Coca Cola Company Case Study


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  • Before Pemberton died in 1888, he sold his company to Asa Candler. Candler was very focused on advertising the new product. By 1895, Coca-Cola was drunk in every state. His coupons and advertising worked.
  • Coca Cola Company Case Study

    1. 1. Company Case Study
    2. 2. John Pemberton John Pemberton, a pharmacist in Atlanta Georgia, invented Coca Cola on May 8, 1886. It started out with ambition. He wanted to create the “ultimate” medicine and drink all in one. He had already created many patented medicine, but he believed that inventing a medicine drink would bring him fortune. Pemberton was wildly excited about the qualities of the coca plant. This had been chewed by the natives of Peru and Bolivia for over 2,000 years and was supposed to act as a stimulant, aid to digestion, and a life-extender. As we all know, it does just the opposite, but he didn’t know that. Hearing about this new “stimulant “ and “life extender”, he decided to base this ULTIMATE MEDICINE around it. There were indications that cocaine, found in the coca leaf, was highly addictive, but this fact was mostly ignored. There was a syrup mixed with carbonated water, and this amazing drink was produced. Coca Cola first started out with selling for 5 ¢ a bottle.
    3. 3. WHERE DID “COCA COLA” COME FROM? Pemberton died in 1888, and right before he died, he sold the Coca Cola company to Asa Candler. He knew that leaving it in his hands would help to promote the product. Candler’s main focus was to advertise the product. Very soon, Coca Cola was known product in almost every state. If it wasn’t for Candler, Coca Cola may not be as popular as it is today. The first Coca Cola ad was in The Atlanta Journal. Asa Candler was the person who made this possible.
    4. 4. Coca Cola was a company that was rapidly growing. They patented the name “Coca Cola”, but other companies made the same taste as Coca Cola, but changed the name. As in, Tab Cola, RC Cola, Happy Cola, Koca Kola, and MANY more. There were hundreds of other companies trying to steal their business. Coca Cola tried to solve this problem by making a patented bottle with the words Coca Cola printed into a glass bottle. It, of course, did not work, so they just had to deal with it. Eventually, the “fake” Cokes started to lose business. BUISNESS RISKS The risks at first were that there was cocaine (coca plant) in the drink, and later on it was taken out. It did not cause a huge controversy. Mainly, there were no huge business risks for Pemberton. He fantasized that Coca Cola would become a huge product (which it did), but not the way it turned out. He thought it would be a medicine and a drink. To me, I don’t think that Pemberton really knew what he was getting himself into. He didn’t now that 125 years later, that Coca Cola would be a world-famous product. CHALLENGES
    5. 5. COCA-COLA’S IMPACT ON GA When Coca Cola became this world-famous product, it brought a lot of business to Altanta, where it was created. It created many jobs for people to work in the factory. It created tourism, because more people wanted to visit the city of Atlanta to witness the “amazing” drink to be created. The making of Coca Cola made Atlanta become a more popular city from this.
    6. 6. TRANSPORTATION Hartsfield Jackson Int. Airport: Coca Cola used Hartsfield Jackson International Airport to transport goods to other countries in the world. Interstate Highway System: Coca Cola used the Interstate Highway System to transport products across America. They used Coca Cola trucks and made deliveries to places everywhere. Deepwater Ports: Coca Cola used Deepwater Ports to ship cargo filled with Coca Cola products to other countries. This was not as fast as flying the products, but was still productive.
    7. 7. CONNECTION Trying to create a business like Coca Cola in today’s economy would not succeed at all. First of all, we are in a recession, and no one would be able to afford the money involved to advertise. It would be A LOT harder, because people may not even want to invest in a stock that is new and infamous. Most people will want to be safe and stick with investing their money in something they are sure of making money. In my opinion, products that have to deal with technology will be successful in this economy. Products like Mp3 players, computers, and handheld technology (cell phones). In this world, today, many kids are good with using technology. Soon, everything will have to do with technology, and paper books and textbooks will be history. Everything will become electronic, making things easier.