Coca Cola was founded in 1886 in Atlanta, Georgia by Dr. John Pemberton and Frank Robinson. Over the decades, Coca Cola grew to become a global brand, beginning to sponsor the Olympics in 1928. The company established Santa Claus's modern appearance in 1931 advertising and sold Fanta in Germany during World War 2. Coca Cola launched new products like Diet Coke in 1982 and New Coke in 1985, while expanding their product range in the 2000s through brand extensions. Known as a symbol of globalization, Coca Cola has relied on evolving slogans and classic advertisements to increase brand recognition worldwide and maintain high profit margins through efficient production.
2. Company history
Atlanta, Georgia, May8, 1886. Dr John Stith
Pemberton; Frank M. Robbinson – The
Trademark “COCA COLA”.
1919-1940: COCA COLA began to sponor
Olympic Games (1928)
Creates modern appearance of santa claus in
an advertisement (1931)
2nd World War: every man in uniform gets
coca-cola for 5 cents.
Company has a subsidiary in Germany that
sells a new brand– “Fanta”
3. 1982: the new Diet Coke
1985: company launches a new taste coke. “The New
Coke”
2001-2009: Extension of Products range. New
products released
4. Facts and Statistics
Coca cola: Symbol of globalization
Evolving slogans
- increases the life of the product
-easy to remember the brand by these slogans
In 1971 came up with an advertisement classic
“Teach the World to Sing”
Focus on the best lines
-operating income increased from 77% in 1984 to 97%
Reinvestment –in 1990 concentrated on profits
-in `83 most of its profit were paid out as dividends to
shareholders
-operating income increased from 77% in 1984 to 97%
5.
6. Strategies
Marketing strategy- invested a lot in marketing since beginning
Advertising: Make the soft drink more popular by
advertisements
Focus on consumer- differentiated their products
Differentiation with customers - the direct customers of Coca-
Cola are outlets such as service stations, newsagents, leisure
centres, cinemas, clubs, supermarkets and many other retailers
selling soft drinks.
Differentiation with consumers - Over many years Coca-Cola
has expanded its markets horizontally in country after country,
until there is virtually no place on earth where people do not
drink Coca-Cola.
Win the largest market share - Coca-Cola’s production
techniques are so well developed that it costs a fraction of the
selling price to manufacture their product, resulting in high
profit margins.
7.
8. Comparative advantage: NO
One reason behind Coca Cola`s success in international
markets was due to its ability to understand and defend
its positions.
The threat of substitutes is reduced by the expansion of
products portfolio: - Many alternative beverages e.g.
juice, tea
Different levels of bargaining power exist among the
groups of buyers: - Vending Machine – no buyer
bargaining power - Fast Food chain – more bargaining
power