Coca Cola Company

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Coca Cola Company

Company history

In 1886, an Atlanta pharmacist, Dr. John S. Pemberton created a distinctive tasting soft drink. His partner and bookkeeper, Frank M. Robinson , is credited with naming the beverage “Coca-Cola” as well as designing the trademarked, distinct script, still used today.

Three versions of Coca-Cola were on the market by 1888, sold by three separate companies. Candler incorporated The Coca-Cola Company in 1982, and began marketing the product. The drink achieved the status of national icon for the USA by its 50th anniversary. Bottles of Coca-Cola were sold starting in 1894, and cans in 1955.

“New Coke” came out in 1985 but it was disappointed customers. The company switched back to the original formula and renamed it as Coca Cola

Classic. In 2005, the company launched "Diet Coke", sweetened with artificial flavors. Later in 2005, it announced "Coca Cola Zero", sweetened with aspartame and acesulfame potassium.

Coca Cola is now being sold around the world. The Coca-Cola company also sponsors an assortment of events, including the "Olympic Games", and

“Football World Cup".

Coke launches special Thailand campaign with nicknames printed on cans, bottles

The campaign is aimed at encouraging young Thais to express their feelings and connect with one another. Also, they want to inspire them to connect with the Coca-Cola brand and drink more Coke with an investment of Bt140 million. The campaign received strongly positive consumer response, with more than 5 million cans sold.

Keys to be successful

1.

Advertisement: “The only drink name that trips off lips the world over,

Coca-Cola”. The coca cola company knows the ‘cool power’ of a catchy slogan, and ubiquitous symbol, hence its advertising has always being simple, effective, and above all, cool.

2. Product lines: The Coca-Cola Company offers a portfolio of more than 3,500 products in all around the world which can cover all customers’ needs. They produce 7 main types of products; energy drinks, juices/juice drinks, soft drinks, sports drinks, tea and coffee, water and other.

Coca-Cola profit dropped, but it found new customers in Thailand and India

Coca-Cola, the world’s largest soft drinks manufacturer, saw its profit fall 15% year-on-year in the first quarter to $1.75 billion. Coke also reported slightly lower revenue of $11.04 billion. Coke has been hit by higher costs of raw materials, economic uncertainty in core markets like Europe, and falling soda consumption in the US.

However, it’s having luck in some countries. The volume of finished Coke drinks sold in Thailand and India rose by 38% and 30%, respectively, as well as in Russia and China by 15% and 6%.

Profit Slides 8.5% for Coke, as Weak Sales Abroad Hit Hard

Changing consumer tastes and concerns about the role of soda in the nation’s obesity crisis were among the problems as responsible for lower earnings and sales for Coca-Cola in the fourth quarter. The company reported on Tuesday that net income fell 8.5 percent, to $1.71 billion, or 38 cents a share, in the quarter that ended Dec. 31, 2013.

Coke needed greater innovation in the development of new, natural sweetener and new distribution channels. Coke is experimenting with a

Stevia-based sweetener in a mid-calorie product called Coke Life, which it sells in Brazil and Argentina.

Coke announced that it had bought 10 percent of Green Mountain Coffee

Roasters. Teaming up with Green Mountain on new beverages will help Coca-

Cola boost sales. Coke will develop a single-serve cold drink pod that can be used with Green Mountain’s Keurig single-serve machines.

Strengths Weaknesses

- One of the best global brand in the world in terms of value

- World’s largest market share in beverage

- Strong marketing and advertising

- Most extensive beverage distribution channel

- Customer loyalty

- Bargaining power over suppliers

- Corporate social responsibility

- Significant focus on carbonated drinks

- Undiversified product portfolio

- High debt level due to acquisitions

- Negative publicity

- Brand failures or many brands with insignificant amount of revenues

Questions and Answers

1. Identify the reasons which make coca cola success in Thailand and India while in most countries sales revenue dropped.

Ans. We think “weather” is one of the factors. Since both Thailand and India are located in the hot weather zone, then soft drink is quite a good option for reducing their thirsty.

Another reason is most western people have problem about their weight while most Thais and Indians don’t have. So, they try to avoid drinking soft drink as it contains a lot of sugar.

2. Do you think it would be successful if the company launched snacks or some new products except beverage?

Ans. Yes, we think. As most of people around the world know the brand, it can be the easier for the company to grab their attentions. Also, coca cola loves have good strategy on advertisement, it can support them to attract customers for its new products.

3. How can coca cola company deal with decreasing in sales revenue problem?

Ans. The company aim to boost their sales revenue and try to focus on new products such as coffee or energy drinks by buying 10 percent of green mountain stock. Also, they try to put more innovation into their product such as coke light in order to attract customers.

4. As consumption of carbonated drink crisis occurs nowadays, do you think it could be recovered again? Why?

Ans. No, we don’t think so. As soft drink contains a lot of negative impacts towards our bodies, it is quite hard to be boomed again. But it is possible to

be increased a little bit as the company may produce more innovative products and persuade customers that it is healthier.

Also, now people have a lot of choices to choose more than in the past, then they will avoid to drink something that is harmful to their health.

5.From question no.4, if coke tried to focus on other kinds of beverage such as coffee or energy drinks, do you think it would be successful?

Ans. No, we don’t think so. Since for a long time, Coca Cola is famous on soft drink globally. Even though it still has many kinds of beverage, but soft drink is no.1. So, if it switched to focus on other beverage, it would have to face with competitors which specified on any products. So, it is quite hard for them to be successful as every times customers hear the name Coca Cola, they will think about only soft drink.

6. Do you think Big Cola or Est cola (Thai’s brand soft drink) could compete with Coke successfully in Thailand? How?

Ans. Yes, we think so. As Big cola offers soft drink with lower price and also doesn’t contain caffeine which is more suitable for children, then it can persuade customers to buy.

For Est cola, after Sermsuk company stopped making contract with Pepsi and created their own brand, Est cola took advantage by delivering its products to old customers that used to be Pepsi’s customers. So, it can support them to be well known among Thais immediately. Also, the company claims that the taste of its product is suitable for Thais as 77% of Thais prefer to drink Est cola.

7. From question no.6, is it possible for those two brands to enter overseas market successfully? Why?

Ans. No, we don’t think so. As both brands try to make their products to be suitable for Thais in term of the taste, it may not be preferred by foreigners.

Also, both brands don’t have strong strategy in term of advertisement, then it is difficult to compete with inter market. Lastly, they don’t have differentiations against competitors as their products are quite similar to Coca cola or Pepsi.

8. Which brand do you think is more successful in Thailand Coke or Pepsi?

Ans. We think Pepsi is more successful than Coke in Thailand. From the research, Thailand is one of the few countries that Pepsi overcome Coke.

Moreover, when we ask people around us, we will find out that most of Thai people prefer Pepsi than Coke because of its taste.

Also, Thailand is tropical country, many people like to drink cold drink with ice. So ,when they put ice into Pepsi, the taste is still almost the same while Coke will be tasteless with ice.

9. In term of the marketing, which brand do you think is more creative?

Ans. I think both brands have different creativity in advertising. Coke always comes up with brilliant campaign such as screen name on its cans or bottles.

But in Thailand Coke did not pay much attention on marketing and advertising like other countries. Coke really pays attention on advertising in U.S. where it’s already had high sales than.

On the other hand, Pepsi always focus on brand ambassadors. As you can see that Pepsi always use famous football player like Lionel Messi or singer like Beyonce to be its presenter and this is good strategy to attract customers’ attention.

References

• http://ezinearticles.com/?Coca-Cola-in-History---A-Brief-History-of-the-

Company&id=1656044

• http://www.worldofcoca-cola.com/coca-cola-facts/coca-cola-history/

• http://www.coca-colacompany.com/stories/coke-lore-slogans

• http://anotherrandom-blog.blogspot.com/2011/10/coca-cola-cool.html

• http://www.coca-colacompany.com/brands/product-descriptions

• http://qz.com/74756/coca-cola-profit-dropped-but-it-found-new-customers-inthailand-and-india/

• http://www.evancarmichael.com/Famous-Entrepreneurs/1021/Starting-the-

Business-Asa-Candler-Pops-His-Way-to-the-Top.html

• http://www.nationmultimedia.com/business/Coke-launches-special-Thailandcampaign-with-nickn-30215572.html

• http://www.strategicmanagementinsight.com/swot-analyses/coca-cola-swotanalysis.html

• http://www.statista.com/chart/1377/most-talked-about-brands-on-facebook/

• http://www.businessinsider.com/coca-cola-vs-pepsi-timeline-2013-1?op=1

• http://www.interbrand.com/it/best-global-brands/2013/Coca-Cola

• http://www.nytimes.com/2014/02/19/business/profit-slides-8-5-for-coke-as-weaksales-abroad-hit-hard.html?ref=cocacolacompany&_r=0

• http://www.evancarmichael.com/Famous-Entrepreneurs/1021/The-Man-Behind-

CocaCola-The-Early-Years-of-Asa-Candler.html

• http://www.nytimes.com/2014/02/19/business/profit-slides-8-5-for-coke-as-weaksales-abroad-hit-hard.html?ref=cocacolacompany&_r=1

• http://www.taipeitimes.com/News/biz/archives/2014/02/07/2003582905

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