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Background of the Company
The Coca-Cola Company is the world's largest beverage company, largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world and is one of the largest corporations in the United States. The company is best known for its flagship product Coca-Cola. The Coca-Cola Company was originally established as the J. S. Pemberton Medicine Company, a co-partnership between Dr. John Stith Pemberton and Ed Holland . The company was formed to sell three main products: Pemberton's French Wine Cola (later known as Coca-Cola), Pemberton's Indian Queen Hair Dye, and Pemberton's Globe Flower Cough Syrup. In 1884, the company became a stock company and the name was changed to Pemberton Chemical Company. The new president was D. D. Doe while Ed Holland became the new Vice-President. Pemberton stayed on as the superintendent. The company's factory was located at No. 107, Marietta St. Three years later, the company was again changed to Pemberton Medicine
The Las Vegas Strip World of CocaCola museum in 2000
Company, another co-partnership, this time between Pemberton, A. O. Murphy, E. H. Bloodworth, and J. C. Mayfield.
Finally in October 1888, the company received a charter with an authorized capital of $50,000. The charter became official on January 15, 1889. By this time, the company had expanded its offerings to include Pemberton's Orange and Lemon Elixir. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.6 billion servings each day. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its current chairman and CEO is Muhtar Kent.
Coca Cola in Indonesia
Coca-Cola Bottling Indonesia is one of the leading manufactures and distributors of soft drinks in Indonesia. It manufactures and distributes, under license, products of The Coca-Cola Company. Coca-Cola Bottling Indonesia is a trade name and is made up of joint venture company formed by local companies, owned by independent businessmen, and Coca-Cola Amatil Limited, which is one of the largest manufactures and distributors of Coca-Cola products in the world. The company manufactures and distributes Coca-Cola products to over 400,000 outlets through more than 120 Sales Centre. Coca-Cola Amatil made its first investments in Indonesia in 1992. The current Indonesian joint venture partners were amongst its partners at the time. Coca Cola products entered Indonesia in 1927, but the production of Coca-Cola products first started in 1932 at one production plant located in Jakarta. Annual production at that time was approximately 10,000 cases. The business employed only twenty-five people and operated three distribution trucks.
From that time until the 1980s, eleven independent businesses were set up throughout Indonesia to manufacture and distribute products of The Coca-Cola Company. In the early 1990s some of the businesses started to merge and on 1st January 2000 ten of those original businesses to from what is now known as Coca-Cola Bottling Indonesia. Today, with approximately 9,000 employees, millions of cases are distributed to and sold through more than 400,000 of our customers' retail outlets throughout Indonesia.
II. THE MARKETING STRATEGIES OF PT. COCA COLA BOTTLING INDONESIA
Keep a Good Quality of Their Products PT. Coca Cola Bottling Indonesia always maintain their product’s quality in order to compete with the other beverages. Although production policy and development is directed from the National Office, located in Cibitung, Bekasi, each production plant has well qualified and experienced production, technical and quality control management. All production plants meet and frequently exceed international standards and local regulatory requirements and undergo regular audits in the areas of quality control, environmental, health and safety practices. Over the years, the plants in Indonesia have been awarded prizes from The CocaCola Company for attaining standards above those of similar plants located in other parts of the world.
The processes are:
1. The first step in creating "Coca-Cola" is quite simple: to make a syrup of sugar and water. The water is carefully purified because for "Coca-Cola" absolutely top quality ingredients are required. 2. To be certain that the water used for bottling and canning is clean and pure, local drinking water is filtered and purified. Quality control technicians test the water frequently as it is used to make the finished product. 3. The checking and testing continues. Sophisticated equipment helps technicians check everything from the condition of each package to details of the carbonation level, taste and syrup content. Here the syrup mix is checked. 4. "Coca-Cola" concentrate is added to the syrup. This flavor base for Coca-Cola Company manufacturing plants and still remains one of the world's great trade secrets. Technicians carefully sample, check and record the blend of each batch of syrup. After blending, it is ready to have the 'bubbles' or carbonation,
added. Strict quality control is the reason "Coca-Cola" is famous for a perfect level of 'bubbliness'. 5. An army of glass and PET (Polyethylene terephthalate) bottles, as well as cans, is now ready to be filled with the finished product. The bottles go through a throughout test: first they're washed, rinsed and inspected electronically and visually only then are they ready to be filled with the world's most popular soft drink. 6. The conveyor lines up bottle after bottle to be filled automatically. This way the amount in each is exact, and the automatic sealing of each bottle guarantees complete hygiene. 7. At last the bottles are labeled, date coded and packed into cartons. The sales centre is then ready to dispatch "Coca-Cola" to the more than 420,000 outlets in Indonesia which stock "Coca-Cola" product. Innovation In order to be the winner in non-alcoholic beverage concentrates drinking business, PT. Coca Cola Bottling Indonesia have many innovations, such as make many kinds of variety their products. The development their products are: Innovation in Products o Coca Cola: is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. Created in Atlanta, Georgia by Dr. John S. Peberton, Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was registered as a trademark in 1887 and by 1895 Coca-Cola was sold in every state and territory in the United States. o Diet Coke: was born in July 1982 and quickly became the No. 1 sugarfree drink in diet-conscious America. It's the drink for people who want no calories, but plenty of taste. Known as Diet Coke in the Indonesia, U.S,
Canada, Australia and Great Britain, and as Coca-Cola light in other countries, it's now the No. 3 soft drink in the world. o Coca-Cola Zero or Coke Zero: is a product of the Coca-Cola Company. It is a calorie-free alternative of Coca-Cola. Coke Zero is a calorie-free formulation of unique taste Coca-Cola. Coca-Cola Zero inspires the consumer to have an open mind, that anything is possible. Coca-Cola Zero gives a great Coca Cola taste, zero sugar. o Sprite: introduced in 1960, Sprite is the world's leading lemos-lime flavored soft drink. Sprite is sold in more than 190 countries and ranks as the No. 4 soft drink worldwide, with a strong appeal to young people. Millions of people enjoy Sprite because of its crisp, clean taste that really quenches your thirst. But Sprite also has an honest, straight forward attitude about things that sets it apart from other soft drinks. Sprite encourages your thirst. o Sprite Zero: is a clear, lemon-lime-flavored low-calorie beverage produced by the Coca-Cola Company. It has a crisp, clean taste, and is the no-sugar, no-carb version of the world's leading lemon-lime flavored soft drink, quenches that your really thirst. the you to be true who you are and to obey
20-29 y.o. youth to you to be true to who they are and to follow their instinct. o Fanta: is another brand from The Coca-Cola for soft a drink in Company carbonated First
with bold fruit taste. invented
Germany, the name Fanta comes from the word "Fantasie" which means imagination. Since 1960, Fanta has been distributed around the world with teenagers aged 12-19 being the largest number of its consumers. There are more than 70 kinds of Fanta fruit taste in the world today with Orange being the largest volume contributor.
In Indonesia, Fanta was first introduced in 1973 and Fanta has many fruit flavor innovations to answer the market needs. Today Fanta has 6 flavors Strawberry, Orange, Oranggo, Elektrik Melon, Pineapple and Fruit Punch. Consumers around the world, particularly teens, fondly associate Fanta with happiness and special times with friends and family. This positive imagery is driven by the brand's fun, playful personality, which goes hand in hand with the bright color, bold fruit taste, and tingly carbonations. o Fanta Vitamin C:
Lemon is an extension of Fanta with high vitamin C content and Lemon flavor, the feels offer. product that The offers the maximized fun and playful Fanta always C Vitamin
content in this product will fulfill 100% daily value. The teenager’s active and dynamic lifestyle needs a balance hydration and vitamin C intake to maintain health and body defense, this is what Fanta Vitamin C can give. o Jacob Schweppe: patented his special process for carbonating water in 1783. Schweppe continued its growth in midst of two world wars. By the beginning of World War II, Schweppes Ltd. was firmly established 7
as the leading manufacturer of soft drinks in Great Britain. By the end of 2000, Schweppes has become part of Coca-Cola products in Indonesia.A&W Root Beer: On June 20, 1919, Roy Allen opened the first Root Beer stand in Lodi, California to sell a proprietary beverage made from a secret blend of 14 herbs, spices, barks and berries. In 1922 Allen went into partnership with one of his employees, Frank Wright and three new outlets were established in Houston. They gave their Root Beer name by combined their initials – "A" for Allen and "W" for Wright to formally name the beverage "A&W Root Beer.” It was here that Allen first introduced "A&W" as the brand name of his root beer. The one thing that hasn't changed in 80 years is that the people all over the world love the rich, smooth, thick-headed taste of A&W Root Beer. o Frestea GREEN: is a ready-to-drink green tea beverage launched in September 2005, Green tea is natural form of tea that is long believed to have a great benefit to our body and health. Frestea GREEN offers great and fresh tasting green tea with all of its healthy and natural benefits of tea leaves. On Juli 2008, Frestea Green launched a new product innovation: Frestea Green No Calorie. The freshness of green tea now available with no sugar, for health conscious consumer and for those who want to keep an ideal weight. o Frestea: an innovative, superior ready-to-drink (RTD) tea brand tailored to fully excite the five senses of the Indonesian consumers. The brand was developed locally and is part of the scope of Beverage Partners Worldwide, a successful joint venture partnership of The Coca-Cola Company and Nestle SA. The Frestea proposition was developed to capture the enjoyment of the brewed tea experience with taste, aroma, and colors being the key areas where consumers differentiate the quality. The distinctive and innovative tea blend delivers a pleasant jasmine aroma and a superior tea taste. Likewise, the unique bottle evokes the quality tea origins of the blend, and features two crossed leaves embossed into the
glass. Frestea is produced with the high-quality standards of The CocaCola Company, using the most recent manufacturing technology. Supported by a state-of-the-art hygienic processing system, we ensure that every bottle of the Frestea has the same consistent top quality. o Frestea Apel-Lemon-Markisa: Launched in August 2005, is the first fruity-flavored tea in Indonesia that contains cooling agent. Cooling agent is one of flavors in Frestea Apel-Lemon-Markisa that is made of natural material and gives cool sensation in mouth and throat; it gives long-lasting freshness. o Frestea Green My Body: is a green tea beverage, good for health with a delicious taste. Frestea Green My Body delivers health benefit for your body, made from chosen tea leaves and enriched by natural ingredients. ALOE VERA and GINSENG in Frestea Green My Body is a real extract, not artificial. Packed in a premium 350 ml bottle, Frestea Green My Body offers convenient refreshment. Frestea Green My Body is produced under license of Beverage Partners Worldwide S.A. o AdeS: By the end of 2000, The Coca-Cola Company has coperated with PT AdeS Alfindo Putrasetia Tbk by acquited the trade mark of AdeS. The relaunching of AdeS under the The Coca-Cola Company presented AdeS as pure, safe, and trusted drink water which is guaranty by The Coca-Cola Company. This product was launched from the survey that most of people always drink mineral water after eating. Until now, Aqua is the first winner for the mineral water product in Indonesia. o Powerade Isotonik: is an isotonic drink from The Coca Cola Company. It contains balanced electrolyte from minerals, so it can be easily absorbed. This benerage is usefull for optimum rehydration. Powerade Isotonik also vitamin B3, B5, B6, B12, and vitamin C. Powerade Isotonik is a thirst quencher and at the same time will replace the mineral and carbohydrate that is lost during sport and heavy activities.
Powerade was first introduced in 1990 and known as a successful product globally. This isotonic beverage is an official sponsor for Olympics 1992 and FIFA world cup since 2006. Powerade Isotonik was launched in Indonesia on January 2006 to replace Aquarius, the previous brand for isotonic. o Minute Maid Pulpy Orange: is orange juice with vitamin C and real orange pulp with a delicious and refreshing taste. Made from the best quality orange and processing it correctly, Minute Maid serves the taste and aroma of refreshing orange. With the vitamin C content, Minute Maid Pulpy Orange is not only refreshing, but also become a good choice to consume.
The history of Minute Maid starts in 1945, National Research Corporation (NRC) Boston, developed a method of concentrating orange juice into a powder for US Army during the war. The war ended, and Florida Foods Corporation – a subsidiary of NRC, developed a product innovation in order to commercialize the product. A Boston Marketing firm came up with the name Minute Maid, implying the juice was quick and easy to prepare.
With a limited marketing budget, the product then sold door to door until the demand skyrocketed. A few years later, Florida Foods Corporation change the name to The Minute Maid Company. In 1960, Minute Maid was acquired by The Coca Cola Company. Today, various products of Minute Maid have been sold in more than 100 countries. Minute Maid was introduced in Indonesia by the launch of Minute Maid Pulpy Orange in 2008. Minute Maid Pulpy Orange has booked its success in many countries like China and India before introduced in Indonesia.
Innovation in Packaging In the field of packaging, Coca-Cola always updates its innovations. After
Refillable Glass Bottle, Frestea, produced a couple years ago, it has been produced last year in more relax package (Tetra Wedge) which is easier and more practice to bring. In the end of 2003, Coca-Cola, Sprite, and Fanta appeared in the tiny can package of 250 ml. In addition, there is Glass Bottle which is light to 30% in its weight with a very tiny design but strong. Now it has started to market in Bali and for the near coming years will be marketed nationwide. Promotion To increase the number of selling, PT. Coca Cola Bottling Indonesia has many promotions, such as: a. Buka Coca Cola, buka kesempatan
menang di balik tutup botol It is one of the promotion ways of PT. Coca Cola Bottling Indonesia. It changes every year in order to increase the number of their selling year by year. Buka Coca Cola, buka kesempatan menang di balik tutup botol is their last program in 2009. b. The philosophy in the Jingle
Coca Cola is the first company that always has strength in their philosophy jingle. Their newest jingle is Semangat Pagi. It has
philosophy to invite all the people to have a morning spirit all the day, even though it has already night. It has an aim that with a morning spirit, people can do their day with a full spirit all the day. Besides that, Semangat Pagi, Semangat Baru also suggest all of people to have a new spirit after crisis. Coca Cola also has a creative advertisement. The newest advertisement is a song Semangat Baru collaboration from Ello, Berry St. Loco and Ipang. c. Coca Cola Foundation Indonesia
CCFI is organization from PT. Coca Cola Bottling Indonesia to help Indonesian people in many sides, especially education program. It gives scholarship for Indonesian students.
Home Study Program
Service Excellent Training for LC Partner
Mr John Seward, President Director of CCBI, shared his experience with CCFI scholarship recipients
III. SOFT DRINK
COCA COLA AS THE MARKET LEADER OF
Coca Cola is the market leader of Soft Drink Products category, especially in Indonesia. After making a questioner to 35 people from several status, we can conclude that 60 % (21 people) drink and like Coca Cola Products. Most of them (12 people) drink Sprite and Fanta. They have reason that Spite and Fanta have a good taste, the
good and ideal combination from fruit taste and carbonate. And 9 people like Coca Cola because of the unique taste. The questioner shows that 5 people prefer drinking Pepsi and 5 people more choose A&W. It means that 28.5 % of them choose the other brands. And 4 people consume Coca Cola and the other soft drink.
After visiting The Coca Cola Bottling Indonesia Company in Pasuruan, East Java and from the questioner, we can conclude that the marketing strategies from The Coca Cola company is really good and make them become the market leader of Soft Drink product, especially in Indonesia. They know the market demands and can fulfill it with their variety products. They can serve all of people’s drinking need. The price is quite cheap to buy their good quality products. It makes Coca Cola became the first preference of soft drink.
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http://www.coca-colabottling.co.id http://www.coca-colafoundation-ind.org http://en.wikipedia.org/wiki/Coca-Cola
By Dwi Milayanti , Suyin Andriani