The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti

What Made so Long?

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Coordinating Teacher: Dorel Paraschiv

Students:

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti

Contents

1. History 2. Bottling Coca-Cola 3. The World of Coca-Cola 4. Advertising 5. The price system 6. Mission, value and vision 7. SWOT analysis 8. Key success factors 9. Conclusion 10. Annex 11. Bibliography

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti

What made Coca-Cola last so long?

Abstract
The purpose of this paper is to present the evolution, the organization and some factors that helped Coca-Cola Company stand where it is today. We consider that Coca-Cola has become part of many peoples life and it worth giving a closer look to the key success factors of this giant multinational. Coca-Cola is said to be the second most well-known phrase in the world; the most well-known is "OK." So if you say, "Coca-Cola is OK" you will be understood in more places by more people than any other sentence. said Richard Tedlowspecialist in the history of business (1990)1. With more than 50 billion beverage servings of all types consumed worldwide every day and a history of more than one hundred years, Coca-Cola is certainly one of the most successful companies in the world. But what made Coca-Cola last so long? This is the main question that the present paper aims to answer at.

Keywords
Coca-Cola, success, international, strategy, beverage, brand, market

1. History It was 1886, and in New York Harbor, workers were constructing the Statue of Liberty. Eight hundred miles away, another great American symbol was about to be unveiled. Like many people who change history, John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity. One afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was done, he carried it a few doors down to Jacobs' Pharmacy. Here, the mixture was combined with carbonated water and sampled by customers who all agreed -- this new drink was something special. So Jacobs' Pharmacy put it on sale for five cents a glass. Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola, and wrote it out in his distinct script. To this day, Coca-Cola is written the same way. In the first year, Pemberton sold just 9 glasses of Coca-Cola a day. A century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup. Unfortunately, for Pemberton, he died in 1888 without realizing the success of the beverage he had created. Over the course of three years, 1888-1891, Atlanta businessman Asa Griggs Candler secured rights to the business for a total of about $2,300. Candler would become the Company's first president, and the first to bring real vision to the business and the brand.
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Daniel Levy and Andrew T. Young, The Real Thing: Nominal Price Rigidity of the Nickel Coke, 1886-1959, The Journal of Money Credit and Banking, Vol.36, No.4 (Aug.,2004), pp. 765-799

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti Asa G. Candler, a natural born salesman, transformed Coca-Cola from an invention into a business. He knew there were thirsty people out there, and Candler found brilliant and innovative ways to introduce them to this exciting new refreshment. He gave away coupons for complimentary first tastes of Coca-Cola, and outfitted distributing pharmacists with clocks, urns, calendars and apothecary scales bearing the Coca-Cola brand. People saw CocaCola everywhere, and the aggressive promotion worked. By 1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles. Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways. In 1894, a Mississippi businessman named Joseph Biedenharn became the first to put Coca-Cola in bottles. He sent 12 of them to Candler, who responded without enthusiasm. Despite being a brilliant and innovative businessman, he didn't realize then that the future of Coca-Cola would be with portable, bottled beverages customers could take anywhere. He still didn't realize it five years later, when, in 1899, two Chattanooga lawyers, Benjamin F. Thomas and Joseph B. Whitehead, secured exclusive rights from Candler to bottle and sell the beverage -- for the sum of only one dollar. Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none too pleased about the proliferation of copycat beverages taking advantage of its success. This was a great product, and a great brand. Both needed to be protected. Advertising focused on the authenticity of Coca-Cola, urging consumers to "Demand the genuine" and "Accept no substitute." The Company also decided to create a distinctive bottle shape to assure people they were actually getting a real Coca-Cola. The Root Glass Company of Terre Haute, Indiana, won a contest to design a bottle that could be recognized in the dark. In 1916, they began manufacturing the famous contour bottle. The contour bottle, which remains the signature shape of Coca-Cola today, was chosen for its attractive appearance, original design and the fact that, even in the dark, you could identify the genuine article. As the country roared into the new century, The Coca-Cola Company grew rapidly, moving into Canada, Panama, 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. Perhaps no person had more impact on The Coca-Cola Company than Robert Woodruff. In 1923, four years after his father Ernest purchased the Company from Asa Candler, Woodruff became the Company president. While Candler had introduced the U.S. to Coca-Cola, Woodruff would spend more than 60 years as Company leader introducing the beverage to the world beyond. Woodruff was a marketing genius who saw opportunities for expansion everywhere. He led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the Olympic Games for the first time when Coca-Cola traveled with the U.S. team to the 1928 Amsterdam Olympics. Woodruff pushed development and distribution of the six-pack, the open top cooler, and many other innovations that made it easier for people to drink Coca-Cola at home or away. This new thinking made Coca-Cola not just a huge success, but a big part of people's lives. In 1941, America entered World War II. Thousands of men and women were sent overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that "every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and whatever it costs the Company." In 1943, General Dwight D. Eisenhower sent an urgent cablegram to CocaCola, requesting shipment of materials for 10 bottling plants. During the war, many people enjoyed their first taste of the beverage, and when peace finally came, the foundations were laid for Coca-Cola to do business overseas.

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti Woodruffs vision that Coca-Cola be placed within "arm's reach of desire," was coming true -- from the mid-1940s until 1960, the number of countries with bottling operations nearly doubled. Post-war America was alive with optimism and prosperity. CocaCola was part of a fun, carefree American lifestyle, and the imagery of its advertising -- happy couples at the drive-in, carefree moms driving big yellow convertibles -- reflected the spirit of the times. After 70 years of success with one brand, Coca-Cola, the Company decided to expand with new flavors: Fanta, originally developed in the 1940s and introduced in the 1950s; Sprite followed in 1961, with TAB in 1963 and Fresca in 1966. In 1960, The Coca-Cola Company acquired The Minute Maid Company, adding an entirely new line of business -- juices -- to the Company. The Company's presence worldwide was growing rapidly, and year after year, CocaCola found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey and more. Advertising for Coca-Cola, always an important and exciting part of its business, really came into its own in the 1970s, and reflected a brand connected with fun, friends and good times. The international appeal of Coca-Cola was embodied by a 1971 commercial, where a group of young people from all over the world gathered on a hilltop in Italy to sing "I'd Like to Buy the World a Coke." 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. The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of much change and innovation at The Coca-Cola Company. In 1981, Roberto C. Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola Company. Goizueta, who fled Castro's Cuba in 1961, completely overhauled the Company with a strategy he called "intelligent risk taking." Among his bold moves was organizing the numerous U.S. bottling operations into a new public company, Coca-Cola Enterprises Inc. He also led the introduction of diet Coke, 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. One of Goizueta's other initiatives, in 1985, was the release of a new taste for CocaCola, the first change in formulation in 99 years. In taste tests, people loved the new formula, commonly called new Coke. In the real world, they had a deep emotional attachment to the original, and they begged and pleaded to get it back. Critics called it the biggest marketing blunder ever. But the Company listened, and the original formula was returned to the market as Coca-Cola classic, and the product began to increase its lead over the competition -- a lead that continues to this day. 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, 5

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti 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. In 1886, Coca-Cola brought refreshment to patrons of a small Atlanta pharmacy. Now well into its second century, the Company's goal is to provide magic every time someone drinks one of its more than 400 brands. Coca-Cola has fans 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 worlds most ubiquitous brand, with more than 1.4 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. Among his bold moves was organizing the numerous U.S. bottling operations into a new public company, Coca-Cola Enterprises Inc. He also led the introduction of diet Coke, 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. 2. Bottling Coca-Cola Coca-Colas 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. 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.

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti

Title: The Evolution of Coca-Cola Bottle, from 1899 to 1994 Source: http://www.pollsb.com/polls/p7976-evolution_coca_cola_bottles_liked_stop

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. Between 1900 and 1909 Coca-Cola sales registered an astonishing 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. However,bottlers worried that the straight-sided bottle for Coca-Cola 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! 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. 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,

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti Peru, Spain, Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries in the 1920s and 1930s. 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. In 1950s, 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. 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. 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. 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.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 Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.

3. The World of Coca-Cola Coca-Cola has created even a selective an argumentative museum called The World of Coca-Cola, opened in Atlanta in August 1990. Opulently conceived and planned by the well-known exhibition specialists Staples & Charles of Washington, it is also strategically placed. Its fountained plaza abuts the entry to Underground Atlanta, a major tourist attraction, and the museum strands, appropriately, just a short distance from the Georgia Capitol. So, Cokes ceremonial presence is placed where it can most easily be visited. Once inside, the visitor encounters reaffirmation of the company's global status in a three-story atrium from which hang the flags of those nations (more than 160 according to the brochure) where Coca-Cola is produced or distributed. From there, on payment of $3.50 for adults, the World of Coca-Cola is fully accessible. Surrounding the bottling monster are cases filled with antiquities from the extensive Coke archives- certificates, photographs, syrup bottles, pharmaceutical materialsalong with an 8

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti introductory video and summary narratives of the company's history. The emphasis here is on the significance of bottled Coke and the importance of the contour bottle as the first package actually to become a product's trademark. Coke's battles with imitators and interlopers are also featured, giving narrative drama to its emergence as the standard of the world. Of special interest to historians are the nearby interactive video shelters or kiosks two screens, large and small, placed within three-dimensional versions of Coke cans. Four of them on this level, and another four on the level below, use news-reel footage, photographs, film clips, and sound tracks to depict five-year segments of what the brochure calls "world events and life-styles." Viewers can select from titles like "Festival of Dreams" (immigration), "The Lure of the City:' and "The New Woman." Coke is fit, subtly and not so subtly, into each segment. After this piece of nostalgia, the visitor is jolted into corporate reality by an electric bulletin board, in the Times Square mode, that gives bursts of company history ("Fabulous Facts") and documents the number of soft drinks served since 1886 by Coke. Moving faster than the national debt, during Harris Neils visit in 1995 the figure reached 4,355,445,188,000 but just for an instant. Beyond the video kiosks lies a second pod, lined with some of Coke's colorful advertising (a few illustrators such as Haddon Sundbloom are given special attention), showcases with trophies, coolers, trays, all surrounding an old-time soda fountain with a fasttalking soda jerk who entertains the visitors with a repertoire of counter rituals and Coke folklore. All this is prelude to the third pod, Coke's most elaborate if laconic presentation of itself, a thirteen-minute video titled "Every Day of Your Life." Here, spectacularly and unapologetically filmed, accompanied by stereophonic sound, Coke is shown being drunk or distributed in the shadow of and shadowing historic and natural landmarks throughout the world: in the land of the Pyramids, in the harbor of Hong Kong, on the beach at Rio, with surfers in Malibu. This combination of travelogue, newsreel, sporting event, and beauty contest has touches of cheesecake, beefcake, Special Olympics, and tourist adventure. Rhapsodic music makes verbal commentary unnecessary. The theater walls are covered with blown-up color photos of Coke in various parts of the world, seconding the global domination theme that has been sounded before. It is much like viewing an extended but brilliantly filmed commercial. Down on the second floor, the experience is somewhat different. Here the emphasis, in the first pod, is on Coke advertising; cases are filled with photographs of sports celebrities who endorse or are seen using Coke and with Haddon Sund-bloom's standard-setting Santa Claus and Coke ads. A telephone stand invites listeners to tune into a thirteen-minute, twentyone-selection anthology of great radio Coke songs, with performances by the Supremes, Roy Orbison, Linda Ronstadt, the Everly Brothers, and Miriam Makeba among them. In a small theater, visitors can watch "Perfect Pages," highlights taken from Coke's extensive repertoire of television advertising. The World of Coca-Cola knows how powerfully commercials can provoke spasms of personal nostalgia. Like automobile styling, fashions, movies, and popular music, commercials in almost any form are keys to unlocking reminiscence. To judge from the enthusiasm and attention of the visitors, they are even more popular avenues to historical review than newsreels and documentary. The final descent to the ground floor leads to the Coca-Cola Trademart, forty-five hundred square feet, fully one-third of the entire structure. This is the museum gift shop gone wild, a miniature department store with a single brand. Here an extraordinary variety of CocaCola commodities are on sale: caps, shirts, toys, glasses, mugs, umbrellas, trains, trays, golf balls, pens, glassware, towels. Also on sale are collectibles issued in series, some in limited numbers. Having encountered true antiques on the upper floors, the visitor can now become an instant antique owner; for established collectors, price lists for older Coca-Cola collectibles 9

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti are also available for purchase. In this lively museum of commodity capitalism, almost every aspect of the product and of its symbolic values is explored, and nothing is more truly interactive than this immense trade mart. The pavilion created by Coca-Cola is popular and accessible; management estimates that the museum receives almost one million visitors annually (more than most American metropolitan art museums). It is open seventy-five hours a week: eleven and one-half hours each day except Sunday, when it is limited to six hours. Again, this schedule is beyond the dreams of most major American museums, con-strained by budget economies to little more than half this availability. But such generosity is natural in a profit-making corporation, which has, in its museum, an institution simultaneously of commercial promotion, civic benevolence, and pedagogic influence. Or, as its fact sheet proclaims, "a dream for collectors, a fantasyland for children and an educational marvel for consumers.

4. Advertising Over the years Coca-Cola has produced hundreds of distinct advertising signs, in porcelain, various metals and paper. The most well-known are the round porcelain Drink Coca-Cola buttons and the early color lithographed metal signs featuring women such as the Betty series produced in 1914. In the beginning, Coca-Cola was a brand that nobody knew anything about. It was a flavor profile that was not known at the time. Most drinks before Coca-Cola were fruitflavored drinksoranges, grapes, strawberries, raspberriesand root beers. Along comes this new cola product. They had to find ways to get people to taste it, to increase sampling. One of the ways to do that was to produce advertising materials that would encourage you to try this new product the next time youre at a soda fountain.

Vintage Coca Cola calendar circa 1901 featuring model Hilda Clark sitting at a table drinking a glass of Coca Cola. Hilda Clark was the first person hired as an official Coca-Cola spokesperson.

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The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti They were actually the first company to use sampling coupons. They would have these salesmen go out on street corners and hand out coupons entitling you to a free drink of Coke at the soda fountain. And so people would redeem it at the soda fountain, try the new product. Well, now those sampling coupons are highly prized collectibles. Another early advertising form was the clock. They would give clocks to pharmacies that sold Coca-Cola. They would give away apothecary scales, things that the pharmacist would use every single day. Again, there would be an ad for Coke on the scales. They also gave away ceramic syrup urns, which were highly decorative, but fully functional, pieces. These things were designed to sit on the front of the soda fountain itself, so they were very visible. Coca-Cola antiques have that wonderful Victorian quality to them. The very ornate trays with those fashionably dressed women on them immediately take you back to that period in our history. Advertisements for Coke in the 1920s capture a picture of how people looked like. If you want to know what a flapper looked like, just take a look at a Coca-Cola tray. Coca-Cola advertising from that period captured the lifestyle perfectly. Up until the 1920s, there was no home refrigeration. When home refrigeration started to become more common, they introduced a six-pack carton. So, instead of buying Coke one at a time, you could bring home a six-pack and put it in your refrigerator to enjoy at your convenience. People didnt have to walk down to the corner store to get an ice-cold Coke anymore. When you get into the 1960s, all of a sudden Americans are more mobile. They want packaging that can travel with them, and so you see the introduction of things like cans and no-deposit, no-return packages. Theyre going on picnics, theyre going on family outings, and they want to bring Coke with them. So they have to give it to them in a package thats going to work in those kinds of situations. In late 1960s, early 1970s, they started to see a boom in collectibles. Maybe it was because during the 1960s there had been a lot of social upheaval in the United States, so perhaps these images of a simpler time appealed to people in a special way. That was also the period when they started to see the emergence of clubs that were formed just to collect CocaCola memorabilia. There are two categories: vintage Coca-Cola collectibles and more recent items. The vintage pieces are difficult for young collectors and new collectors on a budget because they tend to be pricey. Its a lot easier to get into collecting bottles or cans or pins because they tend not to be expensive. You can develop a pretty nice collection without spending a lot of money. People are comfortable with Coca-Cola memorabilia. It brings back memories. It may remind them of a simpler time in our history. There are all-American girls on the trays and calendars, suggesting a more innocent age, if you will. Thats kind of the appeal of the product: Coke is a brand that people associate with happy timesa birthday, a football game, the prom, graduation. Its a product that people have around when they are with friends and family. On the design of the logo: The script has pretty much been unchanged since 1886. It was designed by Frank Robinson, who was the bookkeeper of John Pemberton, who invented the product. Because he was a bookkeeper, Robinson had this flowing handwriting, Basically the Coca-Cola logo is Mr. Robinsons signature.

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The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti The look of the script has been mostly consistent, but the elements we put around the script have changed a lot. Currently, for example, the words Coca-Cola are placed within a square. In previous years, theyve put it in a circle or theyve put it in a rectangle. Theyve put it in what they call a fishtail. So the script has been used in a number of configurations and has had different sizes and shapes, but the script itself is relatively unchanged.

On Santa Claus: An artist named Haddon Sundblom did the Coca-Cola Santa Clauses for years and years. People love it. The Santa Clauses that were created back in the 1930s are still used in their advertising and packaging in the 21st century. They began creating Santa Claus imagery in 1931, and Sundblom did all of it through 1964. So for more than three decades, they had one artist working on creating an image of what Santa Claus ought to be. Today his CocaCola Santa Clauses are part of their collective DNA. The history of Coca-Cola advertisements: The drink was first served on May 8, 1886. Two weeks later, they had their first ad in an Atlanta newspaper. So advertising was a very early part of their history. Advertising was always one of the key things that helped to make Coke a successful product. For the first 13 years, Coca-Cola was only available at the soda fountain. It wasnt until 1899 that they started bottling it. So there were 13 years when the soda fountain was the only place you could get a Coke. In fact, it wasnt until the late 1920s before bottling overtook the fountain business in terms of the number of gallons that they served to consumers. The biggest change in advertising, obviously, is that today so much of it is electronic. Its radio, television, the Internet, and websites. Thats probably another reason why the collectibles arena is so strong for Coca-Colatheyre simply not doing the same kind of advertising. They dont produce trays, calendars, posters, and print ads in the same way that they did even back in the 1950s. That era is behind them. They do very little print today because thats not how consumers get their information. 5. The Price System Surprisingly, the price of 6.5-ounce Coca-Cola was 5 cents (a nickel) from 1886 until 1959. Thus, we are documenting a nominal price rigidity that lasted more than 70 years! The 12

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti case of Coca-Cola is particularly interesting because during the 70-year period there were substantial changes in the soft drink industry as well as two World Wars, the Great Depression, and numerous regulatory interventions and lawsuits, which led to substantial changes in the Coca- Cola market conditions. The nickel price of Coke, nevertheless, remained: The prices system works so well, so efficiently, that we are not aware of it most of the time. We never realize how well it functions until it is prevented from functioning, and even then we seldom recognize the source of the trouble. stated writers Milton and Rose Friedman (1990)2 Economists Daniel Levy and Andrew Young identified a combination of three possible factors as an explanation for the Coca-Cola price rigidity. Two of these explanations are technology based, while the third has to do with a weird contract between the Company and its parent bottlers that encouraged retail price maintenance. First, an installed base of vending machines with nickel-only capability, and the evolution of technology that could accommodate multiple type coins and change making, imposed and important constraint on the ability of the Coca-Cola Company to adjust the Cokes price. Second, at the 5 price per serving, the smallest price increase compatible with the consumer still using a single coin was a 100% jump to 10. A monetary transaction technology for smaller price adjustment while keeping consumer "inconvenience costs" low in terms of the number of coins needed for purchasing a bottle of Coca-Cola, was not available. It turns out that the price of the Coca-Cola syrup to bottlers was fixed by a contract and, therefore, the third explanation offered is a simple model of monopoly under stages of processing with fixed upstream cost, which demonstrates a motive for adjusting only quantity given a constant syrup price. This explanation differs from the common fixed nominal contract story because it relies on an upstream price contract creating a retail price maintenance motive. The model can help explain the Coca-Cola price rigidity, but only until 1921, the year a new contract was signed with bottlers, which introduced flexibility in the Coca-Cola syrup pricing. 6. Mission, value and vision The Coca Cola Company represents the largest corporation in the United States ; and is also the world`s largest beverage company , distributor , manufacturer , marketer of non-alcoholic beverage concentrates and syrups . Globally Coca Cola , says it leads in sparkling , juice and juice drink , ready-todrink-coffee and tea . It is No.2 in sport drinks and No. 3 in packaged water which includes plain bottled water and bulk water , categories where there is competition . Coca Cola Companys mission is: to refresh the world, to inspire moments of optimism happiness and to create values and make a difference " .Thus , this company wants to refresh the world in body , mind and spirit and to inspire great moments through their brands and actions . The organization prides itself on its "secret formula" of what sets it a part from its competition: internal and external teamwork, its ability to sustain safe and quality product, its strong leadership within the industry, its long lasting partnerships and its support of world events. The mission statement of the company is: The Coca Cola company exists to benefit and refresh everyone who is touched by our business " .
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Daniel Levy and Andrew T. Young, The Real Thing: Nominal Price Rigidity of the Nickel Coke, 1886-1959, The Journal of Money Credit and Banking, Vol.36, No.4 (Aug.,2004), pp. 765-799

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The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti In 1923 Robert Woodruff, former chairman of this company, stated that Coca Cola should always be within an arms reach of desire " . This mission has continued to drive the companys marketing strategy, enabling Coca Cola to build a strong global presence in a world in which citizens are seeking to purchase leading brands. ( mission ) At its 2020 Vision Meeting with analysts and journalists, Coca Cola laid out goals within the areas of profit, people, portfolio, partners, planet and productivity. Key priorities include doubling system revenue to $200 billion in 2020 from $95 billion in 2009. Their vision serves as the framework for their Roadmap and guides every aspect of their business by describing what they need to accomplish in order to continue achieving sustainable, quality growth. The Coca cola Company wants to create a great place to work where people are inspired to be the best they can be ; to bring to the world a portfolio of quality beverage brands that anticipate and satisfy people`s desires and needs ; to nurture a winning network of customers and suppliers because together they believe that they can create mutual value and to be a highly effective , lean and fast - moving organization ( productivity) . Regarding the Planet , they want to represent a responsible citizen that makes a difference by helping build and support sustainable communities . This company also wants to maximize long-term return to shareowners while being mindful of their responsibilities - profit. (vision) Coca Cola has a strong brand identity in the global market and is one of the most respected brands in the world. For example, in 2007 this company ranked 4th in the list of top 10 powerful brands in the world as published by Millward Brown`s BrandZ Index. The brand value in that year was of 44.13 billion US dollars. Their values serve as a compass for their actions and describe their behavior in the world. Their values are : Be real ( integrity) ; leverage collective genius ( collaboration ) ; the courage to shape a better future ( leadership ) ; " If it is to be , its up to me " ( accountability ) ; committed in heart and mind ( passion ) ; as inclusive as our brands ( diversity ) and " What we do , we do well " ( quality ) . The values of Coca Cola company are based on integrity , collaboration , leadership , accountability , passion , diversity and quality and all these values , together with the teamwork will manage to remain a strong brand . ( values ) 7. SWOT analysis The Coca-Cola Company (Coca-Cola) is a leading manufacturer, distributor and marketer of Non-alcoholic beverage concentrates and syrups, in the world. Coca-Cola has a strong brand name and brand portfolio. Business-Week and Interbrand, a branding consultancy, recognize Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2006. The Business Week-Interbred valued Coca-Cola at $67,000 million in 2006. Coca-Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of $12,690 million The Companys strong brand value facilitates customer recall and allows Coca-Cola to penetrate markets. However, the company is threatened by intense competition which could have an adverse impact on the companys market share.

Strengths Worlds leading brand

Weaknesses Negative publicity

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The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti Large scale of operations Robust revenue growth in three segments Opportunities Acquisitions Intense competition Growing bottled water market Growing Hispanic population in US Sluggish performance in North America Decline in cash from operating activities Threats Intense competition Dependence on bottling partners Sluggish growth of carbonated beverages

Strengths Worlds leading brand Coca-Cola has strong brand recognition across the globe. The company has a leading brand value and a strong brand portfolio. Business-Week and Interbrand, a branding consultancy, recognize. Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2006.The Business Week-Interbrand valued Coca-Cola at $67,000 million in 2006. Coca-Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of $12,690 million. Furthermore, Coca-Cola owns a large portfolio of product brands. The company owns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta. Strong brands allow the company to introduce brand extensions such as Vanilla Coke, Cherry Coke and Coke with Lemon. Over the years, the company has made large investments in brand promotions. Consequently, Coca-cola is one of the best recognized global brands. The companys strong brand value facilitates customer recall and allows Coca-Cola to penetrate new markets and consolidate existing ones. Large scale of operations With revenues in excess of $24 billion Coca-Cola has a large scale of operation. CocaCola is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Coco-Cola is selling trademarked beverage products since the year 1886 in the US. The company currently sells its products in more than 200 countries. Of the approximately 52 billion beverage servings of all types consumed worldwide every day, beverages bearing trademarks owned by or licensed to Coca-Cola account for more than 1.4 billion. The companys operations are supported by a strong infrastructure across the world. Coca-Cola owns and operates 32 principal beverage concentrates and/or syrup manufacturing plants located throughout the world. In addition, it owns or has interest in 37 operations with 95 principal beverage bottling and canning plants located outside the US. The company also owns bottled water production and still beverage facilities as well as a facility that manufactures juice concentrates. The companys large scale of operation allows it to feed upcoming markets with relative ease and enhances its revenue generation capacity. Robust revenue growth in three segments Coca-colas revenues recorded a double digit growth, in three operating segments. These three segments are Latin America, East, South Asia, and Pacific Rim and Bottling investments. Revenues from Latin America grew by 20.4% during fiscal 2006, over 2005. 15

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti During the same period, revenues from East, South Asia, and Pacific Rim grew by 10.6% while revenues from the bottling investments segment by 19.9%. Together, the three segments of Latin America, East, South Asia, and Pacific Rim and bottling investments, accounted for 34.8% of total revenues during fiscal 2006. Robust revenues growth rates in these segments contributed to top-line growth for Coca-Cola during 2006. Weaknesses Negative publicity The company received negative publicity in India during September 2006.The company was accused by the Center for Science and Environment (CSE) of selling products containing pesticide residues. Coca-Cola products sold in and around the Indian national capital region contained a hazardous pesticide residue. These pesticides included chemicals which could cause cancers, damage the nervous and reproductive systems and reduce bone mineral density. Such negative publicity could adversely impact the companys brand image and the demand for Coca-Cola products. This could also have an adverse impact on the companys growth prospects in the international markets. Sluggish performance in North America Coca-Colas performance in North America was far from robust. North America is Coca-Colas core market generating about 30% of total revenues during fiscal 2006. Therefore, a strong performance in North America is important for the company. In North America the sale of unit cases did not record any growth. Unit case retail volume in North America decreased 1% primarily due to weak sparkling beverage trends in the second half of 2006 and decline in the warehouse-delivered water and juice businesses. Moreover, the company also expects performance in North America to be weak during 2007.Sluggish performance in North America could impact the companys future growth prospects and prevent Coca-Cola from recording a more robust top-line growth. Decline in cash from operating activities The companys cash flow from operating activities declined during fiscal 2006. Cash flows from operating activities decreased 7% in 2006 compared to 2005. Net cash provided by operating activities reached $5,957 million in 2006, from $6,423 million in 2005. CocaColas cash flows from operating activities in 2006 also decreased compared with 2005 as a result of a contribution of approximately $216 million to a tax-qualified trust to fund retiree medical benefits. The decrease was also the result of certain marketing accruals recorded in 2005.Decline in cash from operating activities reduces availability of funds for the companys investing and financing activities, which, in turn, increases the companys exposure to debt markets and fluctuating interest rates. Opportunities Acquisitions For the last one year, Coca-Cola has been aggressively adopting the inorganic growth path. During 2006, its acquisitions included Kerry Beverages, (KBL), which was subsequently, reappointed Coca-Cola China Industries (CCCIL). Coca-Cola acquired a 16

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti controlling shareholding in KBL, its bottling joint venture with the Kerry Group, in Hong Kong. The acquisition extended Coca-Colas control over manufacturing and distribution joint ventures in nine Chinese provinces. In Germany the company acquired Apollinaris which sells sparkling and still mineral water in Germany. Coca-Cola has also acquired a 100% interest in TJC Holdings, a bottling company in South Africa. Coca-Cola also made acquisitions in Australia and New Zealand during 2006. These acquisitions strengthened Coca-Colas international operations. These also give Coca-Cola an opportunity for growth, through new product launch or greater penetration of existing markets. Stronger international operations increase the companys capacity to penetrate international markets and also gives it an opportunity to diversity its revenue stream. Growing bottled water market Bottled water is one of the fastest-growing segments in the worlds food and beverage market owing to increasing health concerns. The market for bottled water in the US generated revenues of about $15.6 billion in 2006. Market consumption volumes were estimated to be 30 billion liters in 2006. The market's consumption volume is expected to rise to 38.6 billion units by the end of 2010. This represents a CAGR of 6.9% during 2005-2010. In terms of value, the bottled water market is forecast to reach $19.3 billion by the end of 2010. In the bottled water market, the revenue of flavored water (water-based, slightly sweetened refreshment drink) segment is growing by about $10 billion annually. The companys Dasani brand water is the third best-selling bottled water in the US. Coca-Cola could leverage its strong position in the bottled water segment to take advantage of growing demand for flavored water. Growing Hispanic population in US Hispanics are growing rapidly both in number and economic power. As a result, they have become more important to marketers than ever before. In 2006, about 11.6 million US households were estimated to be Hispanic. This translates into a Hispanic population of about 42 million. The US Census estimates that by 2020, the Hispanic population will reach 60 million or almost 18% of the total US population. The economic influence of Hispanics is growing even faster than their population. Nielsen Media Research estimates that the buying power of Hispanics will exceed $1 trillion by 2008- a 55% increase over 2003 levels. CocaCola has extensive operations and an extensive product portfolio in the US. The company can benefit from an expanding Hispanic population in the US, which would translate into higher consumption of Coca-Cola products and higher revenues for the company. Threats Intense competition Coca-Cola competes in the nonalcoholic beverages segment of the commercial beverages industry. The company faces intense competition in various markets from regional as well as global players. Also, the company faces competition from various nonalcoholic sparkling beverages including juices and nectars and fruit drinks. In many of the countries in which Coca-Cola operates, including the US, PepsiCo is one of the companys primary competitors. Other significant competitors include Nestle, Cadbury Schweppes, Group

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The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti DANONE and Kraft Foods. Competitive factors impacting the companys business include pricing, advertising, sales promotion programs, product innovation, and brand and trademark development and protection. Intense competition could impact Coca-Colas market share and revenue growth rates. Dependence on bottling partners Coca-Cola generates most of its revenues by selling concentrates and syrups to bottlers in who met does not have any ownership interest or in which it has no controlling ownership interest. In 2006, approximately 83% of its worldwide unit case volumes were produced and distributed by bottling partners in which the company did not have any controlling interests. As independent companies, its bottling partners, some of whom are publicly traded companies, make their own business decisions that may not always be in line with the companys interests. In addition, many of its bottling partners have the right to manufacture or distribute their own products or certain products of other beverage companies. If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling partners, then the partners may take actions that, while maximizing their own short-term profits, may be detrimental to Coca-Cola. These bottlers may devote more resources to business opportunities or product soother than those beneficial for Coca-Cola. Such actions could, in the long run, have an adverse effect on Coca-Colas profitability. In addition, loss of one or more of its major customers by any one of its major bottling partners could indirectly affect Coca-Colas business results. Such dependence on third parties is a weak link in Coca-Colas operations and increases the companys business risks. Sluggish growth of carbonated beverages US consumers have started to look for greater variety in their drinks and are becoming increasingly health conscious. This has led to a decrease in the consumption of carbonated and other sweetened beverages in the US. The US carbonated soft drinks market generated total revenues of $63.9 billion in 2005, this representing a compound annual growth rate (CAGR) of only 0.2% for the five-year period spanning 2001-2005. The performance of the market is forecast to decelerate, with an anticipated compound annual rate of change (CAGR) of -0.3% for the five-year period 2005-2010 expected to drive the market to a value of $62.9 billion by the end of 2010.Moreover in the recent years, beverage companies such as CocaCola have been criticized for selling carbonated beverages with high amounts of sugar and unacceptable levels of dangerous chemical content, and have been implicated for facilitating poor diet and increasing childhood obesity. Moreover, the US is the companys core market. Coca-Cola already expects its performance in the region to be sluggish during 2007. CocaColas revenues could be adversely affected by a slowdown in the US carbonated beverage market. 8. Key success factors The Coca-Cola Company is one of the largest, most successful and most widely recognized corporations in existence. Coca-Cola is a dominating force in the beverage industry and sets a very high standard of competition. Research shows that its trademark is recognized by over 94% of the worlds population. There are many factors contributing to Coca-Colas success, however, it is believed that their key success factors are Marketing, Innovation, and Globalization. Marketing strategy 18

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti Their local marketing strategy enables Coca Cola to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who they are, where they live, how they work and play and how they relax and recharge. They are determined not only to make great drinks but also to contribute to communities around the world through their commitments to education, health, wellness and diversity. They focus on needs of their consumers, customers, franchise partners and execution in the marketplace every day. The major part of their marketing strategy is based on the fact that they get out into the market and listen, observe and learn. Coca Cola is seen as one of the founding fathers of the modern day marketing model. They were among the pioneers of advertising techniques and styles used to capture an audience. Through its immense marketing campaigns, has developed an image that is reflected in what we think of when we buy Coca Cola and what we associate with drinking it . This image has been subconsciously installed in our brain by the advertising campaigns that show Coca Cola associated with good times". Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market. This shows that the market of the company is geographically vast and it is controlling it with great success. In 2002, the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume, that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success. Thus they are increasing their market day by day. This strategy has worked a lot and it has helped them to become the Worlds leading Soft Drink Company. The global unit sale of the Coca Cola Company is increasing from the last ten years. So there is positive growth in the market of the Coca Cola Company. There is a worldwide volume increase by 4% with strong international growth of 5%. This is only due to the innovative marketing programmers, which has deepened the relationship of the customers and Coca Cola. The financial health and success of their bottling partners is a critical component of The Coca-Cola Company's ability to build and deliver leading brands. In 2002, the company had worked with their bottlers to turn good intentions into reality by improving the system economics. The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. The main reason behind this relationship is to continue realizing shared opportunities for growth, with closer coordination of operations including customer relationships, logistics and production. According to the 2005 Annual Report the company sells beverage products in more than 200 countries. The report further states that of the more than 50 billion beverage servings of all types consumed worldwide every day, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion. Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78% of the Company's total gallon sales. Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows: 37% in the United States 43% in Mexico, Brazil, Japan and the People's Republic of China 20% spread throughout the rest of the world

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The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti In 2010 it was announced that Coca-Cola had become the first brand to top 1 billion in annual UK grocery sales. Innovation Innovation is at the heart of everything we do. It is the driving force behind our 3,000 juices, waters, sports drinks, sparkling beverages, energy drinks, teas and coffees. It is the inspiration behind our environmentally-friendly packaging and refrigeration equipment. And it is what makes our cutting-edge marketing connect with consumers around the world every day. Innovation is what keeps us thirsting for success. (The Coca-Cola Team) The Coca-Cola company uses innovation in different departments of its business from their products, packaging techniques, equipments to market place. Lucky people in Milan recently enjoyed a taste of "5,000 years of wisdom in a bottle," with the European launch of Jianchi, a new drink inspired by the ancient principles of traditional Chinese wisdom. Jianchi means "strong inner energy" in Chinese. The drink, made with fruit juices and plant extracts and available in three flavors, is inspired by ancient Chinese wisdom to enhance the inner balance. Innovative equipments like interactive vending machine and climate friendly coolers make their name much stronger and increase clients trust and interest in purchasing their products. The video vender, which debuted at the 2008 Beijing Olympics, and is now in select Simon Malls throughout the United States, integrates a Samsung 46-inch LCD touch screen into the front of a Coca-Cola vending machine. The large-format display combined with Flash technology, motion graphics, high-definition video and Bluetooth capabilities for mobile downloads, creates a uniquely immersive experience for consumers. The video vender took home the Gold Lion in the Point of Sale category at the 2009 Cannes Lions International Advertising Festival. Therefore, they sustain that The Coca-Cola Company is committed to sustainable refrigeration for its vending equipment. Our Climate Friendly Coolers use a CO2 refrigeration system and HFC-free insulation foam that reduce potential direct CO2 equivalent green house gas emissions by approximately 99%. They also contain an intelligent management system reducing energy use and indirect carbon emissions up to 35%. By using these technologies, our typical Climate Friendly Cooler will reduce direct and indirect carbon emissions by over 3 tons over the Cooler's lifetime. The foodservice industry is an evolving world. Every day new restaurant concepts open, new items appear on the menu, and new consumers walk through the door with their own individual wants and expectations. As the leading beverage supplier for the foodservice industry, our customers turn to us to provide the products, programs, packaging and marketing support that are in tune with the ever-changing playing field of foodservice. As a result, we've become an organization where innovation is paramount to our success. Through innovation, we have helped, and will continue to help, our customers maintain and grow their businesses, especially in uncertain economic times. Some of these innovations offer consumers more beverage choices; some tap into growing categories like tea, coffee and smoothies; and some provide custom beverages and food/beverage pairings. Let's look at some recent examples: Our new Bevariety beverage dispenser allows consumers to choose from 12 brands and multiple flavor shot options, totaling more than 50 different drink combinations, in the same footprint as the existing legacy dispenser. Gold Peak variety tea dispenser is a self-service urn that offers four different tea flavors, offering choice and variety in the growing tea category. Juan Valdez cafREALE system enables foodservice operators to serve hot, fresh cups of Colombian coffee on demand (no brewing required). 20

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti Our Minute Maid two- and four-valve juice dispenser delivers healthy beverage choices throughout the day, such as orange juice at breakfast and lemonade in the afternoon. The Coca-Cola Brands with Meals website provides customers with suggested food and beverage pairings, and a tool to develop specialty beverages with chefs from the Culinary Institute of America. In addition, we continue to develop beverages, programs and promotions to meet specific customer needs, such as the successful custom milkshake, crew training and marketing materials we recently created for one of our customers. But innovation, like any change, comes with some inherent risk. As an organization, we've been able to learn from innovations that worked as well as those that didn't. Fortunately, many of our innovations have met with business success. But on the occasions they haven't, we've used that knowledge to do things a better way. We've learned from past experiences to introduce an innovation only when it's ready. Those experiences, and the lessons learned, have helped guide the launch of Bevariety and other innovations still in development. If you think about it, a fountain innovation is what started this great Company. A simple combination of syrup mixed with sparkling water created what is now the No. 1 beverage company in the world. We know firsthand that innovation is critical to our -- and our customers'-- continued growth and success. That's why innovation will keep our Company moving toward undisputed beverage leadership and our customers ahead of the competition. There are so many new things to offer our consumers and customers and revolutionary innovations still to come., highlighs the company. Globalization Todays big business takes place on a global scale, and Coca-Cola is no exception. Technology is continually changing business, and these constant changes have been making it more feasible and profitable for businesses to expand their operations globally in order to serve all different types of diverse markets around the world. This global view is reflected in Cokes recent Id like to teach the world to sing commercial. Coca-Cola is taking advantage of the large revenue opportunities made possible by participating in a global market and now offers products in 200 countries around the world. Some of the newest and famous Coca-Cola products spread all over the globe: - Coke is the most popular well known cola around the world, with a young spirit who are thirsty of getting the best from life. Coca-Cola is the experienced drink that quenches thirst and inspires the connection between the people who enjoy every single moment. Because only ice-cold Coca-Cola has the delicious taste that deeply refreshes the body, mind, and spirit. - Coca-Cola Light is a light beverage that allows to enjoy the authentic cola flavor without breaking your commitment of feeling well physical and emotionally, because only Coca-Cola Light combines the authentic cola flavor with zero calories. Good for body conscious to stay fit. - Sprite is the official drinks of NBA. Good For adolescents and young adults who are in process of establishing their own identity. Sprite is the only young drink that quenches your thirst and your wish of being authentic, because its honest and direct attitude is instinctively combined with its fresh and clear taste. Obey your thirst! - Fresca - Recommended for extreme teenage have more energy consuming life. Fresca is the light drink that best refreshes you physical and emotionally for its refreshing grapefruit taste and its fun, daring, and open attitude. 21

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti Coke Cherry - Enjoy the extraordinary of cherry and coke mixed. For out outgoing teens who love to have fun with lots of friends, Coke Cherry combines the bold, exhilarating taste of cherry with Coca Cola to add life to the party. Coke Blak - Enjoy the aroma of Coca cola and Coffee mixed. Coke Blak is a blend of Coke and coffee essence, in a sleek aluminum contour bottle by British design firm Pearl fisher. Aimed at adults, the bottles graphics lend a sophisticated look to a company famous for its iconic red cans. Fanta - Good For teenagers with passion to experiment life at its fullest, standing out from their group of friends. FANTA is the drink with fruit taste that amazes your senses and intensifies your everyday-funny-moments. Because only FANTA has the intense taste and sparkling colors that have a creative, fun, and spontaneous attitude. Senzao made from Guarana, a fruit grows only in Brazil, A carbonated softdrinks with the spirit of Carnival and spirit of Brazilians. Good for youngsters who want to be themselves creating and showing their own style, Senzao is the light and the only drink with a Guarana taste that naturally un inhibits you filling up your body with energy and fortifying your spirit. Beat - Good for adolescents who live life at its fullest, Beat is a cool drink that is part of the spontaneous and energetic intensity of the group, because its color, taste, caffeine and design combine its wish to live without limits. Enjoy with Delaware Punch is the sweet that activates your imagination, creating an atmosphere of suspense and mystery because only Delaware Punch combine a deep color with an intense taste experience you cant forgot. Ciel - Coca cola Mineral water version. This product is for balanced, optimist, and complete people who search equilibrium in life, Ciel is the purified and fresh water that helps you feel good with yourself because its mineral balance, achieved by the Coca-Cola Company, gives you the physical and mental balance that your body needs. Powerade - Coca cola energy drink. This is for active young adults who always want to achieve more, Powerade is the sports drink that gives you the strength to perform better and the confidence to surpass your own limits, because it offers you the precise combination energy and hydration to maximize your body performance and it gives you a quick recovery. Good for Sport professionals that give extra energy long last. The newest soda advertised by Coca Cola company. Coke Zero has no sugar less calorie soda, good for body figure conscious, stay in good shape. No sugar recommended for diabetes patient.

It takes a very forward-thinking company to create a whole new subsidiary, one whose sole existence is dedicated to mitigating the environmental footprint that is a byproduct of their manufacturing processes. That is, however, exactly what Coca-Cola Enterprises (CCE) did. In late 2007, CCE the worlds largest bottler and distributor of Coca-Cola beverages formed Coca-Cola Recycling to develop cost-efficient solutions for reclaiming used beverage containers and beverage packaging materials. Their goal? To recycle 100 percent of the packaging materials generated by the Coca-Cola system in North America by the year 2020. Coca-Cola Recycling has more than 30 internal recycling centers at manufacturing facilities throughout North America. These facilities collect pre-consumer waste, and each has a target to divert more than 90% of the waste in the facilities from landfills. Everything from paper to cardboard to plastic to the strapping from the bailing is being recycled, and some facilities across the country have achieved rates of 99.85%. Coca-Cola Recycling has also begun a joint venture with United Resources Recovery Center to form the worlds largest bottle-to-bottle recycling center in Spartanburg, SC, and other test sites in throughout the 22

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti Southeast are being considered. Coca-Cola Recycling is also doing some work with local MRFs (Material Recovery Facility). Coca-Cola Recyclings main focus, however, is education. In the sustainable community, this might sound crazy but John Burgess, the President and CEO of the company pointed out some staggering numbers. Aluminum is the highest recycled beverage container in the US, but only 55% of it is recycled. Plastics, in particular PET, at are a distant 27%. In fact, 70% of what is collected from curbside recycling programs is paper. So last year, CocaCola Recycling conducted 300 days of education. Most exciting is the direct benefits that have come to the local bottlers. The focus of the education has been to prevent landfills from being crowded with recyclables. Based on current technology, there is a limit to how much recycled material can go in a new bottle so ensuring that the material gets recycled into other products is of critical importance for Burgess and Coca-Cola Recycling. Another challenge with using collecting recycled PET is that the bulk of what Americans recycle goes overseas to be used in manufacturing. So even if Coca-Cola Recycling could capture all of it for use in new bottles, there would be supply issues. Coca-Cola Recycling is more interested in problem solving with local governments instead of influencing policy. A wise choice considering that the market is still changing. Awareness about the need to recycle is still the key. We need a convenient way to do it. Everyone agrees it should happen but it must be easy to create an infrastructure to support it, added Burgess. Plans for 2010 ? The first focus is the Olympics in Vancouver. A robust recycling program is planned for the Games, which will be the most sustainable and environmentally-responsible Olympics in history. Coca-Cola Recycling employees have uniforms made out of recycled PET. John even got a snowsuit made out of more than 100 recycled Coke bottles. After the Olympics, look for more Coca-Cola Recycling at NASCAR races and other events throughout the Southeast and nationwide, with additional local education and incentive programs coming online in a community near you. Conclusion All facts presented by this paper reinforce the fact that Coca-Cola is the most valued brand name on the face of the earth, far surpassing any rival company. The world's number one soft-drink company, has achieved the present status through hard work and dedication, but most of all by knowing how to better satisfy needs of different people around the world, how to distribute their products globally and adapt them locally. They made more than just a brand; they made history, succeeding to become part of peoples way of living.

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The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti

Annex - Figures

The Volume of sales of the Coca Cola company

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The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti

Employees

92,800 Total Employees Sales

Revenue per Employee KO Industry Avg 333,944 243,931 Sales per Employee KO 333,944

Industry Avg 243,931

Domestic Sales 8.01B

International Sales 22.98B Company Revenue vs. Ind. Revenue (Mil.)

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The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti

Return on Equity vs. Return on Assets

Current recommendations

Historical Rec Stong Buy Moderate Buy Hold Moderate Sell Strong Sell Mean Rec.

Current 1 Mo. Ago 2 Mo. Ago 3 Mo. Ago 10 9 9 10 3 3 2 2 1 2 3 4 0 0 0 0 0 0 0 0 1.36 1.50 1.57 1.63

Earnings and estimates

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The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti

Title : Coca Cola Bottle 1899- referred to as Hutchinson style.

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The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti

Early advertisement for Coca Cola - oil cloth sign circa 1905 with five cents price advertised.

Title : The Coca ColaTray 1910-> Coca Cola serving tray circa 1910 depicts a woman wearing a large hat - the original artwork was done by Hamilton King.

Title: Christmas Coca Cola Advertisement 1963

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The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti

Title: Coca Cola TV Advertisement Features 3D Animation 1996

BIBLIOGRAPHY: 1. Neil Harris, The World of Coca-Cola, The Journal of American History, Vol. 82, No.1 (Jun., 1995), pp.154-158 2. Daniel Levy and Andrew T. Young, The Real Thing: Nominal Price Rigidity of the Nickel Coke, 1886-1959, The Journal of Money Credit and Banking, Vol.36, No.4 (Aug.,2004), pp. 765-799 3 . www.coca-cola.com 4. www.thecoca-colacompany.com 5. http://www.scribd.com/doc/9995196/Swot-Analysis-of-Coca-Cola 6. http://www.oppapers.com/essays/Coco-Cola-Key-Success-Factors/145766 7.http://www.collectorsweekly.com/articles/an-interview-with-coca-cola-historian-andarchivist-phil-mooney/ 8. http://en.wikipedia.org/wiki/The_Coca-Cola_Company 9. http://www.thecoca-colacompany.com/ourcompany/innovation_marketplace.html 10. http://www.msnbc.msn.com/id/33975464/ns/business-food_inc/ 11.http://www.southeastgreen.com/index.php? option=com_content&view=article&id=1500:coca-cola-recyclings-efforts-grow-in-nationalrecycling-conversation&catid=5:changing-tactics&Itemid=13 29

The Faculty of International Business and Economics, Academia de Studii Economice, Bucureti 12.http://www.thecocacolacompany.com/ourcompany/ar/pdf/2009_annual_review_Business_ Profile.pdf 13. http://inventors.about.com/od/cstartinventions/ss/coke_ads_2.htm THE COCA COLA WARS! The Cola Wars. By J. C. Louis and Harvey Z. Yazijian. New York: Everest House, Publishers, 1980. Pp. 386. $15.95.

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