In its fi rst year, the company sold about 9 glasses of Coca-Cola a day. A century later, The Coca-Cola Company has produced over 10 billion gallons of syrup
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- NEW MARKETS AND BRANDS
- COCA-COLA NOW
- ECONOMIC IMPACT
- COKE’S PRIMARY GOAL
- NEGATIVE REACTIONS OF OTHER COUNTRIES TO COCA-COLA
- COKE’S COMPETITIVE ADVANTAGE
- BIBLIOGRAPHY
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In 1886, John Pemberton, a Civil War veteran and Atlanta pharmacist, found a fragrant,caramel-colored liquid which was combined with carbonated water and John Pemberton’s bookkeeper, Frank Robinson named this mixture, Coca-Cola. In its fi rst year, the company sold about 9 glasses of Coca-Cola a day. A century later, The Coca-Cola Company has produced over 10 billion gallons of syrup. 1888-1891, Pemberton sold the company to Atlanta businessman, Asa Griggs Candler, for a total of about $2300. Candler would become the company's first president, and the first to bring real vision to the business and the brand. By 1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles. In 1894, a Mississippi businessman named Joseph Biedenharn became the first to put the drink in bottles. In 1916, the Root Glass Company of Terre Haute, Indiana, began manufacturing the famous contour bottle. As the country roared into the new century, The Coca-Cola Company grew rapidly, moving into Cuba, Puerto Rico, France, and other countries and U.S. territories. In 1900, there were two bottlers of Coca-Cola, by 1920, there would be about 1,000. Coca-Cola traveled with the U.S. team to the 1928 Amsterdam Olympics, the logo was emblazoned on racing dog sleds in Canada and the walls of bullfighting arenas in Spain. After 75 years of amazing success with brand Coca-Cola, the company decided to expand with new flavors: Sprite® in 1961, TAB® in 1963 and Fresca® in 1966. The Company's presence worldwide was growing rapidly, and year after year, Coca-Cola found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey and more. In 1978, The Coca-Cola Company was selected as the only company allowed to sell packaged cold drinks in the People's Republic of China In1985, diet Coke® is found that is the very first extension of the Coca-Cola trademark -- within two years, it had become the top low-calorie drink in the world, second in success only to Coca-Cola. NEW MARKETS AND BRANDS The 1990s were a time of continued growth for The Coca-Cola Company. The Company's long association with sports was strengthened during this decade, with ongoing support of the Olympic Games, FIFA World Cup football (soccer), Rugby World Cup and the National Basketball Association. Coca-Cola classic became the Official Soft Drink of NASCAR racing, connecting the brand with one of the world's fastest growing and most popular spectator sports. And 1993 saw the introduction of the popular "Always Coca-Cola" advertising campaign, and the world met the lovable Coca-Cola Polar Bear for the first time. New markets opened up as Coca-Cola products were sold in East Germany in 1990 and returned to India in 1993. New beverages joined the Company's line-up, including Powerade sports drink, Qoo children's fruit drink and Dasani bottled water. The Company's family of brands further expanded through acquisitions, including Limca, Maaza and Thums Up in India, Barq's root beer in the U.S., Inca Kola in Peru, and Cadbury Schweppes' beverage brands in more than 120 countries around the world. By 1997, the Company already sold 1 billion servings of its products every day, yet knew that opportunity for growth was still around every corner.
Now well into its second century, the Company's goal is to provide magic every time someone drinks one of its nearly 400 brands. Coca-Cola has customers from Boston to Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest comers of the globe, you can still find Coca-Cola. Coca-Cola is committed to local markets, paying attention to what people from different cultures and backgrounds like to drink, and where and how they want to drink it. With its bottling partners, the Company reaches out to the local communities it serves, believing that Coca-Cola exists to benefit and refresh everyone it touches. From the early beginnings when just nine drinks a day were served, Coca-Cola has grown to the world’s most ubiquitous brand, with approximately 1.3 billion beverage servings sold each day. When people choose to reach for one of The Coca-Cola Company brands, the Company wants that choice to be exciting and satisfying, every single time. Today, The Coca-Cola Company is the largest beverage company with the most extensive distribution system in the world. But they are so much more. Their vision spans across five areas:
Planet
Portfolio
Profit
Partners
ECONOMIC IMPACT The Coca-Cola business is essentially a local one. With their bottling partners, they produce their products in more than 800 plants around the world. In those plants and other facilities, they employ local people, pay taxes to governments, pay suppliers for goods, services and capital equipment, and support community investment programs. They support socioeconomic development in developing and emerging markets through economic opportunities and wealth creation as well as technology and knowledge transfer; local entrepreneurship; and other international investment. COKE’S PRIMARY GOAL Coca-Cola company’s primary goal is taking control of the European market. The average American consumes almost 291 12-ounce servings of Coke annually, while in Iceland consumptions is a whopping 333 servings. On the other hand, many Europeans are not big Coca-Cola drinkers. The average annual number of 12-ounce servings in Germany, Spain, Belgium and Austria is 166; in Great Britain, Ireland and Switzerland it is about 110; France, Italy and Portugal lag behind with consumption at an average of 65. However all of this is in the process of changing. Coke has undertaken a powerfull campaign to dramatically increase consumption in Europe. One of the first strategic steps has been to replace local franchisers who had become too complacent and turn their franchises over to more active, market-driven sellers. For example Pernod company in France. In England, Coke’s national bottlers turned over to Cadbury Schweppes which took Coke sales tripled in the first three years. In Germany, Coca-Cola invested in distributıon networks to package and sell Coke locally. As a result Germany is now Coca-Cola’s largest and most profitable market in Europe and the company has the largest soft-drink market share in every country in Eastern Europe. Some government agencies and companies are concerned about the way in which Coca-Cola is pushing aside those who are unable to lower cost and generate more business. The European Union’s DG-IV Competition Department, based in Brussels, is investigating possible anti-competitiveness in Coke’s bid to purchase CCSB, a British bottler. In Britain British Monopolies and Mergers Commissions investigated Coke on its joint venture with Schweppes; and San Pellegrino, the mineral water company, filed a complaint with the Commission of the European Communities, contending that Coca-Cola has abused its dominant position by giving discounts to Italian retailers who promised to stock only Coke.
The Coca-Cola Company is an international business.The impetus of strategic focus is shown on Axis A. First, The Coca-Cola Company is established to response to domestic needs. And they frequently think only of domestic opportunities until a foreign opportunity presents itself to them. Then in 1920’s Coca-Cola move from passive to active expansion with aspects of their business and the company start to interact with Cuba, Puerto Rico, France, and other countries and U.S. territories. Internal versus external handling of foreign operations shown on Axis B. At the beginning Coca-Cola uses intermediaries to handle foreign operations during early stages of international expansion. But by growing the company usually handle the operations with its own staff. They produce their products in more than 800 plants around the world and in those plants and other facilities, they employ local people. Ayşen’s opinion is that by this way Coca-Cola company aims to minimize the operation risk. In Germany, Coca-Cola invested in distributıon networks to package and sell Coke locally. As a result Germany is now Coca-Cola’s largest and most profitable market in Europe. Axis C shows that importing or exporting is usually the first mode a company undertakes in becoming international. The Coca-Cola company is having extensive production abroad with foreign direct investment and all functions like exporting and importing and also franchasing. For example in Turkey Coca-Cola gives first franchising to IMSA(Has Group) in 1964. Coke is making FDI in order to improve its market position especially in Europe. The company do this in three ways. First, the construction of new bottling plants is helping the company produce a low cost product. Second, marketing expenditures are helping the company to gain the product recognition needed for growth. Third, direct investments in facilities closer to the market are reducing delivery time and eliminating import duties. In Tugçe’s opinion Coca-Cola company wants to continue its international operations by expanding its trade to new markets or complements them with new types of business activities.For example; In England, Coke’s national bottlers turned over to Cadbury Schweppes which took Coke sales tripled in the first three years. The Coca-Cola company is doing business in 140 foreign countries. As we see on the Axis D, Coke is would be at the point that”many”. In all of these countries 5.8 billion people drinking these delicious soft-drink. In every seconds 8000 bottles of Coke is consumed by people in the world. Coca-Cola has grown to the world’s most ubiquitous brand, with approximately 1.3 billion beverage servings sold each day. Approximately 94 percent of the world population know the name of Coca-Cola. These results shows how the Coca-Cola spreads all over the world and it continues this fast growth with new brands, new products, and new markets. The Axis E considers to similarity or dissimilarity between foreign and domestic countries. If we examine the company structure of Coca-Cola we can easily see that there is a large dissimilarity between countries the Coke company operates in. Coca-Cola is committed to local markets, paying attention to what people from different cultures and backgrounds like to drink, and where and how they want to drink it. On our figure there is three stage of internationalization, high, medium, low. The Coca-Cola company is would be on the stage “high”. According to our opinion Coke is an multinational enterprise because it conducts production and distribution activities in nations other than its home country. In terms of strategy and management orientation, the firm does three things that illustrates its multinational nature. First, Coca-Cola adjusts its operations to meet local needs. The firm markets on a country-by-country basis. Second, Coke has international partners who help to run the operation and do not report directly to the company on day-to-day matters. Third, the organization relies heavily on team work by all involved parties and service more as a coordinator and leader for the product than as an on-site manager.
One of them is obesity of children.Some people give complaints about the negative effects of drinking Coke. But CEO of Coca-Cola Turkey, Muhtar Kent, gived responses to these complaints recently. He clarified that drinking Coke is not a reason of obesity. The children obesity is caused by not doing sportive exercises and staying on chair in front of the computer for a long time.And he continues that Diet Coke is not unhealthy for children. When the Coca-Cola go on abroad, it comes face to face with local competitors. For example in England the local brand of Mecca Cola and in Turkey Cola Turka.But Coke has a strong position towards these brands because of brand loyalty. Some groups in Islam society argue that The Coke is giving support for Jewishs’ capital. But this assertions stay as rumour because up to now there is no clear evidence.Also some Muslim people and Palestinians argue that Coca-Cola giving assistance to Israel army in the Palestine-Israel war.Because of this sales of the company is a little decreased. At 23.08.2006 El Ezher University, Assembly of Islamic Issues, asserts that drinking Coke is forbidden by Islam religion because, by the investigations in Jordan they conclude that Coca-Cola has additives which made by pork. In August 2006, in India Coca-Cola is pronhibited because of the poisonous additives Coke includes. Some groups of people and members of religous orders bring forward that when looking reversly to the brand name of Coca-Cola, in Arabic language it means that there is no Muhammed and there is no Mecca.Thus they proposed not drinking Coke for all people who believe in God. As we see in these examples, negative reactions the Coca-Cola company encountered is decreasing the company sales and damaging the brand esteem of Coke.We suppose that some of these rumors are arised from the marketing strategy of local rivals. COKE’S COMPETITIVE ADVANTAGE Coke faces strong competations in European countries. Europeans do not drink as much as Coke as do Americans; drinks like coffee and tea are more popular. Coke is using this situations to help formulate its strategy. This includes new bottling plants that are driving down costs and making Coke more price competitive, and marketing campaigns designed to drow customers away from competitive products. The firm is also entering into joint ventures with local partners. And these groups are helping the firm to understand national tastes and how to formulate local response strategies. BIBLIOGRAPHY
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