TASTE THE FEELING
BY: RITA JURJI
ENIN 301 ASSIGNMENT #1
11 October 2019
The product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Dr. John S. Pemberton, a local pharmacist, produced the
syrup for Coca-Cola, where it was sampled, pronounced "excellent" and placed
on sale for five cents a glass as a soda fountain drink. Carbonated water was
teamed with the new syrup to produce a drink that was at once "Delicious and
Refreshing," a theme that continues to echo today wherever Coca-Cola is
enjoyed. Thinking that "the two Cs would look well in advertising," Dr.
Pemberton's partner and bookkeeper, Frank M. Robinson, suggested the name
and penned the now famous trademark "Coca-Cola" in his unique script. Today,
Chairman and CEO James Quincey, runs the world’s largest beverage company
and it offers nearly 4,000 drink options through its 500 different brands, 21 of
which generate more than $1 billion in annual retail sales. It makes and
distributes its beverages through company-owned or controlled bottling plants
and distributors but also contracts independent bottling partners, wholesalers,
and retailers. This structure makes up the world’s largest beverage distribution
system. The company sells a wide range of beverages that include: Coca-Cola,
Diet Coke, Coca-Cola Zero, Dasani, Glaceau Smartwater, Minute Maid, Simply
Orange, Honest Tea, and Vitaminwater. Products belonging to Coca-Cola
Company are sold in more than 200 countries around the globe [12].
S
Highest Brand Equity: Coca-Cola is one of
the most renowned brands in the world.
The company was awarded ’highest brand
equity’ in 2011 by Interbrand [1].
Company Valuation: Interbrand has listed
Coca-Cola as the 3rd Best Global Brand
with an estimated value of $79.6 billion
[1].
Global Reach: Sold in over 200 countries
with 1.9 billion servings per day of their
company’s product. It has also introduced
more than 500 new products which
include: Diet Coke, Coca-Cola Zero, Fanta,
Sprite & Dasani [1].
Customer Loyalty: Coca-Cola’s 80% profit
comes from its 20% regular customers
[1].
Large Sponsors: Coca-Cola is proud to
have a long history of sponsoring big
events, organizations and projects such
as: FIFA World Cups, Olympic Games,
NASCAR, American Idol, and the BET
Network [1].
W
Health Concerns: Carbonated drinks
are one of the biggest sources of
sugar intake which could result in
health issues like obesity and
diabetes. The prediction is that
consumption of Coca-Cola might go
down in developed countries as
people with prefer a healthier
beverage [1].
Biggest Competition: Coca-Cola's
largest competitor is PepsiCo, and
Pepsi usually outsells the company in
regions of the Middle East [1].
Low Product Diversification: Unlike
PepsiCo who sells famous food
brands such as: Quaker, Cheetos, and
Frito-Lay , Coca-Cola only sells
beverages. This lack of diversity
causes growth prospects vulnerable
to industry-specific crises and market
disruptions [1].
O
Sustainability: In 2018, Coca-Cola
announced their “World Without
Waste” initiative , which is to collect
and recycle the equivalent of every
bottle or can that they sell globally by
2020. The company and its network of
bottling partners will tackle the
ambitious goal through a renewed
focus on the entire packaging lifecyclefrom how their bottles and cans are
designed and made, to how they will
be 100% recycled and repurposed [10].
Coca-Cola will also apply its marketing
power to help educate the world on
what, how and where to recycle. To
further help tackle this issue, they will
be working with existing partners like:
The Ocean Conservancy/ Trash Free
Seas Alliance, World Wildlife Fund
(WWF), and the Ellen MacArthur
Foundation (plastics economy
initiative) in order to reach their goal
by 2020 [1].
T
Direct and Indirect Competition:
Even though there is clear direct
competition from PepsiCo, there
are many other companies
which are indirectly competing
with Coca-Cola such as:
Starbucks, Costa Coffee, Dunkin’
Donuts, Tropicana, Lipton Juices,
and Nescafé [1].
VS
PESTLE Analysis
Political: Coca-Cola is highly dependent on governmental
policies about sugar and caffeine consumption. Lawmakers
are becoming stricter due to health reasons, so they are
forced to alter the chemical component in their drinks in
certain regions.
Technological: Social-media based advertising has gotten
the brand a lot of attention with 108 million Facebook
followers, 3.3 million twitter followers, and 2.6 million
Instagram followers. These platforms help Coca-Cola reach
their target market. Additionally, heavy use of technology
keeps generating revenue, and it ensure timely production
and an efficient supply chain.
Economical: Company’ sales are affected by many economic
factors beyond their control such as: level of economic
growth in the country, tax rates, currency exchange rates,
and labor costs. The Financial Crisis of 2007-2008 is a
relevant example which decreased their sales.
Legal: Since many countries have different laws when it
comes to caffeine standards and sugar consumption,
Coca-Cola needs to ensure that they meet all regulations.
In the past, they have faced lawsuits due to disobeying
the laws.
Sociocultural: Millennial and Gen X consumers are
switching to healthier drink options due to health
concerns.
Environmental: Water scarcity has become a major
issue since it is the main ingredient in Coca-Cola. The
brand has been accused of dehydrating communities,
and destroying local agricultural in countries like:
Colombia, Turkey and Guatemala.
The Harmful Effect of Coca-Cola
Drinking sugary drinks such as Coca-Cola can
lead to many diseases such as: liver damage,
tooth decay, kidney disease, diabetes,
hypertension, osteoporosis, and heart disease
[2].
1
10 minutes
10 tsp of sugar hit your system, which is
100% of your recommended daily intake.
The consumer does not immediately throw
up from the overwhelming sweetness
because phosphoric acid cuts the flavour
allowing you to keep it down [2].
2
20 minutes
The consumer’s blood sugar spikes,
causing an insulin burst. The liver
responds to this by turning any sugar it
can get its hand on, into fat [2].
40 minutes
3
45 minutes
4
Caffeine absorption is fully done. The
consumer’s pupils begin to dilate, their
blood pressure rises, and as a response
your liver dumps more sugar into the
bloodstream [2].
The consumer’s body ups their
dopamine production which stimulates
the pleasure enters of the brain. This is
physically the same way that heroin
works [2].
60 minutes
5
The phosphoric acid binds calcium, magnesium and
zinc into the consumer’s lower intestine, providing
a further metabolism boost. This is compounded by
high doses of sugar and artificial sweeteners which
also increases the urinary excretion of calcium. As
the rave inside of the consumer begins to fade
away, they will begin to have a sugar crash and
become irritable [2].
USER EXPERIENCE
What’s Working and What’s Not?
After reading consumer reviews on websites such as ‘Trustpilot’ and ‘Mouthshut’, it is clear that for the majority of consumers
it is a childhood favourite and a must-have when eating their meal [4]. However, they still managed to acknowledge the fact
that Coca-Cola is terrible for the health. For example: user Alex Boyle said that he is addicted to the beverage but will not
recommend it for his children. Another user titled his review “basically selling liver poison”, making it clear that he disagrees
with the ingredients used to create Coca-Cola [2].
What Problems Need Solving?
The company has come out with an alternative, Coke Zero Sugar, which has two less ingredients than Diet Coke and Coke
Zero: potassium citrate and acesulfame potassium. Acesulfame potassium is a calorie-free sugar substitute and potassium
citrate is a common additive in beverages [5]. After reading reviews on ‘Influentser’ a majority of Coke Zero Sugar consumers
have approved this new alternative, meaning The Coca-Cola Company has found a solution to its problem [1].
THE LOGO
The Coca-Cola Company has changed its logo approximately 10
times since 1886. Pemberton’s bookkeeper, Frank Mason Robinson,
decided that Coca-Cola’s logo should be written in the Spencerian
script, which is a script style that was used in the USA from 18501925 for business correspondence. Red and white are the vibrant
combination of colors used in Coca-Cola’s logo. The design is very
lively and simple, making the logo appealing in the eyes of
consumers [6].
BOTTLE DESIGN
The Coca-Cola bottle remains unique in its design. In 1915, Earl R.
Dean introduced the ‘contour bottle’ or ‘hobble-skirt’ bottle, wide
from the centre and slender from below. The company did not
want the product to be confused with another brown carbonated
drink in a similar clear glass bottle, therefore they began promoting
this new bottle design just as much as the logo and brand. Even
after Coca-Cola’s plastic bottles launched, the company continued
to promote the product in a glass bottle [6].
Personalization: Coca-Cola understands that it has to find a way to speak to consumers at a more
personal level keeping in mind its target audience of all ages. The company’s "Share a Coke" campaign
has now successfully expanded to over 50 countries [9]. For every country, the beverage is customized
to its local culture and language, with the most popular names of each region printed on cans and
bottles instead of the brand’s name. This initiative is the greatest example of successfully pertaining a
localized positioning strategy to a global market [3].
Simplicity: Despite having grown into a large world wide company with countless products, CocaCola has never drifted from its timeless and basic ideals . Throughout all of their advertising
campaigns, the brand managed to create amazing stories which focus on the individual and not the
organization, making it feel very personal [9]. They kept their simple philosophy of “ happiness and
sharing”, which have never gone out of style and translate easily across the globe [3].
Socialization: Social media has become the greatest tool for effective international marketing,
giving companies the ability to reach consumers on a worldwide level through a single platform.
Coca-Cola has taken advantage and created social profiles on Facebook, Instagram, Twitter,
Google+ and Pinterest [9]. Besides being an effective localization strategy, the Share a Coke
campaign also successfully utilizes social networks to engage consumers and prompt them to
share their Coke experience with others. According to the Wall Street Journal, there were over
125,000 posts about the campaign in just one month after it launched in the United States [7].
Product: Coca-Cola’s marketing strategy can be studied by understanding its wide
range of 500 products. Their products are sold in different types of packaging and
various sizes. For example, its core product Coca-Cola is sold in cans, plastic bottles,
and glass bottles, in 200ml, 500ml, 1L, 1.5L and 2L. Coca-Cola, Sprite and Fanta have
big market shares in their respective segments but their growth is almost fixed,
generating a lot of money for the company [11].
Price: Coca-Cola follows a 2nd degree price discrimination strategy in its marketing mix. In the sense they charge
different prices for products in different segments. The beverage market is considered to be an oligopoly in which
there are few sellers and many buyers. Coca-Cola and Pepsi are the dominant players and are priced similarly. For
example: if Coca-Cola prices its product too high in comparison to Pepsi, then the consumers might switch especially in
developing countries where the consumers are price sensitive. Hence both come to an agreement of maintaining price
parity in each segment. However, Coca Cola offers discounts on bulk purchases by sometimes even bundling the
products [11].
Promotion: Examples of sales promotion applied by Coca-Cola include: a free cooler bag if a customer commits to a
specific amount of a minimum purchase, offer of a seasonal Christmas Caravan Pack that comes with a Coca-Cola glass
and other souvenirs, and “Buy 2 for the Price of 1” sales promotion during football seasons [11]. Also, many restaurant
chains like McDonald's, Burger King and Taco Bell offer Coca-Cola free of charge as a part of their own sales promotion
campaign [7].
Place: Coca Cola being in the market for more than 130 years and operating in more than 200 countries worldwide, it
has developed a large distribution network [11].
In 2013, The Coca-Cola Company was presented with the
Creative Marketer of the Year Award at the Cannes Lion
International Festival of Creativity, which is considered to
be the world’s foremost celebration of creative excellence
in brand communications. Joe Tripodi, chief marketing and
commercial officer accepted the award on behalf of CocaCola “We are humbled and honoured to receive this
honor, which has been in the making for many decades…
The legacy we want to leave is of a brand and company
that does good things for the world and speaks to
optimism, positivity and happiness”. Since the company
won their first Cannes Lion back in 1967, they have won
over 120 awards for work spanning many brands, creative
disciplines and geographies. Jonathan Mildenhall, Vice
President of advertising strategy and content excellence at
the company, said the “secret formula the Cannes juries
are looking for – brutal simplicity, genuine authenticity,
seamless technology, an authentic product role and a
strong social purpose” [3].
COMPETITOR ANALYSIS CHART
Most Valuable Soft Drink Brands Worldwide
in 2019, Based on Brand Value (million USD)
Dr. Pepper
Gatorade
Monster
Tropicana
Sprite
Fanta
Mengniu
Nescafé
Nespresso
Yili
Lipton
Pepsi
Diet Coke
Red Bull
Coca-Cola
3466
4626
5287
5730
5823
6229
6491
7372
7419
8661
9103
10776
12212
13225
68613
0
10000
20000
30000
40000
50000
60000
70000
This chart shows the brand value of the
world's most valuable soft drink brands in
2019. That year, Coca-Cola came in first with a
brand value of nearly 68.6 billion USD and Red
Bull was the second most valuable soft drink
brand worldwide with a brand value of about
13.23 billion U.S. dollars. Multinational
corporations facing the high competition in
the soft drink market comprise The Coca-Cola
Company, PepsiCo. Inc. and Dr. Pepper
Snapple. In this segment, The Coca-Cola
Company and PepsiCo have been competitors
for a while. PepsiCo has to deal with the ‘Pepsi
challenge’, which was originally set as a taste
experiment, as Coca-Cola’s rival. People were
invited to try beverages out of two identical
cups – one containing PepsiCo and the other
containing Coca-Cola. Consumers were then
asked to rank the taste of these two products
and the blind analysis showed that most
Americans preferred PepsiCo. Rather than
Coca-Cola, based solely on taste [8].
EXECUTIVE SUMMARY
Coca-Cola is the world’s largest beverage company and it offers nearly 4,000 drink options through its 500
different brands including: Diet Coke, Coca-Cola Zero, Dasani, Glaceau Smartwater, Minute Maid, Simply Orange,
Honest Tea, and Vitaminwater , 21 of which generate more than $1 billion in annual retail sales. Sold in over 200
countries with 1.9 billion servings per day of their company’s product. Interbrand has listed Coca-Cola as the
3rd Best Global Brand with an estimated value of $79.6 billion. Coca-Cola is proud to have a long history of
sponsoring big events, organizations and projects such as: FIFA World Cups, Olympic Games, NASCAR, American
Idol, and the BET Network. Moreover, even though there is clear direct competition from PepsiCo, there are
many other companies which are indirectly competing with Coca-Cola such as: Starbucks, Costa Coffee, Dunkin’
Donuts, Tropicana, Lipton Juices, and Nescafé. Their biggest environmental problem is water scarcity since it is
the main ingredient in Coca-Cola. In 2018, Coca-Cola announced their “World Without Waste” initiative , which is
to collect and recycle the equivalent of every bottle or can that they sell globally by 2020. The company and its
network of bottling partners will tackle the ambitious goal through a renewed focus on the entire packaging
lifecycle- from how their bottles and cans are designed and made, to how they will be 100% recycled and
repurposed.
CONCLUSION
Coca-Cola is one of the most renowned brands in the world. Through a SWOT analysis, I was able to discover its
strengths, weaknesses, opportunities, and threats. Its main weakness is definitely the health concerns behind it
because people are striving for healthier options now a days, especially in North America. Although Coca-Cola
owns beverage 500 brands, their issue is that they have low product diversification, unlike PepsiCo who sells
famous food brands like: Quaker, Cheetos, and Frito-Lay. Through a PESTLE Analysis I was able to discover that
many countries have different laws when it comes to sugar and caffeine intake, meaning Coca-Cola needs to
meet those regulations because they have faced lawsuits in the past due to disobeying the law. Furthermore,
through creating a journey map, I was able to see what happens to the body after an hour of drinking a can of
Coca-Cola, and understanding why this product can be highly addictive. Additionally, after creating a user
experience chart, I was able to understand the way that this product makes people feel. I also created a
competitor analysis chart which revealed that Coca-Cola is the most valuable soft-drink brand in 2019,
although consumers were invited to try the ‘Pepsi Challenge’ and they said that they preferred PepsiCo over
Coca-Cola based on taste. Coca-Cola has a unique branding strategy by finding a way to speak to consumers at
a more personal level and keeping their philosophy of “happiness and sharing”. Finally, the brand won the
Creative Marketer of the Year Award at the Cannes Lion International Festival of Creativity in 2013.
WORKS CITED - COURSE CONNECTIONS
[1] Matrix, S. (2019) Creative Intrapreneurship. Module 01: Introduction. “A clever intrapreneur has to understand what motivates different people, and frame ideas slightly differently when seeking individual support” says
Professor Filipe Santos, Católica-Lisbon School of Business.
-
Keeping this quote in mind, I decided to use more than three visuals in order to analyze the consumption of Coca-Cola because I wanted to learned about the strengths, weaknesses, opportunities, and threats of the
company, and I discovered what problems need solving in order to improve the company.
[2] Matrix, S. (2019) Doing Competitive Analysis and Observational Research. Module 02: Opportunity Discovery. “Examine the entire end-to-end user experience” says “John Jantsch.
-
I used this when creating a user experience chart and a journey map to analyze the bodily user experience of the consumption of Coca-Cola. I was able to understand why people are either highly addictive to the product,
or do not want to consumer it whatsoever.
[3] Porat, S. (2014, September 21). How To Differentiate Your Brand, Even When It’s Not That Unique. Retrieved from: https://www.fastcompany.com/3038845/how-to-differentiate-your-brand-even-when-its-not-thatunique
-
I used this article written by Shawn Porat which discusses the four different ways to differentiate your brand even when it’s not unique, and I used it to analyze what differentiates Coca-Cola from its main competitors
like PepsiCo, and what continues to make it unique despite the comparisons.
[4] Matrix, S. (2019) Wow Moments. Module 03: Differentiation. “If you’re customer focused, you’re always waking up wondering, how can we make that customer say, wow!” said Jeff Bezos, Amazon Founder and CEO.
-
This quote by Jeff Bezos really summed up the purpose of that module because with the help of the user experience chart I was able to tell what made consumers so obsessed with this product.
[5] Matrix, S. (2019) Branding. Module 03: Differentiation. “Your most unhappy customers are your greatest source of leaning” said Bill Gates.
-
This quote reminded me that The Coca-Cola Company has looked at their bad customers reviews and decided to make a change by creating Coca-Cola Zero Sugar to cater to consumers that are looking for a healthier
alternative.
WORKS CITED – EXTERNAL RESOURCES
[6] Moye, J., Work That Matters: Coca-Cola Named Creative Marketer of the Year, Wins 20 Additional Cannes Lions, 2013. Retrieved from: https://www.coca-colacompany.com/stories/work-that-matters-coca-cola-namedcreative-marketer-of-the-year-wins-20-additional-cannes-lions
-Used this to see how Coca-Cola is a creative company.
[7] Yereone, What makes Coca-Cola world’s most recognizable brands, 2018. Retrieved from: https://www.yereone.com/blog/coca-cola-brands-success-story/
-Used this to see the strategies that Coca-Cola used to become one of the world’s most recognizable brand.
[8] Conway, J., Leading most valuable soft drink brands wordwide, 2019. Retrieved from: https://www.statista.com/statistics/273063/leading-15-most-valuable-global-soft-drink-brands-based-on-brand-value/
-Used this for my competitor analysis map.
[9]Bajaj, N., An insight into Coca Cola’s Visual branding strategy, 2017. Retrieved from: https://medium.com/@NamiSonthalia/an-insight-into-coca-colas-visual-branding-strategy-bba0eb0bc519
-Used this for my Coca-Cola’s Visual Branding Strategies slide.
[10] The Coca-Cola Company, 2018 Business & Sustainability Report, 2019. Retrieved from: https://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2019/Coca-Cola-Business-andSustainability-Report.pdf
-Used this for my opportunity section in SWOT.
[11] Mba Skool, Coca Cola Marketing Mix (4Ps) Strategy, 2018. Retrieved from https://www.mbaskool.com/marketing-mix/products/16786-coca-cola.html
-Used this for Coca-Cola’s promotional and marketing strategies slide.
[12] The Editors of Encyclopedia Britannica, The Coca-Cola Company, 2019. Retrieved from: https://www.britannica.com/topic/The-Coca-Cola-Company
-Used this for my introduction slide.