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 with carbonated water and deemed “excellent” by those who sampled it. Dr. Pemberton’s 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. 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. Prior to his death in 1888, just two years after creating what was to become the world’s #1-selling sparkling beverage, Dr. Pemberton sold portions of his business to various parties, with the majority of the interest sold to Atlanta businessman, Asa G. Candler. Under Mr. Candler’s 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. Among the biggest challenges for early bottlers, were imitations of the beverage by competitors coupled with a lack of packaging consistency among the 1,000 bottling plants at the time. The bottlers agreed that a distinctive beverage needed a standard and distinctive bottle, and in 1916, the bottlers approved the unique contour bottle. The new Coca‑Cola bottle was so distinctive it could be recognized in the dark and it effectively set the brand apart from competition. The contoured Coca‑Cola bottle was trademarked in 1977. Over the years, the Coca‑Cola bottle has been inspiration for artists across the globe a sampling of which can be viewed at World of Coca‑Cola in Atlanta. The first marketing efforts in Coca‑Cola history was executed through coupons promoting free samples of the beverage. Considered an innovative tactic back in 1887, couponing was followed by newspaper advertising and the distribution of promotional items bearing the Coca‑Cola script to participating pharmacies. the 1970s when Coca‑Cola’s advertising started to reflect a brand connected with fun, friends and good times. Many fondly remember the 1971 Hilltop Singers performing “I’d Like to Buy the World a Coke”, or the 1979 “Have a Coke and a Smile” commercial featuring a young fan giving Pittsburgh Steeler, “Mean Joe Greene”, a refreshing bottle of Coca‑Cola. EVOLUTION OF THE COCA-COLA BOTTLE The 1980s featured such memorable slogans as “Coke is It!”, “Catch the Wave” and “Can’t Beat the Feeling”. In 1993, Coca‑Cola experimented with computer animation, and the popular “Always Coca‑Cola” campaign was launched in a series of ads featuring animated polar bears. Each animated ad in the “Always Coca‑Cola” series took 12 weeks to produce from beginning to end. The bears were, and still are, a huge hit with consumers because of their embodiment of characteristics like innocence, mischief and fun. A favorite feature at World of Coca‑Cola is the ability to have your photo taken with the beloved 7′ tall Coca‑Cola Polar Bear. One of the most famous advertising slogans in Coca‑Cola history “The Pause That Refreshes” first appeared in the Saturday Evening Post in 1929. The theme of pausing with Coca‑Cola refreshment is still echoed in today’s marketing. THESE PRODUCTS ARE PRODUCED BY DIFFERENT MANUFACTURERS AROUND THE WORLD. The Coca Cola Company Mission Our mission is: To refresh the world in mind, body and spirit To inspire moments of optimism and happiness through our brands and actions To create value and make a difference. The Coca Cola Company Vision To achieve our mission, we have developed a set of goals, which we will work with our bottlers to deliver: People: Inspiring each other to be the best we can be by providing a great place to work Portfolio: Offering the world a portfolio of drinks brands that anticipate and satisfy people's desires and needs Partners: Nurturing a winning network of partners and building mutual loyalty Planet: Being a responsible global citizen that makes a difference by helping to build and support sustainable communities Profit: Maximizing long-term return to shareholders, while being mindful of our overall responsibilities Productivity: Being a highly effective, lean and fast-moving organization. The Coca Cola Company Values Our shared values guide our actions and describe how we behave in the world: Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well Analysis 1 Customers:Clients: Coca cola does not specify in its mission who its consumers are, it should expand to: "Refresh all the people of the world in body, mind and spirit" to give a clearer idea. 2 Products or Services: At this point they have a good strategy as they offer a portfolio of drinks brands that anticipate people's wishes and needs 3 Markets:They speak that their market is worldwide, the first line hints at the global market and the size of the Coca Cola market. 4 Technology:Regarding the point on technology, Coca Cola does not mention anything about which one they will use, to accomplish their goal. 5 Concern for survival, growth, and profitability: At this point they have a clear description and define their goal of priority and Maximize the long-term performance for shareholders. 6 Philosophy:achieve inspire their consumers moments of optimism and happiness through their brands and actions. 7 Self Concept:Its biggest competitive advantage is a highly efficient and fast organization. which they have managed to demonstrate. 8 Concern for public image: Its corporate social responsibility policy is very good, and it is based on creating responsible global citizens that make a difference by helping to build and support sustainable communities. as they do in countries in areas such as Central America and South Asia. 9 concern for employees:Coca Cola is one of the best companies to work for in the world, its success is achieved thanks to its policy of Inspiring each other to be the best that they can be by providing an excellent place to work. • Coca-Cola proudly serves more than 200 countries and territories from around the world, and Corporate Social Responsibility (CSR) is at the core of our business in each one of them. Giving people options and choices • We offer 500+ brands and 4,100+ varieties, including reduced-sugar drinks and smaller packages. Focusing on a World Without Waste • We aim to collect and recycle a bottle or can for every one we sell by 2030. Returning 100% of water used in our drinks We are water balanced and working to improve safe, clean drinking water in communities where it's needed most. Innovative packaging design • We aim to make our global packaging 100% recyclable by 2025. Collect. Recycle. Reuse. • We plan to collect and recycle a bottle or can for every one we sell by 2030. Because every package should have more than one life. It's only single use if used once • Bottles made from 100% recycled plastic, fully recyclable materials, plantbased materials and hybrid innovations are now available. Returning every drop of water we use • We promised to return 100% of the water we use to make our drinks. We met that goal and continue to regenerate more water than we use each year. 1 trillion+ liters of water replenished • We return clean water back to communities and nature from our business or local water initiatives. Driving solutions worldwide with hundreds of local programs • Through partnerships and shared knowledge, we improve water security where it is needed most. Porter’s value Chain Coca Cola Value Chain analysis SUPPORT ACTIVITIES Firm infrastructure The firm infrastructure denotes a range of activities, such as- quality management, legal matters handling, accounting, financing, planning and strategic management. Effective infrastructure management can allow Coca Cola Company The to optimize the value of the whole value chain. Coca Cola Company They can control the infrastructure activities (or commonly called overhead costs) to strengthen the competitive positioning in the market. Human resource management Coca Cola Company They can analyze human resource management by evaluating different HR aspects, including- recruiting, selecting, training, rewarding, performance management and other personnel management activities. The effective HR management can allow Coca Cola Company The to reduce competitive pressure based on motivation, commitment and skills of its workforce. The company can also achieve its cost minimization objectives by analyzing hiring and training costs with their relative return. The heavy dependence of Coca Cola Company The on employees' talent will increase the importance of this value chain support activity. Technology development In a modern, technological advanced era, almost all value chain activities depend on technological support. The technological integration in production, distribution, marketing and human resource activities requires Coca Cola Company The to realize the importance of technology development. It can be divided into product and process technological development activities. Some examples are- automation software, technology-supported customer service, product design research and data analytics. The research and development department of Coca Cola Company The is classified in this category. Procurement The procurement in value chain denotes the processes involved in purchasing the inputs that may range from equipment, machinery, raw material, supplies, raw material and other items necessary for producing the finished product. Due to its linkage with multiple value chain activities, Coca Cola Company They should carefully consider its procurement activities to optimize the inbound, operational and outbound value chain. PRIMARY ACTIVITIES Inbound logistics. Water is the main ingredient for all products manufactured by Coca Cola Company and the company occasionally faces significant challenges in accessing this particular raw material. Coca Cola uses high fructose corn syrup (HFCS) extensively and this raw material is purchased from US-based suppliers and delivered via trucks. There are also some ingredients that have to be sourced internationally. For example, orange juice and orange juice concentrate is sourced from Florida and Southern Hemisphere, particularly Brazil. For international purchases inbound logistics are facilitated via ships and trucks. Coca Cola values diversity among its suppliers. In 2013, $952 million were spent on diverse suppliers, an increase of 14.8% compared to the previous year. Operations. Coca-Cola operating segments are divided into the following 7 groups: Eurasia and Africa Europe Latin America North America Asia Pacific Bottling Investments Corporate The Coca Cola system is not a single entity from legal and managerial points of view. Coca Cola manufactures and sells concentrates, beverage bases and syrups to its bottling partners, maintains ownership of the brand and develops and applies marketing strategy. Bottling partners, entities that do not belong to Coca Cola, do manufacturing, packaging, merchandising and they distribute the final product to customers and vending partners. Outbound logistics. Coca Cola Company sells its products in more than 200 countries and understandably claims to operate the world’s largest beverage distribution system Distribution channels utilized by Coca-Cola consists of distribution operations operated or controlled by the company, independent bottling partners, distributors, wholesalers and retailers. The five major bottling partners listed in Table 3 accounted for 33% of the total unit case volume sales in 2014. Moreover, outbound logistics are organized via manual distribution across Africa with more than 2500 independent manual distribution businesses employing more than 11,000 people Independentbottlingpartner Areascovered Coca-Cola FEMSA, S.A.B. de NortheastpartsofMexico, Brazil, Guatemala, Colombia, Costa Rica, C.V. (“Coca-Cola FEMSA”) Nicaragua, Panama, Venezuela, western Argentina and Philippines Armenia, Austria, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, the Former Yugoslav Republic of Macedonia, Coca-Cola HBC AG (“Coca-Cola Greece, Hungary, Italy, Latvia, Lithuania, Moldova, Montenegro, Hellenic”) Nigeria, Northern Ireland, Poland, Republic of Ireland, Romania, Russia, Serbia, Slovakia, Slovenia, Switzerland and Ukraine Arca Continental, S.A.B. de C.V Western México, Ecuador and Argentina Belgium, continental France, Great Britain, Luxembourg, Monaco, New CCE the Netherlands, Norway and Sweden Hong Kong, Taiwan, seven provinces in mainland SwireBeverages (“Swire”) China and territories in 11 states in the western United States Marketing and sales. Sales of beverages belonging to Coca-Cola portfolio amounted to 28.6 billion, 28.2 billion and 27.7 billion-unit cases in 2014, 2013 and 2012, respectively. The volume of sales in the home country US accounted for 19% to the total volume of sales in 2014. 31% of total sales outside of the US occurred in Mexico, China, Brazil and Japan. Coca Cola applies integrated marketing strategy using advertising, sales promotions, events and experiences and public relations elements of the marketing mix in a combined manner. The brand marketing message is associated with being happy, enjoying life and leading an active lifestyle. Coca Cola’s the latest marketing efforts have been directed at combining four popular drinks – Coca Cola, Diet Coke, Coca Cola Zero and Coca Cola Life into the concept of ‘One Brand’, thus providing wider choice to the target customer segment. Service. Coca Cola maintains its customer service practices via online chat with a virtual agent in official website of the company dedicated customer service phone. Coca Cola website has a comprehensive FAQ that covers the most aspects of their products in a detailed manner and the website also addresses a wide range of rumors related to the brand direct and indirect ways.
