The

Story
Prepared by
A.REJI
MBA (PART II) 4th SEMESTER,
SESSION : 2007-2009

Internal guide
Professor. SUMIT RAY

(IISCO HOUSE, 7th FLOOR, 50 CHOWRINGHEE ROAD, KOLKATA 700 071)

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
worlds leading manufacturer, marketer and distributor of non-alcoholic
beverage concentrates and syrups, used to produce nearly 400 beverage
brands. It sells beverage concentrates and syrups to bottling and canning
operators, distributors, fountain retailers and fountain wholesalers. CocaCola was first introduced by John Syth 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
by carrying it in a jug down the street to Jacobs 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
soda fountain beverage in 1886 selling for five cents a glass. Early growth
was impressive, but it was only when a strong bottling system developed
that Coca-Cola became the world-famous brand it is today. Coca- Cola was
the leading soft drink brand in India until 1977, when it left rather than
reveal its formula to the Government and reduce its equity stake as required
under the Foreign Regulation Act (FERA) which governed the operations of
foreign companies in India. In the new liberalized and deregulated
environment in 1993, Coca-Cola made its re-entry into India through its
100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola
Company. The main objective of this study lies in understanding the
organization.

Acknowledgement
I am very much obliged to Professor. SUMIT RAY (Faculty, EIM) my
internal guide who have given me valuable suggestions by providing me
feedback with which I was immensely benefited.
I was also very much benefited by the help being provided by my institute,
by providing me with the necessary information, reference books that I
required.

Certificate from internal guide

This is to certify that the work embodied in the project report titled
strategic marketing analysis of Coca-Cola done by A.REJI was
conducted under my supervision.

________________________

(Professor. Sumit Ray)

Student Declaration
I declare that the project titled The Coca Cola story has been done
by me and has not been submitted in part or full to any authority for
award of any degree / diploma.

______________________

A.Reji

Contents
History of Coca-Cola
Evolution of Coca-Cola
Advertising history of Coca-Cola
Brands of Coca-Cola
Competition
No.1 brand in the world
The New Coke fiasco
Core capabilities
Challenges and risks
Criticism relating to coca cola
Conclusion

History of Coca-Cola
Coca-Cola was invented by Doctor John Pemberton a
pharmacist from Atlanta Georgia in May of 1886. John
Pemberton concocted the Coca Cola formula in a three
legged brass kettle; all this was done in his backyard. The
name Coca Cola was actually given to John Pemberton by
his bookkeeper Frank Robinson
Frank Robinson had excellent penmanship. He first scripted
"Coca Cola" into the flowing letters which has become the
famous logo we know and love today.
The soft drink was first sold to the public at the soda fountain in Jacob's
Pharmacy in Atlanta on May 8, 1886. About nine servings of the soft drink
were sold each day. Sales for that first year added up to a total of about $50.
The funny thing was that it cost John Pemberton over $70 in expanses, so
the first year of sales were a loss. Until 1905, the soft drink, marketed as a
tonic, contained extracts of cocaine as well as the caffeine-rich kola nut.
In 1887, another Atlanta pharmacist and businessman, Asa Candler bought
the formula for Coca Cola from inventor John Pemberton for $2,300.
By the late 1890s, Coca Cola was one of America's most popular fountain
drinks; Candler's aggressive marketing of the product takes credit for that.
With Asa Candler, now at the helm, the Coca Cola Company
increased
syrup sales by over 4000% between 1890 and 1900.
Advertising was an important factor in John Pemberton and Asa Candler's
success and by the turn of the century, the drink was sold across the United
States and Canada. Coca Cola began selling syrup to independent bottling
companies licensed to sell the drink. Still today, the US soft drink industry is
organized on this principle

Evolution of Coca-Cola
Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass.
Early growth was impressive, but it was only when a strong bottling system developed
that
Coca-Cola
became
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 him but took no action. One of his nephews already had urged that Coca-Cola be
bottled, but Candler focused on fountain sales.
1899 The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could
build a business around bottling Coca-Cola. In a meeting with Candler,
Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive
rights to bottle Coca-Cola across most of the United States (specifically
excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga
lawyer, John T. Lupton, soon joined their venture.
1900-1909 Rapid growth
The three pioneer bottlers divided the country into territories and sold bottling rights to
local entrepreneurs. Their efforts were boosted by major progress in bottling technology,
which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling
plants were operating, most of them family-owned businesses. Some were open only
during hot-weather months when demand was high.
1916 Birth of the contour bottle
Bottlers worried that the straight-sided bottle for CocaCola was easily confused with imitators. A group
representing the Company and bottlers asked glass
manufacturers to offer ideas for a distinctive bottle. A
design from the Root Glass Company of Terre Haute,
Indiana won enthusiastic approval in 1915 and was
introduced in 1916. The contour bottle became one of the
few packages ever granted trademark status by the U.S.
Patent Office. Today, it's one of the most recognized icons in the world even in the dark!

1920s Bottling overtakes fountain sales

As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S.
Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their
1923 introduction. A few years later, open-top metal coolers became the forerunners of
automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola
exceeded fountain sales.
1920s and 30s International expansion
Led by longtime Company leader Robert W. Woodruff, chief
executive officer and chairman of the Board, the Company began
a major push to establish bottling operations outside the U.S.
Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru,
Spain, Australia and South Africa. By the time World War II began, Coca-Cola was
being bottled in 44 countries.
1940s Post-war growth

During the war, 64 bottling plants were set up around the

world to supply the troops. This followed an urgent
request for bottling equipment and materials from
General Eisenhower's base in North Africa. Many of
these war-time plants were later converted to civilian
use, permanently enlarging the bottling system and
accelerating the growth of the Company's worldwide business.
1950s Packaging innovations

For the first time, consumers had choices of Coca-Cola

package size and type -- the traditional 6.5-ounce
contour bottle, or larger servings including 10-, 12- and
26-ounce versions. Cans were also introduced, becoming
generally available in 1960.
1960s New brands introduced

Following Fanta in the 1950s, Sprite, Minute Maid, Fresca and

TaB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello
were added in the 1970s. The 1980s brought diet Coke and Cherry Coke,
followed by POWERADE and DASANI in the 1990s. Today hundreds
of other brands are offered to meet consumer preferences in local markets
around the world.

1970s and 80s Consolidation to serve customers

As technology led to a global economy, the retailers who sold Coca-Cola

merged and evolved into international mega-chains. Such customers
required a new approach. In response, many small and medium-size bottlers
consolidated to better serve giant international customers. The Company
encouraged and invested in a number of bottler consolidations to assure that
its largest bottling partners would have capacity to lead the system in
working with global retailers.
1990s New and growing markets

Political and economic changes opened vast markets that were closed or
underdeveloped for decades. After the fall of the Berlin Wall, the Company
invested heavily to build plants in Eastern Europe. And as the century
closed, more than $1.5 billion was committed to new bottling facilities in
Africa.
21st Century

The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as people seek
brands that honor local identity and the distinctiveness of local markets. As
was true a century ago, strong locally based relationships between CocaCola bottlers, customers and communities are the foundation on which the
entire business grows.
2001 launched the new fridge pack in USA a thinner longer 12 pack
design
2005 innovative aluminum contour bottles introduced commonly called

M5 as the magnificent five bottles., Coca Cola zero a zero calorie coca cola
with real coca cola taste launched
2006 coca cola turns 120. Launches the every drop counts campaign to

make the consumers remind of the variety of products coca cola offers
2007 launches the PET bottle which uses 5% less plastic than the other

PET bottles. Opens up new world of coca cola in Atlanta Georgia on may
24th

Advertising history of coca cola

Coca-Cola's advertising has had a significant impact on
American culture, nd is frequently credited with the
"invention" of the modern image of Santa Claus as an old
man in red-and-white garments; however, while the
company did in fact start promoting this image in the
1930s in its winter advertising campaigns, it was already
common before that. In fact, Coca-Cola was not even the
first soft drink company to utilize the modern image
Santa Claus in its advertising White Rock Beverages
used Santa in advertisements for its ginger ale in 1923
after first using him to sell mineral water in 1915
Before Santa Claus, however, Coca-Cola relied on
images of smartly-dressed young women to sell its
beverages. Coca-Cola's first such advertisement
appeared in 1895 and featured a young Bostonian
actress named Hilda Clark as its spokesperson.
In the 1970s, a song from a Coca-Cola commercial
called "I'd Like to Teach the World to Sing", produced
by Billy Davis, became a popular hit single.
Coca-Cola has a policy of avoiding using children
younger than the age of 12 in any of its advertising. This
decision was made as a result of a lawsuit from the
beginning of the 20th century that alleged that Coke's
caffeine content was dangerous to children.
However, in recent times, this has not stopped the company from targeting
young consumers. Coke's advertising is rather pervasive, as one of
Woodruff's stated goals was to ensure that everyone on Earth drank CocaCola as their preferred beverage. This is especially true in southern areas of
the United States, such as Atlanta, where Coke was born.
Some of the memorable Coca-Cola television commercials between 1960
through 1986, were written and produced by former Atlanta radio veteran
Don Naylor (WGST 1936-1950, WAGA 1951-1959) during his career as a
producer for the McCann Erickson advertising agency. Many of these early
television commercials for Coca-Cola featured movie stars, sports heroes,
and popular singers of the day.

During the 1980s, Pepsi-Cola ran a series of television advertisements

showing people participating in taste tests essentially demonstrating that:
"Fifty percent of the participants who said they preferred Coke actually
chose the Pepsi". Statisticians were quick to point out the problematic nature
of a 50/50 result; that most likely all this really showed was that in blind
tests, most people simply cannot tell the difference between Pepsi and Coke.
Coca-Cola ran ads to combat Pepsi's ads in an incident sometimes referred to
as the cola wars; one of Coke's ads compared the so-called Pepsi challenge
to two chimpanzees deciding which tennis ball was furrier. Thereafter,
Coca-Cola regained its leadership in the market.
Selena was a spokesperson for Coca-Cola from 1989 till the time of her
death. She filmed three commercials for the company. In 1994 to
commemorate her 5 years with the company, Coca-Cola issued special
Selena coke bottles.

In an attempt to broaden its portfolio, Coca-Cola

purchased Columbia Pictures in 1982. Columbia provided subtle publicity
through Coke product placements in many of its films while under Coke's
ownership. However, after a few early successes, Columbia began to underperform,
and
was
dropped
by
the
company
in
1989.
Coca-Cola has gone through a number of different advertising slogans in its
long history, including "The pause that refreshes", "I'd like to buy the world
a Coke", and "Coke is it".
In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty
campaign where consumers earn virtual "points" by entering codes from
special marked packages of Coca-Cola products into a website. These points
can in turn be redeemed for various prizes or sweepstakes entries

Brands of Coca-Cola
Coca-Cola Zero has been one of the most successful
product launch hes in Coca Colas history. In 2007, Coca
Colas sold nearly 450 million cases globally. Put into
perspective, that's roughly the same size as Coca Colas total
business in the Philippines, one of our top 15 markets. As of
September 2008, Coca-Cola Zero is available in more than
100 countries.

Energy Drinks

For those with a high-intensity

approach to life, Coca Colas brands
of Energy Drinks contain ingredients
such as ginseng extract, guarana
extract, caffeine and B vitamins.
Juices/Juice Drinks

We bring innovation to the goodness

of juice in Coca Colas more than 20
juice and juice drink brands, offering
both adults and children nutritious,
refreshing and flavorful beverages.

Soft Drinks

Coca Colas dozens of soft drink

brands provide flavor and refreshment
in a variety of choices. From the
original Coca-Cola to most recent

introductions, soft drinks from The Coca-Cola Company are both icons and
innovators in the beverage industry.
Sports Drinks

Carbohydrates, fluids, and electrolytes

team together in Coca Colas Sports
Drinks, providing rapid hydration and
terrific taste for fitness-seekers at any
level

Tea and Coffee

Bottled and canned teas and coffees

provide consumers' favorite drinks in
convenient take-anywhere packaging,
satisfying both traditional tea drinkers
and today's growing coffee culture.

Water

Smooth and essential, our Waters and

Water Beverages offer hydration in its
purest form.

Other Drinks

So much more than soft drinks.

Coca Colas brands also include
milk products, soup, and more so
you can choose a Coca Cola
Company
product
anytime,
anywhere for nutrition, refreshment
or other needs.

Competition
PEPSI INTERNATIONAL
History
PepsiCo is a world leader in convenient foods and beverages, with revenues
of about $27 billion and over 143,000 employees. The company consists of
the snack businesses of Frito-Lay North America and Frito-Lay
International; the beverage businesses of Pepsi-Cola North America,
Gatorade/Tropicana North America and PepsiCo Beverages International;
and Quaker Foods North America, manufacturer and marketer of ready-toeat cereals and other food products. PepsiCo brands are available in nearly
200 countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but the corporation
is relatively young. PepsiCo was founded in 1965 through the merger of
Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo
merged with The Quaker Oats Company, including Gatorade, in 2001.would
entertain the listener with the latest musical selections rendered by violin or
piano or both. The new name, Pepsi Cola, is derived from the two of the
principle ingredients, Pepsin and Kola Nuts. It was first used on the August
28. At that time, Bradhams advertising praises his drink as Exhilarating,
invigorating, aids digestion.

Pepsi and Coca-Cola had/have different brands of soda and other drinks
competing with each other:

Type

Pepsi co

Coca cola company

Cola drink
Diet / low calorie

Pepsi
Diet Pepsi ,Pepsi light,
Pepsi one , Pepsi max

Low carb
Lemon lime soda
Orange soda
Orange juice
Water

Pepsi edge
7 up ,sierra mist
Mirinda , Tropicana
twister, Sunkist ,kas
Tropicana
Aquafina

Sports drink

Gatorade , Propel

Coca cola
Diet Coke / Coca-Cola
Light Tab, Coca-Cola
Zero
Coca cola c2
Sprite
Fanta ,
Minute maid
Kinley ,dosani ,
Ciel,Eva
PowerAde

Other competitors

Cadbury Schweppes plc

Nestle S.A.

Unilever

Procter & Gamble

Cott Corporation

Kraft Foods, Inc.

National Grape Cooperative

National Beverage Corp.

Quilmes Industrial S.A.

Yeo Hiap Seng Limited

Wimm-Bill-Dann Foods
OJSC

Co-Ro Food A/S

Rynkeby Foods A/S

Spadel SA

Delta Holding S.A.

Spendrups Bryggeri AB

Pago

Hermann Pfanner Getraenke

The No.1 Brand in the world

Year

Brand value

2008
2007
2006
2005
2004
2003
2002
2001

Rankings

66,667
65,324
67,000
67,525
67,394
70,453
69,637
68,945

1
1
1
1
1
1
1
1

Coca cola has maintained the no1 spot as the worlds best brand and the
most recognizable word after ok for the past nine years .with a brand value
of 66,667 million dollars an increase of 2% from its proceeding year

The New Coke fiasco

New Coke was introduced on April 23, 1985. Production of the original
formulation ended that same week.
The press conference at New York City's Lincoln Center to introduce the
new formula did not go over very well. Reporters present had already been
fed questions by Pepsi, which was extremely worried that New Coke would
erase all its gains. The press did not give Goizueta easy questions as he
changed a century of tradition. His stumbling description of the new taste,
given his background as one of the company's flavor chemists, was widely
ridiculed:

It's smoother, uh, uh, yet, uh, rounder yet, uh, bolder ... it has a
more harmonious flavor.[

Goizueta defended the change by pointing out that

the drink's secret formula was not sacrosanct and
inviolable. (As far back as 1935, Coca-Cola sought
kosher certification from an Atlanta Rabbi, and
made two changes to the formula so that the drink
could be certified kosher (and, incidentally, Halal
and vegetarian) and also Kosher For Passover.
But Goizueta also refused to admit that taste tests had in any way led the
company to make the change (which he called "one of the easiest decisions
we have ever made to avoid giving Pepsi any credit, yet gave no other real
reason for the change, further alienating reporters who had already heard
from Pepsi representatives in advance on this very issue A reporter asked
whether Diet Coke would also be reformulated "if this is a success,"
Goizueta curtly replied, "This is a success" taking aback many reporters.
The emphasis on the sweeter taste of the new flavor also ran contrary to
previous Coke advertising, in which spokesman Bill Cosby had touted its
less-sweet taste as a reason to prefer Coke over Pepsi.
Nevertheless, the company's stock went up on the announcement, and
market research showed that 80% of the American public was aware of the
change within 48 hours.

Early acceptance
While it is widely believed today that the new drink failed almost instantly,
this was not the case. The company, as it had planned, introduced the new
formula with big marketing pushes in New York (workers renovating the
Statue of Liberty were symbolically the first Americans given cans to take
home[) and Washington, D.C. (where thousands of free cans were given
away in Lafayette Park). Sales figures from those cities, and other regions
where it had been introduced, showed a reaction that went as the market
research had predicted. In fact, Coke's sales were up 8% over the same
period the year before
Most Coke drinkers resumed buying the new drink at much the same level as
they had the old one. Surveys indicated, in fact, that a majority liked the new
flavoring. Three-quarters of the respondents said they would buy New Coke
again. The big test, however, remained in the Southeast, where Coke was
first bottled and tasted and has always been such a market leader and cultural
institution that "coke" is a colloquialism for all colas, or even, in some areas
of the South, for all soft drinks, regardless of flavor.

Backlash
Despite New Coke's acceptance with a large number of Coca-Cola drinkers,
a vocal minority of them resented the change in formula and were not shy
about making that known again just as had happened in the focus groups.
Many of these drinkers were Southerners, some of whom considered the
drink a fundamental part of regional identity. They viewed the company's
decision to change the formula through the prism of the Civil War, as
another surrender to the "Yankees"[(although Pepsi was invented in New
Bern, North Carolina, PepsiCo has located its headquarters in New York
State since its 1965 establishment).
Company headquarters in Atlanta started receiving angry letters expressing
deep disappointment and anger at executives. Over 400,000 calls and letters
were received by the company. A psychiatrist Coke hired to listen in on
phone calls to the company hotline, 1-800-GET-COKE, told executives
some people sounded as if they were discussing the death of a family
member.

They were, nonetheless, joined by some voices from outside the region.
Chicago Tribune columnist Bob Greene wrote some widely reprinted pieces
ridiculing the new flavor and damning Coke's executives for having changed
it. Talk show hosts and comedians made light of the switch. Ads for New
Coke were booed heavily when they appeared on the scoreboard at the
Houston Astrodome. Even Fidel Castro, a longtime Coke drinker,
contributed to the backlash, calling New Coke a sign of American capitalist
decadence. Goizueta's own father expressed similar misgivings towards his
son; the only time the younger man recalled him ever agreeing with Castro,
the man whose revolution had driven him and his son, nearly penniless, to
America a quarter-century before.
Pepsi took advantage of the situation, running ads in which a first-time Pepsi
drinker exclaimed "Now I know why Coke did it! However, Pepsi actually
gained very few converts over Coke's switch, despite claiming a 14% sales
increase over the same month the previous year, the largest sales growth in
the company's history. The most alienated customers simply refused to buy
New Coke rather than switch to Pepsi. Coca-Cola's director of corporate
communications, Carlton Curtis, realized over time that they were more
upset about the withdrawal of the old formula than the taste of the new one.[
Gay Mullins, a Seattle retiree looking to start a public relations firm with
$120,000 of borrowed money, formed the organization
Old Cola Drinkers of America on May 28 to lobby Coca-Cola to either
reintroduce the old formula or sell it to someone else. His organization
eventually received over 60,000 phone calls. He also filed a class action
lawsuit against the company (which was quickly dismissed by a judge who
said he preferred the taste of Pepsi), while nevertheless expressing interest in
landing Coca-Cola Company as a client of his new firm should it reintroduce
the old formula. In two informal blind taste tests, Mullins either failed to
distinguish New Coke from old or expressed a preference for New Coke.
Still, despite ongoing resistance in the South, New Coke continued to do
well in the rest of the country.[ But executives were uncertain of how
international markets would react. Sergio Zyman, the company's chief
marketing officer, heard doubts and skepticism from his relatives in Mexico,
where New Coke was slated to be introduced later that summer, when he
went there on vacation.
Goizueta publicly voiced a complaint many company executives had been
making in private as they shared letters the company had received thanking

them for the change in formula, that bashing it had become "chic" and that,
as had happened in the focus groups, peer pressure was keeping those who
liked it from speaking up in its favor as vociferously as its critics were
against it. Donald Keough, the company's president and chief operating
officer, reported overhearing this exchange at his country club outside
Atlanta

Company dissatisfaction
Some Coca-Cola executives had quietly been arguing for a reintroduction of
the old formula as early as May.[ By June, when soft drink sales usually
start to rise, the numbers showed the new formula was leveling among
consumers. Executives feared social peer pressure was now affecting their
bottom line. Some consumers began trying to obtain old Coke from
overseas, where the new formula had not yet been introduced, as domestic
stocks of the old drink were finally liquidated. Over the course of the month,
Coca-Cola's chemists also quietly reduced the acidity level of the new drink,
hoping to assuage complaints about the flavor and allow its sweetness to be
better perceived (ads pointing to this change were prepared, but never used).
In addition to the noisier public protests, boycotts and bottles being emptied
into the streets of southern cities, the company had more serious reasons to
be concerned. Its bottlers, and not just the ones still suing the company over
syrup pricing policies, were expressing concern. While they had given
Goizueta a standing ovation when he announced the change at an April 22
bottlers' meeting at Atlanta's Woodruff Arts Center, glad the company had
finally taken some initiative in the face of Pepsi's advances,] they were less
enthusiastic about the taste. Most of them saw great difficulty having to
promote and sell a drink that had long been marketed as "The Real Thing",
constant and unchanging; now that it had been changed.
The twenty bottlers still suing Coca-Cola had even more sport with the
change in their legal arguments. Coca-Cola had argued in its defense when
the suit was originally filed that the formula's uniqueness and difference
from Diet Coke justified different pricing policies from the latter - but if the
new formula was simply an HFCS-sweetened Diet Coke, Coca-Cola could
not argue the formula was unique. Bottlers, particularly in the South, were
also tired of facing personal opprobrium over the change. Many reported
that some acquaintances had stopped speaking to them, or had expressed
displeasure in other emotionally hurtful ways. On June 23, several of the

bottlers took these complaints to Coca-Cola executives in a private meeting.

With the company now fearing boycotts not only from its consumers but its
bottlers, talks about reintroducing the old formula moved from "if" to
"when."
Reversal
Coca-Cola executives announced the return of the original formula on July
10, less than three months after New Coke's introduction. ABC News' Peter
Jennings interrupted regular programming to share the news with viewers.
On the floor of the U.S. Senate, David Pryor called the reintroduction "a
meaningful moment in U.S. history".
The new product continued to be sold and retained the name Coca-Cola
(until 1992, when it was officially renamed Coca-Cola II), so the old
product was named Coca-Cola Classic, more commonly Coke Classic and
later just Coke. Many who tasted the reintroduced formula were not
convinced that the first batches really were the same formula that had
supposedly been retired that spring. This is partially true because Coca-Cola
Classic differed from the original formula, as all bottlers who hadn't already
done so were using high fructose corn syrup instead of cane sugar to sweeten
the drink. There is a twist to this story which will please every humanist
and will probably keep Harvard professors puzzled for years," said Keough
at a press conference. "The simple fact is that all the time and money and
skill poured into consumer research on the new Coca-Cola could not
measure or reveal the deep and abiding emotional attachment to original
Coca-Cola felt by so many people."
The company gave Gay Mullins the first case of Coke Classic.

Aftermath
By the end of the year, Coke Classic was substantially outselling both New
Coke and Pepsi, putting the company back into the number-one position it
has enjoyed ever since. Six months after the rollout, Coke's sales had
increased at more than twice the rate of Pepsi's
New Coke's sales dwindled to a three percent share of the market, although
it was doing quite well in Los Angeles and some other key markets. It sold
better in its first year on the market than the entire Nantucket Nectars
product line would in its first five years. Later research, however, suggested
that it was not the reintroduction of Classic Coke, but instead the lessheralded rollout of Cherry Coke, that can be credited with the company's
success that year.
Coke spent a considerable amount of time trying to figure out where it had
made a mistake, ultimately concluding that it had underestimated the public
impact of the portion of the customer base that would be alienated by the
switch. This would not emerge for several years afterward, however, and in
the meantime the public simply concluded that the company had, as Keough
suggested, failed to consider the public's attachment to the idea of what
Coke's old formula represented. While that has become conventional
wisdom in the ensuing years, some analyses have suggested otherwise.
This populist version of the story served Coke's interests, however, as the
whole episode did more to position and define Coca-Cola as a brand
embodying values distinct from Pepsi than any deliberate effort to do so
probably could have done. Allowing itself to be portrayed as a somewhat
clueless large corporation forced to back off a big change by overwhelming
public pressure flattered customers (as Keough put it, "We love any retreat
which has us rushing toward our best customers with the product they love
the most. "Bottles and cans continued to bear the "Coca-Cola Classic" title
until 2009 when the company announced that it would discontinue the use of
"Classic" to avoid confusion with the younger generation.
While in the short term the fiasco led Cosby to end his advertising for Coke,
saying his commercials that praised the superiority of the new formula had
hurt his credibility, no one at Coca-Cola was fired or otherwise held
responsible for what is still widely perceived as a misstep, for the simple
reason that it ultimately wasn't (in contrast with Schlitz beer's disastrous

change to a cheaper formula in the early 1970s, which was also based on
market research into product taste yet unquestionably detrimental to the
company in the long term). When Goizueta died in 1997, the company's
share price was at a level well above what it was when he had taken over 16
years earlier and its position as market leader even more firmly established.
At the time Roger Enrico, then head of Pepsi's American operations, likened
New Coke to the Edsel. Later, when he was himself PepsiCo's CEO, he
modified his assessment of the situation, saying that had people been fired or
demoted over New Coke, it would have sent a message that risk-taking was
strongly discouraged at the company.
In the late 1990s, Zyman summed up the New Coke experience thus:

Yes, it infuriated the public, cost a ton of money and lasted only
77 days before we reintroduced Coca-Cola Classic. Still, New
Coke was a success because it revitalized the brand and
reattached the public to Coke

New Coke continued to do what it had originally been designed to do: win
taste tests. In 1987, The Wall Street Journal surveyed 100 randomly selected
cola drinkers, the majority of whom indicated a preference for Pepsi, with
Classic Coke accounting for all save two New Coke loyalists. Given a
chance to try all three in a blind test, New Coke slightly edged out Pepsi yet many drinkers reacted angrily to finding they had chosen a brand other
than their favorite.
Goizueta never once regretted the decision, even throwing an anniversary
party for New Coke in 1995, and continued to have it produced for his
personal consumption until shortly before his own death

Core Capabilities
Consumer Marketing
Marketing investments are designed to enhance consumer awareness and
increase consumer preference for their brands. This produces long-term
growth in unit case volume, per capita consumption and their share of
worldwide nonalcoholic beverage sales. Through their relationships with
bottling partners and those who sellout products in the marketplace, they
create and implement integrated marketing programs, both globally and
locally, that are designed to heighten consumer awareness of and product
appeal for their brands. In developing strategy for a Company brand, they
conduct product and packaging research, establish brand positioning,
develop precise consumer communications and solicit consumer feedback.
Their integrated marketing activities include, but are not limited to,
advertising, point-of-sale merchandising and sales promotions. They have
disciplined marketing strategies that focus on driving volume in emerging
markets, increasing their brand value in developing markets and growing
profit in their most developed markets. In emerging markets, they are
investing in infrastructure programs that drive volume through increased
access to consumers. In developing markets, where consumer access has
largely been established, their focus is on differentiating their brands. In
outmost developed markets, they continue to invest in brands and
infrastructure programs, but at a slotheyr rate than revenue growth. They are
focused on affordability and ensuring they are communicating the
appropriate message based on the current economic environment.
Commercial Leadership
The Coca-Cola system has millions of customers around the world who sell
or serve their products directly to consumers. They focus on enhancing value
for their customers and providing solutions to grow their beverage
businesses. Their approach includes understanding each customers business
and needs, whether that customer is sophisticated retailer in a developed
market or a kiosk owner in an emerging market. They focus on ensuring that
their customers have the right product and package offerings and the right
promotional tools to deliver enhanced value to themselves and the Company.
They are constantly looking to build new beverage consumption occasions
in their customers outlets through unique and innovative consumer
experiences, product availability and delivery systems, and beverage

merchandising and displays. They participate in joint brand-building

initiatives with their customers in order to drive customer preference for
their brands. Through their commercial leadership initiatives, they embed
themselves further into their retail customers businesses while developing
strategies for better execution at the point-of-sale.
Franchise Leadership
They continued to improve their franchise leadership capabilities to give
their Company and their bottling Partners the ability to grow together
through shared values, aligned incentives and a sense of urgency and
Flexibility that supports consumers always changing needs and tastes. The
financial health and success of their
Bottling partners are critical components of the Companys success. They
work with their bottling partners to Identify system requirements that enable
them to quickly achieve scale and efficiencies, and they share best practices
throughout the bottling system. Their system leadership allows us to
leverage recent acquisitions to expand their Volume base and enhance
margins. With their bottling partners, they work to produce differentiated
beverages and Packages that is appropriate for the right channels and
consumers. They also design business models for Sparkling and still
beverages in specific markets to ensure that they appropriately share the
value created by these 35 Beverages with their bottling partners. They
continue to build a supply chain network that leverages the size and scale of
the Coca-Cola system to gain a competitive advantage.

Challenges and Risks

Being a global company provides unique opportunities for their Company.
Challenges and risks accompany those opportunities.
Their management has identified certain challenges and risks that demand
the attention of the nonalcoholic Beverages segment of the commercial
beverages industry and their Company. Of these, their key challenges and
Risks are discussed below.
Obesity and Inactive Lifestyles.
Increasing concern among consumers, public health professionals and
Government agencies of the potential health problems associated with
obesity and inactive lifestyles represents significant challenge to their
industry. They recognize that obesity is a complex public health problem.
Their Commitment to consumers begins with their broad product line, which
includes a wide selection of diet and light Beverages, juices and juice drinks,
sports drinks and water products. Their commitment also includes adhering
to Responsible policies in schools and in the marketplace; supporting
programs to encourage physical activity and Promote nutrition education;
and continuously meeting changing consumer needs through beverage
innovation, Choice and variety. They are committed to playing an
appropriate role in helping address this issue in cooperation with
governments, educators and consumers through science-based solutions and
programs.
Water Quality and Quantity.
Water quality and quantity is an issue that increasingly requires their
Companys attention and collaboration with the nonalcoholic beverages
segment of the commercial beverages Industry, governments,
nongovernmental organizations and communities where they operate. Water
is the main Ingredient in substantially all of their products. It is also a limited
natural resource facing unprecedented Challenges from overexploitation,
increasing pollution and poor management. Their Company is in an
excellent Position to share the water-related knowledge they have developed
in the communities they servewater-resource Management, water
treatment, wastewater treatment systems, and models for working with
communities and Partners in addressing water and sanitation needs. They are
actively engaged in assessing the specific water-related Risks that they and

many of their bottling partners face and have implemented a formal water
risk management Program. They are working with their global partners to
develop water sustainability projects. They are actively Encouraging
improved water efficiency and conservation efforts throughout their system.
As demand for water continues to increase around the world, they expect
commitment and continued action on their part will be crucial in the
successful long-term stewardship of this critical natural resource.
Evolving Consumer Preferences.
Consumers want more choices. They are impacted by shifting consumer
Demographics and needs, on-the-go lifestyles, aging populations in
developed markets and consumers who are empowered with more
information than ever. They are committed to generating new avenues for
growth through their core brands with a focus on diet and light products.
They are also committed to continuing to expand the Variety of choices they
provide to consumers to meet their needs, desires and lifestyle choices.
Increased Competition and Capabilities in the Marketplace.
Their Company is facing strong competition from some well-established
global companies and many local participants. They must continue to
selectively expand into other profitable segments of the nonalcoholic
beverages segment of the commercial beverages industry and strengthen
their capabilities in marketing and innovation in order to maintain their
brand loyalty and market share. All these challenges and risksobesity and
inactive lifestyles, water quality and quantity, evolving Consumer
preferences, and increased competition and capabilities in the marketplace
have the potential to Have a material adverse effect on the nonalcoholic
beverages segment of the commercial beverages industry anon their
Company; however, they believe their Company is well positioned to
appropriately address these challenges And risks.

Criticisms relating to Coca Cola

The Coca-Cola Company and its products have been criticized by various
sources for various reasons including negative health effects resulting from
consumption of its products, exploitative labor practices, high levels of
pesticides in its products, building plants in Nazi Germany which employed
slave labor, environmental destruction, monopolistic business practices,
hiring paramilitary units to murder union leaders, and marketing unhealthy
products to children.

Health effects
Acidity and tooth decay

Although numerous court cases have been filed against The Coca-Cola
Company since the 1940s alleging that the acidity of the drink is dangerous,
according to corporate information no evidence corroborating this claim has
been found. In some of these cases, evidence has been presented showing
Coca-Cola is no more harmful than comparable soft drinks or acidic fruit
juices. Under normal conditions, scientific evidence indicates Coca-Cola's
acidity causes no immediate harm. However, the frequency of exposure of
teeth to acidic environments affects the likelihood of tooth decay through
caries development.

Environmental issues
In India, there exists widespread concern over how Coca-Cola is produced.
In particular, it is feared that the water used to produce Coke may contain
unhealthy levels of pesticides and other harmful chemicals. It has also been
alleged that due to the amount of water required to produce Coca-Cola,
aquifers are drying up and forcing farmers to relocate.
Pesticide use

In 2003, the Centre for Science and Environment (CSE), a nongovernmental organisation in New Delhi, said aerated waters produced by
soft drinks manufacturers in India, including multinational giants Pepsico
and Coca-Cola, contained toxins including lindane, DDT, malathion and
chlorpyrifos pesticides that can contribute to cancer and a breakdown of
the immune system. Tested products included Coke, Pepsi, and several other

soft drinks (7Up, Mirinda, Fanta, Thums Up, Limca, Sprite), many produced
by The Coca-Cola Company.
CSE found that the Indian produced Pepsi's soft drink products had 36 times
the level of pesticide residues permitted under European Union regulations;
Coca Cola's 30 times. CSE said it had tested the same products in the US
and found no such residues.
Coca-Cola and PepsiCo angrily denied allegations that their products
manufactured in India contained toxin levels far above the norms permitted
in the developed world. David Cox, Coke's Hong Kong-based
communications director for Asia, accused Sunita Narain, CSE's director, of
"brand jacking" using Coke's brand name to draw attention to her
campaign against pesticides. Narain defended CSE's actions by describing
them as a natural follow-up to a previous study it did on bottled water.
In 2004, an Indian parliamentary committee backed up CSE's findings, and a
government-appointed committee was tasked with developing the world's
first pesticide standards for soft drinks. Coke and PepsiCo oppose the move,
arguing that lab tests aren't reliable enough to detect minute traces of
pesticides in complex drinks like soda.
The Coca-Cola Company has responded that its plants filter water to remove
potential contaminants and that its products are tested for pesticides and
must meet minimum health standards before they are distributed.
Coca-Cola had registered a 15 percent drop in sales after the pesticide
allegations were made in 2003.
As of 2005, Coke and Pepsi together hold 95% market share of soft-drink
sales in India.
In 2006, the Indian state of Kerala banned the sale and production of CocaCola, along with other soft drinks, due to concerns of high levels of pesticide
residue On Friday, September 22, 2006, the High Court in Kerala overturned
the Kerala ban ruling that only the federal government can ban food
products.

Water use

Environmental degradation in the form of depletion of the local ground

water table due to the utilization of natural water resources by the company
poses a serious threat to many communities.
In March 2004, local officials in Kerala shut down a $16 million Coke
bottling plant blamed for a drastic decline in both quantity and quality of
water available to local farmers and villagers.
In April 2005, Kerala's highest court rejected water use claims, noting that
wells there continued to dry up last summer, months after the local Coke
plant stopped operating. Further, a scientific study requested by the court
found that while the plant had "aggravated the water scarcity situation," the
"most significant factor" was a lack of rainfall. Critics respond that Coke
shouldn't be locating bottling plants in drought-stricken areas.
The company has been trying to regain the plant's license, fighting a case
that has gone all the way to India's Supreme Court
Meanwhile, near the holy city of Varanasi in northeastern India, a local
water official blames a Coke plant which has been the scene of many
protests by NGOs and local residents for polluting groundwater by
releasing wastewater into surrounding land. A Coke official confirms there
had been a drainage problem with treated wastewater several years ago but
says the company built a long pipeline to correct it.
Indian environmental activists Vandana Shiva has stated that it takes nine
liters of clean water to manufacture a litre of Coke though Coca-Cola says it
is only an average of 3.12 litres.
The case has been appealed and a decision is pending. Coca-Cola has set up
a page to rebut these charges at this site.
Packaging

Packaging used in Coca-Cola's products has a significant environmental

impact but the company strongly opposes attempts to introduce mechanisms
such as container deposit legislation.

Conclusion
The Coca Cola Company has a very rich history and spread over the world,
Coca Cola Company has a strong competitive position in the market with
rapid growth. This includes focus on Water and Juices products, and catering
to health consciousness of people through introduction of different coke
flavor and maintaining basic coke flavor. Coca-Cola is worth more than 58
billion dollars on the stock market. For more than 65 years, Coca-Cola has
been a sponsor of the Olympics. The 1996 Summer Olympics were held in
Atlanta, Georgia, the home of Coca-Cola. One great thing that the CocaCola Company has is helping the people of Atlanta. They accomplish this
through scholarships, hotlines, donations and contributions, etc. Another
large accomplishment that the Coca-Cola has is being the first company to
make and use recycled plastic bottles. One way to see all of the
achievements of the Coca-Cola Company is to visit the World of Coke in
Atlanta. It houses a collection of memorabilia, samples of the products,
exhibits, and many other exciting items. All of what has been said is the
basis of what Coca-Cola was built on. Without societies help, Coca-Cola
could not have become over a 50 billion dollar business. Keep on consuming
the world's favorite soft drink, Coca-Cola