmacy began selling the drink for five cents a
glass; shortly after, it was named Coca-Cola by Pemberton’s
partner, Frank Robinson, who also helped to develop the classic
red-and-white script that is still used today.
Strengths

Coca Cola has an incredible brand identity. It’s a home name


by millions around the world. You’ll come across at least one of their
product in over 200 countries. Because of their known name, they
have strong customer loyalty. The particular taste of Coca Cola
makes it easy to identify and hard to find a substitute for their
customers.
Coca Cola has a nearly $80 billion company evaluation. Sales
saw an increase when they launched their campaign of putting
customer names on their bottles. Prompting consumers to buy the
product, take photos next to the bottles, and post the photos onto
social media sites.
Weaknesses

Coca Cola’s major competitor is Pepsi. But unlike Pepsi,


which has branched away from the Soda-only model of revenue,
Coca Cola has yet to develop a food or snack. This puts them
behind Pepsi in terms of competition since Pepsi has Lays chips
and other foods under their belt.
People have become concerned with obesity and diabetes.
Carbonated drinks are a big influencer of these health
complications. Coca Cola, as a major carbonated drink
manufacturer, can contribute to the obesity epidemic. They haven’t
addressed or found a healthier solution yet.
Strategies

They focused on driving revenue and profit growth

They invested in our brands and business

They became more efficient

They simplified our company

They refocused on our core business model


Primary Reason for being
Global Brand

A significant part of Coca-Cola’s success is its emphasis on brand over product.


Coke doesn’t sell a drink in a bottle, it sells “happiness” in a bottle. With
thousands of different products and packaging designs that vary among regions,
a global marketing plan focused on the products themselves would be
challenging to manage. Instead, Coke aims to sell consumers the experience and
lifestyle associated with its brand. For example, Coke recently unveiled a new
packaging campaign where they individualized 2 million bottle designs. AdWeek
writer Tim Nudd writes, “The resulting product conveys to ‘Diet Coke lovers that
they are extraordinary by creating unique one-of-a-kind extraordinary bottles,’
said Alon Zamir, VP of marketing for Coca-Cola Israel.” Though the products may
vary, the experiences they are selling – happiness, friendship – are universally
shared and understood.
So, what can we learn from Coca-Cola when it comes to building a
successful global brand? Making human connections, remaining
innovative while staying true to simple principles, and creating
branded experiences are all global marketing techniques that have
contributed to Coca-Cola’s place as an industry leader, even after
125 years. For more insight on expanding into new markets, check
out our market penetration guide or our other global marketing-
focused posts.
Short History

McDonald’s Corporation, American fast-food chain that is one of


the largest in the world, known for its hamburgers. Its headquarters are
in Oak Brook, Illinois. The first McDonald’s restaurant was started in
1948 by brothers Maurice (“Mac”) and Richard McDonald in San
Bernardino, California. They bought appliances for their
small hamburger restaurant from salesman Ray Kroc, who was
intrigued by their need for eight malt and shake mixers. When Kroc
visited the brothers in 1954 to see how a small shop could sell so
many milk shakes, he discovered a simple, efficient format that
permitted the brothers to produce huge quantities of food at low prices.
A basic hamburger cost 15 cents, about half the price charged by
competing restaurants. The self-service counter eliminated the need for
waiters and waitresses; customers received their food quickly because
hamburgers were cooked ahead of time, wrapped, and warmed under
heat lamps.
Seeing great promise in their restaurant concept, Kroc offered to
begin a franchise program for the McDonald brothers. On April 15,
1955, he opened the first McDonald’s franchise in Des Plaines, Illinois,
and in the same year launched the McDonald’s Corporation, eventually
buying out the McDonald brothers in 1961. The number of McDonald’s
outlets would top 1,000 before the end of the decade. Boosted by
steady growth, the company’s stock began trading publicly in 1965.
Strengths

McDonald's has successfully rolled out new items like coffees,


smoothies, and Angus burgers, expanding the range of menu choices.

With a strong product offering, the company has grown income


throughout the recession, notching strong increases in same-store
sales.
Operations are spread around the world, meaning the company is
not exposed to just one currency or economy.

Even trading near its highs, McDonald's serves up sizzling dividend


yields that top the 10-year Treasury. The yield comes with a side
order of annual dividend hikes dating back to 1976. The annual
dividend payment has gone from 55 cents per share in 2005 to $2.20
this year.
Weaknesses

It will be harder and harder to find prime locations to build a set of


golden arches. The U.S. is saturated with its restaurants, so growth
will have to occur internationally, posing potential cultural challenges.

While the annual dividend hikes are likely to continue, the dividend
growth rate has been slowing and will probably continue to slow or
level off.
Growth Strategy

Retain
Retaining the customers we have, fortifying and extending our areas of
strength with focuses on breakfast and family occasions.
Regain
Regaining the customers we had lost by improving the taste and
quality of our food, enhancing convenience and offering strong value.
Convert
Converting casual customers to more committed customers with coffee
and snacks.
Digital
Re-shaping our interactions with the customer – whether they eat in,
take out, drive thru or order delivery.

Delivery
Bringing the McDonald’s experience to more customers – in their
homes, their dorm rooms, their workplaces and beyond.

Experience of the Future in the U.S.


Elevating the customer experience in the restaurants through
technology and the restaurant teams who bring it to life.
Primary Reason for being
Global Brand

Uniformity

Cultural awareness

Strategic market segmentation

Adaptability
COMPARISON

Based on the information stated above the two companies are


originated in the United States where the Coca-Cola Company is 62
years older than McDonald’s but their stories are so identical where
they start from a small business that focus on a product that make
them famous. They both offer food products which is essential
necessity to live and they have the same target market, literally people
of all ages.
In terms of strengths they both focused on maintaining their
product’s quality where they really excel and developed new products
that will suit the wants of their customers, they also focus on
promotions to have more revenues and franchise in the whole world
without losing the quality of their products. Since they have the same
line of product which is food the common weakness of their company
is their competitors from the other countries which have a local
version of their products. And another is that the awareness rising
from today’s healthy lifestyle where sodas, fries and burgers are not
healthy foods. But despite of these weaknesses they manage to
survive by using some strategies to address these issues.
One of their common strategies is to adapt the country’s
culture by making a food that is so familiar with that place or by
using some personalities which will promote their products
specially the people from today’s generation “Millennial”. The two
companies also target to reach every part of the world as much as
possible because they believe that the more famous their name is
there is larger market on their product. And that what makes them a
Globally Competitive Company

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