CHAPTER I: INTRODUCTION
The Coca-Cola Company is the world’s largest beverage company. Along with Coca-Cola, recognized as the world’s most-valuable brand, the Company markets four of the world’s top five soft drink brands, including Diet Coke, Fanta and Sprite and a wide range of other beverages, including water, juices and juice drinks, tea, coffee and sports drinks. Through one of the world’s largest beverage distribution system, consumers in more than 200 countries enjoy The Coca-Cola Company’s beverages at a rate exceeding 1.6 billion servings each day.
Coca-Cola in India is the country’s leading beverage Company with an unmatched portfolio of beverages. The Company manufactures and markets leading beverage brands like Coca-
Cola, Thums Up, Fanta, Fanta Apple, Limca, Sprite, Maaza, Minute Maid, Burn, Kinley and
Georgia range of tea coffee, Nestea and Fanta Fun Taste.
One of the early investors in India, the Coca-Cola system provides direct and indirect employment to more than 1, 50,000 people. The Coca-Cola System in India has more than 1 million retailers and our business has a multiplier effect on employment and earning opportunities. Coca-Cola in India is the largest domestic buyer of sugar and one of the top buyers of mango pulp. The Coca-Cola System in India business also positively impacts industries like Glass, Plastics, Resin Manufacturers, Sugar, Automobiles, White Goods
Manufacturers, Banking etc.
The Coca-Cola Company has always placed high value on good citizenship. At the heart of
business is a mission statement called the Coca-Cola Promise - “The Coca-Cola Company exists to benefit and refresh everyone that it touches.” This basic proposition entails that the Company’s business should refresh the markets, protect, preserve and enhance the environment and strengthen the community. Coca-Cola India provides extensive support for community programs across the country, with a focus on education, health and water conservation. The Company has installed more than 500 rain water harvesting structures in the country. The Company has also undertaken the rejuvenation and reconstruction of several traditional water bodies including check dams. We are also working towards providing clean drinking water to school children in Chennai and areas in West Bengal in partnership with Rotary International and UN Habitat respectively. The Company is committed to work with communities across India in its effort to contribute to mutual growth and development.
1.1: MISSION, VISION AND VALUES
The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Road map" for winning together with our bottling partners.
Our Mission
Our Road map starts with our mission, which is enduring. It declares our purpose as a
Company and serves as the standard against which we weigh our actions and decisions.
To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference
Our Vision
Our vision serves as the framework for our Road map and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they can be Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities Productivity: Be a highly effective, lean and fast-moving organization
Our Winning Culture
Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality.
Live Our Values
Our values serve as a compass for our actions and describe how we behave in the world.
Leadership: The courage to shape a better future Collaboration: Leverage collective genius
Integrity: Be real Accountability: If it is to be, it’s up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well
Focus on the Market
Focus on needs of our consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious
Work Smart
Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently
Act Like Owners
Be accountable for our actions and in actions Steward system assets and focus on building value Reward our people for taking risks and finding better ways to solve problems Learn from our outcomes -- what worked and what didn’t
Be the Brand
Inspire creativity, passion, optimism and fun
CHAPTER-II: History
2.1: 19th century historical origin:
The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a drugstore in Columbus, Georgia, by John Pemberton, originally as a coca wine called
Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a European coca wine.
In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a nonalcoholic version of French Wine
Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health. Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal.
By 1888, three versions of Coca-Cola – sold by three separate businesses – were on the market. A copartnership had been formed on January 14, 1888 between Pemberton and four Atlanta businessmen: J.C. Mayfield, A.O. Murphey; C.O. Mullahy and E.H. Bloodworth.
Not codified by any signed document, a verbal statement given by Asa Candler years later asserted under testimony that he had acquired a stake in Pemberton's company as early as
1887.
Asa Candler, however, eventually took on a more formal position by being part of the Coca-
Cola Company incorporation filed in the Fulton County Superior Court on March 24, 1888.
This action included Charley Pemberton and Woolfolk Walker, along with the latter's sister,
Margaret Dozier. The four made up the original shareholders for "Coca-Cola Company," a
Georgia corporation. All parties held copies of the Coca-Cola recipe and could continue to use the formula separate of each other.
Pemberton, though, had declared that the name "Coca-Cola" belonged solely to his son
Charley. The situation was quite agitating to both Candler and Walker, and quickly placed the two at odds with Charley Pemberton. What further caused friction over this issue was that John Pemberton variously forgot he had actually signed over the sole rights to the
"Coca-Cola" name to his son Charley earlier. Pemberton's ongoing health problems, compounded by his morphine addiction brought about from his old Civil War injury, made the situation difficult.
Charley Pemberton's record of control over the "Coca-Cola" name was the underlying factor that allowed for him to participate as a major shareholder in the March 1888 Coca-
Cola Company incorporation filing made in his father's place. More so for Candler especially, Charley's position holding exclusive control over the "Coca Cola" name continued to be a thorn in his side.
Asa Candler's oldest son, Charles Howard Candler, authored a book in 1950 published by
Emory University. In this definitive biography about his father, Candler specifically states:
"..., on April 14, 1888, the young druggist [Asa Griggs Candler] purchased a one-third interest in the formula of an almost completely unknown proprietary elixir known as Coca-
Cola."
The deal was actually between John Pemberton's son Charley and Walker, Candler & Co. – with John Pemberton acting as cosigner for his son. For $50 down and $500 in 30 days,
Walker, Candler & Co. obtained all of the one-third interest in the Coca-Cola Company that
Charley held, all while Charley still held on to the name. After the April 14th deal, on April
17, 1888, one-half of the Walker/Dozier interest shares were acquired by Candler for an additional $750.
Charles Howard Candler's statement that April 14, 1888 was the date his father secured a
"one-third interest in the formula" held by Charley Pemberton for the then obscure Coca-
Cola elixir, none-the-less confirms this event was a major turning point for Asa Candler and his interests in Coca-Cola. This, too, was a most auspicious occasion that Asa Candler would have especially wanted to preserve in an 'official' photograph. By this time the "Coca-Cola" syrup-making apparatus had already been moved from Joe Jacob's pharmacy to the basement of Candler's larger 47 Peachtree Street location, where the drink's ever increasing syrup-bottling demands could be better handled.
In 1910, Asa Candler had ordered all corporate documents pertaining to the first Coca-Cola
Company burned. An original 1888 photograph shows the very beginnings of the
company, and formerly was the personal property of Asa Griggs Candler.
In 1914, Margaret Dozier, as co-owner of the original Coca-Cola Company in 1888, brazenly came forward to claim her signature on the 1888 Coca-Cola Company bill of sale had been forged. Subsequent analysis of certain similar transfer documents had also indicated John
Pemberton's signature was most likely a forgery, as well, which some accounts claim was precipitated by his son Charley.
In 1892, Candler set out to incorporate a second company; "The Coca-Cola Company" (the current corporation). When Candler had the earliest records of the "Coca-Cola Company" burned in 1910, the action was claimed to have been made during a move to new corporation offices around this time.
The loss of the early corporate records further obscured the 1888 corporation's legal origins. Only one sole original "ASA G. CANDLER & CO." photograph from 1888 remains, and that example Candler at one time kept at his private home outside of Atlanta.
After Candler had gained a better foothold of Coca-Cola in April 1888, he nevertheless was forced to sell the beverage he produced with the recipe he had under the names "Yum
Yum" and "Koke". This was while Charley Pemberton was selling the elixir, although a cruder mixture, under the name "Coca-Cola", all with his father's blessing. After both names failed to catch on for Candler, by the summer of 1888, the Atlanta pharmacist was quite anxious to establish a firmer legal claim to Coca-Cola, and hoped he could force his two competitors, Walker and Dozier, completely out of the business, as well.
When Dr. John Stith Pemberton suddenly died on August 16, 1888, Asa G. Candler now sought to move swiftly forward to attain his vision of taking full control of the whole Coca-
Cola operation.
Charley Pemberton, an alcoholic, was the one obstacle who unnerved As a Candler more than anyone else. Candler is said to have quickly maneuvered to purchase the exclusive rights to the name "Coca-Cola" from Pemberton's son Charley right after Dr. Pemberton's death. One of several stories was that Candler bought the title to the name from Charley's mother for $300; approaching her at Dr. Pemberton's funeral. Eventually, Charley
Pemberton was found on June 23, 1894, unconscious, with a stick of opium by his side. Ten days later, Charley died at Atlanta's Grady Hospital at the age of 40.
In Charles Howard Candler's 1950 book about his father, he stated: "On August 30th
{1888}, he {Asa Candler} became sole proprietor of Cola-Cola, a fact which was stated on letterheads, invoice blanks and advertising copy."
With this action on August 30, 1888, Candler's sole control became technically all true.
Candler had negotiated with Margaret Dozier and her brother Woolfolk Walker a full payment amounting to $1,000, which all agreed Candler could pay off with a series of notes over a specified time span. By May 1, 1889, Candler was now claiming full ownership of the
Coca-Cola beverage, with a total investment outlay by Candler for the drink enterprise over the years amounting to $2,300.
Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall advertisement was painted in the same year, in Cartersville, Georgia.
The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy
Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles were
Biedenharn bottles, very different from the much later hobble-skirt design now so familiar.
Asa Candler was tentative about bottling the drink, but two entrepreneurs from
Chattanooga,Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899, Chattanooga became the site of the first Coca-Cola bottling company. The loosely termed contract proved to be problematic for the company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers.
Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small quantities, as an over-the-counter remedy for nausea or mildly upset stomach.
2.2: 20th century landmarks
By the time of its 50th anniversary, the soft drink had reached the status of a national icon in the USA. In 1935, it was certified kosher by Atlanta Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some ingredients.
The longest running commercial Coca-Cola soda fountain anywhere was Atlanta's
Fleeman's Pharmacy, which first opened its doors in 1914. Jack Fleeman took over the pharmacy from his father and ran it till 1995; closing it after 81 years.
On July 12, 1944, the one-billionth gallon of Coca-Cola syrup was manufactured by The
Coca-Cola Company.
On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the drink with "New Coke". Follow-up taste tests revealed most consumers preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for the public's nostalgia for the old drink, leading to a backlash. The company gave in to protests
and returned to a variation of the old formula using high fructose corn syrup instead of cane sugar as the main sweetener, under the name Coca-Cola Classic, on July 10, 1985.
2.3: 21st century
On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968.
In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola".
The word "Classic" was removed because "New Coke" was no longer in production, eliminating the need to differentiate between the two. The formula remained unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-US-fluid- ounce (470 ml) bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image. The word "Classic" was removed from all Coca-Cola products by 2011.
In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke. However, some Costco locations
(such as the ones in Tucson, Arizona), sell imported Coca-Cola from Mexico.
Coca-Cola introduced the 7.5-ounce mini-can in 2009, and on September 22, 2011, the company announced price reductions, asking retailers to sell eight-packs for $2.99. That same day, Coca-Cola announced the 12.5-ounce bottle, to sell for 89 cents. A 16-ounce
bottle has sold well at 99 cents since being re-introduced, but the price was going up to
$1.19.
In 2012, Coca-Cola would resume business in Myanmar after 60 years of absence due to
U.S.-imposed investment sanctions against the country. Coca-Cola with its partners is to invest USD 5 billion in its operations in India by 2020.
CHAPTER III: Strategies & Strategic Management Programs
3.1: Strategy
One of our goals is to maximize growth and profitability to create value for our shareholders. Our efforts to achieve this goal are based on: (1) transforming our commercial models to focus on our customers’ value potential and using a value-based segmentation approach to capture the industry’s value potential, (2) implementing multi- segmentation strategies in our major markets to target distinct market clusters divided by consumption occasion, competitive intensity and socioeconomic levels; (3) implementing well-planned product, packaging and pricing strategies through different distribution channels; (4) driving product innovation along our different product categories and (5) achieving the full operating potential of our commercial models and processes to drive operational efficiencies throughout our company.
To achieve these goals, we intend to continue to focus our efforts on, among other initiatives, the following:
working with The Coca-Cola Company to develop a business model to continue exploring and participating in new lines of beverages, extending existing product lines and effectively advertising and marketing our products;
developing and expanding our still beverage portfolio through innovation, strategic acquisitions and by entering into agreements to jointly acquire companies with The Coca-Cola Company;
expanding our bottled water strategy, in conjunction with The Coca-Cola Company through innovation and selective acquisitions to maximize profitability across our market territories;
strengthening our selling capabilities and go-to-market strategies, including pre- sale, conventional selling and hybrid routes, in order to get closer to our clients and help them satisfy the beverage needs of consumers;
implementing selective packaging strategies designed to increase consumer demand for our products and to build a strong returnable base for the Coca-Cola brand;
replicating our best practices throughout the value chain;
rationalizing and adapting our organizational and asset structure in order to be in a better position to respond to a changing competitive environment;
committing to building a multi-cultural collaborative team, from top to bottom; and
broadening our geographic footprint through organic growth and strategic acquisitions.
3.2: USE OF STIMULANTS IN FORMULA
When launched, Coca-Cola's two key ingredients were cocaine and caffeine. The cocaine was derived from the coca leaf and the caffeine from kola nut, leading to the name Coca-
Cola (the "K" in Kola was replaced with a "C" for marketing purposes).
3.2.1: Coca – cocaine
Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose; in 1891,
Candler claimed his formula (altered extensively from Pemberton's original) contained only a tenth of this amount. Coca-Cola once contained an estimated nine milligrams of cocaine per glass. In 1903, it was removed.
After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves – the leftovers of the cocaine-extraction process with trace levels of cocaine. Coca-Cola now uses a cocaine-free coca leaf extract prepared at a Stepan Company plant in Maywood, New
Jersey.
In the United States, the Stepan Company is the only manufacturing plant authorized by the
Federal Government to import and process the coca plant, which it obtains mainly from
Peru and, to a lesser extent, Bolivia. Besides producing the coca flavoring agent for Coca-
Cola, the Stepan Company extracts cocaine from the coca leaves, which it sells to
Mallinckrodt, a St. Louis, Missouri, pharmaceutical manufacturer that is the only company in the United States licensed to purify cocaine for medicinal use.
3.2.2: Kola nuts – caffeine
Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for example, the ingredient label states "Flavourings (Including Caffeine)." Kola nuts contain about 2.0 to
3.5% caffeine, are of bitter flavor and are commonly used in cola soft drinks. In 1911, the
U.S. government initiated United States v. Forty Barrels and Twenty Kegs of Coca-Cola, hoping to force Coca-Cola to remove caffeine from its formula. The case was decided in favor of Coca-Cola. Subsequently, in 1912, the U.S. Pure Food and Drug Act was amended, adding caffeine to the list of "habit-forming" and "deleterious" substances which must be listed on a product's label.
Coca-Cola contains 34 mg of caffeine per 12 fluid ounces (9.8 mg per 100 ml).
3.3: SWOT Analysis
Strengths- Coca Cola is an extremely recognizable company. Popularity is one of its superior strengths that is virtually incomparable. Coca Cola is known very well worldwide.
It's branding is obvious and easily recognized. Things like, logos and promos shown on t-
shirts, hats, and collectible memorabilia. Without a doubt, no beverage company compares to Coca Cola's social popularity status. Some people buy coke, not only because of its taste, but because it is widely accepted and they feel like they are part of something so big and unifying. At the other end of the spectrum, certain individuals choose not to drink coke, based solely on rebelling from the world's idea that coke is something of such great power.
Overwhelming is the best word to describe Coca Cola's popularity. It is scary to think that its popularity has been constantly growing over the years and the possibility that there is still room to grow. If you speak the words “Coca Cola”, it would definitely be recognized all around the world. Money is another thing that is a strength of the company. Coca Cola deals with massive amounts of money all year. Like all businesses, they have had their ups and downs financially, but they have done well in this compartment and will continue to do well and improve. The money they are earning is substantially better than most beverage companies, and with that money, they put back into their own company so that they can improve. Another strength that is very important to Coca Cola is customer loyalty. The
80/20 rule comes into effect in this situation. Eighty percent of their profit comes from
20% of their loyal customers. Many people/families are extremely loyal to Coca Cola. It would not be rare to constantly find bottles and cases of a product such as coke in a house.
It seems that some people would drink coke religiously like some people would drink water and milk. This is an improbable feat. Customers will continually purchase these products, and will probably do so for a very long time. If two parents were avid Coca Cola drinkers, this will be passed down do their children as they grow loyal to the company.
With Coca Cola’s ability to sell their product all over the world, customers will continue to buy what they know and what they like…Coca Cola products
Weaknesses- Coca Cola is a very successful company, with limited weaknesses. However they do have a variety of weaknesses that need to be addressed if they want to rise to the next level. Word of mouth is probably a strength and weakness of every company. While many people have good things to say, there are many individuals who are against Coca Cola as a company, and the products in which they produce. Word of mouth unfortunately is something that is very hard to control. While people will have their opinions, you have to try to sway their negative views. If bad comments and views are put out to people who have yet to try Coca Cola products, then that could produce a lost customer which shows why word of mouth is a weakness. Another aspect that could be viewed as a weakness is the lack of popularity of many of Coca Cola’s drinks. Many drinks that they produce are extremely popular such as Coke and Sprite but this company has approximately 400 different drink types. Most are unknown and rarely seen for available purchase. These drinks do not probably taste bad, but are rather a result of low profile or non existent advertising. This is a weakness that needs to be looked at when analyzing their company.
Another weakness that has been greatly publicized is the health issues that surround some of their products. It is known that a popular product like coke is not very beneficial to your body and your health. With today’s constant shift to health products, some products could possibly loose customers. This new focus on weight and health could be a problem for the product that are labeled detrimental to your health.
Opportunities- Coca Cola has a few opportunities in its business. It has many successful brands that it should continue to exploit and pursue. Coca Cola also has the opportunity to advertise its less popular products. With a large income it has the available money to put
some of these other beverages on the market. This could be very beneficial to the company if they could start selling these other products to the same extent that they do with their main products. Another opportunity that we have seen being put to use before is the ability for Coca Cola to buy out their competition. This opportunity rarely presents itself in the world of business. However, with Coca Cola’s power and success, such a task is not impossible. Coca Cola has bought out a countless number of drink brands. An easy way to turn their profit into your profit is too buy out their company. Even though this may cost a vast amount of money initially, in the long run, if all goes to plan, it results in a large profit.
Also, the company will no longer need to worry about this product being part of the competition. Brand recognition is the significant factor affecting Cokes competitive position. Coca Cola is known well throughout 90% of the world population today. Now
Coca Cola wants to get there brand name known even better and possibly get closer and closer to 100%. It is an opportunity that most companies will ever dream of, and would be a supreme accomplishment. Coca Cola has an opportunity to continue to widen the gap between them and their competitors.
Threats- Despite the fact that Coca Cola dominates its market, it still has to deal with many threats. Even though Coca Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness attitude of the market could have a serious effect on Coca Cola. This definitely needs to be viewed as a dominant threat. In today’s world, people are constantly trying to change their eating and drinking habits. This could directly affect the sale of Coca Cola’s products. Another possible issue is the legal side of things. There are always issues with a company of such supreme wealth and popularity.
Somebody is always trying to find fault with the best and take them down. Coca Cola has to be careful with lawsuits. Health minister could also be looked at as a threat. Again, some people may try to exploit the unhealthy side of Coca Cola’s products and could threaten the status and success of sales. Other threats are of course the competition. Coca Cola’s main competition being Pepsi, sells a very similar drink. Coca Cola needs to be careful that Pepsi does not grow to be a more successful drink. Other product such as juices, coffee, and milk are threats. These other beverage options could take precedent in some people’s minds over Coca Cola’s beverages and this could threaten the potential success it presents again.
Strengths- Coca Cola is a
CHAPTER IV: PRODUCTION
4.1: Ingredients
Carbonated water
Sugar (sucrose or high-fructose corn syrup depending on country of origin)
Caffeine
Phosphoric acid
Caramel color (E150d)
Natural flavorings
A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar, approximately 10 teaspoons), 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories.
4.2: Formula of natural flavorings
The exact formula of Coca-Cola's natural flavorings (but not its other ingredients, which are listed on the side of the bottle or can) is a trade secret. The original copy of the formula was held in SunTrust Bank's main vault in Atlanta for 86 years. Its predecessor, the Trust
Company, was the underwriter for the Coca-Cola Company's initial public offering in 1919.
On December 8, 2011, the original secret formula was moved from the vault at SunTrust
Banks to a new vault containing the formula which will be on display for visitors to its
World of Coca-Cola museum in downtown Atlanta.
A popular myth states that only two executives have access to the formula, with each
executive having only half the formula. The truth is that while Coca-Cola does have a rule restricting access to only two executives, each knows the entire formula and others, in addition to the prescribed duo, have known the formulation process.
On February 11, 2011, Ira Glass revealed on his PRI radio show, This American Life, that the secret formula to Coca-Cola had been uncovered in a 1979 newspaper. The formula found basically matched the formula found in Pemberton's diary.
4.3: Franchised production model
The actual production and distribution of Coca-Cola follows a franchising model. The Coca-
Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world, who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors.
The Coca-Cola Company owns minority shares in some of its largest franchises, such as
Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company and Coca-
Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in the world. Independent bottlers are allowed to sweeten the drink according to local tastes.
The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling
Company".
CHAPTER V: BRAND PORTFOLIO
This is a list of variants of Coca-Cola introduced around the world. In addition to the caffeine-free version of the original, additional fruit flavors have been included over the years. Not included here are versions of Diet Coke and Coca-Cola Zero; variant versions of those no-calorie colas can be found at their respective articles.
Name Launched Discontinue Notes Picture
Coca-Cola The original version of Coca-Cola. 1886
Caffeine-Free 1983 The caffeine free version of Coca-Cola. Coca-Cola
Was available in Canada starting in 1996. Called Coca-Cola 1985 "Cherry Coca-Cola (Cherry Coke)" in North Cherry America until 2006.
New Coke/"Coca- 1985 2002 Was still available in Yap and American Samoa Cola II"
Available in:
Australia, American Samoa, Austria, Belgium, Brazil, China, Denmark, Federation of Bosnia and Coca-Cola Herzegovina, Finland, France, Germany, Hong 2001 2005 with Lemon Kong, Iceland, Korea, Luxembourg, Macau, Malaysia, Mongolia, Netherlands, New Caledonia, New Zealand, Réunion, Singapore, Spain, Switzerland, Taiwan, Tunisia, United Kingdom, United States, and West Bank-Gaza
Available in: Austria, Australia, China, Finland, Germany, Hong Kong, New Zealand, Malaysia, Coca-Cola 2002; 2007 2005; Sweden, United Kingdom and United States. It Vanilla was reintroduced in June 2007 by popular demand.
Available in Belgium, Netherlands, Singapore, Coca-Cola 2005 Canada, the United Kingdom, and the United with Lime States.
Was only available in New Zealand. Currently Coca-Cola June 2005 End of 2005 available in the United States in Coca-Cola Raspberry Freestyle fountain since 2009.
Coca-Cola Black Cherry 2006 Middle of 2007 Was replaced by Vanilla Coke in June 2007 Vanilla
Only available in the United States, France, Coca-Cola Beginning of 2006 Canada, Czech Republic, Bosnia and Blāk 2008 Herzegovina, Bulgaria and Lithuania
Coca-Cola Only available in Bosnia and Herzegovina, New 2006 Citra Zealand and Japan.
Was available in the United Kingdom and Gibraltar for a limited time. In Germany, Austria Coca-Cola 2007 and Switzerland it's sold under the label Mezzo Orange Mix. Currently available in Coca-Cola Freestyle fountain outlets in the United States since 2009.
5.1: Logo design
The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason
Robinson, in 1885. Robinson came up with the name and chose the logo's distinctive cursive script. The typeface used, known as Spenserian script, was developed in the mid-
19th century and was the dominant form of formal handwriting in the United States during that period.
Robinson also played a significant role in early Coca-Cola advertising. His promotional suggestions to Pemberton included giving away thousands of free drink coupons and plastering the city of Atlanta with publicity banners and streetcar signs.
5.2: Contour bottle design
The equally famous Coca-Cola bottle, called the "contour bottle" within the company, but known to some as the "hobble skirt" bottle, was created by bottle designer Earl R. Dean. In
1915, the Coca-Cola Company launched a competition among its bottle suppliers to create a new bottle for their beverage that would distinguish it from other beverage bottles, "a bottle which a person could recognize even if they felt it in the dark, and so shaped that, even if broken, a person could tell at a glance what it was."
Chapman J. Root, president of the Root Glass Company of Terre Haute, Indiana, turned the project over to members of his supervisory staff, including company auditor T. Clyde
Edwards, plant superintendent Alexander Samuelsson, and Earl R. Dean, bottle designer and supervisor of the bottle molding room. Root and his subordinates decided to base the bottle's design on one of the soda's two ingredients, the coca leaf or the kola nut, but were unaware of what either ingredient looked like. Dean and Edwards went to the Emeline
Fairbanks Memorial Library and were unable to find any information about coca or kola.
Instead, Dean was inspired by a picture of the gourd-shaped cocoa pod in the Encyclopædia
Britannica. Dean made a rough sketch of the pod and returned to the plant to show Root.
He explained to Root how he could transform the shape of the pod into a bottle. Root gave
Dean his approval.
Faced with the upcoming scheduled maintenance of the mold-making machinery, over the next 24 hours Dean sketched out a concept drawing which was approved by Root the next morning. Dean then proceeded to create a bottle mold and produced a small number of bottles before the glass-molding machinery was turned off.
Chapman Root approved the prototype bottle and a design patent was issued on the bottle in November, 1915. The prototype never made it to production since its middle diameter was larger than its base, making it unstable on conveyor belts. Dean resolved this issue by decreasing the bottle's middle diameter. During the 1916 bottler's convention, Dean's contour bottle was chosen over other entries and was on the market the same year. By
1920, the contour bottle became the standard for the Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the most recognized packages on the planet..."even in the dark!".
As a reward for his efforts, Dean was offered a choice between a $500 bonus or a lifetime job at the Root Glass Company. He chose the lifetime job and kept it until the Owens-Illinois
Glass Company bought out the Root Glass Company in the mid-1930s. Dean went on to work in other Midwestern glass factories.
One alternative depiction has Raymond Loewy as the inventor of the unique design, but, while Loewy did serve as a designer of Coke cans and bottles in later years, he was in the
French Army the year the bottle was invented and did not emigrate to the United States until 1919. Others have attributed inspiration for the design not to the cocoa pod, but to a
Victorian hooped dress.
In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California took advantage of a case involving a waitress injured by an exploding Coca-Cola bottle to articulate the doctrine of strict liability for defective products. Traynor's concurring opinion in Escola v. Coca-Cola Bottling Co. is widely recognized as a landmark case in U.S. law today.
In 1997, Coca-Cola introduced a "contour can," similar in shape to its famous bottle, on a few test markets, including Terre Haute, Indiana.[67] The can has never been widely released.
A new slim and tall can began to appear in Australia on December 20, 2006; it cost
AU$1.95. The cans have a resemblance to energy drink cans. The cans were commissioned by Domino's Pizza and are available exclusively at their restaurants.
In January 2007, Coca-Cola Canada changed "Coca-Cola Classic" labeling, removing the
"Classic" designation, leaving only "Coca-Cola." Coca-Cola stated this is merely a name change and the product remains the same.
In 2007, Coca-Cola introduced an aluminum can designed to look like the original glass
Coca-Cola bottles.
In 2007, the company's logo on cans and bottles changed. The cans and bottles retained the red color and familiar typeface, but the design was simplified, leaving only the logo and a plain white swirl (the "dynamic ribbon").
In 2008, in some parts of the world, the plastic bottles for all Coke varieties (including the larger 1.5- and 2-liter bottles) were changed to include a new plastic screw cap and a slightly taller contoured bottle shape, designed to evoke the old glass bottles.
5.3: Designer bottles
Karl Lagerfeld is the latest designer to have created a collection of aluminum bottles for
Coca-Cola. Lagerfeld is not the first fashion designer to create a special version of the famous Coca-Cola Contour bottle. A number of other limited edition bottles by fashion designers for Coca Cola Light soda have been created in the last few years.
In 2009, in Italy, Coca-Cola Light had a Tribute to Fashion to celebrate 100 years of the recognizable contour bottle. Well known Italian designers Alberta Ferretti, Blumarine, Etro,
Fendi, Marni, Missoni, Moschino, and Versace each designed limited edition bottles.
CHAPTER VI: COMPETITORS
Pepsi, the flagship product of PepsiCo, The Coca-Cola Company's main rival in the soft drink industry, is usually second to Coke in sales, and outsells Coca-Cola in some markets. RC
Cola, now owned by the Dr. Pepper Snapple Group, the third largest soft drink manufacturer, is also widely available.
Around the world, many local brands compete with Coke. In South and Central America
Kola Real, known as Big Cola in Mexico, is a growing competitor to Coca-Cola. On the
French island of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French region of Brittany, Breizh Cola is available.
In Peru, Inca Kola outsells Coca-Cola, which led The Coca-Cola Company to purchase the brand in 1999. In Sweden, Julmust outsells Coca-Cola during the Christmas season. In
Scotland, the locally produced Irn-Bru was more popular than Coca-Cola until 2005, when
Coca-Cola and Diet Coke began to outpace its sales. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. The Coca-Cola Company purchased Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% market-share in
India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, due to a United
States embargo. French brand Mecca Cola and British brand Qibla Cola are competitors to
Coca-Cola in the Middle East. In Turkey, Cola Turka, in Iran and the Middle East, Zam Zam
Cola and Parsi Cola, in some parts of China, China Cola, in Slovenia, Cockta and the inexpensive Mercator Cola, sold only in the country's biggest supermarket chain, Mercator,
are some of the brand's competitors. Classiko Cola, made by Tiko Group, the largest manufacturing company in Madagascar, is a serious competitor to Coca-Cola in many regions. Laranjada is the top-selling soft drink on Madeira.
CHAPTER VII: ADVERTISING
Coca-Cola's advertising has significantly affected American culture, and it is frequently credited with inventing the modern image of Santa Claus as an old man in a red-and-white suit. Although the company did start using the red-and-white Santa image in the 1930s, with its winter advertising campaigns illustrated by Haddon Sundblom, the motif was already common. Coca-Cola was not even the first soft drink company to use the modern image of Santa Claus in its advertising: White Rock Beverages used Santa in advertisements for its ginger ale in 1923, after first using him to sell mineral water in 1915. Before Santa
Claus, Coca-Cola relied on images of smartly dressed young women to sell its beverages.
Coca-Cola's first such advertisement appeared in 1895, featuring the young Bostonian actress Hilda Clark as its spokeswoman.
1941 saw the first use of the nickname "Coke" as an official trademark for the product, with a series of advertisements informing consumers that "Coke means Coca-Cola".In 1971 a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing", produced by
Billy Davis, became a hit single.
Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that
everyone on Earth drank Coca-Cola as their preferred beverage. This is especially true in southern areas of the United States, such as Atlanta, where Coke was born.
Some Coca-Cola television commercials between 1960 through 1986 were written and produced by former Atlanta radio veteran Don Naylor (WGST 1936–1950, WAGA 1951–
1959) during his career as a producer for the McCann Erickson advertising agency. Many of these early television commercials for Coca-Cola featured movie stars, sports heroes and popular singers.
During the 1980s, Pepsi-Cola ran a series of television advertisements showing people participating in taste tests demonstrating that, according to the commercials, "fifty percent of the participants who said they preferred Coke actually chose the Pepsi." Statisticians pointed out the problematic nature of a 50/50 result: most likely, the taste tests showed that in blind tests, most people cannot tell the difference between Pepsi and Coke. Coca-
Cola ran ads to combat Pepsi's ads in an incident sometimes referred to as the cola wars; one of Coke's ads compared the so-called Pepsi challenge to two chimpanzees deciding
which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership in the market.
Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed three commercials for the company. In 1994, to commemorate her five years with the company, Coca-Cola issued special Selena coke bottles.
The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting Coke- product images into many of its films. After a few early successes during Coca-Cola's ownership, Columbia began to under-perform, and the studio was sold to Sony in 1989.
Coca-Cola has gone through a number of different advertising slogans in its long history, including "The pause that refreshes," "I'd like to buy the world a Coke," and "Coke is it" (see
Coca-Cola slogans).
In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where consumers earn points by entering codes from specially marked packages of Coca-Cola products into a website. These points can be redeemed for various prizes or sweepstakes entries.
In Australia in 2011, Coca-Cola began the "share a Coke" campaign, where the Coca-Cola logo was replaced on the bottles and replaced with first names. Coca-Cola used the 150 most popular names in Australia to print on the bottles. The campaign was paired with a website page, Facebook page and an online "share a virtual Coke".
7.1: Holiday campaigns
The "Holidays are coming!" advertisement features a train of red delivery trucks, emblazoned with the Coca-Cola name and decorated with Christmas lights, driving through a snowy landscape and causing everything that they pass to light up and people to watch as they pass through.
The advertisement fell into disuse in 2001, as the Coca-Cola company restructured its advertising campaigns so that advertising around the world was produced locally in each country, rather than centrally in the company's headquarters in Atlanta, Georgia. In
2007, the company brought back the campaign after, according to the company, many consumers telephoned its information center saying that they considered it to mark the beginning of Christmas. The advertisement was created by U.S. advertising agency
Doner, and has been part of the company's global advertising campaign for many years.
Keith Law, a producer and writer of commercials for Belfast CityBeat, was not convinced by
Coca-Cola's reintroduction of the advertisement in 2007, saying that "I don't think there's anything Christmassy about HGVs and the commercial is too generic."
In 2001, singer Melanie Thornton recorded the campaign's advertising jingle as a single,
Wonderful Dream (Holidays are Coming), which entered the pop-music charts in Germany at no. 9. In 2005, Coca-Cola expanded the advertising campaign to radio, employing several variations of the jingle.
In 2011, Coca-Cola launched a campaign for the Indian holiday Diwali. The campaign included commercials, a song and an integration with Shah Rukh Khan’s film
Ra.One.
7.2: Sports sponsorship
Coca-Cola was the first commercial sponsor of the Olympic games, at the 1928 games in
Amsterdam, and has been an Olympics sponsor ever since. This corporate sponsorship included the 1996 Summer Olympics hosted in Atlanta, which allowed Coca-Cola to spotlight its hometown. Most recently, Coca-Cola has released localized commercials for the 2010 Winter Olympics in Vancouver; one Canadian commercial referred to Canada's hockey heritage and was modified after Canada won the gold medal game on February 28,
2010 by changing the ending line of the commercial to say "Now they know whose game they're playing".
Since 1978, Coca-Cola has sponsored the FIFA World Cup, and other competitions organised by FIFA. One FIFA tournament trophy, the FIFA World Youth Championship from
Tunisia in 1977 to Malaysia in 1997, was called "FIFA — Coca Cola Cup". In addition,
Coca-Cola sponsors the annual Coca-Cola 600 and Coke Zero 400 for the NASCAR Sprint
Cup Series at Charlotte Motor Speedway in Concord, North Carolina and Florida.
Coca-Cola has a long history of sports marketing relationships, which over the years have included Major League Baseball, the National Football League, the National Basketball
Association, and the National Hockey League, as well as with many teams within those
leagues. Coca-Cola has had a longtime relationship with the NFL's Pittsburgh Steelers, due in part to the now-famous 1979 television commercial featuring "Mean Joe" Greene, leading to the two opening the Coca-Cola Great Hall at Heinz Field in 2001 and a more recent Coca-Cola Zero commercial featuring Troy Polamalu.
Coca-Cola is the official soft drink of many collegiate football teams throughout the nation, partly due to Coca-Cola providing those schools with upgraded athletic facilities in exchange for Coca-Cola's sponsorship. This is especially prevalent at the high school level, which is more dependent on such contracts due to tighter budgets.
Coca-Cola was one of the official sponsors of the 1996 Cricket World Cup held on the Indian subcontinent. Coca Cola is also one of the associate sponsor of Delhi Daredevils in Indian
Premier League.
In England, Coca-Cola was the main sponsor of The Football League between 2004 and
2010, a name given to the three professional divisions below the Premier League in football
(soccer). It is also responsible for the renaming of these divisions — until the advent of
Coca-Cola sponsorship, they were referred to as Divisions One, Two and Three. Since 2004, the divisions have been known as The Championship (equiv. of Division 1), League One
(equiv. of Div. 2) and League 2 (equiv. of Division 3). This renaming has caused unrest amongst some fans, who see it as farcical that the third tier of English Football is now called
"League One." In 2005, Coca-Cola launched a competition for the 72 clubs of the football league — it was called "Win a Player". This allowed fans to place 1 vote per day for their
beloved club, with 1 entry being chosen at random earning £250,000 for the club; this was repeated in 2006. The "Win A Player" competition was very controversial, as at the end of the 2 competitions, Leeds United AFC had the most votes by more than double, yet they did not win any money to spend on a new player for the club. In 2007, the competition changed to "Buy a Player". This competition allowed fans to buy a bottle of Coca-Cola Zero or Coca-
Cola and submit the code on the wrapper on the Coca-Cola website {www.coca- colafootball.co.uk}. This code could then earn anything from 50p to £100,000 for a club of their choice. This competition was favored over the old "Win A Player" competition, as it allowed all clubs to win some money.
Introduced March 1, 2010, in Canada, to celebrate the 2010 Winter Olympics, Coca Cola will sell gold colored cans in packs of 12 355 mL each, in select stores.
In 2012, Coca-Cola (Philippines) hosted/sponsored the Coca-Cola PBA Youngstars in the
Philippines.
7.3: In mass media
Coca-Cola has been prominently featured in countless films and television programs. Since its creation, it remains as one of the most important elements of the popular culture. It was a major plot element in films such as One, Two, Three, The Coca-Cola Kid, and The Gods Must
Be Crazy among many others. It provides a setting for comical corporate shenanigans in the novel Syrup by Maxx Barry. And in music, in The Beatles' song, "Come Together", the lyrics said, "He shoot Coca-Cola, he say...". The Beach Boys also referenced Coca-Cola in their
1964 song "All Summer Long" (i.e. 'Member when you spilled Coke all over your blouse?)
Also, the best selling artist of all time and worldwide cultural icon, Elvis Presley, promoted Coca-Cola during his last tour of 1977. The Coca-Cola Company used Elvis' image to promote the product.[102] For example, the company used a song performed by
Presley, A Little Less Conversation, in a Japanese Coca-Cola commercial.
Other artists that promoted Coca-Cola include The Beatles, David Bowie, George
Michael, Elton John and Whitney Houston, who appeared in the Diet Coca-Cola commercial, among many others.
Not all musical references to Coca-Cola went well. A line in "Lola" by The Kinks was originally recorded as "You drink champagne and it tastes just like Coca-Cola." When the
British Broadcasting Corporation refused to play the song because of the commercial reference, lead singer Ray Davies was forced to fly from New York to London and re-record the lyric as "it tastes just like cherry cola" to get airplay for the song.
Political cartoonist Michel Kichka satirized a Coca-Cola billboard in his 1982 poster "And I
Love New York." On the billboard, the lettering and script above the Coca-Cola wave read
"Enjoy Cocaine."
CHAPTER VIII: HEALTH EFFECTS
Since studies indicate "soda and sweetened drinks are the main source of calories in [the]
American diet", most nutritionists advise that Coca-Cola and other soft drinks can be harmful if consumed excessively, particularly to young children whose soft drink consumption competes with, rather than complements, a balanced diet. Studies have shown that regular soft drink users have a lower intake of calcium, magnesium, ascorbic acid, riboflavin, and vitamin A. The drink has also aroused criticism for its use of caffeine, which can cause physical dependence. A link has been shown between long- term regular cola intake and osteoporosis in older women (but not men). This was thought to be due to the presence of phosphoric acid, and the risk was found to be same for caffeinated and no caffeinated colas, as well as the same for diet and sugared colas.
A common criticism of Coke based on its allegedly toxic acidity levels has been found to be baseless by researchers; lawsuits based on these notions have been dismissed by several
American courts for this reason. Although numerous court cases have been filed against
The Coca-Cola Company since the 1920s, alleging that the acidity of the drink is dangerous, no evidence corroborating this claim has been found. Under normal conditions, scientific evidence indicates Coca-Cola's acidity causes no immediate harm.
Since 1980 in the U.S., Coke has been made with high-fructose corn syrup (HFCS) as an ingredient. Originally it was used in combination with more expensive cane-sugar, but by late 1984 the formulation was sweetened entirely with HFCS. Some nutritionists caution
against consumption of HFCS because it may aggravate obesity and type-2 diabetes more than cane sugar.
In India, there is a controversy whether there are pesticides and other harmful chemicals in bottled products, including Coca-Cola. In 2003 the Centre for Science and Environment
(CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer and a breakdown of the immune system. CSE found that the Indian- produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted under European Union regulations; Coca-Cola's soft drink was found to have 30 times the permitted amount. CSE said it had tested the same products sold in the U.S. and found no such residues. After the pesticide allegations were made in 2003, Coca-Cola sales in
India declined by 15 percent. In 2004 an Indian parliamentary committee backed up CSE's findings and a government-appointed committee was tasked with developing the world's first pesticide standards for soft drinks. The Coca-Cola Company has responded that its plants filter water to remove potential contaminants and that its products are tested for pesticides and must meet minimum health standards before they are distributed. In the
Indian state of Kerala sale and production of Coca-Cola, along with other soft drinks, was initially banned after the allegations, until the High Court in Kerala overturned ruled that only the federal government can ban food products. Coca-Cola has also been accused of excessive water usage in India.
The 2008 Ig Nobel Prize (a parody of the Nobel Prizes) in Chemistry was awarded to
Sheree Umpierre, Joseph Hill, and Deborah Anderson, for discovering that Coca-Cola is an effective spermicide, and to C.Y. Hong, C.C. Shieh, P. Wu, and B.N. Chiang for proving it is not.
CHAPTER IX: Conclusion
The Coca Cola Company is currently one of the biggest and most recognized soft beverage brands in the world. With over 3000 products in more than 200 countries, the Coca-Cola
Company has surely become part of people’s lives. The Coca-Cola Company owes its success to the people who do their best to achieve the task at hand. Thus, the Cola-Cola
Company takes cares of its employees in return by creating a good working environment and working along with unions and government agencies to make sure its employees are safe. The Coca-Cola Company understands that in today’s business world technology is very essential to run such a big company like Coca-Cola. Therefore, the Coca-Cola Company uses different types of technology such as creating databases and data warehouse about their customers and suppliers, doing business with consumers and other businesses through the internet.
The Coca-Cola Company even offers merchandise over the internet through its very own shopping website www.cocacolastore.com.The Coca-Cola Company also uses search engines such as Google and yahoo to advertise its products and make sure its brand reaches more people every day. Coca-Cola has spent over $2 million just on advertising and marketing. This makes Coca-Cola well known in many countries In addition, keeping up with today's new trends, the Coca-Cola Company also advertise its products on myspace, facebook and twitter.
The Coca-Cola Company knows that no business can run without a plan. Because the Coca-
Cola Company has been able to the set the entry barrier in the beverage business very high, new companies are discourage to compete with Coca-Cola. In addition, the Coca-Cola
Company has agreements with many of its supplier (mostly bottling company) to
exclusively provide by their services to Coca-Cola. Thus, it is almost impossible for new comers to keep up with Coca-Cola and similar competitors with recognized names in the business such as Pepsi. The Coca-Cola success isn't something that has been achieved over night. Many years has passed since John Pemberton created the secret formula for Coca-Cola in 1886.