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Case Study about Coca Cola

Introduction

Coca-Cola was invented in 1886 by John Smyth Pemberton, a pharmacist in Atlanta, Georgia. He brewed the syrup in a brass pot in his backyard. Even at this early stage, the power of branding was important, with Pemberton’s partner, Frank M Robinson, naming the dark brown liquid ‘Coca-Cola’ because he thought the two Cs would work well in advertising. Having laid the foundations for the product and the brand, the two sold their interests to Atlanta businessman, Asa G Candler in 1888. The famous signature ‘flourish’ of Coca-Cola was registered as a trademark in 1893. Candler was a marketing genius and ensured that the Coca-Cola trademark appeared on countless products, from clocks to glass chandeliers. By 1895, thanks to Candler’s skill, Coca-Cola was available in every US state.

The design for the famous Coca-Cola glass ‘Contour’ bottle was created in 1915. It was done to protect the brand from a growing army of imitators, determined to cash in on its success. The company wanted to communicate to consumers that there was only one authentic, Coca-Cola. Designers were given the brief to create a bottle ‘which a person will recognize as a Coca-Cola bottle, even if felt in the dark. The bottle should be shaped that, even if broken, a person could tell what it was’.

In 1919 the Candler family sold The Coca-Cola Company to Atlanta banker Ernest Woodruff and a group of businessmen. In 1923 Ernest’s son Robert Woodruff, elected president of the company, decreed ‘Coca-Cola should always be within an arm’s reach of desire’, setting down a principle that remains central to the company’s distribution strategy today.

The distribution expertise of Coca-Cola has been built on the backbone of its bottling operations. The first bottling device was set up by a shopkeeper in 1894, allowing him to trade crates of Coke up and down the Mississippi river. The first major bottling plant was inaugurated soon after, and from 1926 bottling operations spread abroad.

By the outbreak of World War II, the drink was being bottled in over 44 countries. The war helped boost the brand’s international distribution and profile, as US soldiers posted abroad demanded and were sent Coke in vast quantities.

In 1982 Diet Coke was launched. This was the first brand extension of the Coca-Cola trademark and an instant success: by 1984, it was the third biggest soft drink in the US and by 1990 the second-biggest soft drink in the UK.

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Achievements

‘Coca-Cola’ is the most recognized trademark in the world, with 94% global recognition. It is also commonly thought that it is the second most widely understood word in the world, after ‘OK’.

Without a doubt, Coca-Cola is the most valuable brand on the planet, worth an estimated US$72.5 billion in Interbrand’s global brand league. The strength of this global success lies in the relevant local connections that Coca-Cola builds with its consumers every day. In 1982 Coca-Cola launched Diet Coke, which is now the most popular diet soft drink in the world.

All of this has been achieved through an extremely successful combination of global distribution and powerful local marketing. The drink is distributed to more than 200 countries and its strategy is based on the aim that nobody should be more than a few minutes away from an opportunity to buy a Coke. Supporting this, is one of the biggest and most widespread bottlings and distribution networks in the world, sending Coca-Cola to all corners of the globe.

Its marketing is legendary, investing in one of the first-ever global advertising campaigns with the 1979 ad ‘I’d like to buy the world a Coke’. Sponsorship of major global sporting events such as the Olympic Games and the FIFA World Cup ensures that the brand not only taps into national passions for sport but is present when nations come together. The progressive marketing strategy of Coca-Cola is based on a simple message — that it wants to refresh, surprise, and inspire everyone who touches the brand.

Product

The Coca-Cola product range includes Coca-Cola and Diet Coke along with additional flavor varieties such as Cherry Coke, caffeine-free Diet Coke, Diet Coke with Lemon, and, in the US, Vanilla Coke.

As for the formula, there’s very little to say. It is one of the most closely guarded secrets in the world.

Promotion

The first-ever Coca-Cola advertisement was an oilcloth sign, bearing the phrase ‘Delicious and Refreshing’. Since then the brand’s slogans have developed from ‘It’s the real thing’ in 1942 (used again in 1969) to ‘Things go better with Coke’ in 1963. There has also been ‘Coke adds life’ (1976), ‘Have a Coke and a smile (1979), ‘Coke is it!’ (1982), ‘Always Coca-Cola’ (1993), ‘Coca-Cola Enjoy’ (2000), and ‘Life Tastes Good’ (2001).

The 2002 advertising of Coca-Cola in Great Britain was based on specific British insights and was rated by consumers as some of the most enjoyable yet from the brand. The World Cup ad was an animated ‘zero to hero’ story of ‘Leggsy’, a three-legged boy who realizes every football fan’s dream of scoring the winning goal for England at the World Cup. In the Summer,’ Mower Man’ took an optimistic (and humorous) look at one man’s spontaneous way of finding his perfect English summer dream.

The authentic Coca-Cola Contour bottle has always been a timeless design classic, but 2002 saw the resurgence of the bottle as a modern icon. In 48 sheet outdoor posters, the Coca-Cola Contour bottle took on a modern, highly sensuous look, with a series of slick images of the bottle’s curves juxtaposed with the curves of the human body. Chilled glass bottles of Coke have always had a place in the hands of trendsetters in bars and at events and parties all over the country.

As a leading marketer, Coke continues to innovate with impactful promotions on a big scale that engage and appeal with broad consumer audiences. 2001’s ‘Music4You’ was the biggest ever music promotion, run in conjunction with The Sun and News of the World newspapers. This opened up a massive range of music items and money-can’t-buy experiences for consumers for which they collected tokens and made online bids.

In 2002, Coca-Cola linked with one of the most credible music magazines in Great Britain, NME, to launch an on-pack promotion offering thousands of gig tickets and ‘access all areas’ experiences to music fans.

Coke is a brand that also has the ability to work in ways that capture the imagination and bring a progressive feel to its activities. Christmas 2001 saw Coca-Cola unveil the record-breaking World’s Biggest Advent Calendar on the side of Birmingham’s Town Hall: the huge scale of the 3D calendar gave a sense of festive drama to the city center, while themed events brought the community together as each window came to life every day with music, fireworks and, on Christmas Eve, Santa appeared with ‘real’ snow.

The brand used its global link with Warner Brothers’ Harry Potter films to ‘Bring the magic of reading alive’ — a three-year worldwide partnership launched with the opening of ‘Harry Potter and the Philosopher’s Stone. As part of this commitment, Coca-Cola in Great Britain pledged to distribute 300,000 books to schools and community libraries.

Coca-Cola has a long-standing heritage of supporting sport and in particular, football, where the brand invests at every level of the game – from international tournaments right through to community and grassroots levels. In the global arena, Coca-Cola has sponsored every World Cup tournament since 1978 and has maintained an unbroken presence at every Olympic Games since 1928.

Coca-Cola regularly offers consumers the chance to do things they would never normally be able to: the FIFA World Cup 2002 activation saw Coca-Cola encouraging fans to ‘Eat Football, Sleep Football, Drink Coca-Cola’ through a multi-faceted program of innovative marketing activity – including bringing the FIFA World Cup Trophy to England for fans to touch and lift in a whirlwind one-day tour.

In a world-first, Coca-Cola invited consumers to design a perimeter board ad to support the football teams out in Japan and Korea. The winning design from England – by a seven-year-old boy from Huddersfield – featured pitchside at all England’s World Cup matches.

2001 saw a further strengthening of support from Coca-Cola of top-level English domestic football in the signing of a three-year deal to sponsor ITV1’s The Premiership weekly football highlights program.

With an eye on the future of football, the brand has created a number of major grassroots tournaments that encourage children to get out and enjoy playing the game – including the English Schools Football Association Coca-Cola English Schools Cup – the biggest tournament of its kind open to boys and girls under thirteen – and the Scottish Schools Football Association’Coca-Cola 7s’, an U12s 7-a-side football tournament.

Diet Coke has a sexy heritage built from the ‘Diet Coke Break’ ads, starting with the hunky window cleaner now developed onto the lighthearted ‘Taste the Moment’ advertising campaign. Diet Coke in 2002 turned its bottles silver and invited consumers to take a chance at winning a ‘Silver Spree’ with a £100,000 spending spree up for grabs.

Brand Values

Coca-Cola is renowned for being the world’s biggest brand. In Great Britain, on average, it touches consumers over 50 times a day. The brand’s personality has the values of an ‘optimistic spirit, authenticity, leadership and sociability’. The taste of Coca-Cola brings ‘thirst-quenching and energizing refreshment’ when served ‘ice-cold’.

Things you didn’t know

  1. 1.  Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains.  He created a flavored syrup, took it to his neighborhood pharmacy, where it was mixed carbonated with water. Dr. Pemberton’s partner is credited with naming the beverage “Coca-Cola” as well as designing the trademarked, distinct script, still used today.
  2. 2.  The Coca-Cola Company (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 still brands.  The company’s portfolio features 16 billion-dollar brands including Diet Coke, Fanta, Sprite, Coke Zero,vitamin water, Powerade, Minute Maid, Simply, Georgia and Del Valle. Globally, Coca-Cola is the No. 1 provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks.  Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy these beverages everyday.
  3. 3. 1. GEOGRAPHIC SEGMENTATION INTERNATIONALLY : Coke segments its products country wise and region wise. The most important things is the taste and quality. It varies according to the taste and income level of the people in that country. CLIMATIC: In coke marketing, main idea is to serve it cold, so that they focus on hot areas of the world. i.e.: middle east etc and their sale increase in summer.
  4. 4. Climate- Coca Cola’s consumption in the summer is 60% than 40% in the winter; therefore, the company’s sales are higher in the summer. It also focuses in hot area in the world. LOCALY: In Pakistan the coke segments more in urban and suburban areas as compare to rural areas.
  5. 5 2. PSYCHOGRAPHIC SEGMENTATION:- Psychographics variables the social class, lifestyle, occupation, level of education and personality Coke segments everyone. But again its there packaging which is different for different consumers. People who are brand conscious will not drink beverages of less known brands.
  6. 6. They will try to show their status by drinking Coca-Cola. The level of education is another factor that the company is paying attention to. In an high percentage education, the company can use advertisements to convey the company massage. Because Coca Cola is a recognized world brand, people will drink it without hesitate.
  7. 7. 3.OCCASSION:. Coca-Cola segments different occasions which are celebrated in the country.
  8. 8. 4. DEMOGRAPHIC SEGMENTATION Coca Cola products are purchased by different classes.  -Age- 15-25 years old and 40 plus. Coke segments the small children introducing tastes like vanilla, lime and cherry. Diet Coca Cola- targets adults, between 30-50 who are health conscious but want the taste. Powerade- sport drink, targets athletes between 13-27 ages. Minute Maide- targets kids and adults from 1 year to 10 and 40 plus  -Gender- targets both genders with wide variety drinks.
  9. 9.  Income- segments different income level. For example, by packaging: for low level income the company is selling returnable glass bottle; for high level income, the company is selling coke in tins.
  10. 10. The first servings of Coca-Cola were sold for 5 cents per glass. During the first year, sales averaged a modest nine servings per day in Atlanta. Today, daily servings of Coca-Cola beverages are estimated at 1.9 billion globally.
  11. 11. THANK U

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