Coca-Cola Marketing Strategy: A 2024 Comprehensive Case Study

Introduced over a century ago, Coca-Cola remains the world’s most consumed soda, illustrating its unparalleled ability to engage and captivate consumers globally. This case study explores the marketing strategy of Coca-Cola that continues to make it the leading manufacturer and licensor of nonalcoholic beverages, offering a staggering 3,500 varieties across more than 200 countries. 

coca cola case study business studies

From Pharmacist's Elixir to Global Refreshment Drink

On May 8, 1886, Dr. John Pemberton created what is now known as Coca-Cola. Originally sold at a pharmacy in Atlanta as a medicinal elixir, Coca-Cola has transformed into a global refreshment enjoyed daily by millions. 

What is Coca-Cola's Marketing Strategy?

The strategic marketing decisions made by Coca-Cola are largely responsible for its success. The company's approach includes comprehensive branding , widespread distribution, creative advertising, and innovative customer engagement tactics. Coca-Cola’s overarching vision continues to drive its global agenda, remaining focused on refreshing the world in mind, body, and spirit and making a difference to the people and communities it serves. This vision has enabled the company to maintain direction and momentum through periods of uncertainty.

Coca-Cola Target Audience

  • Age : Targets youths (10–35 years) with celebrity endorsements and vibrant campaigns, while also catering to health-conscious older adults with products like Diet Coke and Coke Zero. ‍
  • Income and Family Size: Offers various packaging options across different price points to ensure affordability for students, middle-class families, and low-income groups. ‍
  • Geographical Segmentation: Tailors its formulas to suit regional tastes, such as sweeter versions in Asia, to resonate with local preferences. ‍
  • Gender: Differentiates offerings like Coca-Cola Light for women and Coke Zero for men, focusing on taste preferences linked to gender.

Advertising

coca cola case study business studies

From early advertisements in newspapers to groundbreaking campaigns like "I’d Like to Buy the World a Coke," Coca-Cola has always known the power of effective advertising. Each campaign not only promoted their product but also cemented Coca-Cola’s place in the cultural landscape. Coca-Cola’s advertising campaigns are designed to resonate on a global scale while maintaining local relevance. These strategies include:

  • Creative Campaigns: Engaging and visually appealing ads that capture the essence of joy and refreshment. ‍
  • Emotional Branding : Utilizing regional languages and culturally relevant content to connect emotionally with consumers. ‍
  • Celebrity Partnerships: Collaborating with local and international celebrities to widen reach.
  • Wide Coverage: Utilizing multiple channels, from traditional media to digital platforms. ‍
  • Engagement : Interactive campaigns and social media strategies to engage with a younger audience.
  • Sponsorships : Long-standing partnerships with major events like the Olympics, FIFA World Cup, American Idol and popular TV shows enhancing brand visibility and consumer connection globally. ‍

Coca-Cola has also embraced personalization in its past campaigns, from names on bottles to personalized marketing emails, enhancing consumer loyalty and personal connection with the brand.

1. "Share a Coke" Campaign

Launched initially in Australia in 2011, the "Share a Coke" campaign is one of the most celebrated and successful marketing strategies in Coca-Cola's history. The campaign was groundbreaking in its approach—replacing the iconic Coca-Cola logo on bottles with common first names. The idea was simple yet powerful: personalize the Coke experience to encourage sharing and create a personal connection with the product. Consumers could find bottles with their names or the names of friends and family, making it not just a purchase but a personalized social experience. The campaign heavily leveraged social media, encouraging people to share their Coca-Cola moments online with the hashtag #ShareaCoke, which amplified the campaign's reach exponentially. After its initial success in Australia, the campaign rolled out in over 80 countries with country-specific names and designs, each resonating with local audiences and cultural nuances.

2. "I'd Like to Buy the World a Coke" (Hilltop)

Originally aired in 1971, the "Hilltop" commercial for Coca-Cola, also known as "I'd Like to Buy the World a Coke," remains one of the most iconic advertisements in the history of television. Conceived by Bill Backer of McCann Erickson, the commercial featured a diverse group of young people from all over the world singing on a hilltop in Italy. The ad's simple yet profound message of hope and unity, expressed through the lyrics "I'd like to buy the world a home and furnish it with love," struck a chord during a time of political unrest and social change. The commercial became more than just an ad; it became a cultural icon, evoking feelings of peace and camaraderie at a global scale. The ad's popularity led to several remakes and re-releases over the decades, including a famous 1990 version featuring the original singers and their children, and a Super Bowl version in 2011.

3. "The Happiness Machine"

As part of its "Open Happiness" campaign, Coca-Cola launched "The Happiness Machine" video in 2010. The campaign featured a specially designed Coke vending machine placed in a college campus that dispensed not just bottles of Coke but surprising acts of "happiness" – from pizza and flowers to balloon animals. The video quickly went viral, thanks to its genuine, unscripted reactions and feel-good vibe. It amassed millions of views on YouTube, bringing widespread attention and goodwill toward the brand. This campaign emphasized Coca-Cola's focus on selling experiences and emotions associated with the brand, not just the product. It highlighted the brand’s commitment to spreading joy and happiness. The success of the "Happiness Machine" led to the creation of similar campaigns globally, harnessing the power of viral marketing and showing the brand's innovative approach to engaging with younger audiences.

Social Media and Digital Marketing

coca cola case study business studies

Coca-Cola has evolved its marketing strateg y from traditional mediums to a more integrated, multi-channel approach. The focus is now on building personal connections with consumers and leveraging digital platforms for targeted and engaging marketing campaigns. This shift has allowed Coca-Cola to maintain its relevance. Coca-Cola has embraced the digital age with robust online presence across platforms like Facebook, Twitter, Instagram, YouTube, and Snapchat. The brand leverages SEO , email marketing , content marketing , and video marketing to engage a broader audience effectively.

Coca-Cola Marketing Strategy

Coca-Cola employs a dual-channel marketing strategy :

  • Personal Channels: Direct interaction with consumers to build personal connections. ‍
  • Non-Personal Channels: A mix of traditional and digital media, including newspapers, TV, social media, email, and outdoor advertising, to ensure widespread reach. ‍

Coca-Cola’s Marketing Mix: The 4 Ps

  • Product Strategy: Coca-Cola boasts an extensive portfolio of 500 products, positioned strategically within the market to maximize reach and profitability. Coca-Cola’s commitment to maintaining its original formula and ensuring product quality has fostered deep brand loyalty . Even when new recipes were introduced, such as New Coke, the public’s attachment to the original formula brought it swiftly back. To cater to diverse consumer tastes, Coca-Cola has expanded its product portfolio to include juices, teas, coffees, and other beverages. This diversification strategy helps the company penetrate different market segments. ‍
  • Pricing Strategy: Initially maintained a constant price for decades, it now employs a flexible pricing strategy to remain competitive without compromising perceived quality. Coca-Cola's pricing strategy is carefully crafted to remain competitive while ensuring profitability.  ‍
  • Place Strategy: Operates a vast distribution network across six global regions, supported by an extensive supply chain involving bottling partners and distributors, ensuring global product availability. ‍
  • Promotion Strategy: Invests heavily in diverse advertising strategies to maintain brand visibility and consumer engagement across various platforms. ‍ ‍

coca cola case study business studies

Coca-Cola's Growth Strategy

  • Winning More Consumers : Expanding the consumer base through effective marketing and innovative product offerings. ‍
  • Gaining Market Share: Outperforming competitors by understanding consumer needs better and responding quickly. ‍
  • Maintaining Strong System Economics: Ensuring profitability and sustainability across the supply chain. ‍
  • Strengthening Impact Across Stakeholders: Building a positive influence on consumers, communities, and environments. ‍
  • Equipping for Future Success: Preparing the organization to meet future challenges through continuous learning and adaptation.

Additionally, sustainability is integral to Coca-Cola's growth strategy. The company has focused on reducing its environmental footprint, using resources more efficiently, and promoting recycling. These efforts are aligned with its mission to make a difference, ensuring that growth is sustainable over the long term. 

These objectives serve as the north stars for Coca-Cola, guiding all strategic decisions and initiatives.

Brand Portfolio Optimization

The iconic Coca-Cola logo and the classic bottle design are instantly recognizable worldwide, making branding a cornerstone of their strategy. This section examines how consistent branding across various platforms plays a critical role in Coca-Cola's marketing . Keeping a uniform visual identity and engaging in significant sponsorships have allowed Coca-Cola to remain relevant and beloved by generations. In a significant move to optimize its brand portfolio , Coca-Cola reduced its brand count from 400 to 200 master brands. This strategic decision was aimed at focusing on those brands that align with and support the company's growth objectives. By doing so, Coca-Cola has ensured that it invests in brands with the highest potential for growth and profitability, balancing global, regional, and local brands to cover all drinking occasions.

coca cola case study business studies

Managing Missteps With Grace

Coca-Cola’s ability to handle marketing and business errors gracefully, such as the New Coke debacle, shows a brand well-versed in crisis management and responsive public relations.

Lessons for Marketers

  • Brand Identity is Essential: A strong, consistent brand identity is vital for long-term success. ‍
  • Prioritize Product Quality : High product quality should always be a priority, supporting marketing efforts and building consumer trust. ‍
  • Strategic Pricing is Key: Effective pricing strategies can significantly impact brand perception and customer loyalty. ‍
  • Explore New Markets: Expanding into new markets can drive growth and help maintain relevance. ‍
  • Responsive PR Matters: Managing public relations actively and effectively can mitigate potential damages and boost brand image. ‍

What Makes Coca-Cola’s Marketing Strategy So Successful? ‍

Coca-Cola’s enduring success is attributed to its ability to adapt to consumer needs, maintain a strong emotional connection with customers, and continuously innovate its marketing strategies .

Coca-Cola's success story is a playbook for marketers aiming to build a lasting brand that not only survives but thrives through changing times. By understanding and implementing these strategies, other brands can aim to replicate Coca-Cola's enduring appeal.

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Table of Contents

Coca-cola target audience , geographical segmentation , coca-cola marketing channels, coca-cola marketing strategy , coca-cola marketing strategy 2024: a case study.

Coca-Cola Marketing Strategy 2024: A Case Study

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Coca-cola has colossal brand recognition as it targets every customer in the market. Its perfect marketing segmentation is a major reason behind its success. 

  • Firstly, the company targets young people between 10 and 35. They use celebrities in their advertisements to attract them and arrange campaigns in universities, schools, and colleges. 
  • They also target middle-aged and older adults who are diet conscious or diabetic by offering diet coke. 

Income and Family Size

It introduces packaging and sizes priced at various levels to increase affordability and target students, middle class, and low-income families and individuals.  

Coca-Cola sells its products globally and targets different cultures, customs, and climates. For instance, in America, it is liked by older people too. So, the company targets different segments. It also varies the change accordingly, like the Asian version is sweeter than other countries. 

Coca-Cola targets individuals as per their gender. For example, Coca-Cola light is preferred by females, while coke zero and thumbs up are men's favorite due to their strong taste.

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Coca-Cola initially employed an undifferentiated targeting strategy. In recent times, it has started localizing its products for better acceptability. It incorporates two basic marketing channels : Personal and Non-personal.

Personal channels include direct communication with the audience. Non-personal marketing channels include both online and offline media, such as

  • Promotion Campaigns 
  • PR activities 

Social Media

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A uniquely formulated Coca Cola marketing strategy is behind the company's international reach and widespread popularity. The strategy can be broken down into the following:

Product strategy 

Coca-cola has approximately 500 products. Its soft drinks are offered globally, and its product strategy includes a marketing mix. Its beverages like Coca-Cola, Minute Maid, Diet Coke, Light, Coca-Cola Life, Coca-Cola Zero, Sprite Fanta, and more are sold in various sizes and packaging. They contribute a significant share and generate enormous profits. 

Coca_Cola_Marketing_Strategy_1

Coca-Cola Products

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Pricing Strategy

Coca-Cola's price remained fixed for approximately 73 years at five cents. The company had to make its pricing strategy flexible with the increased competition with competitors like Pepsi. It doesn't drop its price significantly, nor does it increase the price unreasonably, as this would lead to consumers doubting the product quality and switching to the alternative.  

Place Strategy 

Coca-cola has a vast distribution network. It has six operating regions: North America, Latin America, Africa, Europe, the Pacific, and Eurasia. The company's bottling partners manufacture, package, and ship to the agents. The agents then transport the products by road to the stockist, then to distributors, to retailers, and finally to the customer. Coca-Cola also has an extensive reverse supply chain network to collect leftover glass bottles for reuse. Thus, saving costs and resources.

Coca_Cola_Marketing_Strategy_2.

Coca-Cola’s Global Marketing

Promotion Strategy  

Coca-Cola employs different promotional and marketing strategies to survive the intense competition in the market. It spends up to $4 million annually to promote its brand , utilizing both traditional and international mediums for advertisements.   

Classic Bottle, Font, and Logo

Coca-Cola organized a global contest to design the bottle. The contest winner used the cocoa pod's design, and the company used the same for promoting its shape and logo. Its logo, written in Spencerian script, differentiates it from its competitors. The way Coca-cola uses its logo in its marketing strategy ensures its imprint on consumers' minds. 

Coca_Cola_Marketing_Strategy_3

Coca-Cola’s Gripping Advertisements

Localized Positioning

The recent 'Share a coke' campaign, launched in 2018 in almost fifty countries, has been quite a success. The images of celebrities of that region and messages according to the local language and culture of the area target the local market. 

Coca_Cola_Marketing_Strategy_4

Coca-Cola Advertisement Featuring Celebrities

Sponsorships 

The company is a well-recognized brand for its sponsorships, including American Idol, the NASCAR, Olympic Games, and many more. Since the 1928 Olympic Games, Coca-Cola has partnered on each event, helping athletes, officials and fans worldwide. 

Coca_Cola_Marketing_Strategy_5

Coca-Cola as Official Olympics Partner

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With technological advancement, social media and online communication channels have become the most significant part of the Coca-Cola marketing strategy. It actively uses online digital marketing platforms like Facebook , Twitter, Instagram, YouTube, and Snapchat to post images, videos, and more.  The Coca Cola marketing strategy primarily includes SEO , email marketing , content marketing , and video marketing .   

Coca_Cola_Marketing_Strategy_6.

Coca-Cola’s Instagram Posts 

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  • Coca-Cola Business Strategy

Coca-Cola, as the market leader in the soft drink industry, has a wide portfolio and operates in global markets. As a household name, its active corporate and marketing activities are worth studying. Let's have a look at Coca-Cola's international corporate strategy and marketing activities including its branding and pricing strategies.

Coca-Cola Business Strategy

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Coca-Cola Company case study

The first Coca-Cola was sold in 1886 at a pharmacy in Atlanta, but now globalisation and diversification of the product range have changed its original brand image significantly.

Globalisation is one of the most distinctive features of Coca-Cola. The products are not just produced and bottled in its home town in the U.S., but in other countries as well.

Besides, as mentioned above, Coca-Cola uses a standardised brand image around the world.

Coca-Cola is one of the biggest global soft drink companies. It has a wide portfolio with brands in multiple soft drink categories including carbonated drinks, energy drinks, juices, and coffee. Its overall portfolio is diversified and more importantly, there are some products that are sold as region-specific, making up part of their strategy.

A corporate strategy is a medium-to-long-term plan for a business to reach its corporate objectives. It includes the activities that should be carried out, the time in which the tasks should be done, and the person who is responsible for the tasks to achieve corporate objectives.

Merging with or acquiring competitors, re-branding, or expanding the market from domestic to international are all examples of corporate strategies.

F unctional strategy of the Coca-Cola Company

Functional strategies are specific goals set out for different divisions of an organisation to reach its functional objectives.

The divisions usually include Marketing, Finance, Operations, and Human Resources . However, for multinational conglomerates like Coca-Cola, there could be more specific teams under each division. For instance, the operations division may include the IT department, Logistics, and Customer Service.

In terms of operational strategy, bottling partnerships have helped Coca-Cola seize growth opportunities via vertical acquisitions. Global partnerships help Coca-Cola with cost control by reducing transportation costs and reaching economies of scale. This is an example of a functional objective for the operations division.

C oca -C ola marketing strategy

Effective and active marketing activities around the world are strong contributors to Coca-Cola’s revenue and market shares. Market and human insights are used heavily as indicators in Coca-Cola’s marketing activities. This means that Coca-Cola can target specific consumer segments well by understanding their profiles, including age, gender, and lifestyles. Hence, instead of individual products, brands under the conglomerate can be wrapped within different brand images to match their target demographics.

Sprite is a brand under The Coca-Cola Company marketed as a brand for younger generations, specifically Gen Z, as their focus is on promoting the ideas of current affairs, pop culture, and some popular consumer lifestyles such as the wider use of all things digital.

Many multinational conglomerates, such as Pepsi Co, choose to localise their brand images and adapt to the local markets, which result in different brand images around the world. Coca-Cola chooses to use a universal or standardised image around the world regardless of the location they operate in.

Coca-Cola Business Strategy Coca-Cola advertisement Vaia

The advantage of this lack of segmentation strategy is consistency. Consistency in the brand image could bring travellers a sense of belonging, which trigger the consumers’ impulse to purchase the same product in other geographical locations.

The disadvantage of this strategy is related to reputation. A bad reputation would leave an impact regardless of the location. The same brand image might not suit different cultures.

Some brand images may be universally accepted or create a common effect. For example, Coca-Cola uses family gatherings and festive celebrations for its marketing in different markets. This works because most cultures share the same feelings of happiness for gatherings.

From the perspective of the marketing mix , Coca-Cola diversifies its portfolio to target many niche needs such as Coke Zero, Diet Coke, Coca Cola Life, Glaceau Vitaminwater, and Glaceau Smartwater.

For place , it distributes globally, while region-specific products are also developed to target local consumers. In addition, its distribution channel and strategy of utilising bottling partnerships have enabled it to distribute products efficiently. The most prominent point in regard to place is ease of access. Products of Coca-Cola can be found in convenient shops, supermarkets, vending machines, restaurants and bars.

In terms of promotion , Coca-Cola invests a considerable amount of money in advertisements. It uses a mix of digital and physical channels including TV commercials, sports sponsorships, social media advertisements, and a series of ongoing campaigns.

For its pricing strategy, it offers competitive prices to prevent consumers from switching to other brands, as there are plenty of alternatives, such as Pepsi, available in the market. Besides, psychology pricing is one common pricing tactic it uses. It also tends to use discounts on bulk purchases to stimulate sales.

C oca -C ola expansion strategy

Although Coca-Cola is operating in most parts of the world, it has different market shares and products depending on the market. Coca-Cola has a high dependency on its bottling partners around the world. Hence, first of all, to expand, it has to improve its logistics and bottling systems.

Secondly, it is planning to reach a balanced combination of global, regional and local brands so its consumer base can grow gradually and sustainably. Also, it has a rather diversified portfolio and is planning to make use of the wide range of products to acquire customers with different interests. This means that Coca-Cola will not only continue its focus on soft carbonated drinks but will also put more effort into products such as nutritional drinks and coffee.

Thirdly, by joining social networks and participating in popular culture-related activities such as using TikTok and making YouTube videos for its promotion, it connects effectively with consumers, shortens the distance between the brand and consumers and benefits from the knowledge of the latest consumer trends.

S trategic goals of the Coca-Cola Company

Corporate objective

Marketing objective

Financial objective (long-term)

Operational objective

HR objective

impact growth 4-6% 90-95%

Table. 1 Objectives of Coca-Cola (source: Coca-Cola investor overview presentation, 2021)

In order to achieve the long-term corporate objectives, businesses tend to set up some short-term strategic goals to make sure they are on track. In this case, Coca-Cola tends to develop goals for different functional areas depending on its long-term objectives.

Moreover, its overall main objective is claimed to be growing the company, the industry, and crafting brands and drinks that people love . In 2021, Coca-Cola set up a pipeline to assess its level of innovation. The goals of the pipeline included gaining new drinkers. This number was assessed weekly, significantly increasing frequent users from its existing customer base and increasing the value of each transaction significantly.

In general, the corporate goals of Coca-Cola can be summed up as gaining new customers, gaining market share, improving stakeholder impact, and ensuring the ability of the organisation to remain a market leader. Coca-Cola achieves this by pursuing a wide range of global strategies.

Coca-Cola Business Strategy - Key takeaways

  • Coca-Cola is a market leader in the carbonated soft drink industry worldwide
  • The strategy of franchising to its global bottling partners has enabled it to grow quickly.
  • By partnering with local small bottlers in under-developed markets, it is able to strategically merge or acquire these small local businesses to expand the local markets.
  • The marketing activities and strategy of using a standardised brand image around the world are contributing to its stable status as a household name worldwide as well.
  • Marketing mix of Coca-Cola: Product: a wide portfolio including classic Coke, Zero, Fanta and so on; Place: operates in global market, can be found in shops, restaurants and vending machines; Promotion: across different media and communication channels, using a series of campaigns; Price: competitive pricing at the market level.

Investors Coca-Cola, https://investors.coca-colacompany.com/about/presentations

Marketing91, https://www.marketing91.com/marketing-strategy-of-coca-cola/

Investopedia, https://www.investopedia.com/articles/markets/112515/how-does-cocacola-actually-make-money.asp

Flashcards in Coca-Cola Business Strategy 15

What is the market coverage strategy of Coca Cola ?

Undifferentiated mass marketing. 

What business strategy does Coca-Cola use?

Outsourcing bottling partners

Does Coca Cola offer products targeting niche markets?

What kind of needs are the niche products based on?

Dietary needs. 

Which segmentation strategy does Coca-Cola use?

Coca Cola does not segment the market by demographic features but it tends to create product to meet niche demands.

What is Coca-Cola's growth strategy?

Franchising trademark and syrup to tis global bottling partnership for expanding under-developed markets.

Coca-Cola Business Strategy

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Frequently Asked Questions about Coca-Cola Business Strategy

Which market coverage strategy is employed by coca-cola?

The market coverage strategy employed by coca-cola is as follows:

  • The strategy of franchising to its global bottling partners has enabled it to grow quickly. 
  • By partnering with local small bottlers in under-developed markets, it is able to strategically merge or acquire these small local businesses to expand the local markets. 

Cocacola uses a functional strategy to run its business. 

Functional strategies are specific goals set out for different divisions of an organisation to reach its functional objectives. The divisions usually include Marketing, Finance, Operations, and Human Resources.

 Coca-Cola can target specific consumer segments well by understanding their profiles, including age, gender, and lifestyles. Hence, instead of individual products, brands under the conglomerate can be wrapped within different brand images to match their target demographics.  For example, Sprite is a brand under The Coca-Cola Company marketed as a brand for younger generations, specifically Gen Z.

What is Coca-Cola's growth strategy?

Coca-Cola implements two growth strategies. 

1. Bottling partnerships have helped Coca-Cola seize growth opportunities via vertical acquisitions. 

2. Global partnerships help Coca-Cola with cost control by reducing transportation costs and reaching economies of scale. 

What is Coca-Cola's price strategy?

For its pricing strategy, it offers competitive prices to prevent consumers from switching to other brands available in the market. Besides, psychology pricing is one common pricing tactic it uses. It also tends to use discounts on bulk purchases to stimulate sales.     

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Coca-Cola Marketing Case Study

coca cola marketing strategy

From the star ‘Coca-Cola’ drink to Inca Kola in North and South America, Vita in Africa, and Thumbs up in India, The Coca-Cola Company owns a product portfolio of more than 3500 products . With the presence in more than 200 countries and the daily average servings to 1.9 billion people, Coca-Cola Company has been listed as the world’s most valuable brand with 94% of the world’s population recognizing the red and white Coca-Cola brand Logo . Moreover, 3.1% of all beverages consumed around the world are Coca-Cola products. All this because of its great marketing strategy which we’ll discuss in this article on Coca-Cola Marketing Strategy .

Coca-Cola –

  • has a Market capitalization of $192.8 Billion (as of May 2016).
  • had 53 years of consecutive annual dividend increases.
  • with the revenue of over $44.29 billion, is not just a company but an ECONOMY.

The world knows and has tasted the coca cola products. In fact, out of the 55 billion servings of all kinds of beverages drunk each day (other than water), 1.7 billion are Coca-Cola trademarked/licensed drinks.

Marketing history

Market research in the beginning.

It all started 130 years ago, in 1886, when a Confederate colonel in the Civil War, John Pemberton, wanted to create his own version of coca wine (cola with alcohol and cocaine) and sent his nephew Lewis Newman to conduct a market research with the samples to a local pharmacy (Jacobs pharmacy). This wasn’t a new idea back then. The original idea of Coca wines was discovered by a Parisian chemist named Angelo Mariani.

Pemberton’s sample was sold for 5 cents a glass and the feedback of the customers was relayed to him by his nephew. Hence, by the end of the year, Pemberton was ready with a unique recipe that was tailored to the customers taste.

coca cola marketing study

Marketing Strategy In The Beginning

Pemberton soon had to make it non-alcoholic because of the laws prevailing in Atlanta. Once the product was launched, it was marketed by Pemberton as a “Brain Tonic” and “temperance drink” (anti-alcohol), claiming that it cured headaches, anxiety, depression, indigestion, and addiction. Cocaine was removed from Coke in 1903.

The name and the original (current) Trademark logo was the idea of Pemberton’s accountant Frank Robinson, who designed the logo in his own writing. Not changing the logo till date is the best strategy adopted by Coca-cola.

Soon after the formula was sold to Asa G Candler (in 1889), who converted it into a soda drink, the real marketing began.

Candler was a marketer. He distributed thousands of complimentary coca-cola glass coupons, along with souvenir calendars, clocks, etc. all depicting the trademark and made sure that the coca cola trademark was visible everywhere .

He also painted the syrup barrels red to differentiate Coca-Cola from others.

Various syrup manufacturing plants outside Atlanta were opened and in 1895, Candler announced about Coca-Cola being drunk in every state & territory in the US.

coca cola marketing study

The Idea Of The Bottle

During Candler’s era, Coca-Cola was sold only through soda fountains. But two innovative minds, Benjamin F. Thomas and Joseph B. Whitehead, secured from Candler exclusive rights (at just $1) for bottled coca cola sales.

But Coca-Cola was so famous in the US that it was subjected to imitations. Early advertising campaigns like “Demand the genuine” and “Accept no substitutes” helped the brand somewhat but there was a dire need to differentiate. Hence, in 1916, the unique bottle of Coca-Cola was designed by the Root Glass Company of Terre Haute, Indiana. The trademark bottle design hasn’t been changed until now.

coca cola bottle ad

Coca-Cola Worldwide

In 1919, Candler sold the company to Robert Woodruff whose aim was to make Coca-Cola available to anyone, anytime and anyplace. Bottling plants were set up all over the world & coca cola became first truly global brand.

Robert Woodruff had some other strategies too. He was focused on maintaining a standard of excellence as the company scaled. He wanted to position Coca-Cola as a premium product that was worthy of more attention than any of its competitors. And he succeeded in it.  Coca-Cola grew rapidly throughout the world.

Coca-Cola Marketing Strategies

The worldwide popularity of Coca-Cola was a result of simple yet groundbreaking marketing strategies like –

Consistency

Consistency can be seen from the logo to the bottle design & the price of the drink (the price was 5 cents from 1886 to 1959). Coca-Cola has kept it simple with every slogan revolving around the two terms ‘Enjoy’ and ‘happiness’.

From the star bottle to the calendars, watches and other unrelated products, Candler started the trend to make Coca-Cola visible everywhere. The company has followed the same branding strategy till now. Coca-Cola is everywhere and hence has the world’s most renowned logo.

Positioning

Coca-Cola didn’t position itself as a product. It was and it is an ‘Experience’ of happiness and joy.

Franchise model

The bottling rights were sold to different local entrepreneurs , which is continued till now. Hence, Coca-cola isn’t one giant company, it’s a system of many small companies reporting to one giant company.

Personalization & Socialization

Unlike other big companies, Coca-Cola has maintained its positioning as a social brand. It talks to the users. Coca-Cola isn’t a company anymore. It’s a part of us now. With its iconic advertising ideas which include “I’d Like to Buy the World a Coke” & “Share a Coke”, it has maintained a special spot in the heart of its users.

Diversification

Coca-Cola, after marking its presence all over the world, took its first step towards diversifying its portfolio in 1960 by buying Minute Maid. It now operates in all but 2 countries worldwide with a portfolio of more than 3500 brands.

Coca-Cola Marketing Facts

  • Logo & bottle design hasn’t changed since the start.
  • During its first year, Coca-Cola sold an average of 9 drinks a day.
  • Norman Rockwell created art for Coke ads.
  • Coke has had a huge role in shaping our image of Santa Clause.
  • In the 1980s, the company attempted a “Coke in the Morning” campaign to try to win over coffee drinkers.
  • In 1923, the company began selling bottles in packages of six, which became common practice in the beverage industry.
  • Recently, it was in the news that Verizon acquired Yahoo for around $5 billion which is more or less the same amount the Coca-Cola Company spends on its advertisements.
  • The number of employees working with the Coca-Cola Company (123,200 to be exact) is more than the population of many countries.

coca cola ad

Go On, Tell Us What You Think!

Did we miss something?  Come on! Tell us what you think about Coca Cola Marketing Case Study  in the comment section.

Aashish Pahwa

A startup consultant, digital marketer, traveller, and philomath. Aashish has worked with over 20 startups and successfully helped them ideate, raise money, and succeed. When not working, he can be found hiking, camping, and stargazing.

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How Coca-Cola became one of the most successful brands in history

Table of contents.

Coca-Cola has an impressive track record of innovation which has helped propel the company to become one of the most successful brands in history. Through skillful advertising efforts, Coca-Cola is widely recognized as a symbol of American culture through its influence on politics, pop culture, and music around the globe.  

Key statistics and facts about The Coca-Cola Company: 

  • Owns 43.7% of the US carbonated soft drinks market
  • Net operating revenue of $38.7B
  • Present in more than 200 countries and territories
  • Employs over over 700,000 along with its bottling partners
  • Ranked #93 in the Fortune 500
  • Μarket value of $259.77 billion as of February 2023 

Who owns Coca-Cola?

There is no sole owner of Coca-Cola as it is a publicly listed company. However, the largest shareholder is Warren Buffett. Read on as we dive into the history of Coca-Cola's owners and much more below!

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The history of The Coca-Cola Company

How it all started.

The story of The Coca-Cola Company had humble beginnings in the late 1800s, in Atlanta, Georgia. Dr. John Pemberton, a local pharmacist, had developed a recipe for a sweet syrup that was originally advertised to cure headaches. It was eventually mixed with carbonated water to create a fizzy drink that was served at a soda fountain in Jacobs’ Pharmacy. The first glass of Coca-Cola was served on May 8, 1886. In the first year, Pemberton served approximately nine drinks per day which were sold for 5 cents a glass. 

While the ingredient list today is a highly guarded secret, it is well known that the original version contained extracts from the Coca leaf and Kola nuts for caffeine. The combination of these two ingredients is where the name comes from. Dr. Pemberton’s partner and bookkeeper, Frank M. Robinson, felt that spelling the name with double “C’s” would look better in advertising. So, he scripted out the logo which even today displays Mr. Robinson’s unique handwriting. 

Dr. Pemberton didn’t realize the potential of his new product. He took on several partners and sold portions of his business to various owners. Sadly, Dr. Pemberton died just two years after the creation of Coca-Cola. Prior to his death, he sold his remaining interests to an Atlanta businessman, Asa Griggs Candler. Candler knew there was something special about this new product, but little did he know that his $2,300 investment (roughly $67,000 today) would be the start of one of the most powerful brands on the planet. 

Birth of The Coca-Cola Company

The Coca-Cola Company was officially founded by Asa Candler in 1892. It didn’t take long for the Coca-Cola product to quickly spread outside of Georgia and across the nation. By 1895, Coca-Cola was being sold in every state of the union. In 1919, the company was sold to Ernest Woodruff. Woodruff's sons would continue to run the company for many years, transforming the company into a major international brand. The Coca-Cola Company was officially listed on the New York Stock Exchange in 1919 under the ticker symbol KO. 

International expansion of The Coca-Cola Company

The first export of Coca-Cola was to Cuba in 1899. It wasn’t until the 1920s, that international expansion of the brand began to take off. During World War II, Coca-Cola’s President, Robert Woodruff, wanted to ensure that US service members stationed all over could have the comforts of home and pledged to transport Coca-Cola to the various bases in the European and Pacific theatres on the company’s dime. This introduction of the Coca-Cola product increased international demand. With people all over the world craving a taste of American culture, Coca-Cola began establishing partnerships with bottling companies and distributors all over the world. Today, the brand operates in more than 200 countries and territories. 

Early competition

In the early years, Coca-Cola had a lot of competition. In fact, the late 1800s and early 1900s was the most active period in the development of new soft drinks. Some of these companies went out of business or were bought out by other larger companies. However, many of these brands are still in existence today as more novelty brands and hold a very small percentage of the market. 

The most prominent competitors to Coca-Cola throughout its history have been Pepsi and Dr. Pepper. They were both created around the same time as Coca-Cola (Pepsi in 1898 and Dr. Pepper in 1885). Over time, these three giants bought up many of the smaller beverage companies. For example, Vernor’s Ginger Ale, Hires Root Beer, and Royal Crown Cola still exist but are now owned by Dr. Pepper. 

The Coca-Cola beverage was created in 1886 by Dr. John Pemberton, a pharmacist from Atlanta, Georgia. The recipe was purchased by Asa Griggs Candler and The Coca-Cola Company in 1892. The brand quickly became popular and was sold all over the United States. By the early 20th century, Coca-Cola began a rapid expansion across the globe.

The Coca-Cola system- a global franchise distribution network 

The Coca-Cola Company’s rapid expansion around the world can be attributed to its unique franchise distribution system (known as the Coca-Cola System ) that they have operated since 1889. Coca-Cola produces syrup concentrate which is then sold to various bottlers around the world. This helps the company maintain control over its top-secret recipe without the burden of having to run many of the independent bottling facilities. 

The Coca-Cola System is a network of over 900 bottling plants that produce 2 billion servings of Coca-Cola every day. The bottlers each hold contracts that allow them to exclusively operate in a predetermined territory. This reduces the need for the competition from multiple companies that sell the same product. 

These distributors handle all aspects of the production and distribution process including mixing the syrup with carbonated water and sweeteners, placing the finished product in cans or bottles, and distributing Coca-Cola to supermarkets, vending machines, restaurants, and movie theaters. Although Coca-Cola produces the main syrup, the franchise companies also control the soda fountain business in their territory. 

The exception to this model is the North American market where The Coca-Cola Company directly owns most of the bottling and distribution. Outside of the United States, Coca-Cola has continued to encourage the consolidation of its various bottling companies. Over time, Coca-Cola has acquired a percentage of ownership in many of the companies in the Coca-Cola System. 

Top 5 independent bottling partners, representing 40 percent of the Coca-Cola System distribution network:

  • Coca-Cola FEMSA (Latin America)
  • Coca-Cola Europacific Partners, plc (Western Europe, Australia, Pacific, and Indonesia)
  • Coca-Cola HBC AG (Eastern Europe)
  • Arca Continental (Latin America and North America)
  • Swire Beverages (Asia and parts of North America)

Here's an example video from Coca-Cola HBC AG explaining their business model:

The Coca-Cola Company leverages a network of independently owned and operated bottlers around the world. This has enabled the company to quickly expand without having to invest billions of dollars into building facilities and navigating international rules and regulations unique to each region.

Evolution of the Coca-Cola product

The formula for Coca-Cola has undergone a few changes since its creation. Some of these changes were driven by necessity. Some were an attempt to reduce costs or gain market share. While the brand does not make changes often, some have been better received than others. 

Removal of cocaine

During the late 19th century, there were many Cocoa-based beverages available on the market. At the time, drugs like cocaine and opium were perfectly legal and used quite frequently for medicinal purposes. Since Coca leaves were used to make Coca-Cola, there were small quantities of cocaine that could be found in the drink. 

The public eventually became aware of the addictive properties of these substances, so Coca-Cola was pressured to remove this drug from its list of ingredients. The Coca-Cola Company made steps to gradually phase out sources of cocaine from its production until it was finally eliminated in 1929.

File:New Coke can.jpg

On April 23, 1985, The Coca-Cola Company took a huge risk that shocked the world. They announced that they would be changing the formula of their world-famous soft drink. Despite its massive success, the company had been losing ground to one of its main competitors, Pepsi. Pepsi’s success wasn’t just in the United States. They were quickly expanding into markets that were once considered untouchable. At the height of the Cold War, Pepsi became the first Western product to be permitted in the Soviet Union . 

Based on surveys and taste tests, consumers seemed to prefer the sweeter taste of Pepsi-Cola. So, Coca-Cola set out to rework the formula to improve its ability to compete. According to Coca-Cola’s website, their goal was to “re-energize the Coca-Cola brand and the cola category in its largest market, the United States”. After receiving positive feedback from nearly 200k customers in taste tests, New Coke was released to the market. 

The public’s response to the new version of their product was outrage. Unfortunately, Coca-Cola miscalculated its customer’s bond with the original brand. Massive protests were staged and the company was flooded with thousands of angry phone calls and letters. The backlash was so fierce that it forced the company to revert back to the old formula after only 79 days on the market, branded as Coca-Cola classic. 

This graph demonstrates PepsiCo’s rapid expansion of market share from 1970 to 1990 and subsequent fall.

Coca-Cola Zero Sugar

File:Coca Cola Zero 02.jpg

While Coca-Cola has vowed not to make any changes to its original product, the company plans to update the recipe and packaging for their popular zero sugar variation, Coca-Cola Zero Sugar . The company has been cautious in its promotion of the new version as to not create a blowback like the 1985 New Coke fiasco. Coca-Cola has reiterated that the new version will not be a major overhaul, rather an “optimization of flavors and existing ingredients”. The rollout is expected to hit the US market by August 2021.

Sweetener changed to high fructose corn syrup

Traditionally, the Coca-Cola recipe called for cane sugar as the primary sweetener. During the 1970s, the United States saw a massive increase in corn production. This forced the prices of corn to drop significantly. In addition, corn was heavily subsidized by the US government. This made sweeteners like high fructose corn syrup more affordable. 

In an attempt to reduce costs, Coca-Cola slowly started substituting cane sugar for high fructose corn syrup during the 1980s. The transition took place over the course of approximately 5 years. 

Today, cane sugar is still used in the production of Coca-Cola in certain regions of the world. The most popular example is Coca-Cola produced in Mexico. This version of Coca-Cola is still made with cane sugar. Some critics argue that “Mexican Coke” has a flavor that is closer to the original formula.

In 1935, Coca-Cola was certified as kosher after the company replaced the source of glycerin used in production . This was originally derived from beef tallow but was replaced with a plant-based version. However, with the change of sweetener in the 1980s to high fructose corn syrup, its kosher status was removed. Today, bottlers in markets with large Jewish populations will temporarily substitute high fructose corn syrup during Passover to obtain Kosher certification.

Recipe and flavor variations

Despite the utter failure of New Coke in 1985, The Coca-Cola Company has introduced new flavors over time in addition to Coca-Cola classic. 

Some consumers avoided Coca-Cola classic because of the high sugar or caffeine content. In 1982, the company released a diet version of their product for consumers who were concerned about consuming too much sugar. A caffeine-free version was also introduced a year later. 

The company has also tried different flavor combinations. The first was Coca-Cola Cherry in 1985 which was a huge success and remains popular today. Other flavors included lemon, lime, vanilla, orange, ginger, cinnamon, and coffee. Many of these were attempts to bring local flavors to international markets. 

Coca-Cola has achieved enormous amounts of growth by tailoring its products to local tastes and demands. They have also been able to reduce production costs by substituting expensive ingredients such as cane sugar for lower-cost alternatives. Not every change has been well received by the public. Coca-Cola infamously changed their original recipe to replace it with “New Coke”. This change faced fierce backlash and forced the company to bring back the original product after only 79 days on the market. 

Coca-Cola Growth Strategy

The company has outlined a list of key objectives that they plan to execute in the coming years to spur additional growth. This strategic plan is intended to guide the company in refocusing efforts and being more intentional with its actions.  

Focus on developing markets

Coca-Cola has identified that there is huge growth potential in the developing world. Seventy percent of all beverages being consumed in the developed world are commercialized compared to only 30 percent for the developing world. Considering the developing world contains 80 percent of the world's population, growth is expected to be exponentially higher. 

One identified area of opportunity is brand diversification. While Coca-Cola has a strong foothold globally, this is only due to its strong presence in major markets. Outside of sparkling water, Coca-Cola is trailing competitors. The focus will be on gaining momentum in other beverage categories through the experimentation of new products. 

Brand portfolio optimization

Bigger isn’t always better. The Coca-Cola Company is realizing that its efforts may be spread across too many individual brands. Their goal is to rebalance their portfolio and consolidate products into fewer master brands. They have already reduced this number from approximately 400 to 200. By having fewer master brands, they can better focus their efforts. 

Networked organization

Operating a large corporation comes with challenges. In many cases, there can be inefficiencies and duplicated efforts. Coca-Cola plans to address this by reorganizing its support and operational teams to provide better support and work more effectively. 

Brand building

The company plans to deliver world-class marketing through targeted resource allocation. The goal is to be more intentional with the way advertising and marketing investments are made. 

Coca-Cola has a goal to increase the frequency that new or existing consumers drink their products. To do this, the company has set targets to significantly increase innovation by bringing more trial products and projects into the pipeline. The goal is to increase this by 40 percent over 2020. 

Digital transformation

Coca-Cola understands that data is a powerful tool. They are in the process of undergoing a digital transformation to help the company operate more effectively and leverage data to drive decision-making. 

Revenue growth management

With this new data and digital tools available, the company can place a renewed focus on which areas have the most potential for growth. They will focus on understanding which markets, consumers, product lines, and competitors should be addressed.

The Coca-Cola Company is dedicated to growing the business through a skillfully designed and executed strategic plan. Their long-term goals are to focus on expanding the commercial beverage industry in developing countries. They also plan to optimize their product line by reducing the number of master brands, creating new innovative products, changing their internal operations teams to streamline processes, and better leverage data.

The power of advertising- Coca-Cola becomes a household name

A big part of Coca-Cola’s success over the years has been its focus on innovative marketing and advertising campaigns. In 2020, Coca-Cola was ranked as the 6th most powerful brand in the world. This accomplishment didn’t come overnight. Over the years, Coca-Cola has had to work diligently to evolve and bring fresh, new ideas to marketing and advertising.

Large contributions to advertising 

Even early on, Asa Griggs Candler spent a considerable amount of money on advertising. His original budget for advertising was $11,000 (over $300,000 in today’s money). By 1900, the budget increased ten-fold to $100,000 and again to $1 million by 1910. 

Large advertising budgets are important when a new brand is getting established. As a company grows and becomes well-known, they typically scale back on their advertising budget since most consumers recognize the brand. Coca-Cola, however, has continued to keep the pressure on its competitors. Today, the company spends about 10 percent of its revenue on advertising and marketing. This equates to approximately $4 billion in commercials, print advertising, sponsorships, and other promotional merchandise. 

Focus on the brand and human connection

Much of Coca-Cola’s advertising success comes from the way they present their brand. Instead of focusing on the actual product, they emphasize the feeling and camaraderie of making the brand part of one’s identity. Their advertisements are intended to make people feel good about themselves and want to be a part of the experience. 

Human connection is an important part of the brand message. One great example of this was the “Hilltop” commercial from 1971 that featured people from different cultures singing “I’d like to buy the world a Coke”. This showed the Coca-Cola brand as one that was intended to unite people around the world.

Celebrity endorsements

Celebrity endorsement is a way to help a brand stand out, especially when targeting specific groups. For example, sports fans will be more likely to purchase a product if their favorite athlete promotes the brand. Over the years, Coca-Cola has been endorsed by numerous high-profile celebrities, athletes, and pop culture icons. 

Hilda Clark, an American model, and actress was the first celebrity to endorse the brand in 1900 and was featured in early advertisements. Since then, Coca-Cola has received endorsements from many big-name celebrities such as Ray Charles, Aretha Franklin, Magic Johnson, and Elvis Presley. 

Coca-Cola in pop culture

The Coca-Cola brand has been a prominent part of American culture for decades. Coca-Cola has skillfully attached itself to key historical events, music, movies, and major holidays. 

Coca-Cola and many of its other brands have been featured in numerous films and television programs. For a short time, Coca-Cola even owned Columbia Pictures (from 1982 to 1989) and inserted Coke products into many of its productions.  A few examples include:

  •  The 1933 film King Kong displays a Times Square billboard advertisement in several of the scenes.
  • Coca-Cola products being used in the 1982 film E.T. the Extra-Terrestrial.
  • The modern TV series Stranger Things which takes place in the 1980s displays and makes reference to New Coke. 

The Coca-Cola Company has also made its way into music across the globe. Elvis Presley promoted Coca-Cola during his last tour in 1977. The UK sensation, The Beatles, made mention of Coca-Cola in a line of their hit song “Come Together”. In addition to lyrical references, the brand has featured musical superstars such as David Bowie, Elton John, and Whitney Houston in Diet Coke commercials. 

The Coca-Cola brand has also cleverly attached itself to popular holidays. Some of its most successful campaigns have been displayed over the Christmas holiday. One of the most iconic campaigns started in 1931 with illustrations of St. Nicholas drinking a Coca-Cola. Many credit Coca-Cola with inspiring the modern-day version of Santa Clause. 

Clever campaigns and promotions

Coca-Cola has been one of the top innovators in the advertising space. On many occasions, they have used never before seen tactics that both surprised and delighted consumers. Creating an additional buzz around their advertising campaigns helps to amplify whom the campaign reaches directly. 

During the 2012 NFL Superbowl, Coca-Cola decided to take a non-traditional approach. The Superbowl is one of the most sought-after advertising opportunities. Each year, approximately 95 million people tune in to watch the championship game. Typically, major brands spend over $5 million for a single 30-second commercial. With the rise of cell phones and other mobile devices, Coca-Cola knew that consumers would be juggling multiple devices during the game. So, they created a family of animated polar bears that would react to the game in real-time on digital media banners and a microsite. The bears would laugh, respond to audience tweets, and make faces. The campaign was a huge success. During the game, over 9 million viewers spent an average of 28 minutes engaging with and watching the polar bears in action. 

In 2011, Coca-Cola decided to take a personalized approach to advertise in Australia with their Share a Coke campaign. They selected 150 of the most popular names and printed them on the side of their bottles along with the message “Share a Coke with…”. The campaign encouraged people to share a bottle of Coke with a friend or tag them in a social media post with the hashtag #shareacoke. The campaign was so successful that it was expanded to over 80 countries and led to Coca-Cola’s first sales growth in over 10 years. 

Collectible memorabilia 

Coca-Cola has created and distributed numerous pieces of branded memorabilia that are highly sought after by collectors including toys, clothing, antique bottles, signs, household items, and old vending machines. The collectible nature of these products has nostalgia of traditional Americana and has further helped to amply the prestige and cultural connection of Coca-Cola to US history. Rare and well-preserved items can fetch tens of thousands of dollars. 

The Coca-Cola Company has created one of the most powerful and well-known brands in the world. Over the years, they have embedded themselves as an icon of American culture through music, television, and films. The company spends a significant portion of its annual revenue on advertising efforts including television commercials, social media, and other advertising. 

Growth through mergers, acquisitions, and partnerships- becoming an unstoppable force in the food and beverage industry

While The Coca-Cola Company is known for its main products such as Coca-Cola and Diet Coke, the company owns, produces, and distributes over 500 individual brands worldwide. Some of these brands are a result of new products that they created. Others were obtained through mergers, acquisitions, and special partnerships with other major companies. 

Key mergers and acquisitions

  • 1960 - Coca-Cola acquires Minute Maid, a producer of juices, soft drinks, and other beverages such as the popular Hi-C brand. 
  • 1993 - When Coca-Cola was struggling to gain a foothold in the Indian market, they purchased the popular local brand, Thums Up. Their business now makes up over 40 percent of the cola business in India. 
  • 1995 - Acquisition of Barq’s which produces a line of root beers and cream sodas. 
  • 1999 - Coca-Cola purchased 50 percent of Inca Kola for $200 million and took control of its marketing and bottling operations. 
  • 2001 - Odwalla, a brand of fruit juices, smoothies, and bars was acquired. This company was discontinued in 2020.
  • 2007 - Coca-Cola acquired Fuze Beverage, a producer of teas and fruit drinks that were infused with vitamins and minerals. 
  • 2008 - The company purchased 40 percent of Honest Tea, a popular iced tea producer. The remaining shares were purchased in 2011 giving Coca-Cola full ownership. 
  • 2013 - Coca-Cola purchased the coconut water company ZICO. 
  • 2014 - 16.7 percent of the energy drink manufacturer, Monster Beverage, was sold to Coca-Cola in exchange for a long-term strategic partnership. 
  • 2016 - Coca-Cola purchased a portion of Chi Limited, a major distributor of snacks, food, and beverage products in Nigeria. The remaining shares were acquired in 2019.
  • 2017 - Topo Chico, a Mexican sparkling water brand was acquired by Coca-Cola. 
  • 2018 - Coca-Cola purchased Costa Coffee making it the owner of the second-largest coffeehouse chain in the world after Starbucks Coffee. 
  • 2018 - Organic & Raw Trading Co., the Australian producer of MOJO kombucha was acquired. 

Special partnerships

In addition to owning many brands, The Coca-Cola Company has created many successful strategic partnerships that have allowed Coca-Cola to grow exponentially. 

One of the most famous partnerships is with McDonald’s. When McDonald’s was just getting started in 1955, it needed a beverage distributor. The two companies struck a deal for Mcdonald's to exclusively sell only Coca-Cola products. McDonald’s eventually grew to become the largest restaurant chain (by revenue) and Coca-Cola products are served in nearly 40,000 of their locations around the world. Other notable restaurant chains that carry Coca-Cola products include Burger King, Chili’s, Chipotle, and Domino’s Pizza.

coca cola case study business studies

Coca-Cola has also partnered with numerous venues around the world to sell only Coca-Cola products in their stadiums, theatres, and concert halls. The Coca-Cola Company is a major sponsor of the Olympic Games. In 2017, the company signed a deal with Major League Baseball in which they agreed to drop their competitor Pepsi and only promote Coke products.

Most of Coca-Cola’s growth has come from strategic mergers and acquisitions of companies all over the world. They have been able to expand into new markets by buying companies that already dominate the specialty or space. The company has also developed strategic partnerships with other large companies to exclusively sell Coca-Cola products.

Controversy, regulatory issues, and criticism 

Despite the company’s overwhelming success, Coca-Cola has faced a lot of criticism throughout its history. There are many opinions related to the impacts that The Coca-Cola Company has on the environment and consumers alike. 

Health concerns

It’s no secret that Coca-Cola is a sugary drink. According to the Centers for Disease Control (CDC), half of all Americans will drink at least one sugary beverage each day. This massive consumption of sugar is leading to an epidemic of conditions such as type 2 diabetes and obesity. The World Health Organization (WHO) recommends that adults consume no more than 6 tsp of sugar each day. A single 12oz can of Coca-Cola contains nearly twice this amount. 

With Coca-Cola being the leading company in the food and beverage industry, they have received a lot of negative attention directed towards their contribution to this serious problem. 

The company has responded by producing sugar-free or reduced-calorie beverages. They have also expanded their product lines to include healthy alternatives like coconut water. 

Environmental issues

Coca-Cola has been identified as the single producer of plastic waste in the world. Much of this plastic is not discarded properly and ends up in the oceans. This has contributed to the ecological disaster due to single-use plastics. This has captured the attention of environmental protection groups who claim that Coca-Cola isn’t doing enough to work toward a reasonable solution. A report from Greenpeace estimates that the company produces over 100 billion plastic bottles every year with no obvious goal to reduce single-use plastic waste. 

Coca-Cola has made some efforts to reduce its environmental impact. First, they redesigned their bottles to use less plastic (a process called “lightweighting”). While this does reduce the amount of plastic used in production, it does not reduce the number of bottles that end up in landfills or the ocean. They have also introduced their “PlantBottle” which is made from plant-based materials.

While these are steps in the right direction, most environmental groups question whether these efforts are enough. Coca-Cola appears to be spending large amounts of money lobbying politicians around the world to block legislation that would encourage more environmentally friendly manufacturing. They have also been accused of spending a considerable amount of money on “green marketing” without efforts to back up their claims.

Over the years, The Coca-Cola Company has been the center of controversy due to environmental impact and health concerns due to their products. Coca-Cola has responded by providing low-calorie, sugar-free, and healthy alternatives. They have also worked to reduce their plastic use and seek alternatives as they are the single largest contributor to single-use plastic waste.

Coca-Cola's social media strategy

Create an abstract image that symbolizes Coca-Cola's social media strategy. The composition should feature vibrant and positive imagery, including a globe to represent their global reach, interconnected nodes or networks conveying social media platforms, and smiling faces or thumbs-up icons to symbolize positivity and customer engagement. There should be a flow of creativity illustrated by dynamic and organic shapes, depicting the user-generated content aspect, such as floating Coca-Cola bottles with hashtags. Include subtle nods to social issues with symbolic ribbons or hands united, and incorporate elements that hint at Coca-Cola’s website traffic, like arrows pointing from social media icons to a central Coca-Cola logo, suggesting the flow of visitors. The overall design should feel optimistic, energetic, and interconnected, reflecting the brand's commitment to being a social media leader.

The Coca-Cola Company is a social media powerhouse with millions of followers across the globe. The company is very intentional with its use of social media platforms and leverages them to drive brand awareness and interaction with customers. There are several key components that have made Coca-Cola’s social media strategy so successful. 

Positivity  

In 2018, Coca-Cola made a commitment to become the ‘most optimistic brand on social media'. They launched their #RefreshtheFeed campaign in which they completely deleted all of their social media content and started fresh. Consumers embraced this new positive approach and encouraged even more followers who wanted to enjoy the feel-good vibes of their social media posts. 

Leverage consumers to create content

While Coca-Cola’s marketing team creates a lot of content for their online platforms, they have successfully leveraged their millions of followers to create content on behalf of the brand. They have used creative hashtag-based campaigns to encourage consumers to post Coca-Cola-themed posts for their friends and family to see. One of the most successful was the #shareacoke campaign which reversed a 10-year stagnant sales record. 

Attachment to social issues

The company has a stringent social media policy to ensure that content aligns with the company’s values. In July 2020, Coca-Cola decided to join many other major brands in temporarily halting social media posts and advertisements for a minimum of 30 days. This decision came as a result of concerns about growing hate speech and misinformation on social networks. They’ve regularly supported important civil rights and other social issues over the past few decades which helps consumer groups connect with the brand. 

Coca-Cola website

The Coca-Cola Company’s main company website contains various resources for consumers, vendors, and investors. The information included in the website discusses the company’s history, its brands around the world, career opportunities, media center, and investor relations. 

According to SimilarWeb, the site is ranked 10th in the Food & Beverage category and receives about 1.8 million visitors each month. 

The Coca-Cola Company’s YouTube channel is a platform that is used to post promotional videos and other advertisements from all over the world. The channel was started in 2006, has 3.6 million subscribers, and has nearly 3.5 billion views. About 8 percent of their website traffic comes from YouTube.

Coca-Cola’s LinkedIn account has over 6 million followers. The company uses this platform to post company updates for the business community. It is also used to promote job openings and attract top talent from the LinkedIn community. 

Twitter is one of Coca-Cola’s most powerful social media accounts. Their Twitter account ( @CocaCola ) was started in 2009 and has posted nearly 300,000 tweets to its 3.3 million followers. Most of the tweets are short inspirational or funny messages to enhance daily brand awareness or encourage engagement. Coca-Cola’s Twitter account generates 62 percent of the traffic to their website. 

Coca-Cola’s Instagram account has 2.8 million followers. The account is mostly used to post promotional stories on the platform. 

Coca-Cola’s Pinterest account is used to post drink and food recipes and promote Coca-Cola products like customizable Coke bottles. Their account has about 30,000 followers and receives over 10 million views each month. 

With over 105 million followers, Coca-Cola’s Facebook account is massive. It’s the 5th most-followed account on the social media platform, only behind Facebook itself, Samsung, Cristiano Ronaldo, and Real Madrid CF. The site is used to post videos and promotional content in many different languages for their followers. 

So, Why is Coca-Cola so Successful?

Few companies can boast the tremendous success and growth that The Coca-Cola Company has enjoyed for over 135 years. This accomplishment can be attributed to industry-leading advertising, innovation of their products, and delivering a positive brand message. Let's take a look at what makes Coca-Cola so successful!

Recap: growth by the numbers

Year

Revenue

$38.7B

$24.0B

$59.73

$24.13

Employee Count (including bottling partners)

700,000

71,000

Global Market Share

48.6%

45%

Key takeaways

  • Coca-Cola has leveraged a network of independent bottlers around the globe to aid in rapid expansion. These distributors have territorial rights which help prevent competition and price wars.
  • The Coca-Cola Company has made changes to its main product over the years but learned a very valuable lesson with the introduction of New Coke in 1985. The launch was a disaster and faced a fierce backlash from consumers who demanded the return of the original product.
  • Coca-Cola’s long-term strategic plan includes focusing on the developing world where consumer beverages have a lot of growth potential, optimizing the number of master brands, revamping their operational network, and leveraging technology and data.
  • Coca-Cola’s advertising focuses on creating human connections and making people feel good. They have led the advertising world in cutting-edge approaches to marketing that have never been seen before.
  • Coca-Cola has inserted its brand and products in films and television to become an easily identifiable American icon.
  • Acquisition of other companies has been a major part of Coca-Cola’s expansion efforts giving them the ability to quickly reach into new markets or acquire existing popular products.
  • The Coca-Cola company has been the target of criticism due to its potential negative impact on consumer health and the environment. 
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Case study: Coca-Cola

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The Coca-Cola Company: Building a Climate-Resilient Value Chain hero image

Case Studies

The coca-cola company: building a climate-resilient value chain, july 9, 2018.

The Coca-Cola Company has been working to reduce emissions in its supply chain for years—including not only those associated with bottling, but also those associated with growing ingredients, producing packaging, and distributing and refrigerating products. As climate change impacts have begun to manifest around the globe, the 132-year-old company partnered with BSR to take this work a step further to examine what climate risk and resilience might mean for The Coca-Cola Company value chain.

The Challenge

From agricultural ingredients, like citrus and tea, to hyper-local distribution systems, The Coca-Cola Company supply chain is one of the largest and most complex in the world. Coca-Cola products are sold in more than 200 countries and territories, and each of those markets faces unique exposure and vulnerability to the impacts of climate change.

Mitigation efforts—those focused on reducing greenhouse gas emissions—are vital to any company’s climate strategy and critical to global efforts to avoid unmanageable climate impacts. As the impacts of climate change are increasingly felt around the world, however, it has become clear that simultaneous efforts are necessary to increase adaptive capacity and build resilience.

“Resilience” is defined as “the capacity to recover quickly from difficulties.” In the context of climate change, resilience is the ability of a system (such as a bottling plant, distribution network, or supply chain) or community to rebound following a shock such as a natural disaster. Building resilience requires not only recognizing potential hazards like extreme weather events, but also understanding the underlying vulnerabilities that may affect recovery from these potential disasters. For example, insufficient infrastructure can reduce a community’s capacity to rebound following a disruption like an extreme weather event, as can poverty or gender inequality.

After years focused on climate mitigation and water stewardship, understanding climate risk and resilience was a natural next step for Coca-Cola.

Our Strategy

BSR partnered with Coca-Cola to begin building the foundation for a more resilient company that is better able to anticipate, avoid, accommodate, and recover from climate risks in the future. At the outset, we identified seven markets—Argentina, Brazil, China, India, Kenya, Mexico, and the United States—and two commodities—coffee and tea—to serve as proxies for the full Coca-Cola value chain. For each of these markets and commodities, we explored exposure to major climate hazards in the context of underlying vulnerabilities, such as rapid urbanization, at-risk populations, food and economic insecurity, and insufficient infrastructure.

Using this analysis, a benchmark of climate resilience activities in the food and beverage sector, Coca-Cola’s existing risk mitigation strategy, and insights from internal company interviews, we developed a framework for identifying and prioritizing climate-related risks. We then mapped Coca-Cola’s existing programs and initiatives to high-priority risks and outlined an approach for expanding this work further across the company’s major business units.

Our Outcomes and Impact

The climate resilience framework we developed aims to integrate resilience into Coca-Cola’s existing strategy, risk management, and sustainability systems. The framework is designed to connect and amplify The Coca-Cola Company’s efforts in empowering women, protecting the climate, and sustainably sourcing ingredients, as well as in water leadership and community development. Over time, we hope to see the framework used to help Coca-Cola create a more resilient value chain, enabling the company to confidently source responsibly cultivated ingredients, withstand or promptly recover from climate-related impacts, identify and reduce climate risks, and contribute to building value chain and community resilience where Coca-Cola is produced and sold.

We hope that these leading-edge efforts will inspire other companies, as well as their partners in the public sector and civil society, to take a more holistic look at climate risk in their value chains and communities and identify opportunities to build adaptive capacity and resilience.

Lessons Learned

Undertaking this work with Coca-Cola allowed us to translate what we know about climate risk and resilience into the context of a global supply chain. Here are a few suggestions for companies interested in exploring climate risk and resilience in their value chains:

  • Start small : Begin with a selection of facilities, locations, or products that represent important aspects of your business. This will allow you to identify the most useful and important data points before scaling your approach across the organization.
  • Integrate into existing systems : Rather than approaching climate risk and resilience as a new, standalone exercise, consider integrating climate considerations into existing risk management and/or sustainability systems.
  • Appreciate both the global and the local : Much like water stewardship, managing climate risk and building resilience is both a global and intensely local challenge. While some tenets and approaches can be broadly applied, individual interventions must be customized and reflect on-the-ground realities.

Learn more about our work on climate-resilient supply chains .

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Insights from Coca Cola Crisis Management Case Study

Have you ever wondered how a global giant like Coca Cola manages to navigate through a crisis? 

Picture this: one of the most beloved beverage brands in the world, facing a crisis that threatens its reputation and consumer trust. 

What would you do if you were in their shoes? 

In this Coca Cola crisis management case study, we delve into the fascinating world of Coca Cola’s crisis management strategies. 

Join us as we unravel the gripping tale of how this iconic company tackled a major crisis head-on, learning valuable lessons along the way. 

Get ready to discover the power of effective crisis management and the role it plays in safeguarding a brand’s legacy.

Brief history of Coca Cola and brand reputation and market share 

Coca Cola, the world’s most recognizable beverage brand, has a rich and fascinating history that dates back over a century. It all began in 1886 when pharmacist John Pemberton created a unique syrup and mixed it with carbonated water, giving birth to the iconic Coca Cola drink.

From its humble beginnings as a soda fountain beverage, Coca Cola quickly gained popularity and expanded its presence across the United States.

As the brand grew, it ventured into international markets, establishing its first international bottling plants in the early 1900s. Today, Coca Cola is a truly global company with a remarkable presence in over 200 countries, offering a diverse portfolio of beverages beyond its flagship cola, including juices, teas, sports drinks, and more.

The brand’s global reach and market penetration have made it an integral part of people’s lives, transcending cultural boundaries and becoming a symbol of refreshment worldwide.

Coca Cola’s brand reputation is synonymous with excellence and innovation. Over the years, the company has nurtured a strong brand identity built on trust, quality, and a commitment to delivering refreshing beverages to consumers.

The distinctive red and white logo is instantly recognizable, evoking feelings of nostalgia and joy.

With its relentless pursuit of customer satisfaction, Coca Cola has successfully captured a significant portion of the global beverage market. Despite fierce competition, the brand has maintained a dominant position, consistently ranking among the top beverage companies in terms of market share.

Coca Cola’s ability to adapt to changing consumer preferences , introduce new products, and leverage its brand equity has solidified its position as a leader in the industry.

However, even the strongest brands are not immune to crises, as we shall explore in the following sections.

Description of the Crisis Incident

In the annals of Coca Cola’s history, there have been instances where the brand faced significant crises that posed immense challenges to its reputation. One notable crisis involved allegations of product contamination, which sent shockwaves through the company and its consumers.

Imagine the scene: rumors started circulating that certain batches of Coca Cola products were contaminated, raising concerns about the safety and quality of the beloved beverage.

The news spread rapidly, fueled by social media and sensationalized media coverage, creating a sense of fear and uncertainty among consumers.

As the crisis unfolded, consumers expressed worries about potential health risks associated with consuming Coca Cola products. Speculations and negative narratives further fueled the crisis, amplifying the impact and posing a threat to the brand’s credibility and customer trust.

For Coca Cola, the crisis was a critical moment that demanded swift and effective action. The company faced the daunting task of managing the situation, addressing the concerns of its stakeholders, and restoring faith in its products. How did Coca Cola navigate through this tumultuous period? Let’s delve into their crisis management strategies and discover how they triumphed in the face of adversity.

Media coverage and public reaction

The crisis surrounding Coca Cola triggered a flurry of media coverage, with news outlets and social media platforms buzzing with discussions, speculations, and varying viewpoints. The sensational nature of the allegations and the widespread popularity of the brand ensured that the crisis garnered significant attention from the public and the media.

News reports, both traditional and digital, dissected the crisis, amplifying the concerns raised by consumers and shedding light on the potential consequences. Social media platforms became the breeding ground for discussions, where users expressed their opinions, shared experiences, and voiced their worries about the safety of Coca Cola products.

The intensity of the media coverage and public reaction put immense pressure on Coca Cola to address the crisis promptly and transparently. The company found itself navigating a landscape where every move was under scrutiny, and its response would shape public perception and future consumer behavior.

Initial response by Coca Cola

When confronted with the crisis, Coca Cola swiftly mobilized its crisis management team to address the situation head-on. Recognizing the importance of immediate action, the company adopted a proactive approach to manage the crisis and mitigate potential damage to its brand reputation.

Coca Cola’s initial response focused on three key pillars: transparency, accountability, and communication. The company acknowledged the concerns raised by consumers and the media, demonstrating a commitment to address the crisis with utmost seriousness.

First and foremost, Coca Cola conducted a thorough investigation into the alleged product contamination, leaving no stone unturned to uncover the truth. This transparent approach aimed to regain consumer trust by ensuring that the safety and quality of their products were of paramount importance.

Simultaneously, Coca Cola took accountability for any shortcomings or mistakes that may have contributed to the crisis. The company issued public statements expressing genuine regret for the distress caused to consumers and reassured them of their commitment to resolving the issue promptly and effectively.

Immediate actions taken by Coca Cola to address the crisis

In the face of the crisis, Coca Cola implemented a series of immediate actions to address the situation and regain consumer confidence. These actions were aimed at ensuring the safety and quality of their products, as well as effectively managing the crisis at hand.

Product Recall and Investigation

As a responsible measure, Coca Cola initiated a comprehensive product recall of the affected batches in collaboration with regulatory agencies. This demonstrated their commitment to consumer safety and allowed for a thorough investigation into the alleged contamination.

Enhanced Quality Assurance Procedures

Coca Cola implemented rigorous quality assurance procedures to prevent future incidents and maintain the highest standards of product safety. They reviewed and strengthened their manufacturing and packaging processes, as well as enhanced monitoring and testing protocols.

Collaboration with Regulatory Bodies

Recognizing the importance of regulatory compliance, Coca Cola collaborated closely with relevant regulatory bodies throughout the crisis. They provided full cooperation, shared information, and adhered to the recommendations and guidelines set forth by these authorities.

Communication strategies employed 

Effective communication is crucial during a crisis, and Coca Cola employed various strategies to ensure transparent and consistent messaging to stakeholders. These communication strategies aimed to address concerns, provide accurate information, and rebuild trust in the brand.

Press Releases

Coca Cola utilized press releases as a primary means of communicating official statements and updates regarding the crisis. These press releases were disseminated to the media and made available to the public, ensuring timely and accurate information about the steps being taken to address the situation.

Social Media Engagement

Recognizing the power of social media in shaping public perception, Coca Cola actively engaged with consumers through social media platforms. They responded to queries, addressed concerns, and provided updates on the progress of the investigation. This direct engagement helped to establish a sense of transparency and responsiveness.

Website Updates

Coca Cola dedicated a section on their official website to address the crisis and provide comprehensive information to concerned consumers. This platform served as a central hub for sharing details about the investigation, product recalls, and ongoing efforts to resolve the crisis.

Stakeholder Communication

Coca Cola prioritized communication with its stakeholders, including distributors, retailers, and business partners. They provided regular updates to these stakeholders, addressing any potential impact the crisis might have on their operations and assuring them of the measures being taken to rectify the situation.

Spokesperson Representation

Coca Cola designated trusted and credible spokespersons to represent the company and communicate with the media. These individuals were well-versed in the crisis details and effectively conveyed the brand’s commitment to consumer safety and resolution.

The role of company leadership in crisis management

During a crisis, strong and effective leadership is crucial in guiding the organization through the challenges and ensuring a successful resolution. In the case of Coca Cola, company leadership played a vital role in crisis management, demonstrating their commitment, decisiveness, and ability to navigate through adversity.

Strategic Decision-Making

The leadership at Coca Cola spearheaded the strategic decision-making process during the crisis. They analyzed the situation, gathered information, and collaborated with experts to make informed choices that would best address the crisis and safeguard the brand’s reputation. Their ability to make tough decisions quickly and effectively guided the crisis management efforts.

Communication and Transparency

Company leadership took the responsibility of communicating with stakeholders, including employees, consumers, distributors, and regulatory bodies. They ensured that the messaging was transparent, consistent, and aligned with the company’s values. By openly addressing concerns, admitting any mistakes, and providing regular updates, leadership fostered trust and credibility during the crisis.

Team Mobilization and Empowerment

Effective crisis management requires the mobilization and empowerment of cross-functional teams within the organization. Coca Cola’s leadership ensured that the crisis management team had the necessary resources, support, and authority to address the crisis effectively. They encouraged collaboration, innovation, and open communication within the teams to expedite the resolution process.

Continuous Learning and Improvement

In the aftermath of the crisis, company leadership played a crucial role in fostering a culture of continuous learning and improvement. They conducted thorough evaluations of the crisis management process, identified lessons learned, and implemented measures to prevent similar incidents in the future. Their commitment to learning from the crisis helped enhance the company’s resilience and preparedness for potential future challenges.

05 lessons learned from coca cola crisis management 

These lessons learned from Coca Cola’s crisis management case study serve as valuable insights for other organizations facing similar challenges.

Let’s discuss each of these lessons learned:

Swift and Transparent Communication

The crisis taught Coca Cola the importance of immediate and transparent communication. By promptly addressing concerns, providing accurate information, and engaging with stakeholders openly, the company was able to regain trust and control the narrative surrounding the crisis.

Collaboration with Regulatory Bodies and Experts

Coca Cola’s collaboration with regulatory bodies and external experts proved vital in validating their actions and ensuring compliance with industry standards. This collaboration enhanced the credibility of the company’s crisis management efforts and helped regain confidence in their products.

Proactive Approach to Crisis Resolution

Coca Cola’s proactive response to the crisis demonstrated the significance of taking ownership and accountability for the situation. By swiftly initiating product recalls, conducting investigations, and implementing enhanced quality assurance procedures, the company showed a commitment to consumer safety and resolution.

The crisis served as a catalyst for continuous learning and improvement within Coca Cola. The company evaluated the crisis management process, identified areas for improvement, and implemented measures to prevent similar incidents in the future. This commitment to learning from the crisis enhanced their resilience and preparedness.

Importance of Leadership

Strong leadership played a critical role in guiding Coca Cola through the crisis. The ability to make strategic decisions, communicate effectively, and empower teams was instrumental in navigating through the challenges and restoring consumer trust. The crisis highlighted the importance of having capable leaders who can steer the organization through turbulent times.

Final words 

Coca Cola crisis management case study provides us with valuable insights and lessons that can be applied to various organizations facing similar challenges. The company’s response to the crisis surrounding alleged product contamination showcased the importance of swift and transparent communication, collaboration with regulatory bodies and experts, taking a proactive approach to resolution, fostering a culture of continuous learning, and demonstrating strong leadership.

The Coca Cola crisis management case study serves as a reminder that crisis management is not just about resolving immediate issues but also about building trust, maintaining open communication, and continuously improving processes. By incorporating these lessons, organizations can transform crises into opportunities for growth and demonstrate their ability to weather storms and emerge even stronger.

About The Author

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Tahir Abbas

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Home > Learn More About Six Sigma Green Belt > Coca-Cola Case Study: The Six Sigma Process in 2024

Coca-Cola Case Study: The Six Sigma Process in 2024

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Six Sigma process leads us to one conclusion that“Customer is the King”. Customers are the most important aspect of your business. Without the customer, you wouldn’t have a business. Companies have to understand that customers can make or ruin them completely.

One of the large companies like Coca – Cola tried to rule the market according to their wish, which lead to mammoth loss for the company.

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The Coca-Cola Company  ( TCCC) is a leading manufacturer, retailer, and marketer of beverages, which sells beverage products in more than 200 countries. It is an American multinational beverage corporation headquartered in Atlanta, Georgia.

The Coca-Cola Company is into the manufacturing, retailing and marketing of nonalcoholic beverages. The company produces Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton. In 1889 the formula and brand were sold for $2,300 to Asa Griggs Candler, incorporated The Coca-Cola Company in Atlanta in 1892.

Coca-Cola is the most popular soft drink in the world. It’s sold almost everywhere, and its brand name is known in most languages. 

The Coca-Cola Company manufactures and sells not only Coca-Cola itself, but also offers a wide range of other beverages, like Fanta, Sprite, water, juices, and energy drinks. The brand owes its success primarily to the product itself and then to its iconic marketing campaigns that position Coke as a drink with a fun and active lifestyle – “Open Happiness”

It was April 23, 1985 when the Coca-Cola Company changed their Coke recipe. A national poll conducted showed that only about 13% of beverage’s fans liked the new Coke. The company observed a steep downfall; their customers weren’t upset, they were transparently angry.

The customers of Coca-Cola took it upon themselves to initiate the launch of a campaign to bring back the original Coca-Cola back. These passionate customers did everything, from setting up hotlines to signing petitions, and were outspoken in their quest to get the original Coke back.

In this duration, the Coca-Cola Company took a major hit. They spent $4 million in development, and then after deciding to pull it back from the market, they had over $30 million worth of unwanted new Coke concentrate. This was the worst mistake that the Coca-Cola Company had ever made, and it is still referred to as the worst gaffe a company has ever made.

Let’s first understand the Supply chain of TCCC: How it Works

In a nutshell, Coca-Cola beverages go through the following destinations in their journey:

  • Manufacturer
  • Distributor

The classic workflow within Coca-Cola supply chain:

  • The Company has its headquarters in Atlanta. The manufacturing of the concentrated syrup is done here and then sold it to Coca-Cola Enterprises (CCE) or another bottling partner, which is responsible for selling the product in North America and Canada.
  • The bottling partner sends it to a manufacturing facility, which mixes the syrup with other ingredients, such as filtered water and sweeteners. After that, the bottler packages the final product and distributes it to retail partners (stores, restaurants, vending machines, etc.)
  • The Coca-Cola Export Corporation (TCCEC) partners with local bottlers across the world and distributes the drink to the corresponding local markets.

Other things that contribute to Coca-Cola’s supply chain:

Coca-Cola Enterprises flawlessly integrates modern technologies into its supply chain. For instance, it uses 3D printing to manufacture bottles and cans for its drinks.

    2. People

Logistics team consists of more than 100 people to ensure the safe journey of each bottle from factory to fridge. 

    3. Long-term relationships with retail partners

Over the past few decades, Coca-Cola has proven to be one of the most valuable and reliable suppliers for its retail partners. For instance, the company has been growing together with McDonald’s since 1955.

4. Strict quality control

The company has strict quality requirements for its manufacturing practices. For instance, Coca-Cola HBC, a bottling franchise partner of Coca-Cola Enterprises, requires quality, environment, and health safety certifications from its suppliers.

5. Global Supply Chain Council

The Coca-Cola Company is a beverage giant which has established the Global Supply Chain Council, which consists of subcommittees that focus on adhering to its established supply chain strategy. The Council has its own centralized portal where the employees and supply chain participants share their experiences and best practices.

6. Close collaboration with bottlers

The Coca-Cola Company provides a standard set of guidelines for all of its bottling partners and suppliers. As a result, most of the strategic decisions are centralized. The headquarters controls most of the bottling partner’s operations.

Coca-Cola Logistics

Logistics is an integral part of any supply chain, and Coca-Cola’s logistics expertise undeniably contributes to its supply chain success. Here are some of the logistics-related best practices executed by Coca-Cola:

  • Manufacturing products on a more frequent basis
  • Connecting with core team weekly worldwide
  • Shifting the production plants closer to customers
  • Introducing daily interaction among the main sites
  • Introducing seamless processes that are shared between all supply chain participants.

Implementation of Six- Sigma process by The Coca-Cola Company

The Definition of the problem was based on Customer’s complaints. The complaint was mostly about the delay in responding to their questions instead of using various lines of customer care. Others had complaints about the lack of consistency of answers given to various customers related to questions like effects of this drink on toddlers. After so much Research, Customer Care department has authorized use of DMAIC project plan to get rid of delay in answering to customer’s query.

The Measure phase analyzed the reason for the delay in responses. Various hotline numbers were inspected along with the various Customer care departments. Machines and other technical issues were examined thoroughly to check whether they played any sort of role for the delay in responses or not. List of Common questions were also shared among the entire customer care department so as to make sure regarding the consistency of answers given to the customers.

The Analyzing Phase , data was presented more in the mathematical form. Uses of graphs, charts were recommended for easy interpretation. This was done to examine why some hotline numbers performed better than others. It also examined why there was delay in responses from customer care department to the customers.

The Improvement Phase was the phase where focus was on the how to solve the identified problems. Employees whose call numbers had better performance were requested to guide other employees so that all the employees are in the same level. Employees were also briefed on how to group questions to be able to give consistent answers to the customers.

The Coca-Cola Company required issuing some Goodwill message to the customers to clarify the matters which customers asked frequently. This will help the customer care call center to get rid of some of the questions which caused delays. Only the uncommon queries were attended by customer care department and therefore the loading on system reduced, which further resulted in better performance of customer care department.

The Control Phase was to ensure that the new standards were followed and maintained. Customer care department was required to submit the weekly reports to Coca-Cola Management to show the progress.

DMAIC project plan has worked in many companies and also worked for Coca-Cola Company. 

Now, let us understand what is “SIX-Sigma ”?

Six Sigma is a methodology which provides tools and techniques to define and evaluate each step of a process. It provides methods to improve efficiencies in a business structure improve the quality of the process and increase the bottom-line profit.

Six Sigma is ranked among the important approaches for making business processes more effective and efficient. In addition to establishing a culture dedicated to continuous process improvement, Six Sigma offers tools and eliminates defects and helps to identify the root causes of errors, allowing organizations to create better products and services for consumers.

Six Sigma is : A Business Strategy:  Using Six Sigma approaches, a business can make strategies along with plan of action and drive revenue to new heights, cost reduction and process improvements can also be done in all parts of the organization.

A Vision:  Six Sigma approaches are helpful for the Senior Management to create a vision which provide defect free, positive environment to the organization.

A Benchmark:  Six Sigma approaches help in improving process metrics. Once the improved process metrics achieve stability; we can use Six Sigma methodology again to improve the newly stabilized process metrics.

A Goal:  By using Six Sigma approaches, companies can keep a rigid goal for themselves and work towards achieving them throughout the year. If any company uses proper approaches of six sigma then it often leads these organizations to achieve these goals.

A Statistical Measure : Six Sigma is a data driven approach. Statistical Analysis is used to identify root-causes of the problem. Additionally, Six Sigma approach is highly used to calculate the process performance using its own unit known as Sigma unit.

A Robust Methodology : Six Sigma is the only approach available in the market today which is a documented methodology for problem solving. If used in the right manner, Six Sigma improvements are bullet-proof and they give high yielding returns.

While most people associate Six Sigma with manufacturing, but the methodology is applicable to every type of process in any industry. An organization uses Six Sigma approach to set up a management system that systematically identifies errors and provides methods for eliminating them.

Watch this video for a complete understanding of Six Sigma.

The Importance of People in Six Sigma

A key component of successful Six Sigma implementation is buy-in and support from executives. This methodology does not work well when the entire organization has not engaged in.

Further, another vital aspect is the training of personnel at all levels of the organization. White Belts and Yellow Belts typically receive an introduction to process improvement theories and Six Sigma Terminologies.

Green Belts typically work for Black Belts on projects, helping with data collection and analysis. Black Belts lead projects while Master Black Belts look for ways to apply Six Sigma across an organization.

People develop expertise in Six Sigma by earning belts at each level of accomplishment. These include Yellow belts, Green Belts, White Belts, Black Belts and Master Black Belts.

The martial arts belt structure is used to recognize proficiency in training and application in Six Sigma, using the following colors:

  • White Belt  – Overview DMAIC, Define Phase
  • Yellow Belt  – White Belt + process mapping, data collection and charting, assisting with a project
  • Six Sigma Green Belt Certification  – Yellow Belt + Project leader, core Six Sigma tools, change management, hypothesis tests and more
  • Six Sigma Black Belt Certification  – Green Belt + advanced statistical analysis and experiments, change management,
  • Six Sigma Master Black Belt Certification  – Black Belt + Design for Six Sigma, more advanced statistical analysis, unique tools for specific industries and processes, working with leadership, implementing successful improvement programs

Formal certification is recognized at the Green Belt, Black Belt and Master Black Belt level based on one or more of the following criteria:

  • Completion of training covering the body of knowledge
  • Years of work experience with the body of knowledge
  • Passing an exam covering the body of knowledge
  • Completion of one or more Six Sigma projects

Process of Six Sigma

There are two major approaches used within Six Sigma:

  • DMADV : The DMADV method is typically used to create new processes and new products or services. The letters stand for:

Define the project goals

Measure critical components of the process and the product capabilities

Analyze the data and develop various designs for the process, eventually picking the best one

Design and test details of the process

Verify the design by running simulations and a pilot program, and then handing over the process to the client

  • DMAIC : The DMAIC process is used primarily for improving existing business processes. The letters stand for:

The DMAIC project methodology has five phases:

  • Define  the system, the voice of the customer and their requirements, and the project goals, specifically.
  • Measure  key aspects of the current process and collect relevant data; calculate the ‘as-is’ Process Capability.
  • Analyze  the data to investigate and verify cause-and-effect relationships. It also attempts to ensure that all factors are considered.
  • Improve  or optimize the current process based upon data analysis using techniques such as design of mistake proofing, and standard work to create a new, future state process.
  • Control  the future state process to ensure that any deviations from the target are corrected before they result in defects. A control check is created to monitor the progress of the process.

The DMAIC framework, Six Sigma can utilize several quality management tools:

Seven Basic Quality Tools (Quality core tools):

1. Cause and Effect Diagram:

Also, known as Fishbone diagram. The diagram has its shape similar to a fish skeleton. Hence, named as Fishbone diagram. This tool is used to explore causes to a single effect (or event) through brainstorming. These causes are put under different common categories known as 5 M or 6 M. Where, 6 M expands as – Man, Material, Method, Machine, Measurement & Mother Nature.

2. Flow Chart: It suggests the process flow in a diagrammatic way. It outlines a pictorial representation of processes or process steps to understand their flow upstream or downstream.

3. Pareto Chart:

Also, known as 80:20 principle. The Principle states, 80% of the outcome is a result of 20% causes. It’s a kind of bar chart showing the frequencies of different causes or factors in descending order. The main purpose of this chart is to highlight the most significant factors among a number of factors.

4. Histogram:

It’s a bar chart to study the frequency distribution of data set. It’s used to understand nature of data.

5. Check sheet:

It is used for data collection. A frequency of factorized data is collected in check sheet.

6. Control Chart:

These charts are used to check, whether process data remains under control for the shorter time span. They involve process control limits and sometimes customer specification limits as operational ranges or bands. The aim of these charts is to ensure process data doesn’t go beyond control limits. However, some exception rules are also there to ascertain the condition of a process going out of control, while well within control limits.

Six Sigma strategies seek to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing impact variability in manufacturing 

Each Six Sigma project carried out within an organization follows a defined sequence of steps and has specific value targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits.

The application of Six Sigma has the ability to reduce the variation of the characteristics of the product or service from the target by using either continuous improvement or a design/redesign approach.

Interesting Facts

It wasn’t that the Coca-Cola Company didn’t do their research; in fact over 53% loved the new Coke over the original. In the blind taste test, the subjects were just asked which one they liked best. So they didn’t have a choice. If they had been told that in choosing the new Coke the original would be moved out from the market, then the result of research would have been something else.

According to the grapevine, customers make their purchasing decisions on habit, longing, and loyalty.

This decision could have destroyed a great company. Luckily they listened to their customers and went back to the original Coca-Cola, and today with Six Sigma methodologies implemented, they are $182.9 billion strong!

Does Coke’s Supply Chain Management Inspire You?

Coca-Cola’s manufacturing and supply chain management have inspired many other companies to learn from their gaffe which resulted in steep lose for the company.

But businesses today had scale growth at a much rapid rate than you could back in the early 1990s because of the new software and automation techniques.

If you too are motivated to learn the Six-Sigma Process, what are six-sigma approaches, what is Six Sigma DMAIC etc. then there is certification courses which is available online and offline. You can pursue the Six- sigma course and earn belts as you accomplish each phase.

Frequently asked Questions and Answers

Q. What is Sig Sigma?

A. Six Sigma is a measurement-based strategy for process improvement. It’s a methodology, which aims at improving process and increasing customer satisfaction (Both internal & external). The concept behind this approach is to reduce the variation in processes. This reduction leads to consistent and desired outcomes from processes. Hence, Continuous process improvement with low defects is the goal of this method.

Q. How Coca-Cola Company used Six-Sigma process?

A.  The Company used the most Common and applicable to almost all the companies Six-Sigma approach to bounce back in market in no time. Refer BSI Case Study Coca-Cola Enterprises Ltd , for more clarity.

Q. What is Six-Sigma DMAIC?

It is an integral part of Lean Six Sigma process, but can be implemented as a standalone quality improvement process. Indeed, it is the most preferred tool that can help improving the efficiency and the effectiveness of any organization six- Sigma Approach DMAIC

Q. Which is the best online platform for Six Sigma Course?

A . Sig Sigma Course from Henry Harvin Education is ranked as top online platform to pursue Six-sigma Course.

Q. Career benefits after Six-Sigma course?

A. After completing the six sigma course certification you become eligible for jobs demanding analytical background, you Open doors to Job Opportunities Abroad demanding specialization. Or you can also Support a Startup with improved Process and Performance that leads to high-quality products and services.

Recommended Reads

  • Best Six Sigma Course in India
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  • Best Six Sigma Black Belt Courses in Delhi
  • Best Six Sigma Courses in UK
  • Best Six Sigma Courses in USA

Recommended Programs

Ranked No.1 Six Sigma Certification in India | Aligned to IASSC Book of Knowledge | Combining Lean and DMAIC Methodology to Impart Key Skills | Gain Experience of 12+ Projects | Both Classroom and Live Online Options Available

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Ranked No.1 Six Sigma Black Belt Certification in India | 9361+ Participants Trained | Aligned to IASSC Book of Knowledge (BOK) | Gain Advanced Expertise Over Lean and Six Sigma Methodology| Gain Experience of 12+ Projects | Both Classroom and Live Online Options Available

Lean Six Sigma Master Black Belt Certification

Step-in to a new designation of being Explicit Quality Professional | Get acknowledged as a Lean Six Sigma Evangelist | Connect to the rarest community of worldwide Black Belt specialists | Validate your professional skills in leading intricate projects | Execute Lean methodologies with perfection.

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The Business Rule

Case Study Of Coca-Cola: What Led To Its Success?

Aashita Singh

Updated on: May 2, 2024

Case study of Coca- Cola

In a world brimming with countless beverages, one name stands tall – Coca-Cola. Also it is among the remarkable case study of success.

Case Study of Coca Cola

Coca-Cola’s Profile:

The year was 1886, and the place was Atlanta, Georgia, where the Coca-Cola saga begins with Dr. John S. Pemberton , a pharmacist. In his laboratory, he mixed together a curious blend of coca leaf extract and kola nut, creating a syrupy concoction that he believed had medicinal properties. This brew, initially intended as a patent medicine to soothe headaches and fatigue. But, later on it was mixed with carbonated water to create a fizzy drink. It was first sold at Jacob’s Pharmacy on May 8, 1886. 

It was Frank M. Robinson , Dr. Pemberton’s bookkeeper, who gave the concoction its iconic name. He played a pivotal role in the brand’s early history by suggesting the name Coca-Cola and designing the now-famous logo. 

  • He believed that “Coca-Cola” conveyed a sense of euphony and captured the drink’s two main ingredients. 
  • He even penned the flowing script of the Coca-Cola logo that remains an indelible part of the brand’s identity. 

Coca-Cola Case Study to Rise to Prominence: 

Despite Pemberton’s vision, financial difficulties led to the sale of Coca-Cola formula in 1887 for a mere $2,300.  

Its key points:

  • Asa Griggs Candler, a visionary businessman, acquired the rights to Coca-Cola and embarked on a mission to make it a national sensation.
  • His aggressive marketing tactics and bold advertising campaigns set the stage for Coca-Cola’s expansion. 
  • In 1894, Candler incorporated The Coca-Cola Company and pushed it for widespread distribution. 
  • Soon, the beverage was available in every U.S state, solidifying its position as an American favorite. 
  • Its sales increased by a phenomenal percentage because of Candler efforts. 
  • The evolution of Coca-Cola would not be complete without mentioning the groundbreaking contour bottle, introduced in 1915. 
  • It is said to be the stroke of genius – the contour bottle. 
  • Designed to be distinctively recognizable even in the dark or shattered into pieces.
  • This bottle not only protected the secret formula but also became a symbol of Coca-Cola’s commitment to quality.

coke cane

  • This curvaceous bottle not only protected the secret formula of the brand itself.
  • This distinctive packaging contributed to Coca-Cola’s worldwide recognition. 

NOTE: We have detailed article about various functions of packaging ! Do check that out!!

In 1919, Ernest Woodruff bought up the company. Thereafter, Ernest’s sons continued to run the company until they transformed it into an international brand. The company was officially listed on the New York stock exchange in 1919 under the symbol KO. 

Coca-Cola’s study to International Expansion:

  • With success at home, Coca-Cola set its sights on global domination. During World War II, the company provided American troops with Coca-Cola, using slogans like “The pause that refreshes” to boost morale.
  • After the war, international expansion continued, with bottling plants established worldwide. 
  • The introduction of Coca-Cola during the war created its demand in the international market. 
  • After that, Coca-Cola began establishing its partnerships with distributors and bottling companies all around the world.  
  • At present, the company operates and works in more than 200 countries and territories. 
  • Coca-Cola was launched in India in 1956, with the slogan “Refresh Yourself”. 

Some key points of Coca-Cola Case Study:

  • The company brand value was estimated at $97.9 billion in 2022.
  • The brand logo can be recognized by 93% of the global population.
  • For advertisement the company has used $ 4 billion annually for advertising, between the years 2015 to 2021, except for the year 2020 (due to pandemic). 
  • The company is recorded to have 225 bottling partners and 900 bottling plants globally. 
  • The brand employs around 700,000 employees.
  • The company is recorded to have the same price between the years 1856-1959, at 5 cents.  
  • Offers beverage options of beverage to more than 200 brands to consumers worldwide. 
  • Partners with 24 million retail customer outlets. 
  • Company has a profile that includes $ 21 million brands. 
  •  In 2022, Coca-Cola was the most valuable brand in the non-alcoholic area globally at $ 35.4 billion

Who Owns Coca-Cola?

There are various shareholders holding shares in the company. Coco-Cola is a public listed company.

But the topmost are – Berkshire Hathaway, The Vanguard Group, BlackRock. However, the largest share of the brand company is said to be of Warren Buffett. 

  • Vanguard holding 8.16%
  • Berkshire holding 9.25%
  • BlackRock holding 4.58%
  • Warren Buffett holding 9.30% 

NOTE: You can our other success stories of business like Ola Case Study !

Coca-Cola’s Growth Strategy:

In the competitive landscape of the global beverage industry, Coca-Cola has managed to maintain its position as a market leader for over a century. 

Growth Strategy of Coca-Cola:

  • Product Diversification: One of Coca-Cola’s core strategies for growth is product diversification. While Coca-Cola classic remains the top product, the company has expanded its portfolio to cater to changing consumer preferences. This includes offerings like Diet Coke, Coca-Cola Zero Sugar, and an array of flavored and non-carbonated beverages such as water, juices, and teas. 
  • Developed market focus: Coca-Cola has identified the importance of growing developing markets. Coco-Cola’s 70% of all beverages which are commercialized are being consumed in the developed world as compared to the developing world which is 30%.

presenting coco-cola No Sugar

  • Global Expansion: With operations in over 200 countries, the company has successfully expanded its footprint worldwide. It supplies its product to local tastes and preferences, ensuring relevance in diverse markets. Local partnerships and distribution networks are key components of this strategy, allowing Coca-Cola to penetrate even the most remote corners of the globe.
  • Innovation and New markets: The company continually invests in research and development to create new beverages and packaging solutions. An example of this is the introduction of smaller-sized cans and bottles to address consumer health concerns about portion control and health. 
  • Branding and Marketing: The company consistently runs high-impact advertising campaigns, often featuring celebrities and memorable slogans. Its marketing goes beyond mere product promotion, it aims to create emotional connections with consumers. For example, Share Coke Campaign. 
  • Sustainability and Corporate responsibility: The company realized the importance of environmental and social responsibility. Started taking Initiatives such as reducing water usage, recycling programs, and commitments. Which contributes to their sustainable sourcing of ingredients to its long-term growth plans. 

coco-cola refreshing

7. Strategic Partnerships: Coca-Cola strategically partners with various organizations and events to enhance its visibility and association with positive experiences. Sponsorships of major sports leagues, music festivals, and cultural events create opportunities for brand exposure and engagement with consumers. 

Some memorable marketing campaigns of Coca-Cola that led to its success: 

Some of them are:

  • Share a Coke (2011) : It was a stroke of genius. Personalization of packaging was a popular marketing tactic of Coca Cola. It personalized its bottles and cans by printing the common names of individuals.  The company encouraged people to find their names on the bottles. Also, it asked people to share the bottle or can of coke with their friends or family members.
  • Taste the Feeling (2016) : It featured simple, relatable moments of people enjoying Coca-Cola and emphasized that the drink was for everyone, for every feeling, and for every day. The campaign included coke, diet coke and zero sugar coke. 
  • Thanda matlab Coca-Cola (2003): Aiming at the idea of refreshing drinks or Thanda, the campaign focuses its attention to local markets to win the people’s trust in the country. They made Coca-Cola and Thanda synonyms of each other.
  • Open Happiness: In 2009, Coca-Cola introduced the “Open Happiness” campaign, this optimistic and cheerful message encouraged people to find happiness in the little moments and share them with others. The campaign included a variety of feel-good ads, catchy jingles, and interactive marketing initiatives, inviting consumers to be part of the happiness movement. 

Taste the feeling

Case Study of Coca-Cola : How Coca-Cola makes money?

Coca-Cola, the world’s most iconic beverage, has a recipe for success that extends far beyond its secret formula. Its ability to generate substantial revenue is a testament to its diverse income streams and strategic business model. 

Some of them are :

Core product sales: At its heart, Coca-Cola generates a significant portion of its revenue from the sales of its core products, including Coca-Cola zero sugar, and various flavored variants.

Diversified beverage portfolio: Coca-Cola isn’t just about cola anymore. The company has diversified its product portfolio to include a wide range of beverages, catering to diverse consumer tastes. 

Non-Alcoholic ready-to-drink coffee: Coca-Cola has also ventured into the thriving market of non-alcoholic ready-to-drink coffee. With acquisitions like Costa Coffee and brands like Georgia Coffee, it has tapped into the caffeine cravings of consumers worldwide. 

Partnerships and Licensing: Coca-Cola earns revenue through partnerships and licensing agreements. For example, it collaborates with other companies to produce co-branded products, like Coca-Cola with coffee, and it licenses its brand for use in various merchandise, from apparel to collectibles

Sponsorships and Marketing Campaigns: Coca-Cola invests heavily in sponsorships of major events, sports leagues, and cultural activities. These partnerships provide brand exposure and promotional opportunities, driving consumer engagement and sales. The company’s marketing campaigns, often featuring celebrities and memorable commercials, also contributes to its revenue.

Conclusion : 

This case study of Coca-Cola is a story of its power of innovation, branding, and adaptability. By staying true to its core values while embracing change, Coca-Cola continues to fizz its way to the top. 

Related Posts:

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Contact Info: Axponent Media Pvt Ltd, 706-707 , 7th Floor Tower A , Iris Tech Park, Sector 48, Sohna Road, Gurugram, India, Pin - 122018

© The Business Rule 2024

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  • January 2002 (Revised January 2004)
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Cola Wars Continue: Coke and Pepsi in the Twenty-First Century

  • Format: Print
  • | Language: English
  • | Pages: 24

About The Author

coca cola case study business studies

David B. Yoffie

Related work.

  • May 2006 (Revised April 2009)
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Cola Wars Continue: Coke and Pepsi in 2006

  • Cola Wars Continue: Coke and Pepsi in 2006  By: David B. Yoffie and Michael Slind
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Indian Business Case Studies Volume II

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Indian Business Case Studies Volume II

16 Coca-Cola: ‘Taste the Controversy’: A Case Study on Marketing Challenges

  • Published: June 2022
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The not so lucky situations and criticism of the Coca-Cola brand come from its first-ever product. As the history from many sources says, Dr John Smith-Pemberton, Coca-Cola creator, fought in the Civil War, and had some injuries. He made a special formula in order to help him deal with the constant pain in his body: the Pemberton’s French Wine Coca which also had a great taste at the time, had alcohol in it. It quickly became very popular until a vote by the state legislature Atlanta and Fulton County in favour of the national temperance movement. The national temperance movement prohibited the use of alcohol and heavily criticized medicinal wine such as French Wine Coca. Pemberton was forced to drop the wine ingredient in his French Wine Coca. After some further experimenting, he decided on the use of sugar syrup as a substitution for the wine and that is when Coca-Cola was born. He invented many drugs, but none of them ever made any money. So, after a move to Atlanta, Pemberton decided to try his hand in the beverage market. In his time, the soda fountain was rising in popularity as a social gathering spot. Temperance was keeping patrons out of bars, so making a soda-fountain drink just made sense. And this was when Coca-Cola was born.

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Home » Management Case Studies » Case Study: Analysis of the Ethical Behavior of Coca Cola

Case Study: Analysis of the Ethical Behavior of Coca Cola

Coca-Cola is the world’s largest beverage company that operates the largest distribution system in the world. This allows Coca-Cola companies to serve more than 1 billion of its products to customers each day. The marketing strategy for Coca-Cola promotes products from four out of the five top selling soft drinks to earn sales such as Coke, Diet Coke, Fanta and Sprite. This process builds strong customer relationships , which gives the opportunity for these businesses to be identified and satisfied. With that being said, customers will be more willing to help Coca-Cola produce and grow.

Analysis of the Ethical Behavior of Coca Cola

Pepsi and Coca-Cola, between them, hold the dominant share of the world market. Even though Coca-Cola produces and sells big across the United States, in order for the company to expand and grow, they had to build their global soft drink market by selling to customers internationally. For example, both companies continued to target international markets focusing on traditional soft drinks, new-age drinks and expanding into the snack-food businesses. With these new changes, Pepsi has 60% of the U.S. Snack-food market while Coca-Cola contributes 85% of its sales outside of the United States.

Increasing market share is one of the most vital goals for a business such as Coca-Cola and Pepsi. Competitions between other soft drink companies, false market share reports and other business conducts can cause certain obstacles if the top selling companies allow them too. However, Coca Cola’s strategy, from the early and late 1800s, of achieving goals such as the international mergers , big market shares, snack food production and overall performance allowed them to strive then and continue to succeed today. Today, most of coke sales are spread throughout the world in the 2004 Annual Report, “Coca Cola had gallon sales distributed as follows: 28% in the United States, 26% in Mexico, Brazil, Japan and China and 46% in spread throughout the world”. This means that Coca Cola makes 70% of its profits from other countries. Coca-Cola must remain vigilant to keep their brand untarnished and their ethical issues to a minimum; their brand is their main key to success.

Coca Cola’s Reputation

Coca-Cola is admired and known for its strength of brand. It is the most well recognized logo and brand across the world. Coca-Colas strong emphasis on reputation they have created loyalty, trust among their customers, and the strongest brand recognition of all time. Coca-Cola retains a commitment and plan to attract, satisfy, and keep customers for the long run. The company has a reputation of having the most loyal customers of the industry. It is this reason that has made Coca-Cola the market leader in the beverage industry year after year. Coca-Cola continues to earn numerous awards including Responsible CEO of the year (2010), most socially responsible company (2008), Worlds most accountable companies (2007), and top 50 most admired companies (2010). Coca-Cola has sought not only to be the world’s largest beverage company but also to improve the quality of life of the communities they serve.

Coca-Cola is extremely active in all aspects of society and environmental issues. Coca-Cola has made numerous steps to prevent harm to the environment in its production of products. Some of these steps include eco friendly facilities and equipment. Coke has been a leader when it comes to environmental issues throughout the years with a major goal of being water neutral, which means every drop of water used by the company will be replenished by 2020. Coca Cola also has a commitment to helping the local aspect by collaborating with different groups and organizations to help with many local and health issues. An example of this would be Coca Cola’s collaborating with UNAIDS to help with the HIV/Aids epidemic throughout the world. Coca Cola has also had a vast impact on improving education. They have had many programs over the years, which include a scholarship program that has given out over 22 million dollars in grants.

Social Responsibility Focus

Many companies do not realize the importance of having a connection with the community and to be seen in their eyes as a very strong ethical company. Coca-Cola has taken up a few different social projects that have given them a good amount of support from the public. For example, they have done a philanthropy known as “Education On Wheels,” in which children are placed into a classroom that history is brought to life, giving them a very rich learning environment. They do different activities that really get the children thinking and force them to develop critical thinking methods. This is a huge thing for Coca-Cola and in our opinion for companies as a whole. The first thing that you must engage in a customer is their emotions , the strongest buying point that people act on. If people start recognizing that a company is doing community based activities for children, they are going to be very prone and likely to want to support and buy the products from the company.

The second thing that Coca-Cola has done is setup multiple scholarship funds available for high-school seniors as they make their way into college and the real world. Coca-Cola was very smart when they went about setting up these different funds for students. There is a huge market with kids graduating high school and those who are currently in college, appealing to these kids will grow a strong interest in their company and will build up their brand image more than ever. It states in the book that it is beneficial to the shareholders by doing this. This is so true with every company because shareholders and people who are invested in the company want to make sure that they are involved in a company that is making ethical decisions and who are giving back to the community in some way, shape or form.

As long as Coca-Cola keeps being persistent with how they give back into the community and monitor what they are doing on an ethical standpoint, they will keep their customers and stakeholders happy.

Crisis Situations

Coca-Cola has not always been a squeaky-clean company that never had problems. The stock price of the company is the same price as it was 10 years ago, and this is due to the ethical and legal issues that were associated with the company. A small problem occurred in Belgium in 1999 when a few children fell ill after drinking a product with the Coca-Cola brand on it. They had a recall on the product there in Belgium, but soon after, every item Coca-Cola made was pulled off the shelves in every store. This caused a loss of reputation, which, in turn, made people lose respect for the company and investors started selling their stocks in Coca-Cola. Neighboring countries, such as Luxembourg and the Netherlands, soon followed suit and recalled all products throughout both countries.

After Coca-Cola found the root of the problem, that being a bad batch of carbon dioxide, they made an announcement regarding the situation. Being a few days after all this happened was a little too slow for the media, and they ate up the story making Coca-Cola look worse than what was said about them. However, this was not the only occurrence. France supposedly had about one hundred people become sick due to mold in the products they consumed. Every single product was banned throughout France until the problem was resolved, but Coca-Cola had yet another slow response to the problem and their reputation was further diminished.

During this crisis, Coca-Cola started to run into different problems with their marketing in European countries with anti-trust laws. They wanted to create a merger with themselves and Orangina, a French company, but their overaggressive style turned off the other companies in the deal, which became a problem. Their strong-arm tactics proved to be too much for the foreign countries, and creating a competitive advantage seemed to cross the line of the anti-trust laws in which they were sued for the by the country of Italy. Italy won the court-case, which caused investigations of the company’s competitive practices, which is never a good thing for business.

Racial Discrimination Allegations

Coca-Cola faced a lawsuit in the spring of 1999. Fifteen hundred African American employees sued Coca-Cola for racial discrimination . Later, the number grew to 2,000 current and former employees. The company was being charged because they put African Americans at the bottom of the pay scale. An African American could have the same job as a Caucasian, but the African American would make $26,000 less each year. This is a huge difference in pay especially if it is only based on the color of a person’s skin. In the lawsuit, it states that the top management of Coca-Cola knew about the discrimination for four years and did nothing to stop it. The company denied the accusations, but the public had strong reactions to the case. To rebuild their image, Coca-Cola created a diversity council and paid $193 million to settle the racial discrimination lawsuit.

Problems with the Burger King Market Test

Just three years after the racial discrimination lawsuit, Coca-Cola found themselves in another allegation. Matthew Whitley, a mid-level Coca-Cola executive filed a whistle-blowing suit. Whitley revealed fraud in a market study that Coca-Cola did on behalf of Burger King. In 2002, Coca-Cola wanted to increase sales so they paired up with Burger King to launch a frozen Coke as a child’s snack. Before launching nationally, Burger King wanted to test the product out in the market. Burger King launched a three-week trial run in Richmond, Virginia to see if it was worth the investment. Customers received a coupon for a free frozen Coke when they purchased a Value Meal. When the test first started, sales of the frozen Coke were not looking good. Therefore, Coca-Cola decided to pay at least one individual $10,000 to take hundreds of children to Burger King to purchase Value Meals including the frozen Coke. U.S. attorney general for the North District of Georgia discovered and investigated the fraud. Coca-Cola had to pay Burger King $21 million, the whistle-blower $540,000, and a $9 million pretax write off had to be taken. Coca-Cola disputed the claim; however, it was extremely costly for the company. Not only did they lose millions of dollars, but also the case attracted a lot of negative publicity. In addition, it ruined any relationship that they had with Burger King.

Inflated Earnings Related to Channel Stuffing

Along with the other ethical dilemmas Coca-Cola was faced with, the company was accused of practicing channel stuffing. Channel stuffing is the practice of shipping extra inventory to wholesalers and retailers at an excessive rate, typically before the end of a quarter. The use of channel stuffing is deceptive and a company utilizes it to inflate their sales and earnings figures. When a company ships out their product to a distributor, it is counted as a sale. However, when a company participates in channel stuffing, they count the sale and usually the product is returned or it remains in a warehouse. The company sends their retailers more than they can sell, falsely demonstrating that there is a high demand for the product. It can also be used to hide when the demand of a product declines.

The benefit the company would receive from channel stuffing is more earnings on their financial statements and misinforming their investors. In Coca Cola’s situation, they were accused of sending extra concentrate to Japanese bottlers from 1997 to 1999 to dishonestly inflate their profits. Even though Coca-Cola settled the accusation, the Securities and Exchange Commission concluded that channel stuffing did occur. The company then pressured bottlers into purchasing extra concentrate in return for extended credit.

Coca-Cola promised the SEC to avoid engaging in channel stuffing in the future. At this time, the company created an ethics and compliance office, who verifies each financial quarter that they have not altered the terms of payment or extended special credit. Coca-Cola agreed to try to reduce the amount of concentrate held by the international bottlers. Even though they settled the predicament with the SEC, Coca-Cola still faces a lawsuit with shareholders for channel stuffing in Japan, North America, Europe, and South Africa.

Trouble with Distributors

Coca-Cola also faced serious issues with their distributors beginning in 2006. The company had deliveries of Powerade sent to Wal-Mart in a small Texas test area. When they tried to expand the delivery of Powerade directly to Wal-Mart warehouses all over the US, fifty-four of their bottlers filed lawsuits. Coca-Cola had an agreement regarding Powerade bottlers and that it was a breach of the agreement to provide warehouse delivery to Wal-Mart, even with the use of a subsidiary agent for warehouse delivery. The subsidiary agent, CCE, and Coca-Cola claim that they were trying to meet a request from Wal-Mart for warehouse delivery, just how PepsiCo distributes Gatorade. CCE proposed making payments to some other bottlers in return for taking over the distribution of Powerade. The bottlers were concerned that the proposed arrangement would violate antitrust laws. In addition, they believed that moving forward with their warehouse delivery would deteriorate the value of the bottlers’ businesses.

This dilemma had a serious impact on the reputation of the company. When one firm in a channel structure suffers, all the firms in the supply chain suffer in some way as well. Coca-Cola adopted a new enterprise resource system that made their classified information available to a group of partners. Since there is a lack of integrity between Coca-Cola and their partners, the partners assume a greater risk when forming a partnership with the company. These problems with their distributors took a toll on their partner companies, their stakeholders, and finally, their bottom lines.

Problems with Unions and Coke Trade Secrets

Amongst other international problems faced by Coca-Cola, they ran into trouble related to labor unions as well. The major cause of these problems occurred in Columbia where there were unfortunate deaths of Coca-Cola workers as well as forty-eight who went into hiding and another sixty-five who received death threats. The labor unions claimed that Coca-Cola chose to be involved with illegal dealings surrounding these deaths, death threats and disappearances. Coca-Cola denied any of the allegations and claimed that only one of the deaths was on the premises of the bottling plant that Coke worked with while the other ones were located off the premises where Coke had no involvement. Rather than take swift action Coca-Cola made itself look bad by not offering to help to any of the workers or their families. The further denial along with not providing any aid or action caused animosity with labor unions regarding the case and put another black mark on Coca-Cola’s currently sliding ethical reputation. Sure there may have been other circumstances behind the problems in Columbia but Coca-Cola did nothing to help anyone else or themselves in the situation.

Another problem Coca-Cola faced came a little closer to home. Coca-Cola had three employees get arrested in 2006 for fraudulently and unlawfully stealing and selling trade secrets from Coca-Cola. One of the people accused in the case contacted Pepsi and told them he was a high level employee with Coca-Cola. He then offered them very confidential and detailed information regarding the Coca-Cola Company. Coca-Cola then received a letter from Pepsi about the offer and contacted the FBI. The FBI found out the informant’s name was Ibrahim Dimson from Bronx, NY. He provided the FBI with fourteen pages worth of confidential information marked classified as well as top secret products from the Coca-Cola company. Ibrahim got his information from Joya Williams who was an executive administrative assistant for Coca-Cola’s global brand in Atlanta . She had access to all of the information given to the FBI by Dimson who is known in the case as “Dirk”. This is a big problem for Coca-Cola because not only are the actions of employees a direct responsibility of the company but it also makes the company look bad if there is internal problems. Any company that has people who are willing to give trade secrets to the direct competition need to evaluate the people who are in charge and make a change if the employees feel that disloyal towards a company that is very well known and successful globally. The company should have a system in place to protect it’s secrets because otherwise any person on the street can go take the syrup formula from Coke and give it to its competitors. This is another ethical situation where the right leadership and system in place could have resolved the issue before it started. Because of poor leadership now Coca-Cola’s reputation is once again tarnished ethically and 3 company employees are being charged with serious crimes.

Ethical Recovery?

Even after all of these problems presents, the customers in Europe said that they still feel like coke would behave correctly during these times of crises. Even after all of this they are still ranked third in a PricewaterhouseCoopers survey of the most respected companies in the world. Coke then donated $50 million to a foundation to support programs in minority programs, and hired an ombudsman who reports directly to the CEO in order to settle the racial discrimination lawsuit shown above. Coke is taking the initiative to fix their problems and the international community is seeing that. It seems that since they are taking these precautions to prevent further problems in the future, the European nations, in addition to the United States will be more trusting of Coke in their decisions in the future.

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Coca-Cola Case Study: Internal Communication, Diversity, Marketing Strategy, & More

The picture provides introductory information about Coca-Cola.

Is there any company associated with the American lifestyle more than Coca-Cola? Created in 1886, the Coca-Cola Company has endured numerous ups and downs but remains a legendary brand. To learn many valuable business lessons, consider doing a Coca-Cola case study with the help of our top questions and answers.

  • 🤯 Coca-Cola Shocking Facts

🥤 Coca-Cola Case Study – TOP Ideas

  • ✍️ Diversity
  • 🍏 Marketing Strategy
  • 🛒 Branding Strategy
  • 🌎 Global Strategy
  • 🚀 Coca-Cola Vs. Pepsi
  • 🥻 Coca-Cola in India
  • 💬 Internal Communication Strategy
  • ✅ More Topics

🔗 References

🤯 coca-cola – shocking facts about your favorite drink.

  • When Coca-Cola was launched in 1886, it was marketed as a nerve tonic that relieved exhaustion and headache. The pharmacist John Stith Pemberton invented the original Coca-Cola drink .
  • On average, more than 10,000 Coca-Cola soft drinks are consumed every second worldwide.
  • Surprisingly, Americans are not the biggest drinkers of Coke in the world. The top country is Mexico, where, on average, people consume 745 Coke beverages yearly.
  • Coca-Cola came up with the image of Santa Claus that we have today. This Christmas advertising started in the 1920s and soon became the most effective marketing technique ever: selling happiness.
  • Did you know that Coca-Cola was the first soft drink consumed in outer space? In 1985, the astronauts aboard the Space Shuttle Challenger tested Coca-Cola’s space can.

Numerous external and internal factors led to Coca-Cola’s success in the international beverage market. Here are some topic ideas for your Coca-Cola case study:

  • The history of the company.
  • The history of Coca-Cola’s acquisitions.
  • Mission and values.
  • Corporate values.
  • Financial management.
  • Staff management.
  • HR practices.
  • Coca-Cola’s supply chain.
  • Coca-Cola’s global presence.
  • Advertising campaigns.
  • Coca-Cola’s brands and products.
  • Environmental initiatives.
  • Coca-Cola’s sponsorship.
  • Key market competitors.
  • Criticism of Coca-Cola.
  • Coca-Cola’s marketing strategy.
  • The company’s CSR.
  • Strengths and weaknesses of Coca-Cola.
  • Sustainability principles.
  • Coca-Cola’s main consumer groups.

✍️ Coca-Cola Diversity Case Study – Idea #1

  • Coca-Cola’s diverse workforce Coca-Cola aims to build a diverse and inclusive workplace that enriches the brand’s decision-making and provides innovative solutions. To fight for gender equality, the company promised that by 2030, women would hold 50% of senior leadership roles. Coca-Cola runs the Global Women’s Leadership program to achieve such an ambitious goal.
  • Coca-Cola’s employees’ networks Each Coca-Cola worker can join a network of employees with common interests or backgrounds. The list of networks includes the Black employee network, Asian Inclusion Network, Hispanic + Leadership Inclusion Network, and many others. The existence of these groups allows communities to be heard within the Coca-Cola system.
  • Coca-Cola’s racial equity plan In memory of George Floyd and the widespread civil unrest, Coca-Cola’s CEO James Quincey hosted a virtual employee meeting to develop a racial equity plan. This plan states that the company will concentrate on recruiting and working with people of color for the next ten years.

The picture tells about the invention of a six-pack by Coca-Cola.

🍏 Coca-Cola Marketing Strategy Case Study – Idea #2

  • The “Always Coca-Cola” campaign One of the most well-known marketing campaigns is the “ Always Coca-Cola ” campaign, which began in 1933. The company experimented with a recent computer animation technology and produced 27 commercials. The one that stood out was the “Northern Lights” commercial, which created a heartwarming connection between Coca-Cola and polar bears.
  • The “Share A Coke” campaign In 2011, Coke launched its “ Share A Coke ,” using the most common names to market its product to individual consumers. Different countries adopted this campaign with their unique twists. For example, in 2015, the company also added nicknames such as “bro,” “better half,” and “sidekick” to the inventory of names.
  • “The World’s Cup” campaign Coca-Cola officially sponsored the FIFA World Cup in Brazil in 2014. “ The World’s Cup ” campaign was created to celebrate the unifying good that can come from many people’s love for football. Coke brought more than 1 million fans from over 90 countries to the World Cup to make a powerful campaign.

🛒 Coca-Cola Branding Strategy – Case Study Idea #3

  • Coca-Cola’s visual identity Coca-Cola’s visual identity begins with a red logo. The red color increases confidence in the person who drinks a Coke, making the experience even more enjoyable. Coca-Cola also prints its logo on a uniquely shaped bottle, making the customers feel that they’re not getting an imitation — this is the real thing.
  • Coca-Cola’s focus on people When you watch Coca-Cola’s advertising campaigns, you might notice that they evoke emotions. For example, Coke had a ‘not-so-wide’ market in Australia, creating a video ad to let Australians know they were essential to the company.
  • Coca-Cola’s feeling of ‘happiness.’ Coca-Cola’s slogan ‘delicious and refreshing’ has been sharing happiness from the beginning. Moreover, Coca-Cola is deeply associated with the Christmas season, which integrates perfectly with the branding strategy of sharing joy.
  • Coca-Cola’s brands Coca-Cola Company owns 27 brands of beverages you might know very well or maybe haven’t even heard of. The list of brands includes Sprite, Fanta, Smartwater, Minute Maid, and many others.

The picture shows the largest consumer of Coca-Cola products in the world.

🌎 Coca-Cola Global Strategy – Case Study Idea #4

  • Coca-Cola’s global reach While Coca-Cola has a headquarters in Atlanta, Georgia, the company and its bottling partners hire people worldwide for various positions. Coca-Cola employs locally in its communities, allowing employees to gain valuable international experience and work closely with people from different countries.
  • Coca-Cola’s global production Coca-Cola operates in a dynamic business environment, having plants in 28 countries with state-of-the-art local production and distribution systems. In 59 plants, the company produces more than 12.5 billion liters of beverages annually.
  • Countries that sell Coca-Cola There are more than 200 countries that sell Coca-Cola’s soft drinks. It’s challenging to think of a country where Coke isn’t available. Even in countries where the company doesn’t manufacture Coca‑Cola, many entrepreneurs import the drinks from neighboring countries.

🚀 Coca-Cola Vs. Pepsi Case Study – Idea #5

  • Coca-Cola vs. Pepsi: an overview Both Coca-Cola and Pepsi are internationally recognizable brands. However, Coca-Cola is the international beverage leader, while PepsiCo has a more substantial presence in the food industry.
  • Coca-Cola vs. Pepsi: product line Instead of diversifying across food, snacks, and beverages, Coca-Cola has concentrated on building an empire of soft drinks. Cola’s product line includes primarily sparkling beverages and still beverages. As for PepsiCo, the company has 23 different brands, including snacks. For example, PepsiCo owns Lays, Doritos, and Cheetos .
  • Coca-Cola vs. Pepsi: market presence Coca-Cola competes with PepsiCo internationally, though Coca-Cola approaches its market segmentation differently. Coca-Cola has four global divisions, while Pepsi has seven. To compete with Pepsi’s more segmented approach of geographical divisions, Coca-Cola created a Global Ventures segment to support the new brands.
  • Coca-Cola vs. Pepsi: pricing strategy Coca-Cola’s pricing strategy is known as “meet-the-competition pricing.” The company analyzes the pricing strategies of its competitors and then sets its prices around the same level. As for Pepsi, the company offers various sizes of bottles to fulfill the demands of all customers.

The picture provides the information about the countries (North Korea & Cuba) where Coke is not sold officially.

🥻 Coca-Cola in India Case Study – Idea #6

  • The origin of Coca-Cola India Coca-Cola India is the version of the famous Coca-Cola company. The Coca-Cola Company started operating in India in 1956 and became the largest beverage manufacturer. Coca-Cola India has around 40% share of the country’s branded beverages market.
  • Coca-Cola India’s logo and its meaning The logo’s history began when John Stith Pemberton, the inventor of the Coke, turned to his accountant, Frank Robinson, to help him brand his creation. Frank came up with the first logo, the handwritten name of the company. The original logo has been modified in numerous marketing campaigns. However, in the case of Coca-Cola India, the emblem remained the same.
  • The controversy around Coca-Cola India In 1999, Coca-Cola set up a factory in the tribal village of Plachimada in Kerala. Unfortunately, the groundwater was soon contaminated by the factory’s operations, leading to health issues among the town’s residents. The plant stopped production in March 2004. After a legal battle in the Supreme Court, Coca-Cola stated that it would not restart production in the plant.

💬 Coca-Cola Internal Communication Strategy – Case Study #7

  • Coca-Cola’s effective message strategy Coca-Cola’s management ensures that a message communicated from any corner of the organization is spread across employees of all ranks. A special administrator manages the news through the intranet and controls people who can access and comment on them.
  • Telephones extensions
  • Emailing systems
  • Coca-Cola’s organizational culture and behavior Coca-Cola has invested mainly in organizational culture, supporting free interaction among the management and all ranks of employees. When something happens in the office, there are various channels for letting the administration know.

✅ Coca-Cola Internal Communication Strategy Topics & More

  • Social responsibility program of The Coca-Cola Company.
  • The Coca-Cola Company’s technology and future.
  • Coca-Cola Company’s marketing management.
  • Coca-Cola Company: product reassessment.
  • The Coca-Cola Company’s international drink market.
  • Coca-Cola Company’s quality management control.
  • Coca-Cola Company’s management decisions.
  • The Coca-Cola Company’s international management.
  • The Coca-Cola Company’s communication aspect.
  • The Coca-Cola Company’s strategic suitability.
  • Coca-Cola Company’s external and internal analysis.
  • Coca-Cola Company transformation plan.
  • The Coca-Cola Company’s marketing plan in China.
  • The Coca-Cola supply chain & operations management.
  • Coca-Cola & Keurig’s new product design.
  • The Coca-Cola Company’s grand strategy.
  • The Coca-Cola Company’s purpose and strategy.
  • Coca-Cola Company’s corporate social responsibility in India.
  • Coca-Cola Company’s entry strategies into the Indian market.
  • The Coca-Cola Company’s human resource system.
  • Coca-Cola Company’s sustainability initiative.
  • Coca-Cola and Pepsi: companies’ different strategies.
  • Coca-Cola Company total quality management.
  • The Coca-Cola Company’s operations framework.
  • Coca-Cola Company business ethics challenges.
  • Coke vs. Pepsi: a case study.
  • Management in the Coca-Cola Company.
  • Coca-Cola’s strategic plans.
  • Coca-Cola operations management.
  • Stock market analysis: PepsiCo vs. Coca-Cola.
  • The Birth of a Refreshing Idea. Coca-Cola History
  • Coca-Cola Global Women’s Leadership Program
  • Coca-Cola’s Racial equality Plan
  • Coca-Cola Ads | Audio Network UK
  • Visual Identity and Why It’s Important – wix
  • Best Practices for Effective Internal Communications

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Change Management Case Study Examples: Lessons from Industry Giants

Explore some transformative journeys with efficient Change Management Case Study examples. Delve into case studies from Coca-Cola, Heinz, Intuit, and many more. Dive in to unearth the strategic wisdom and pivotal lessons gleaned from the experiences of these titans in the industry. Read to learn about and grasp the Change Management art!

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In the fast-paced world of business, staying ahead means being able to adapt. Have you ever wondered how some brands manage to thrive despite huge challenges? This blog dives into a collection of Change Management Case Studies, sharing wisdom from top companies that have faced and conquered adversity. These aren’t just stories; they’re success strategies.  

Each Change Management Case Study reveals the smart choices and creative fixes that helped companies navigate rough waters. How did they turn crises into chances to grow? What can we take away from their successes and mistakes? Keep reading to discover these inspiring stories and learn how they can reshape your approach to change in your own business. 

Table of Contents  

1) What is Change Management in Business? 

2) Top Examples of Case Studies on Change Management 

    a) Coca-Cola 

    b) Adobe 

    c) Heinz  

    d) Intuit  

    e) Kodak 

    f) Barclays Bank 

3) Conclusion

What is Change Management in Business?  

Change management in business refers to the structured process of planning, implementing, and managing changes within an organisation. It involves anticipating, navigating, and adapting to shifts in strategy, technology, processes, or culture to achieve desired outcomes and sustain competitiveness.  

Effective Change Management entails identifying the need for change, engaging stakeholders, communicating effectively, and mitigating resistance to ensure smooth transitions. By embracing Change Management principles, businesses can enhance agility, resilience, and innovation, driving growth and success in dynamic environments. 

Change Management Certification 

Top Examples of Case Studies on Change Management  

Let's explore some transformative journeys of industry leaders through compelling case studies on Change Management: 

1) Coca-Cola  

Coca-Cola, the beverage titan, acknowledged the necessity to evolve with consumer tastes, market shifts, and regulatory changes. The rise of health-conscious consumers prompted Coca-Cola to revamp its offerings and business approach. The company’s proactive Change Management centred on innovation and diversification, leading to the launch of healthier options like Coca-Cola Zero Sugar.  

Coca-Cola Zero Sugar 

Strategic alliances and acquisitions broadened Coca-Cola’s market reach and variety. Notably, Coca-Cola introduced eco-friendly packaging like the PlantBottle and championed sustainability in its marketing, bolstering its brand image. 

Acquire the expertise to facilitate smooth changes and propel your success forward – join our Change Management Practitioner Course now!  

2) Adobe  

Adobe, with its global workforce and significant revenue, faced a shift due to technological advancements and competitive pressures. In 2011, Adobe transitioned from physical software sales to cloud-based services, offering free downloads or subscriptions.  

This shift necessitated a transformation in Adobe’s HR practices, moving from traditional roles to a more human-centric approach, aligning with the company’s innovative and millennial-driven culture. 

3) Heinz  

Berkshire Hathaway and 3G Capital’s acquisition of Heinz led to immediate, sweeping changes. The new management implemented cost-cutting measures and altered executive perks.  

Products by Heinz

Additionally, it introduced a more insular leadership style, contrasting with 3G’s young, mobile, and bonus-driven executive team. 

Commence on a journey of transformative leadership and achieve measurable outcomes by joining our Change Management Foundation Course today!  

4) Intuit  

Steve Bennett’s leadership at Intuit marked a significant shift. Adopting the McKinsey 7S Model, he restructured the organisation to enhance decision-making, align rewards with strategy, and foster a performance-driven culture. His changes resulted in a notable increase in operating profits. 

5) Kodak  

Kodak, the pioneer of the first digital and megapixel cameras in 1975 and 1986, faced bankruptcy in 2012. Initially, digital technology was costly and had subpar image quality, leading Kodak to predict a decade before it threatened their traditional business. Despite this accurate forecast, Kodak focused on enhancing film quality rather than digital innovation.  

Kodak Megapixel Cameras

Dominating the market in 1976 and peaking with £12,52,16 billion in sales in 1999, Kodak’s reluctance to adopt new technology led to a decline, with revenues falling to £4,85,11,90 billion in 2011.  

Get ready for your interview with our top Change Management Interview Questions .

Fujifilm Camera 

In contrast, Fuji, Kodak’s competitor, embraced digital transformation and diversified into new ventures. 

Empower your team to manage change effectively through our Managing Change With Agile Methodology Training – sign up now!  

6) Barclays Bank  

The financial sector, particularly hit by the 2008 mortgage crisis, saw Barclays Capital aiming for global leadership under Bob Diamond. However, the London Inter-bank Offered Rate (LIBOR) scandal led to fines and resignations, prompting a strategic overhaul by new CEO Antony Jenkins in 2012.  

Changes included rebranding, refocusing on core markets, altering the business model away from high-risk lending, fostering a customer-centric culture, downsizing, and embracing technology for efficiency. These reforms aimed to strengthen Barclays, improve shareholder returns, and restore trust. 

Dive into the detailed Case Study on Change Management

Conclusion  

The discussed Change Management Case Study examples serve as a testament to the transformative power of adept Change Management. Let these insights from industry leaders motivate and direct you as you navigate your organisation towards a path of continuous innovation and enduring prosperity. 

Enhance your team’s ability to manage uncertainty and achieve impactful results – sign up for our comprehensive Risk Management For Change Training now!  

Frequently Asked Questions

The five key elements of Change Management typically include communication, leadership, stakeholder engagement, training and development, and measurement and evaluation. These elements form the foundation for successfully navigating organisational change and ensuring its effectiveness. 

The seven steps of Change Management involve identifying the need for change, developing a Change Management plan, communicating the change vision, empowering employees, implementing change initiatives, celebrating milestones, and sustaining change through ongoing evaluation and adaptation. 

The Knowledge Academy takes global learning to new heights, offering over 30,000 online courses across 490+ locations in 220 countries. This expansive reach ensures accessibility and convenience for learners worldwide.  

Alongside our diverse Online Course Catalogue, encompassing 17 major categories, we go the extra mile by providing a plethora of free educational Online Resources like News updates, Blogs , videos, webinars, and interview questions. Tailoring learning experiences further, professionals can maximise value with customisable Course Bundles of TKA .

The Knowledge Academy’s Knowledge Pass , a prepaid voucher, adds another layer of flexibility, allowing course bookings over a 12-month period. Join us on a journey where education knows no bounds.  

The Knowledge Academy offers various Change Management Courses , including the Change Management Practitioner Course, Change Management Foundation Training, and Risk Management for Change Training. These courses cater to different skill levels, providing comprehensive insights into Change Management Metrics .   

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></center></p><h2>Coca-Cola Complete Case Study and Marketing Strategy</h2><p>Welcome to yet another blog. Hope, you enjoyed our Satyam Scam case study. Today, we bring you the success story and market strategy of another giant business in India. Guess??</p><p>Yes, you guessed it right. It’s Coca-Cola, the most loved soft drink in human history. The black drink has its journey to motivate you.</p><p>In today’s blog, we will be focusing on some of the below-mentioned points:</p><ul><li>How does Coca-Cola originate?</li><li>With changing times, what business model was opted by the company to keep the business going at the same pace?</li><li>And lastly, how does the black soft drink never miss a chance to make its consumers happy?</li></ul><p>So be it your kid’s 1 st birthday celebration or, the 25 th anniversary of your parents or your friend’s promotion party, coca-cola is the first thing to cross our minds when it comes to aerated drinks.</p><p>Over the past few years, coca-cola has captured the market with some of the best advertising techniques and has a monopoly in this sector.</p><p>Now without wasting much time let’s start our today’s blog.</p><p>First of all, we need to know what was the idea behind Coca-Cola and who started it</p><p>Introduced almost 120 years back, coca-cola is the most widely used beverage of all time.</p><p>It is currently consumed in more than 200 countries. It is the world’s largest manufacturer of non-alcoholic drinks.</p><p>Table of Contents</p><h2>History of Coca-Cola</h2><p>Coca-Cola was founded by a pharmacist Dr. John S. Pemberton from Atlanta. He wanted to make a different-tasting soft drink that could be sold. He made a flavoured syrup and mixed it up with carbonated water. Later on, his partner Frank M. Robinson named that water-mixed drink Coca-Cola. The first newspaper ad for Coca‑Cola soon appeared in The Atlanta Journal.</p><p><center><img style=

Dr. John gradually sold his business in portions and before he died in 1888, Coca-Cola was finally sold to Asa G. Candler.

Starting from 9 servings in a day, now it serves around 1.9 billion drinks per day.

MARKETING STRATEGY OF COCA-COLA

Although every brand has its way of advertising its products, Coca-Cola has been one of the most recognizable brands now for over a century because the company first experiments with the strategy that it plans and then implements. For any strategy they make, customer satisfaction for the company comes first. Let’s discuss the widely used strategies in detail.

Coca Cola Case Study

Worldwide Advertising

Worldwide Advertising

Coca-Cola every time comes up with a different and creative idea to advertise their product. At first, they analyse their global consumer base and their demands. For example, initially, coca-cola was sold through soda fountains but then two talented minds secured exclusive rights to selling coca cola in bottles. This eventually helped them to leave an imprint in their consumer’s minds since the bottles were sold globally and that too with labelling done in regional language.

Branding

Branding generally means how the consumers perceive the product visually i.e., identification of any product when first seen. Seems like Coca-Cola has already mastered the art of branding. The brand needs to maintain the logo that they are using and also update it from time to time as per the consumer’s taste and preferences. Coca-Cola did it so well by trademarking its logo.

Diversification of products

Diversification of products

Coca-Cola does not limit itself after inventing one soft drink. They have expanded their bucket of products over the years. Some of the products of Coca-Cola are Sprite, Diet Coke etc. and companies like Maza and Fanta depended on Coca-Cola for their growth.

Pricing 

Pricing

With increasing recognition, more competitors came into the picture. Coca-Cola still kept their products cost-effective and maintained the quality of the product. This helped them in keeping their customers loyal and intact.

Promotion 

Promotion 

Coca-Cola promoted its products through different advertising media such as newspapers, radio, television, billboards, banners, and magazine covers. The company also used artistic taglines like “Things go better with coke”.

Partnership

Partnership

The company used partnerships as brand visibility to increase their market share and consumers. This helped them grow rapidly. Coca-Cola sponsored the Olympics, FIFA, Basketball tournaments and other reality shows such as American Idol. The company also bought various other businesses.

Personalisation

Personalisation

Coca-Cola always tries to connect with customers at a personal level.

Labelling their bottles in regional languages helped them increase their sales. They targeted their audience as per their age groups.

Secret of Coca-Cola’s Success

Before getting to any conclusion, you must know the secret of success for Coca-Cola’s marketing strategies. They follow a rule of 70:20:10 rule. As per this rule, 70% is the total allocation of the marketing budget of the coca-cola into their existing marketing strategies like Google ads and Facebook ads which are currently giving them good results, 20% is the allocation of the total marketing budget to the current trending marketing strategies like promoting their products on Instagram reels, YouTube shorts etc. remaining 10% they allocate into risky yet innovative marketing idea. Chances are likely that this 10% allocation will give them amazing results.

By now you must have an idea of how Coca-Cola has placed itself differently in the market even after facing tough competition from competitors since its establishment. With different promoting and pricing techniques, the company is reaching new heights every day. Coca-Cola has also upgraded itself with advancing technologies to satisfy its consumers.

To conclude the iconic brand COCA-COLA is still in every heart, no matter how many competitors enter the market. Their efforts of “THANDA MATLAB COCA-COLA” are irreplaceable.

FAQs (Frequently Asked Questions)

  • When was Coca-Cola founded? Coca-cola was founded in the year 1886.
  • Who founded Coca-Cola? Coca-Cola was founded by Atlanta’s John Pemberton.
  • Is Coca-Cola an Indian brand? No, Coca-Cola is not an Indian brand. It is a USA-based brand.
  • How was Coca-Cola sold in the initial days? Coca-Cola was sold through soda fountains initially.
  • How many drinks are served per day now? 1.2 billion drinks of Coca-Cola are served every day now.

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