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Strategic-Management of Cocacola

Strategic-Management of Cocacola

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Published by: charu on Aug 14, 2012
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Coca-Cola Company
 
Case Study
S
TRATEGIC
M
ANAGEMENT
 
 
 
EXECUTIVE SUMMARY
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,Georgia, on May 8, 1886. Coca-
Cola Company is the world‟s leading manufacturer, marketer 
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by JohnStith Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-
colored syrup in a three legged brass kettle in his backyard. He first “distributed” the product bycarrying it in a jug down the street to Jacob‟s Pharmacy and customers bought the drink for five
cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by
accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme
that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a sodafountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it wasonly when a strong bottling system developed that Coca-Cola became the world-famous brand itis today.
Interbrand‟s Global Brand Scorecard for 2003
ranked Coca-Cola the #1 Brand in the World andestimated its brand value at $70.45 billion. Coca-Cola currently offers nearly 400 brands in over200 countries or territories and serves 1.5 billion servings each day. Today, products of the CocaCola Company are consumed at the rate of more than one billion drinks per day.
 
 
HISTORY OF COCA COLA
Coca-Cola® originated as a soda fountain beverage in 1886 selling for five cents a glass. Earlygrowth was impressive, but it was only when a strong bottling system developed that Coca-Colabecame the world-famous brand it is today.
1894
 – 
A modest start for a Bold Idea
In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell,using a common glass bottle called a Hutchinson.Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked himbut took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candlerfocused on fountain sales.
1899 The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they couldbuild a business around bottling Coca-Cola. In a meeting with Candler,Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights tobottle Coca-Cola across most of the United States (specifically excludingVicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, JohnT. Lupton, soon joined their venture.
 1900-
1909 … Rapid growth
 
The three pioneer bottlers divided the country into territories and sold bottling rights to localentrepreneurs. Their efforts were boosted by major progress in bottling technology, whichimproved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants wereoperating, most of them family-owned businesses. Some were open only during hot-weathermonths when demand was high.
1916 … Birth o
f the contour bottle
Bottlers worried that the straight-sided bottle for Coca-Colawas easily confused with imitators. A group representing theCompany and bottlers asked glass manufacturers to offerideas for a distinctive bottle. A design from the Root GlassCompany of Terre Haute, Indiana won enthusiastic approvalin 1915 and was introduced in 1916. The contour bottlebecame one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the mostrecognized icons in the world - even in the dark!

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