INTRODUCTION

Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S.

Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains.

He created a flavored syrup, took it to his neighborhood pharmacy, where it was mixed with

carbonated water and deemed “excellent” by those who sampled it. Dr. Pemberton’s partner and

bookkeeper, Frank M. Robinson, is credited with naming the beverage “Coca-Cola” as well as

designing the trademarked, distinct script, still used today.

Did you know? The first servings of Coca-Cola were sold for 5 cents per glass. During the

first year, sales averaged a modest nine servings per day in Atlanta. Today, daily servings

of Coca - Cola beverages  are estimated at 1.9 billion globally.

Prior to his death in 1888, just two years after creating what was to become the world’s #1-

selling sparkling beverage, Dr. Pemberton sold portions of his business to various parties, with

the majority of the interest sold to Atlanta businessman, Asa G. Candler. Under Mr. Candler’s

leadership, distribution of Coca-Cola expanded to soda fountains beyond Atlanta. In 1894,

impressed by the growing demand for Coca-Cola and the desire to make the beverage portable,

Joseph Biedenharn installed bottling machinery in the rear of his Mississippi soda fountain,

becoming the first to put Coca-Cola in bottles. Large scale bottling was made possible just five

years later, when in 1899, three enterprising businessmen in Chattanooga, Tennessee secured

exclusive rights to bottle and sell Coca-Cola. The three entrepreneurs purchased the bottling

rights from Asa Candler for just $1. Benjamin Thomas, Joseph Whitehead and John Lupton

developed what became the Coca-Cola worldwide bottling system.

Among the biggest challenges for early bottlers, were imitations of the beverage by competitors

coupled with a lack of packaging consistency among the 1,000 bottling plants at the time. The

bottlers agreed that a distinctive beverage needed a standard and distinctive bottle, and in 1916,

the bottlers approved the unique contour bottle. The new Coca-Cola bottle was so distinctive it

could be recognized in the dark and it effectively set the brand apart from competition. The

contoured Coca-Cola bottle was trademarked in 1977. Over the years, the Coca-Cola bottle has

been inspiration for artists across the globe — a sampling of which can be viewed at the World

of Coca-Cola in Atlanta. Check out a preview of the latest art exhibit.

The first marketing efforts in Coca-Cola history were executed through coupons promoting free

samples of the beverage. Considered an innovative tactic back in 1887, couponing was followed

by newspaper advertising and the distribution of promotional items bearing the Coca-Cola script

to participating pharmacies.

Fast forward to the 1970s when Coca-Cola’s advertising started to reflect a brand connected with

fun, friends and good times. Many fondly remember the 1971 Hilltop Singers performing “I’d

Like to Buy the World a Coke”, or the 1979 “Have a Coke and a Smile” commercial featuring a

young fan giving Pittsburgh Steeler, “Mean Joe Greene”, a refreshing bottle of Coca-Cola. You

can enjoy these and many more advertising campaigns from around the world in the Perfect

Pauses Theater at the World of Coca-Cola.

EVOLUTION OF THE COCA-COLA BOTTLE

The 1980s featured such memorable slogans as “Coke is It!”, “Catch the Wave” and “Can’t Beat

the Feeling”. In 1993, Coca-Cola experimented with computer animation, and the popular

“Always Coca-Cola” campaign was launched in a series of ads featuring animated polar bears.

Each animated ad in the “Always Coca-Cola” series took 12 weeks to produce from beginning to

end. The bears were, and still are, a huge hit with consumers because of their embodiment of

characteristics like innocence, mischief and fun. A favorite feature at the World of Coca-Cola is

the ability to have your photo taken with the beloved 7′ tall Coca-Cola Polar Bear.

Did you know? One of the most famous advertising slogans in Coca-Cola history “The

Pause That Refreshes” first appeared in the Saturday Evening Post in 1929. The theme of

pausing with Coca-Cola refreshment is still echoed in today’s marketing.

In 2009, the “Open Happiness” campaign was unveiled globally. The central message of “Open

Happiness” is an invitation to billions around the world to pause, refresh with a Coca-Cola, and

continue to enjoy one of life’s simple pleasures. The “Open Happiness” message was seen in

stores, on billboards, in TV spots and printed advertising along with digital and music

components — including a single featuring Janelle Monae covering the 1980 song, “Are You

Getting Enough Happiness?” The happiness theme continued with “Open the Games. Open

Happiness” featured during the 2010 Winter Olympic Games in Vancouver, followed by a 2010

social media extension, “Expedition 206″ — an initiative whereby three happiness ambassadors

travel to 206 countries in 365 days with one mission: determining what makes people happy. The

inspirational year-long journey is being recorded and communicated via blog posts, tweets,

videos and pictures. at the World of Coca-Cola and see the magic that goes into every bottle of

Coca-Cola. Interested in learning even more about Coca-Cola history? Go to www.coca-

colacompany.com and check out the History section.

Objectives, Strategies, and Tactics

Decision making is a key aspect to any business. To pick the best decision for any situation you would need to know what your goal is, your reason, objectives, strategies and tactics. Objectives, strategies, and tactics are crucial to a business’s success. The main difference between those three terms are that objectives are medium-long term targets, strategies are long term objectives, and tactics are short term objectives.

Objectives give a sense of direction, unity, and purpose. They play a big role in forming the foundation for companies in the decision making process. Objectives can be communicated through mission statements. Strategies and tactics both refer to a plan or scheme but strategies are long term plans that will have significant consequences while tactics are short term and may be less significant in comparison to strategies.

Mission and Vision Statements

The main difference between mission and vision statements are the mission statements communicate where a company is now while vision statements communicate where it wishes to be in the future. Vision statements are often more abstract and less direct than a mission statements and mission statements can vary from being very simple to very complex.

Coca-Cola Company:

Mission

- To refresh the world

- To inspire moments of happiness and optimism

- To create value and make a difference

Vision

People: Be a great place to work where people are inspired to be the best they can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

I thought that the vision statement points were more in depth and detail in comparison to their mission statement points when it should've been the other way around. The mission statement was more abstract and broad whereas the vision statement was more clear and direct. Both statements somewhat communicated what their goal is for the future and where the company is at now and I thought that both statements together did portray what the company was trying to achieve.

Objectives

The main objectives for the Coca-Cola Company are to be globally known as a business that conducts business responsibility and ethically and to accelerate sustainable growth to operate in tomorrow's world. By having these objectives, it forms the foundation for companies in the decision making process.

Strategies and Tactics

The Coca-Cola company aims to be globally known, they do this by targeting different areas across the globe with different products, gaining their brand name and popularity. All the bottling partners work closely with their customers such as convenience stores, grocery stores, movie theaters and street vendors to create and use localized strategies developed in partnership with the Company. Their competition with other beverage companies are also narrowed down as they own various brands that could be possible competition. For example, the company sells Coke without the competition of other popular soft drink brands like Sprite and Fanta because the company owns those brands as well.

HISTORY (WORLDWIDE)

The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign investments in 1991. Since then its operations have grown rapidly through a model that supports bottling operations, both company owned as well as locally owned and includes over 7,000 Indian distributors and more than 2.2 million retailers. Today, our brands are the leading brands in most beverage segments. The Coca-Cola Company's brands in India include Coca-Cola, Fanta Orange, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and the Georgia Gold range of teas and coffees and Vitingo (a beverage fortified with micro-nutrients).

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen licensed bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells concentrate and beverage bases to authorized bottlers who are authorized to use these to produce our portfolio of beverages.These authorized bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make our beverages available to consumers across India.

The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its re-entry into India. The company will be investing another USD 5 Billion till the year 2020. The Coca-Cola system in India directly employs over 25,000 people including those on contract. The system has created indirect employment for more than 1,50,000 people in related industries through its vast procurement, supply and distribution system. We strive to ensure that our work environment is safe and inclusive and that there are plentiful opportunities for our people in India and across the world.The beverage industry is a major driver of economic growth. A National Council of Applied Economic Research (NCAER) study on the carbonated soft-drink industry indicates that this industry has an output multiplier effect of 2.1. This means that if one unit of output of beverage is increased, the direct and indirect effect on the economy will be twice of that. In terms of employment, the NCAER study notes that "an extra production of 1000 cases generates an extra employment of 410 man days."

As a Company, our products are an integral part of the micro economy particularly in small towns and villages, contributing to creation of jobs and growth in GDP. Coca-Cola in India is amongst the largest domestic buyers of certain agricultural products.

As an industry which has strong backward and forward linkages, our operations catalysis growth in demand for products like glass, plastic, refrigeration, transportation, and Industrial and agricultural products. Our operations also lead to incremental growth for enterprises engaged in post-production activities like merchandising, marketing and sales. In addition, we share best practices and technological advancements with our suppliers, vendors and allied industries which often lead to improvement in the overall standards of quality across industries.

The Coca-Cola Company has always placed high value on good citizenship. Our basic proposition entails that our Company's business should refresh the market; enrich the workplace; protect and preserve the environment; and strengthen the community. We leverage our unique strengths to actively support and respond to local needs -- be it the need for education, health, water or nutrition. We have used our distribution network for disaster relief, our marketing prowess to raise awareness on issues such as PET recycling, and our presence in communities to improve access to education and potable water. The Coca-Cola India Foundation is now taking forward in the community at large, projects and programs of social relevance to carry forward the message of inclusive growth and development. For more details on activities of the Coca-Cola India Foundation, please visit the website of the Coca-Cola India Foundation,

History of Coca-Cola in India

Coca-Cola came to India in the year 1956. Since India had not any foreign exchange act, Coca-Cola made huge money operating under 100% foreign equity. Indian foreign exchange act was implemented in the year 1974 during Indra Gandhi time. The foreign exchange act stated that foreign companies selling consumer goods must invest 40% of its equity stake in India in its Indian associates. Coca-Cola agreed with investing 40% foreign equity but stated that they would still hold full power in technical and administrative units with no local participation allowed.

This demand was against the foreign exchange act. The government instructed Coca-Cola to either write up a new plan or to leave the country. In 1976 Indira Gandhi called for elections and all of the other political parties formed one party in her opposition. They called themselves the Janta Party (Public Party). The Janata Party came into the power in 1977 and stressed that Coca-Cola should either accept the foreign exchange act or leave the country. Coke India left that year. After the departure of Coke company from India, George Fernandez said:-

Coke had 100% equity in India. Their investment was not much. They came into the country with Rs. 6,00,000, which at the present rate of exchange is less than $20,000. On this Rs.6,00,000 investment, they had taken out of the country, by a modest estimate, 250 million rupees (about $ 8 million) as profit in the twenty years they had been in the country. In 1993 Coca-Cola re-entered after government approval, due to the new liberalization policies that were coming to India. The foreign exchange act which had once prevented companies from keeping too much equity had now been completely modified.

The modification made it so that companies which exceeded foreign equity by 40% of the total were to be treated on par with Indian companies. Automatic approval was to be granted for equity investment of up to 51% and for foreign technology agreements in high priority industries. Non-Indian residents and companies owned by them abroad were allowed to invest up to one hundred percent equity in high priority industries, allowing greater freedom for repatriation of capital.

In 1999, Coca-Cola bought Parle, India’s top soft drink brand, which bottled Thums up, Limca and Gold Spot. Before Coke and Pepsi re-entered India, more than 50 Indian soft-drink brands had been developed and 200 production plants set up. As time passed after Coke and Pepsi entered India, people witnessed the progressive disappearance on indigenous drinks and the demand for healthier drinks lowered as well.

COCA COLA SYSTEM WORLDWIDE AND IN INDIA

At the core of our business in India, as in the rest of the world is our production and distribution network, which we call the “Coca-Cola system”. Globally, the Coca-Cola system includes our Company and more than 300 bottling partners. The Coca-Cola Company manufactures and sells concentrate and beverage bases. Our authorized bottlers combine our concentrate or beverage bases as the case may be with sweetener (depending on the product), water or carbonated water to produce finished beverages. These finished beverages are packaged in authorized containers bearing our trademarks -- such as cans, refillable glass bottles, non-refillable PET bottles and tetra packs -- and are then sold to wholesalers or retailers. In India, additionally, the Company also sells certain powdered beverage mixes such as Vitingo.

Our beverages reach our ultimate consumers through our customers: the grocers, small retailers, hypermarkets, restaurants, convenience stores and millions of other businesses that are the final points of distribution in the Coca-Cola system. What truly defines the Coca-Cola system, and indeed what makes it unique among businesses, is our ability to create value for our customers and consumers.

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen licensed bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells concentrate and beverage bases to authorized bottlers who use these to produce our portfolio of beverages.These authorized bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make our beverages available to consumers across India.

SWOT ANALYSIS.

Coca Cola SWOT analysis 2013

Strengths Weaknesses

1. The best global brand in the world in terms of value ($77,839 billion)

2. World’s largest market share in beverage

3. Strong marketing and advertising4. Most extensive beverage

distribution channel5. Customer loyalty6. Bargaining power over suppliers7. Corporate social responsibility

1. Significant focus on carbonated drinks

2. Undiversified product portfolio3. High debt level due to acquisitions4. Negative publicity5. Brand failures or many brands

with insignificant amount of revenues

Opportunities Threats

1. Bottled water consumption growth2. Increasing demand for healthy

food and beverage3. Growing beverages consumption

in emerging markets (especially BRIC)

4. Growth through acquisitions

1. Changes in consumer preferences2. Water scarcity3. Strong dollar4. Legal requirements to disclose

negative information on product labels

5. Decreasing gross profit and net profit margins

6. Competition from PepsiCo7. Saturated carbonated drinks

market

STRENGHTS

The company has been in business for 125 years, is valued at $166.31 billion,

and operates in nearly every country in the world, and is as stable and

established as it gets

Coca-Cola operates in some of the fastest growing markets in the world, and

with a growing middle class in these regions, more people will have the funds

to purchase Coca-Cola’s products (Case Volume Growth- Latin America: 6%

Eurasia & Africa: 6% Pacific: 5%)

The company pays out quarterly dividends of $0.255, which annualized puts

the dividend as yielding 2.75%

The company has paid out dividends since 1987, and has consistently paid

out and raised its dividends since implementing their dividend

The company’s stock is relatively un-volatile, with a Beta of 0.51

The Coca-Cola Company has a number of different strengths. First of all, Coca-Cola is one of the most widely recognized soft drink brands around the world. You can find Coca-Cola products in many countries worldwide. This is an obvious strength because consumers are more inclined to purchase products from a company they are more familiar with. The more people that know about the product being sold, the more likely sales are going to increase. Another strength that the Coca-Cola Company has is its continued devotion to producing high quality products that can be purchased internationally. The same soft drinks you enjoy in America can be found in other countries such as Canada or India without a loss of quality. Another major strength of the Coca-Cola Company is their product development. In addition to making products of the highest quality, Coca-Cola has been known to introduce some dramatically new flavors to its line of soft drinks. Flavors such as Vanilla or Cherry Coke have gained wide popularity and are still in high demand for sales. Coca-Cola’s dedication to experimenting with and making new and exciting products is what differentiates this soft drink company from its competitors. Another advantage that Coca-Cola has that differentiates it from its competitors would their powerful advertising campaigns. Coca-Cola is well known for having some of the best advertisements. These advertisements reflect the company’s vision of Coca-Cola as a means of connecting people, instead of just being used as a mere soft drink. Popular Coca-Cola advertisements throughout history continue to be a hit with consumers today. Coca-Cola’s mission statement is to “refresh

the world, to inspire moments of optimism, to create value and make a difference everywhere we engage.”

Weaknesses:

The company is exposed to fast-growth markets and slow-growth markets

alike (Case Volume Growth- Europe: 2% North America: 1%), and these

markets weigh on the company’s overall growth as 37% of the company’s

business is split between these two markets

The company is relatively established in the markets it operates in, as not a lot

of people are unaware of the Coca-Cola brand

The company produces products that are not considered “healthy”, the large

portion of their beverages are high in sugar content, and as the world’s

waistline keeps growing, people are going to eventually look towards healthier

alternatives

The company owns or licenses more than 500 brands of beverages, and there

are not a huge amount of sub-industries in the beverage market that Coca-

Cola does not operate in.

 Coca-Cola is not without its weaknesses however. Even though product development is

considered a strength for the company because of the diversity of soft drink flavors offered, it

can also be viewed as a weakness. The reason for this is that the products that Coca-Cola

produced are not necessarily healthy. The sodas and drinks produced by the company are high in

sugar and can be harmful if consumed in excess. With obesity becoming a growing problem in

our world today, people may look to other healthier products as an alternative to drinking Coca-

Cola products. Even with healthier options such as Diet Coke, Coca-Cola can lose sales as

consumers move toward a healthier lifestyle. Another weakness Coca-Cola has is that although it

is a leading soft drink company, it is not without its competitors. The biggest competitor for

Coca-Cola would be PepsiCo. PepsiCo’s basic Pepsi soft drink is very similar if not identical to

the basic Coke soft drink offered by Coca-Cola. Since there really isn’t anything that sets the two

formulas apart, Coca-Cola has to work hard to differentiate their products from PepsiCo.

Opportunities:

The company recently acquired its 15th billion dollar brand, Del Valle, and

other acquisitions are always an opportunity for the company

The company’s revolutionary twist on the fountain dispenser, the Freestyle,

has drawn customers across state lines just to get in line to fill their cup with

their favorite beverage, and this machine should prove to be a valuable

investment into the future

Their extensive and effective distribution network allows the company to take

any product and have it in nearly every store around the world in days

The energy-drink market has for years been labeled as a fast-growing market,

and an acquisition of Monster or another company is not probable at the time,

due to the recent allegations against Monster, however is possible   

There are a lot of other companies that sell soft drinks that can be comparable to those sold by Coca-Cola. Coca-Cola’s biggest rival is probably the PepsiCo Company. These two companies have been competing for the soft drink industry since they began, and they are still the two biggest companies is soft drink sales. The Pepsi drink sold by PepsiCo can be considered a substitution for Coca-Cola for consumers. In order to get people to buy their products, Coca-Cola

needs to differentiate them from Pepsi. As mentioned before, one way they do this is by creating new Coca-Cola flavors, which in turn offers products to consumers that they can’t get from PepsiCo. This is a great way to differentiate from PepsiCo and makes customers more inclined to buy Coca-Cola products. Another way that Coca-Cola stays ahead of the competition is by forming partnerships with various sporting events such as the Olympics, Special Olympics, tennis, football, etc. Coca-Cola and sport are closely linked. Coca-Cola is a product that is found in places where people gather to have fun and socialize, which definitely fits the description of any sporting event. By connecting sports and Coca-Cola, the company can gain recognition and support, something its competitors may not have access to. If Coca-Cola continues to maintain its high level of quality around the world and introduces new innovations in soft drink flavor, technology, and advertising, they will continue to be the highest selling brand of soft drink on the market. 

Threats:

PepsiCo has for decades been battling with Coca-Cola for the money of the

consumer, and this threat will not disappear anytime in the near future

Recently some select states have imposed taxes on the sale of soft drinks,

and have banned the sale of drinks larger than a certain size, trying to battle

obesity

A rise in ingredient prices could squeeze the margins of the company, as the

historic drought of this year has already caused food prices to rise

considerably

Coca-Cola sells products in countries all around the world, so they face the

threat of weak currency conversion rates that could hurt margins.

Major publically-traded competitors of Coca-Cola include PepsiCo (NYSE: PEP) and Dr.

Pepper Snapple Group (NYSE: DPS). PepsiCo has been competing with Coca-Cola since their

birth, and offer similar to near identical products. These two companies will continue to battle

each other into the future. Dr. Pepper Snapple, while significantly smaller than Pepsi and Coca-

Cola, poses a significant threat to Coca-Cola because of the wide popularity of their products and

difference between the different brands. Their main brand, Dr. Pepper is relatively unlike

anything Coca-Cola offers.

BIBLIOGRAPHY.

www.google.com

www.wikipedia.com

www.encyclopedia.com

www.cocacola.com.