Categories for Coca-Cola

Analysis Soft Drink Essay

Analysis Soft Drink Essay

1Analysis of the U. S. soft drink industry, based on the competitive forces model of Michael Porter. In the soft drink industry the entry of new competitors depends on the barriers to entry that are present, and also the reaction from existing competitors that the entrant can expect. I will now analyze the six major sources of barriers to entry the soft drink industry. Economies of scale deter entry by forcing the entrant to come in at large scale and risk strong reaction from existing firms or come in at a small scale and accept a cost disadvantage.

If a company wants to decline its unit costs of their product, they will have to produce more to lower the cost. The more you produce, the lower the costs. In the soft drink industry establishing firms have brand identification and customer loyalties. The brand name can have differences. This is a high barrier to enter. Entrants are forced to spend a lot to overcome existing customer loyalties.

The capital requirements within this industry are very high.

Production, distribution and advertising are a must to compete with the industry leaders like coca cola and Pepsi. So if a new The aluminum cans, plastic and glass bottles are pretty much dependant on the soft drink industry to survive in the business. This makes suppliers to have little power over the soft drink industry. The access to distribution channels is a high barrier because the most successful soft drink companies are aggressively spending their distribution channels and buying full ownership of bottling plants.

Supermarkets are at present the largest channels in the U. S. and there the competition is very high. Switching costs is also a barrier to entry this business. Switching costs by changing from one supplier to the other may happened. Also employee training, new equipment, testing new technology. This things are common in this industry. This are barriers for new entrants.

Soft Drink Industry Essay

Soft Drink Industry Essay

A soft drink is a non-alcoholic beverage typically containing water often carbonated water and a flavoring agent. Many of these beverages are sweetened by the addition of sugar or high fructose They may also contain ingredients such as caffeine and fruit juice. They are called “soft” in contrast to “hard drinks”that is, alcoholic beverages. Small amounts of alcohol may be present in a soft drink, but the alcohol content generally must be less than 0. 5% of the total volume if the drink is to be considered non-alcoholic.

Soft drinks are usually served chilled or at room temperature, are rarely heated, and generally do not include milk or other dairy beverages. Beverages that are typically not considered soft drinks include hot chocolate, hot tea, coffee, pure juice and milkshake. History of soft drinks. Soft drinks trace their history back to the mineral waters found in natural springs. Ancient societies believed that bathing in natural springs and/or drinking mineral waters could cure many diseases.

Among the earliest soft drinks were sherbets developed by Arabic chemists and originally served in the medieval Near East.

Dandelion & burdock, a naturally carbonated drink made from fermented dandelion (Taraxacum officinale) and burdock (Arctium lappa) roots, was first made in England in around 1265. The first marketed soft drinks (non-carbonated) in the Western world appeared in the 17th century. They were made from water and lemon juice sweetened with honey. In 1676, the Compagnie des Limonadiers of Paris was granted a monopoly for the sale of lemonade soft drinks. Vendors carried tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians.

In late 18th century, scientists made important progress in replicating naturally carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a method of infusing water with carbon dioxide to make carbonated water when he suspended a bowl of distilled water above a beer vat at a local brewery in Leeds, England. His invention of carbonated water, (also known as soda water), is the major and defining component of most soft drinks. Priestley found water thus treated had a pleasant taste, and he offered it to friends as a refreshing drink.?

1881 The first cola-flavored beverage introduced. ? 1886 Dr. John S. Pemberton invented “coca cola” in Atlanta, Georgia. ? 1892 William Painter invented the crown bottle cap. ? 1898 “Pepsi-Cola” is invented by Caleb Bradham. ? Early 1920’s The first automatic vending machines dispensed sodas into cups. ? 1957 The first aluminum cans used. ? 1959 The first diet cola sold. ? 1965 Soft drinks in cans dispensed from vending machines. ? 1970 Plastic bottles are used for soft drinks Coca cola and pepsi Coca-Cola was the 1st international soft drinks brand to enter India in early 1970’s.

Re-entry of Coca-Cola in 1993 On the 26th of October 1993, Coca-Cola re-entered the Indian market having acquired some of the leading Indian soft drink brands from Parle, namely Thums-Up, Maaza, Limca, Goldspot & Citra. These brands joined Coke’s portfolio of international brands i. e. Coca-Cola, Sprite, Fanta, Schweppes as Coca-Cola India took control of the top soft drink brands in India from the very beginning. From 1993 to 2003, company invested US $ 1 billion in India. Thebeginningofcolawar For the Cricket World Cup 1996, Pepsi was not the official sponsor of the tournament, Coke was.

But Pepsi had a whole pool of best players roped in as brand ambassadors from the sub continent and abroad. The ad campaign of “Nothing Official About it” rocked the country and despite Coke being the official sponsor, it was Pepsi which hogged the publicity. In 1998, with the release of blockbuster movie “Kuch Kuch Hota Hai”, Pepsi took out another ace from its sleeve, featuring Shahrukh, Rani and Kajol in its ad. The punch line was “Yeh Dil Maange More” which was an iconic line and struck a chord amongst the people.

Coca-Cola countered by spoofing the ad, using Sprite, to hilarious effect. Pepsi responded with a spoof of its own, starring Azhar and Jadeja hitting on the Coke line of “Eat Cricket, Sleep Cricket, Drink Only Coca Cola” with the punch line of “More More Cricket, More More Pepsi”. Coke again hit back, this time with Thumbs Up ad. They portrayed the cricketers as monkeys and ended the ad with “Don’t be a bunder (monkey) Taste the Thunder! ” Situation turned ugly with Pepsi going to court and finally ended with Coke withdrawing the ad.

The Cola wars went on full-fledged till 2003, when a pesticide controversy forced Coke and Pepsi to fight on the same side in so called “India’s New Cola Wars”. TheControversies Presence of Pesticides: In 2003, the Centre for Science and Environment (CSE) findings stirred the beverage industry in India. CSE claimed to find dangerous levels of pesticides in all the 57 samples of 11 soft drinks brands collected by the organization from 25 different manufacturing units of Coca-Cola and PepsiCo spread over 12 states.

The study found a cocktail of three-five different pesticides in all the samples – on an average 24 times higher than norms laid down by government-run Bureau of Indian Standard (BIS). Rajasthan, Madhya Pradesh, Chhattisgarh, Gujarat and Kerala banned the sale of Colas in schools, colleges and government departments, and other states also took adversarial measures. The day after the CSE’s announcement, Coke and Pepsi came together in a rare show of solidarity at a joint press conference.

The companies attacked the credibility of the CSE and their lab results, citing regular testing at independent laboratories proving the safety of their products. They promised to provide this data to the public, threatened legal action against the CSE while seeking a gag order, and contacted the United States Embassy in India for assistance. They roped in major film stars to explain their purity to public. Despite all these measures, sales dipped by as much as 80% in some regions. The soft drinks industry took over a year to get back on the growth track.

Ground Water Crisis: Coca-Cola was recently accused of ground water depletion in many areas of the country. Coca-Cola’s bottling operations – which extract hundreds of millions of liters of water from the groundwater resource – have significantly worsened the water crisis as groundwater levels have dropped sharply since Coca-Cola started its operations. The company was also accused of indiscriminately dumping its toxic waste into the surrounding areas – polluting the water as well as the land. The Coke reiterated its commitment to trim down water usage and take steps towards environment sustainability and farmer’s welfare.

However, activists retort that Coca Cola is in the business of water usage and wasting, creating a luxury product largely for the middle class. Amidst various allegations and controversies, the soft drinks industry in India, supported by its booming economy, strengthening middle class and low per capita consumption, is growing at a cruising pace. The focus has shifted from carbonated drinks to Fruit drinks, with both the companies launching Lemon drinks in 2009-10. In the next few years, the fruit juice category is likely to carry the growth flag forward as consumers become more health conscious.

Coca-Cola Versus Pepsi-Cola Essay

Coca-Cola Versus Pepsi-Cola Essay

Summary

In the late 1800s, American pharmacists started mixing fruit syrups and carbonated soda water, causing a new kind of beverages known as soda drinks. The most famous brands that started in the business are Coca-Cola, Pepsi-Cola, and Dr. Pepper; but the big long-lasting rivalry is until today between Coca-Cola and Pepsi-Cola.

In 1886, a pharmacist named Dr. John Pemberton made the formula of Coca-Cola and the drink was sold in at the counter of Jacob’s Pharmacy as a refreshing drink.

Pemberton was a part owner of the pharmacy after he left, eventually, Asa Candler became the sole owner and had the rights to the drink. Candler sold the Coca-Cola syrup to pharmacies and started a big advertising campaign which gave Candler a strong sales force. In 1899 Candler granted the first bottling franchise, which eventually grew rapidly. Ernest Woodruff bought Coca-Cola in 1919 for 25$ million, Woodruff and his son worked on making Coke a convenient product that’s available everywhere. Woodruff made a great decision at the time of the beginning of World War II; he stated that every man wearing a uniform should get a Coca-Cola bottle for only 5 cents whatever it costs.

This decision made Coke have a strong market-share in Asian and European countries; in the late 1950’s, Coca-Cola advertised as “Americans Preferred Taste”. Woodruff was influential in Coke’s strategic decisions until 1982.

A pharmacist named Caleb Bradham invented the formula of Pepsi-Cola in 1893 in New Bern, South Carolina in 1893. Pepsi followed a similar path as Coke in the expansion, using franchisers to spread their beverage. The company faced bankruptcy many times due to the strong advantage that Coke had over Pepsi-Cola and the weak competition between the two companies at that time. In the period following WWII, Coke outsold Pepsi by a 10 to 1 ratio per unit; in that period many soft-drink producers started entering the market with a big variety of flavors other than cola flavor. Alfred Steele became Pepsi’s CEO in 1950, he believed that his company will take over Coke one day, Steele was a former Coca-Cola marketing executive, and he helped Pepsi a lot due to his wide knowledge about the rival which is Coca-Cola. In an effort to raise the company’s sales, Pepsi introduced new bottle sizes such as the 24-oz family bottle. 1955 Steele married an actress named Joan Crawford and started a big advertising campaign; Alfred Steel’s motto was “beat coke” which led to increasing Pepsi revenues to over 300% between years 1950 and 1959.

Through the years many soft drink companies joined the industry, but the difference is that these companies focused on tastes other than colas, such as 7UP which is a mix of citric flavors and soda, 7UP was first introduced in 1929; the introduction of 7UP led to an increase in the national market share.

Coca-Cola continued to expand in the 1960s making Coke available internationally and in the United States. Coca-Cola started diversifying when it bought Minute Maid Juice Company; Cola-Cola also produced new products such as Sprite. Coca-Cola offered its soft drinks either in cans or glass bottles in 1961. Throughout the years in the 1960s and 1970s, Coca-Cola introduced different new products such as Sprite, Tab, Mr.Pibb, Fresca, and Mellow Yellow. Coca-Cola concentrated on international markets to spread the drinks, this strategy of spreading Coca-Cola internationally had matured the company and made the brand image much stronger than Pepsi.

Donald Kendall, a former sales manager became Pepsi CEO in 1963, under Kendall Pepsi was renamed PepsiCo and started an unrelated diversification by opening restaurants such as Pizza Hut and producing snacks. Pepsi extended its line of products in 1964 by introducing Diet Pepsi and Mountain Dew; Mountain Dew has a similar taste to Sprite with was introduced by Coca-Cola. Pepsi tried to keep track with Coke in order to keep the competition even though Coca-Cola was more powerful than PepsiCo at that time. Pepsi became more aggressive and competition hungry in 1970 and 1971 when they employed experienced marketing executives. In the 1950s and 1960s the price of Pepsi was 20% less than the price of Coke, but still wasn’t able to reach Coke’s strength; with the strong advertising campaigns thanks to the experienced executives that Pepsi recruited, Pepsi was able to gain a stronger market-share for the first time in 1975.

In 1974, Pepsi was the third largest-selling soft drink after Coke and Dr. Pepper. Researchers from Pepsi have shown that in a blind test the majority of consumers preferred Pepsi over Coke. This successful experiment which was called “The Pepsi Challenge” increased Pepsi’s market share and made it the number-two brand. After the great success that this challenge brought to Pepsi, Victor Bonomo, president of Pepsi USA in 1974, decided that the Pepsi challenge should be deployed I all market where Pepsi is weak. The spread of the Pepsi challenge led to an increase in Pepsi sales by 20% in the biggest cities of America. Pepsi launched the Challenge all over the nation in 1977, and after 3 years Pepsi brand was widely recognized in the U.S. and gave Pepsi an additional 1.3% market share lead over the rival Coca-Cola.
Coca-Cola responded to the challenge by giving big discounts in certain markets where Coke has a competitive advantage over Pepsi and by stating that Coke’s bottlers are owned by Coca-Cola, but Pepsi bottlers are franchisees. Knowing that Coke and Pepsi is a standardized product, Coca-Cola used price as a market weapon to target Pepsi consumers. Coke tried to regain money lost that was a result of the huge discounts that the company kept on introducing, by selling franchisees the concentrate rather than the syrup they use in manufacturing the drinks. Roberto Goizueta became CEO of Coca-Cola in 1980, he introduced a 1200-word strategy statement, and the main aim of this statement is price discounting in order to regain Coke’s position in the market.

Coca-Cola began to influence the ownership and management of the of their franchised bottlers, despite being committed to independent bottlers, they replaced bottlers in key markets that were not deemed sufficiently aggressive in selling their product. The CEO of Coca-Cola USA stated that the company had some role to play in the reasons the buyers purchase the product by offering in several instances to increase the numbers of their investments with the potential buyers.

2) Contribution

The “Coca-Cola Versus Pepsi-Cola” case study was written to give the maximum amount of information to business-oriented individuals, it gave so much information about two of the most competitive companies throughout history; the paper illustrated the history of the two main soft drink companies and also talked about other companies that entered the industry.

The irony is Pepsi and Coca-Cola were invented by pharmacists who are supposed to prescribe drugs to people and not give them beverages with high amounts of sugar and artificial tastes, the case explained how Pepsi and Coke changed people’s views of a beverage when the companies invented carbonated soda beverages. The paper explained in details the huge cola advertising war that started in the 1980s between the rival Coca-Cola and PepsiCo that caused a big revolution in the beverage industry and incentivized new companies to enter the industry and produce beverages with different flavors.

The case explained the positioning of the two companies and showed the difference in the brand value of the companies. The case was great also in giving the comparative analysis between the two companies, giving the different products other than the main product that was first manufactured by the companies. The case also showed us how the companies implemented different strategies to increase revenues and to increase market share and gain the most competitive advantage.

Pepsi vs. Coca-Cola SWOT analysis

Strength:
*Pepsi: Very Innovative, the broad portfolio of products, more flexible franchise network, aggressive marketing strategy.
*Coca-Cola: One of the most valuable brands in the world, largest market share in the soft drink industry, and great customer loyalty
Weakness:
*Pepsi: Competition with Coke, higher prices than Coke, and lower net profit margin than Coca-Cola
*Coca-Cola: Competition with Pepsi, relies on soft drinks, and lacks diversification
Opportunities:
*Pepsi: International expansion and growth in the bottled water industry
*Coca-Cola: Reduce costs and increased demand for bottled water
Threats:
*Pepsi: Increased marketing campaigns by Coke and restrictions to sell in certain countries because Coke has control on them
*Coca-Cola: Strong local brands in some countries and negative publicity

Michael Porter’s 5 Forces on Pepsi and Coca-Cola

Knowing that Pepsi and Coca-Cola have standardized products, I won’t need to talk about every company alone.
The intensity of Rivalry between Competitors: Pepsi and Coke are historical competitors, in the 1980s; the rivalry between them was very ferocious, and the cola war occurred at that period of time to show which companies’ products taste better.

Bargaining Power of Suppliers: Suppliers have no power over Pepsi or Coca-Cola, it is very easy and cheap to buy all the ingredients to manufacture soft drinks, in fact, the competition between Pepsi and Coca-Cola’s suppliers is really strong because of the great and presence of all the material. In my opinion, Pepsi and Coca-Cola have power over their suppliers; this helps them in decreasing their costs a lot.
Bargaining Power of Buyers: The power of buyers in the case of Coca-Cola and Pepsi is high, because the switching cost is low or even the same depending on the geographical segment; both companies try their best to gain customer loyalty, but Coke does it better by playing on its customers’ emotions in its advertisements.

The threat of New Entrants: This force is low, the soft drink industry is very competitive if a possible new product enters the market, and it would be really expensive and hard to position in the very strong industry.
Threat of Substitutes: This force is high, especially because of health trends that hit the community from time to time, bottled water and juice companies are working hard in order to gain a competitive advantage over Pepsi and Coke by showing consumers the bad effects and obesity that this soda beverage can cause to our health, this is causing a change Pepsi and Coca-Cola’s strategies and making them introduce diet beverages as mentioned in the case, or even causing the Pepsi and Coca-Cola to buy big companies that produce healthy beverages; as an example, Pepsi bought Aquafina in order to have an advantage over the competitor.

Summer Project Essay

Summer Project Essay

This is to certify that Mr. Chandan Kumar (Reg. No. 11382017) a student of MBA – International Business, 2011 – 2013 batch has successfully completed his internship training at Lumbini Beverages Pvt Ltd. , HAJIPUR(BIHAR). His period of training was MARCH-APRIL. He has prepared the internship report titled “A Study on Sales Promotion at PepsiCo” for the requirement of the concern and for Master of Business Administration in International Business program in the Department of International Business, School of Management, Pondicherry University, Puducherry – 605 014.

Dr. Bushan D.

Sudhakar Reader, Dept. of Int’l Business, School of Management, Pondicherry University, Puducherry – 605 014. Dr. P. Sridharan Head of the Department, Dept. of Int’l Business, School of Management, Pondicherry University, Puducherry – 605 014 2|Page CERTIFICATE FROM THE GUIDE This is to certify that the Project Work entitled “ A Study on Sales Promotion at PepsiCo” is a bonafide work of Mr. Chandan Kumar carried out in partial fulfilment for the award of degree of MBA (International Business) of Pondicherry University under my guidance.

This project work is original and not submitted earlier for the award of any degree / diploma of any other University / Institution. Signature of the Guide (Name and Official address of the Guide) Place:……………………………………… Date:……………………………………… 3|Page STUDENT’S DECLARTION I, Mr. Chandan Kumar hereby declare that the Project Work entitled “A Study on Sales Promotion at PepsiCo” is the original work done by me and submitted to the Pondicherry university in partial fulfillment of requirements for the award of Master of Business Administration in International Business is a record of original work done by me under the supervision of Dr.

Bushan D. Sudhakar, Reader, Department of International Business, School of Management. Signature of Student Date:…………………………… 4|Page ACKNOWLEDGEMENT It is well established fact that behind every achievement lays on unfathomable sea of gratitude to those who have extended their support without whom the project would never have come into existence. I now take the opportunity to thank Mr. N. K. Prasad, HR Manager, Lumbini Beverages Pvt Ltd. , who granted me the permission to undergo training in this prestigious organization. I would extend special thanks to Mr.

Anish Kumar, Sales Executive, under whose guidance and support I was able to complete this project. During the entire period of my training, I received endless held, support and cooperation from all the employees of the organization. I think my report would be incomplete if I do not convey my grateful thanks to them. I express my sincere thanks to Dr. Prahakar Raya, DEAN, School Of Management and along with him I express my humble and sincere thanks to our Department Head, Dr. P. SRIDHARAN, Department of International Business, School Of Management for their guidance and support throughout this project.

With deep sense of gratitude, I acknowledge my sincere thanks to Dr. Bushan D. Sudhakar who has always been a source of inspiration to me and constantly implanted his useful guidelines, experience and provided his valuable time in the completion of this project. Although it is difficult to say that I have achieved what I wanted to present, but within the circumstances and various limiting factors, I have tried to give my best. 5|Page EXECUTIVE SUMMARY PepsiCo is a world leader in a convenient food and beverages with revenues of more than $45 billion and more than 1, 60, 000 employees.

The company consists of Frito-lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories and generate sells and the retail level of about $85 billion. PepsiCo is the world’s premier Consumer Products Company focused on convenient foods and beverages. This project work entitled “A study on sales promotion of PepsiCo”, was done to become familiar with the working of PepsiCo (LUMBINI BEVERAGES PVT LTD) and to know the strategies used by PepsiCo in the sales promotion.

The important objectives of the project were to find out: what are the various types of promotional strategies used in marketing, in which way the strategies are implemented, what is the market share of the company, which promotional strategy is used most, what is the impact of sales promotion during off season, how retailers react to new sales promotions, what are the various tools that the company uses during sales promotion, and which type of promotional offers retailers prefer etc. The project is entirely based on my observations made during the two months spent at lumbini beverages pvt ltd and visits to various markets of Hajipur.

Based on my learning and experience, I have made some suggestions to improve the sales promotion activity and services. 6|Page INDEX Chapter – I. INTRODUCTION 1. 1 Introduction 1. 2 Statement of problem 1. 3 Objectives of the study 1. 4 Scope of the study 1. 5 Need of the study 1. 6 Research methodology 1. 7 Limitation of study Chapter – 2. 1 . COMPANY AND INDUSTRY PROFILE 9-10 10 11 11 12 12-14 15 16-40 41-49 51-66 68 69-70 71 72 73-75 2. 2. REVIEW OF LITERATURE Chapter-III. ANALYSIS & INTERPRETAION Chapter-IV. 4. 1. FINDINS 4. 2. B.

SUGGESTIONS 4. 3CONCLUSION 4. 4 BIBLIOGRAPHY APPENDIX:QUESTIONAIRE 7|Page CHAPTER- 1 1. 1 Introduction 1. 2 Statement of problem 1. 3 Objectives of the study 1. 4 Scope of the study 1. 5 Need of the study 1. 6 Research methodology 1. 7 Limitation of study 8|Page 1. 1 Introduction: In the present day world, either there is mass production or ill anticipation of demand, there is always a pressing need for intermediaries of one type or the other, for enabling the goods to reach the ultimate consumer. The purpose is to sell everything that is produced.

However, it is really difficult for the producer to undertake the sales or distribution of goods directly to the consumers all by themselves. There for, the responsibility or distribution is undertaken by a number of intermediaries who are often termed as channel or distribution. Sales transfer for ownership from the company within the customers, exchange of goods and services. Sales and distribution is a part of marketing and product design according to the need of customers. Sales and distribution is a primary involvement of transfer of goods and services from the company to the customers.

Selling emphasizes in selling the securable surplus available with company i. e. selling quantity convert “Product” into “Cost” using trend and techniques of shifting customer to part with the cost. Thus, a salesman introduces the goods to the customer, Interest and persuades them to purchase the goods and finalize the deals of the product. So, the primary objective of sales and distribution is to assist the producer in marketing the goods and services one hand and to satisfy the demand of the consumers on the others.

Channel of distribution helps the consumer in providing good of right quantity at the right time, right place and at the right price. 9|Page SourcesThe main sources of the Sales and Distribution is to reach through the channel. Every channel contains one or more transfer point where there is either an institution or a final buyer. In other words, legal ownership of the product changes hands at least once or the producer sales directly to the final buyer and there is no intervening of middlemen Selecting a channel for sales and distribution for their product is one of the important problems faced by manufacturers of PEPSICO…

It is quite difficult to identity a specific channel which can be considered as the best. There for, each producer most carefully select a channel which will suit his requirement and bring the best result to the firm. The channel of distribution can broadly be divided into two categories i. e. – Direct and Indirect. Under direct channel of sales and distribution, manufacturer sells directly to the consumers, without any middlemen, whereas under indirect channel of sales and distribution, producer sells through various middlemen like wholesalers, agents, retailers, etc.

This is the shortest channel a producer can adopt for sales and distribution of goods and services. In this system, goods move directly from the producer to the consumers without any middlemen or a merchant. 1. 2 Statement of Problem: The first and foremost step in the problem identification in Sales Promotion. research process consists of Here statement of problem is to know the Sales Promotion activities towards brands. 10 | P a g e 1. 3 OBJECTIVE OF STUDY This study was conducted on “A study of “Sales Promotion’ activities of PEPSICO for different retail outlets of Hajipur”.

The specific objectives of the study are1. To find out the promotional activities of PEPSICO. 2. To know the distribution channel of PEPSICO. 3. To find out the market share of PEPSICO. against its competitor. 4. To find out the influence of medium of advertisements of PEPSICO. on different age group 1. 4 SCOPE OF THE STUDY This study was done in Hajipur at LUMBINI BEVERAGES PVT LTD. The geographical scope of my survey was limited to Hajipur only. Study aims at relationship between Company Executives and retailers and why any retailer sold particular brand only.

The survey covers a wide range of activities and factors, which influence the retailers to sell PEPSICO. Products. The sample of 80 respondents is taken to represent total retails of Hajipur Zone. The validity of the findings of this survey is limited to the period during which the field survey was conducted i. e. eight weeks. 11 | P a g e 1. 5 NEED OF STUDY The eight weeks Summer Training is very important for a student of MBA. This type of study gives some practical knowledge to MBA students and practical knowledge is more useful than theoretical knowledge for any one.

Coca-cola Image Maker Essay

Coca-cola Image Maker Essay

Coca-cola is the world’s most famous beverage and most likely the most recognized brand name. It can be purchased in more than 200 countries in wide range of restaurants, vending machines and stores. The manufacturer, Coca-cola Company has been the dominant head in advertising and marketing for more than hundred years with a whopping global sales of $20 billion in the year 2001. This carbonated drink is simply referred as coke.  Originally intended as a ‘patent medicine’ when it was invented in the late 19th century by pharmacist John S.

Pemberton as a ‘coca wine’, Coca-Cola has dominated the worldwide soft drink market for decades now.

The Coca-Cola logo, like the product itself, is rated among the most recognized logos and brands in the world. The first Coca-Cola logo was created by John Pemberton’s partner and bookkeeper, Frank Mason Robinson, in 1885. Thinking that the two Cs would look well in advertising, it was Robinson who came up with the name and chose the logo’s distinctive cursive script.

The typeface used, known as Spencerian script, was developed in the mid 19th century and was the dominant form of formal handwriting in the United States during that period.

The red and white colored scheme in the Coca-Cola logo was kept simple and distinctive to lure young minds. Even the Coca-Cola bottle symbolized the ‘youthful exuberance of America’. Since then, various designs of the Coca-Cola bottle had been released over the decades. But the ever popular version is the famous 1915’s curved-vessel bottle called the “contour bottle”, better known to many as the “hobble skirt” bottle. Though mistakenly designed as cacao pod, the bottle like Coca-Cola logo has been highly popular and is often regarded as the best design ever (“Coca-cola” 1).

The coca-cola trademark was patented through the U.S. patent office in 1888.  Asa G. Candler, a businessman and a druggist in Atlanta who purchased the rights and formed it to a corporation “The Coca-cola Company”. The introduction of the new beverage into market was through free distribution of coupons for sample taste of Coca-cola. Along with the free glass of the soda were clocks, calendars, apothecary scales, posters and wall murals with coke logos which were utilized as promotional materials and the aggressive endorsement succeeded.  After a decade, businessman from Mississippi named Joseph Biedenharn was the first to put coca-cola in bottles.

A group of investors bought the Coca-Cola company for $25 million in the early 1900’s. The son of one of the investors, Robert Woodruff made a great leap in building the logo. Under his leadership, Coca-Cola went from a mostly American drink to the most consumed soft drink in the world.

Several successful marketing campaigns to build the logo involved sports: Coca-Cola was introduced to The Netherlands during the 1928 Olympics in Amsterdam, and the logo was featured on dog-racing sleds in Canada and on walls of bullfighting arenas in Spain. Woodruff was also responsible for introducing the “six-pack.” When Woodruff heard that some women in the United States would not purchase Coca-Cola six-packs because they did not have a bottle opener, he sent women door-to-door handing out and installing wall-mounted openers (“Coca-cola Company” 1).

Christmas is highly associated with a remarkable personality in white and red clothing with a grandfatherly look, Santa Claus. Coke impressively built a global image using Santa Claus invading our refrigerator, eating cookies and drinking a can of coke. The creator, Haddon Sundblom started placing illustrations of the coca-cola logo with the legendary Santa Claus during the Christmas of 1930’s. The people thought that coca-cola was just for warm weathers so; they came up with another promotion that would remind the consumers that the soda “Knows no season” and is an excellent choice every month. The said slogan along with the sensation of Santa Claus with a beverage was truly a symbol for winter.

The Coca-cola Santa appeared regularly in a magazine entitled The Saturday Evening Post in addition to National Geographic, The New Yorker, Ladies Home Journal and others. For 30 years, Coca-Cola advertising showed Santa delivering (and playing!) with toys, pausing to read a letter and enjoy a Coke, playing with children who stayed up to greet him and raiding the refrigerators at a number of homes. The original oil paintings Sundblom created were adapted for Coca-Cola advertising in magazines, store displays, billboards, posters, calendars and even plush dolls. Many of those items today are popular collectibles (“Coke Lore” 1).  The advertising success of Coca-Cola Santa Claus celebrated its 76th year last 2007.

The era of television advertising for Coca-cola fired up during the period of 1950’s. The D’Arcy Agency of St. Louis sponsored the initial television ad of coca-cola and produced along with a television special presenting Edgar Bergen and Charlie McCarthy. The beverage company and the agency owned by William D’Arcy strived to implement a marketing approach to meet consumer awareness. The application of television advertising was just a trial medium since television stations were not accessible to most cities.

The brilliant D’Arcy merged Coca-cola image into ads to performers in radio programs and television programs such as Walt Disney and The Adventures of Kit Carson. The sponsorship programs were a failure. It did not gain much awareness from the consumers (“Highlights” 1). The agency closed and the account of Coca-cola was handled by McCann. “The Sign of Good Taste” and “Be really refreshed” campaigns roared its way to success. Animation, live-action and stop motion were the advertising formats utilized in both campaigns which presented Connie Francis, Anita Bryant, the Brothers Four and McGuire Sisters as performers.

The triumph of television advertising spread for a decade and also incorporated the biggest artists in radio commercials such as Jay and the Americans, the Supremes, the Moody Blues, Jan and Dean, Roy Orbison, and Ray Charles. Presently, coke places sponsorship on famous television programs and contests, such as “American Idol”, where a giant red cup with Coke’s logo on it was placed on the tables of the Paula Abdul, Randy and Simon Cowell.

From television advertisements Coke walked its victory in advertising to films. The company tried building Coke’s image in the movies. The comedy movie “The Gods must be crazy” included a bottle of coke as its main props. Other popular films showcasing coke products were the award-winning science fiction movie E.T. directed by Steven Spielberg showing a refrigerator with coke and also The Paper, Silent Movie, The Mexican, Mean Girls, Maid in Manhattan and a hundred more.

Coca Cola advertising has chronicled times and events for more than a century. Favorite Coca Cola images have appeared on thousands of products over the years. Coca-cola continues to its image-making through the creation of collectibles. Products with the Coca Cola logo have become favorite antiques and collectibles for nostalgia collectors.

Advertising features rare and collectible original Coca Cola memorabilia from many decades – pre-1940’s 1950’s 1960’s 1970’s 1980’s 1990’s. Classic memorabilia pieces run the gambit from original signs to rare pins; signed artwork to retro trays of the past. Coke memorabilia is very collectible and very hard to find. Antique collectibles are all original licensed and manufactured for The Coca-Cola Companies and now it can not only be purchased in stores but also in websites as well (“Coca Cola” 1).

In the 1990’s, Coke made a dramatic change in its Christmas approach from Santa Claus to polar bears. The image-making of Coke in changing the traditional jolly figure of Santa Claus to cute and lovable polar bears was a big achievement. The animated production required the application of advanced computers and graphic programs. Rhythm and Hues together with creator Ken Stewart introduced polar bears as the new symbol of Coke during Christmas season. The “Northern Lights” commercial was a worldwide hit. The popularity of polar bears continued to be featured in six commercials including the animated animals in the 1994 Olympics.

Consumers of top beverage products were highly aware of the so-called “Cola Wars”. Pepsi the biggest competitor of Coca-cola, started the battle in early 70’s making its way in the Soviet Union. It also annexed with Taco Bell, Pizza Hut and Kentucky Fried Chicken. As a comeback, Coke broadcasted the return of Coke classic and merged with the movie E.T. releasing the propaganda “Mac and Me”, it was sponsored by the leading fast food chain, McDonalds. Then Coca-cola tried invading North Korea and England.

Coca-cola pursued to build its image to politics. Coke created an image as American patriotic drink however the Coca-cola company pushed its image to Germany particularly the Nazis during the war. The term “coca-colonization” was defined as cultural imperialism of Americans through using Coke as its symbol. In France, wine is considered the ultimate drink, and the country tried to ban the sales of coke for believing that this soft drink tried to alter their wine being the national beverage.

Coca-cola continued its image-making by placing itself in the middle of the Cold war. Presently this beverage giant was also a loyal advocate of Israel while Pepsi, its competitor is a steadfast follower of Arab League boycott of Israel. As a result, Coca-cola received an honor from Israel government last 1997 and was bestowed a property to be used as a manufacturing plant, though reports said that it was a stolen Palestinian land. The collaboration with Israel was quite a success since Coca-cola was able to increase its investment through purchasing 51 percent of share in the Tavor winery in Israel, furthering its ambition to have a holding in every sector of the beverages business (“Boycott” 1).

Presently, Coke is into mobile advertising. This beverage giant is one of the pioneer’s in utilizing mobile media in France. The company invested in creating a mobile Internet website and also launched the “Coke+iTunes operation. It is a contest available through the use of text messaging and using the website. It also continues to build its image through online advertising. The company created the website there.com. It is an entertainment interactive site where users can choose an avatar that can go to movie theaters, visit Coca-cola diner, shop and dance. Coke studios and mycoke.com are some of the website that coke uses to build its image.

Coca-Cola” is the most universally recognized word on earth after “OK,” and has come to symbolize the American way of life arguably more than any other product.  The Coca-Cola Company throughout its history has invested millions of dollars to perpetuate the drink’s image as a symbol of all things good, decent, and honest about America—a symbol of tradition, freedom, and democracy.  Coke is seen as more than a drink by its loyal fans. It brings on the nostalgia of better times, simpler times linking America to the rest of the world and looming as large as a symbol of the United States as the Statue of Liberty.

People may disagree about the reality of “coca-colonization” (the term given to describe American cultural imperialism) but what seems to be clear is that Coca-Cola is at the very least seen by many, and has been portrayed by the Company, as an American representative abroad, a symbol of all that is America. Coca-Cola has profited from its image, and was only able to create this image in the first place by entering politics; thus, to claim neutral, a political status to avoid responsibility.

Some might believe that such social and ethical responsibility is unrealistic for a company in the business of making money for its shareholders. Yet Coca-Cola has always portrayed itself as so much more than a company just out to make money—surely it owes some respect to this image, the image that enabled it to capture the public’s hearts and minds in the first place (Hutt, 1).

Works Cited

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“Coca Cola Memorabilia.” 2collectcola. 1 January 2006. Always collectors corner. 5 May 2008 < http://www.2collectcola.com/page/ACC/CTGY/M>.

“Coke in the movies.” The Coca-cola Company. 31 December 2006. The Coca-cola Company Press center. 6 May 2008 < http://www.thecoca-colacompany.com/heritage/cokelore_inthemovies.html>.

“Coke Lore.” The Coca-cola Company. 31 December 2006. The Coca-cola Company Press center. 6 May 2008 <http://www.thecoca-colacompany.com/heritage/cokelore_santa.html>.

“Highlights in the history of Coca-cola Television advertising.”  American Memory. 29 November 2000. The library of Congress. 6 May 2008 <http://memory.loc.gov/ammem/ccmphtml/colahist.html#darcy>.

Hutt, Peter. “The Image and Politics of Coca-Cola: From the Early Years to the Present.” Leda law. 16 April 2001. Harvard law school. 6 May 2008 < http://leda.law.harvard.edu/leda/data/398/AlOthman.html>.

Pendergrast, Mark. For God, Country & Coca-Cola: The Definitive History of the World’s Most Popular Soft Drink 8. Orion Business Books, 2000.