TOP 3 BEST GLOBAL BRAND

THE COCA-COLA COMPANY

BRIEF HISTORY
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, Jacobs
pharmacy, where it was mixed with carbonated water and deemed excellent by those who
sampled it. Dr. Pembertons partner and bookkeeper, Frank M. Robinson, is credited with
naming the beverage Coca-Cola as well as designing the trademarked, distinct script, still
used today. Robinson also wrote the slogan, "The Pause That Refreshes."
Prior to his death in 1888, just two years after creating what was to become the worlds #1selling sparkling beverage, Dr. Pemberton sold portions of his business to various parties, with
the majority of the interest, including the formula and brand sold to Atlanta businessman, Asa G.
Candler. In 1892, Candler finalizes the purchase and incorporates The Coca-Cola Company as
a Georgia Corporation.
Under Mr. Candlers leadership, distribution of Coca-Cola expanded to soda fountains beyond
Atlanta. In 1894, impressed by the growing demand for Coca-Cola and the desire to make the
beverage portable, Joseph Biedenharn installed bottling machinery in the rear of his Mississippi
soda fountain, becoming the first to put Coca-Cola in bottles. Large scale bottling was made
possible just five years later, when in 1899, three enterprising businessmen in Chattanooga,
Tennessee secured exclusive rights to bottle and sell Coca-Cola. The three entrepreneurs
purchased the bottling rights from Asa Candler for just $1. Benjamin Thomas, Joseph
Whitehead and John Lupton developed what became the Coca-Cola worldwide bottling system.
In 1928, Robert Woodruff, whom was the company's president at that time, led the expansion of
Coca Cola overseas when they introduced the Coca Cola to the Olympic games for the first
time. In the 1960s the company decided to expand with new flavors- Fanta, Sprite and Fresca,
in addition it acquired the Minute Maid Company, adding an entirely new line of business juices
to the company. The 1980s is a time of much change and innovation at the company. The
introduction of Diet Coke became the top low-calorie drink in the world. The company's
presence worldwide was growing rapidly and year after year Coca Cola found a home in more

and more places in the world. As for today, Coca Cola has grown to be the one of the world's
most ubiquitous brand, with daily servings of Coca-Cola beverages which are estimated to be at
1.9 billion globally.

STRENGTHS:

Brand Equity - One of the best global brands in the world in terms of revenue, profits,
stock market performance and brand image.

Largest market share - With only Pepsi as a major competitor, Coca-cola holds the
largest market share in the beverage industry.

Advertising and Marketing - Strong brand recall through advertising and marketing by
associating with celebrity brand ambassadors, spending more than 3 million dollars
every year for advertisements alone.

Distribution network - Has the largest distribution network because of the demand in
the market for its products, with presence in more than 200 countries with 1.8 billion
drinks being sold every day.

Corporate Social Responsibility - The Company is increasing its focus on CSR

programs like energy conservation, water recycling, packaging etc. which has helped
build a socially responsible image of the company.

WEAKNESS:
Lack of Product Diversification - The product portfolio of Coke unlike that of Pepsi is
highly undiversified. While Pepsi has diversified in both food and beverages, Coke has
concentrated only on drinks. This singular focus on carbonated drinks may cost the
company if markets for such drinks shrink in future.
Competition with PepsiCo - Strong competition in the aerated drinks segment from
PepsiCo means constant fight over market share.

 Negative Publicity - Coke has faced flak from experts who have criticized the water
consumption policy of the company in regions with water scarcity. People have also
blamed Coca cola for mixing pesticides in the water to clear contaminants.
Absence in Health Beverages - The principle focus of the company is cerated
beverages like Coke, Sprite and Fanta. However, this limited focus might prove
detrimental for the company if the world is moving towards healthier drinks.

STRATEGIC PRIORITIES OF COCA-COLA:

1. Community Trust

Building trust within the community is the top strategic priority of the firm. They believe
that trust, through corporate social responsibility and sustainability projects, is the
cornerstone of its healthy relationship with the companys shareholders, customers,
consumers, employees, and business partners.

2. Consumer relevance

Coca-cola makes sure that they always meet and exceed the satisfaction of their
consumers by offering the right products for all occasions. From packaging to delivery,

everything must be perfect. The product must be consistently fresh, in premium

condition, and presented cold when appropriate.
3. Customer preference

Like all business, the main objective of Coca-cola is focused on the needs and
satisfaction of their valuable customers. Building a strong relationship with their
customers to achieve success, in short, is the third strategic priority of the firm.

4. Cost leadership

Coca-cola is focused on a cost efficient mindset. In 2015, the companys gross profit
margin increased by 100% by optimizing the product, the logistic base, the operating
costs and the cash conversion.

OTHER STRATEGIES EMPLOYED:

Coca-Cola successfully utilized social networks to engage consumers and encourage

them to share their Coke experience with others. They also took a more personal
approach in their marketing by having customized bottles and cans for different countries
which were linked to their language and local culture.

Coca-Cola segmented their markets to develop long-term revenue growth strategies that
are based on clear volume, price, investment, and profit expectations.

The company continues to make long-term investments on other platforms such as

energy drinks, at-home beverage dispensing, plant-based protein drinks, and coldpressed organic juices.

Coke implemented a zero-based work, wherein funds are directed to works which are
essential to the companys growth while the less productive ones are eliminated. Aside
from this, they had also cut marketing agency cost, and introduced a new approach to
drive cost of goods savings from every aspect of the company.

The company had simplified its operating model by having standardized key processes,
linking its business units directly to the corporate center, and by eliminating group

functional roles for a faster decision-making and enhanced focus at the local level to

drive growth.
Coca-Cola continued to improve its supply chain. They do this by establishing CocaCola bottlers across the globe and refranchising the majority of Company-owned North
American bottling territories. Through this, the company was able to refocus on their
core business model of building the worlds greatest beverage brands and leading an
unmatched global system.

REASONS FOR BEING A GLOBAL BRAND:

Coca Colas success over the years was its main motive for it to expand across the
globe. Coca Cola had its international expansion in 1920s and 30s, where it exported its
products to other parts of the world. Overall, Coca Cola was being bottled in 44 different
countries other than America.

Another reason for Coca Cola to go global is its growing number of goals and profits
across the years.

There are many other reasons for a brand to go global; like, managerial urge, technology
competence, foreign market opportunities, and economies of scale and tax benefits.

The high consumer consumption of the product has a great impact on what Coca Cola is
today. In short, people want more of Coca Cola, hence, they produce more and more
Coca Cola.

Coca Cola is not only identified as a global brand, but also a local brand. Coca Cola
serves local markets around the world. Although it has one theme, it adopts itself to each
market. To sum up, today Coca Cola had succeeded to be one of the most valuable
brands across the globe, and ranked number 1 in 2010 Best Global Brands. Coca Cola
has only 2% change in its brand value.

Coca Cola is a brand that thinks global and acts local.