A Review of the Coca-Cola History

MGT 426: STRATEGIC MANAGEMENT

Submitted By:
Joerie Anne Magallanes
Charizza Krystel Manigo
Rachelle Marfil

Introduction
The Coca-Cola History started when an Atlantas pharmacist, Dr. John Pemberton,
invented a distinctive tasty soft drink out of his curiosity. The video clip shows and
explains to us how Coca-Cola evolve since the beginning of time yet still manage to stay
on top and recognized as the first truly global brand over 100 years. This paper will
review Coca-Colas story particularly its history on how it was discovered, the strategies
they have been using in order to maintain its place in the industry, and the like.
Body
In the first five seconds of the video clip, it showed how Coca-Cola and the universe
are similar in relation to science. Coca-Cola also has a unique formula just like the
universe. Though science know limited knowledge about facts of the universe, it can be
compared in searching the right formula for Coca-Cola.
The video clip started from the day the Coca-Cola was invented by Dr. John
Pemberton, a pharmacist based from Atlanta. The invention of Coca-Cola has been
considered as the greatest invention of all time. He made an enhanced syrup, took it to his
neighborhood pharmacy named Jacobs Pharmacy, where it was blended with carbonated
water and regarded "excellent" by the individuals who examined it. The term CocaCola was named by Frank Robinson who was Pembertons accountant at that time.
Robinson also made the trademark of Coca-Cola with his own handwriting. In which
unique way from its competitors. The company standardized the logo in 1923 and, like
the recipe, the core logo was to be preserved. It is resulted in a logo that has had more
than 100 years to become imprinted in the minds of people around the world.
During the first year of operation, Coca-Cola sold an average of nine servings per
day that costs 5 cents per serving. In 1888, Asa G. Candler who is considered as a
marketing genius, distributed the Coca-Cola and who was also credited for painting the
barrels with red color as a sign of Coca-Colas distinctive appearance. Asa Candler
purchased exclusive rights to the Coca-Cola formula in 1891 and by the following year,
had increased sales ten times over. Three gentlemen with the names of Benjamin Thomas,
Joseph Whitehead and John Lupton planned to put Coca-Cola to enter into a worldwide
bottling system. Candler responded that the idea was stupid but then still sold it to the
three gentlemen.
Among the greatest threat of business up to the present are dealing with imitations
done by the companys competitors. Competitors such as Sola Cola, King Cola, Prince
Cola, Coke Ola, Espo Cola, and Koke were the early competitors who tried to imitate
Coca-Cola but lacked its packaging consistency that was why it fails to overpower CocaCola. In 1916, Coca-Cola agreed to make a contour bottle for a distinctive appearance
that will be different from competitors. The contoured Coca-Cola bottle was trademarked
in 1977. The first marketing efforts in the history of Coca-Cola was executed through
coupons promoting free samples of the beverage. In 1893, the trademark Coca Cola was
registered in the US patent office. In 1894, the popular drink was sold in bottles for the

first time. In 1919, Robert W. Woodruff bought the firm and elected President of The
Coca-Cola Company, beginning more than six decades of leadership in the business.
During his leadership he made ice cold Coca- Cola available any one, any time and any
place. Coca-Cola was scattered and readily available anyplace in the world. Availabilty of
Coca-Cola to any one, any time and any place became the first truly global brand.
Over the 100 years, the formula for Coca-Cola is still regarded as a secret. The
formula for Coca- Cola is still regarded a secret because of its rare, hard to imitate and
not easily substitutable formula in which these three called the emperical indicators of
strategic management. Coca-Cola is the most recognized trademark in world and enjoyed
buy more than two hundred countries distributed by local bottlers. The shining star is and
always be Coca-Cola the original soft drink, delicious, authentic and fun. There is only
one Coca- Cola, the most refreshing drink in the universe.
In line with Coca-Colas evolution with their brand promotion and product
recognition and brand awareness, they give coupons for free samples. They also provided
retailers with Coca-Cola posters which are up to date and festoons for decorations and
calendars, clocks and other everyday items for their customers. Coca- Cola comes up
with an idea of advertisement campaigns which is to connect with fun, joy, friends and
good times theme in order to capture peoples attention of their product and in the same
time initiate to spread awareness through message. It is believed that they are always
good at it for it is fantastic, colorful, wholesome, and memory provoking.
In 1928, with the international expansion in mind, the Company initiates partnership
with the Olympic Games. The partnership lasts until today and throughout the years other
significant sports partnerships are made. Another important moment in the Coca-Cola
history is the outbreak of World War II. In 1941, Woodruff orders that every man in
uniform gets a bottle of Coca-Cola for 5 cents, wherever he is and whatever it costs the
Company. Therefore, Coca-Cola is supplied to army forces and with these enters new
places. The beverage becomes considered as a social drink, promoting friendliness and
getting people together. Since the end of the war, Coca-Cola is growing rapidly
worldwide towards becoming a global brand. Throughout all the times, the Company has
emphasized the importance of advertising and therefore has invested a lot of money into
it. The international appeal of Coca-Cola is embodied by a 1971 commercial, where a
group of young people from all over the world are gathered on a hilltop in Italy to sing
Id Like to Buy the World a Coke (see Ad 67). Coca-Cola is also promoted as a brand
connected with fun and good times, providing not only refreshment but also enjoyment to
life. Thus, Coca-Cola becomes more than a drink, it becomes a lifestyle. In 1982, the
Company introduces a new product Diet Coke which is the first extension of CocaCola brand. Other products follow satisfying the specific needs and desires of consumers
all around the world. Last year, Coca-Cola celebrated its 125th anniversary. It has made it
from a local to global brand, one of the most admired and best known in the world.
Today, Coca-Cola is considered one of the worlds most powerful brands. It is rated 3rd
by Forbes.com.
In 1993, The Coca-Cola Company made a dramatic shift in its advertising by

introducing the "Always Coca-Cola" campaign, by Creative Artists Agency and later
Edge Creative. The campaign was a diverse one, with an initial run of twenty-seven
commercials designed to appeal to specific audiences. The ads ran around the world and
included a variety of innovative technical approaches, such as computer animation. One
such commercial, "Northern Lights," introduced what would become one of the most
popular symbols of Coca-Cola advertising: the animated polar bear. When asked to
develop an innovative commercial for Coca-Cola, creator and freelance writer/director
Ken Stewart thought about drinking Coke at the movies. Mr. Stewart thought his yellow
Labrador Retriever resembled a polar bear when it was a puppy and thought about how
polar bears would go to the movies. Mr. Stewart brought the two concepts together in the
commercial, "Northern Lights," which depicts a magical place where polar bears watch
"movies" (the aurora borealis) and drink from bottles of Coca-Cola. The theme Choose
Happiness, Coca-Cola stating that it isnt just a soft drink; it's an essential part of the
human experience in which the key to true happiness. So why wait for happiness to
happen to you, when its something we can just choose to do. It aims to communicate to
people that happiness is a choice, a conscious choice indeed, rather than the result of
serendipity or luck. Not only can you be happy, you should be happy, right now, and all
you have to do is reach out and grab a coke.
Although the Coca-Cola operates in a consolidated industry the company is still able
to implement an integrated low cost or differentiation strategy that builds on the
companys basic strengths in marketing and innovation, driving increased efficiency and
effectiveness in interactions with our system and generating new energy through core
brands that focus on health and wellness. In the midst of new entrants into the industry,
substitutions, competitor rivalry, suppliers' power, and buyers' power, the low cost side
gives the company the ability to continue building profits. The low cost or differentiation
strategy allows Coca-Cola to reduce costs constantly while adding differentiated
attributes to its product lines. Coca-Cola uses a frontal assault strategy to match the
competitor in every category from price to promotion to distribution channel, because of
direct competition from Pepsi. In addition, the company implements an encirclement
strategy by offering a larger variety of products in more markets.
To remain competitive, Coca-Cola must react to challenges by competitor by cutting
prices increasing advertising and innovation, and introducing new products. The
company has to keep the consumer as their main focus and consistently attempt predict
what they may want or need and implement strategies to provide those products to the
consumer. In addition the company has to focus on continuous improvements costs,
development, quality, manufacturing, and distribution. A continual improvement strategy
will allow Coca-Cola to stay one step ahead of the competition because it allows them to
constantly examine areas of improvement and take the appropriate actions to rectify
before the competition has an opportunity to capitalize on the areas of inferiority.
Through continual improvement the company is able assess progress to determine
whether they are meeting existing commitments, creating new shared value for our
customers and partners, and engaging others through our leadership team. Furthermore,
Coca-Cola has to focus on its positioning strategy. The company has to maintain a
positive brand image that coincides with consumers life experiences and feelings. Coca-

Cola is an ingredient in the daily life of many consumers, but an increase in health
consciousness along with an emphasis on healthy lifestyles has slowed the sales of CocaColas carbonated soft drinks. Because of the changes in consumer, Coke must implement
a focus strategy that considers more health conscious alternatives to attract the segments
of the industry not well integrated.
By having a tremendous strategy, in which is the path and scope of an establishment
over the long-term which achieves benefit for the organization through its composition of
resource within a demanding environment, to meet the needs of markets and to
accomplish stakeholders hope. Coca-Cola are constantly trying to determine what new
markets the company should enter, how to steal market share from competitors and how
to encourage more consumers to use Coca-Cola's products.
Conclusion
Advertising isnt a waste of money. Its long been proven that advertising has
tangible benefits when it comes to driving up sales revenue thus it is a long term
investment. Advertising is a powerful marketing tool which can spread message to target
audience especially nowadays where technology can reach anyone and anywhere. The
more people are attracted to buy the product when they see it on TV and billboards, or
read about it in the paper, or hear a radio ad, the more money will be made while creating
a brand value and goodwill which is helpful to the future growth of the company. In fact,
by the idea of advertising, Coca-colas company was promoted to be one of the most
well-known brand in the world. Most of the achievement was based on a hundred year of
advertising history and their innovative thinking on making it appealing to its target
markets and creating brand loyalty despite the efforts of their other competitors. That is
no doubt that why Coca-Cola continuous spending a huge budget on advertising. Cocacola who was market leader in carbonated soft drink successful introduces their product
by launching TV commercials to attract all type of audience. Effective advertising helps
Coca-Cola brand remain in consumer's mind and create brand royalty in the long term as
well. Therefore, the secret key behind the scene of Coca-Cola's global success are its
flexibility in communication, innovation and constant development in promotion in
which is advertising.

References:
http://www.reuters.com/finance/stocks/companyProfile?&symbol=KO
http://www.referenceforbusiness.com/history2/32/The-Coca-Cola-Company.html
https://memory.loc.gov/ammem/ccmphtml/colahist.html
http://www.beautifullife.info/advertisment/history-of-coca-cola-in-ads/
https://www.worldofcoca-cola.com/about-us/coca-cola-history/