The Story Of Coca Cola

TheStoryOfCocaColaTheCoca-Colacompanystarted110yearsagoasasmall,insignificantonemanbusiness.Sincethen,ithasgrownintooneofthelargestcompaniesintheworld.ThefirstchairmanofthecompanywasDr.JohnPembertonandthecurrentchairmanisRobertoGoizueta.Thedemandforthisproducthasmadethiscompanyintoa50billiondollarbusiness.Coca-ColawasinventedbyDr.JohnPemberton,anAtlantapharmacist.HeconcoctedtheformulainathreeleggedbrasskettleinhisbackyardonMay8,1886bymixinglime,cinnamon,cocaleaves,andtheseedsofaBrazilianshrub.(ThingsGoBetterWithCoke14).Coca-Cola,ashecalledthebeverage,madeitsdebutinAtlanta'slargestpharmacy,Jacob'sPharmacy,asafivecentnon-carbonateddrink.Lateron,thecarbonatedwaterwasaddedtothesyruptomakethebeveragethatweknowtoday.Coca-Colawasoriginallyusedasanerveandbraintonicandamedicalelixir.Coca-ColawasnamedbyFrankRobinson,oneofPemberton'sclosefriends,healsopennedthefamousCoca-Colalogoinuniquescript.Dr.JohnPembertonsoldaportionoftheCoca-ColacompanytoAsaCandler.Hewasforcedtosellbecausehewasinastateofpoorhealthandwasindebt.Hehadpaid$76.96foradvertising,butheonlymade$50.00inprofits.Intime,Candleracquiredthewholecompanyfor$2,300(Coca-ColaMultiplePages).Candlerachievedalotduringhistimeasownerofthecompany.OnJanuary31,1893,thefamousCoca-Colaformulawaspatented.Healsoopenedthefirstsyrupmanufacturingplantin1884.HisgreatachievementwaslargescalebottlingofCoca-Colain1899.In1915,TheRootGlassCompanymadethecontourbottlefortheCoca-Colacompany.CandleraggressivelyadvertisedCoca-Colainnewspapersandonbillboards.Inthenewspapers,hewouldgiveawaycouponsforafreeCokeatanyfountain.Coca-ColawassoldaftertheProhibitionEratoErnestWoodrufffor25milliondollars.HegaveCoca-Colatohisson,RobertWoodruff,whowouldbepresidentforsixdecades(Facts,Figures,andFeaturesMultiplepages).RobertWoodruffwasaninfluentialmaninAtlantabecauseofhiscontributionstoareacolleges,universities,businessesandorganizations.Whenhemadeacontribution,hewouldneverleavehisnameandbecametobeknownas"Mr.Anonymous."Woodruffintroducedthesixbottlecartonin1923.HealsomadeCoca-Colaavailablethroughvendingmachinein1929.Thatsameyear,theCoca-Colabellglasswasmadeavailable.Hestartedadvertisingontheradiointhe1930sandontelevisionin1950.CurrentlyCoca-ColaisadvertisedonoverfivehundredTVchannelsaroundtheworld.In1931,heintroducedtheCokeSantaasaChristmaspromotionanditcaughton.CandleralsointroducedthetwelveounceCokecanin1960.TheCoca-Colacontourbottlewaspatentedin1977.Thetwoliterbottlewasintroducedin1978,thesameyearthatthecompanyintroducedplasticbottles(Coca-ColaMultiplePages).Woodruffdidhaveonedubiousdistinction,heraisedthesyruppricesfordistributors.Butheimprovedefficiencyateverystepofthemanufacturingprocess.Woodruffalsoincreasedproductivitybyimprovingthesalesdepartment,emphasizingqualitycontrol,andbeginninglarge-scaleadvertisingandpromotionalcampaigns.WoodruffmadeCokeavailableineverystateoftheUnionthroughthesodafountain.Foralloftheseachievementsheearnedthename,"TheBoss"(Facts,Figures,andFeaturesMultiplePages).In1985,theCoca-ColaCompanymadewhathasbeenknownasoneofthebiggestmarketingblunders.ThecompanydevelopedanewformulaineffortstoproduceadietCoke.Theyinvested4milliondollarsintoresearchtocomeupwiththenewformula.ThedecisiontochangetheirformulaandpulltheoldCokeoffthemarketcameaboutbecausetastetestsshowedadistinctpreferenceforthenewformula.Thenewformulawasasweetervariationwithlesstang,itwasalsoslightlysmoother(Demott54).RobertWoodruff'sdeathwasalargecontributortothechangebecauseduringhislifetimehehadinsistedonkeepingthesameformula.Afterhedied,Coke'smarketsharesfell2.5percentwithinthenextfouryears.Eachpercentagepointlostorgainedmeant200milliondollars.Afinancialanalystsaid,"Coke'smarketsharefellfrom24.3percentin1980to21.8percentin1984"(ThingsGoBetterWithCoke14).Inhopesofboostingtheirearnings,thecompanydecidedtointroducethenewflavor.ThiswasthefirstchangesincetheconceptionoftheCoca-Colacompany.ThechangewasannouncedApril23,1985attheVivianBeaumontTheaterattheLincolnCenter.SometwohundredTVandnewspaperreportersattendedthisveryglitzyaffair.Itincludedaquestionandanswersession,ahistoryofCoca-Cola,andmanyotherevents(Oliver131).ThedebutwasaccompaniedbyanadvertisingcampaignthatrevivedtheCoca-Colathemesongoftheearly1970s,"I'dLiketoBuyTheWorldACoke"(SayItAin'tSo,Coke24).Thefollowingwasthejingle:"I'dliketoteachtheworldtosingInperfectharmony.I'dliketobuytheworldaCokeAndkeepitcompany."Thechangetotheworld'sbestsellingsoftdrinkwasheardby81percentoftheUnitedStatespopulationwithintwenty-fourhoursoftheannouncement.Withinaweekofthechange,onethousandcallsadaywerefloodingthecompany'seighthundrednumber(1-800-GET-COKE).Mostofthecallerswereshockedand/oroutraged,andmanysaidthattheywereconsideringswitchingtoPepsi.Withinsixweeks,theeighthundrednumberwasbeingjammedbysixthousandcallsaday.Thecompanyalsoreceivedoverfortythousandletters,whichwereallansweredandeachpersongotacouponforthenewCoke.AretiredAirForceofficer,explainedinalettertotheCoca-ColacompanythathewantedtobecrematedandinternedinaCokecan,butnowthatthischangehadcomeabouthewasreconsidering(PendergrastMultiplePages).SharlotteDonneally,athirty-sixyearoldanthropologistsaid,"Ihatethenewstuff"(Demott60).WendyKoskela,athirty-fiveyearoldvicepresidentofaninsurancecompanysaid,"It'stoosweet.IttasteslikePepsi."Shealsostated,"RealCokehadpunch.Thistastesalmostlikeit'sflat"(Demott60).ManyAmericanconsumersofCoca-Colaaskediftheycouldhavethefinalsay.WhenPepsiheardthattheCoca-ColacompanywaschangingitssecretformulatheysaidthatPepsitastesbetteranddecidedtotakeadvantageofthesituation.RogerEnrico,thepresidentandCEOofPepsi-ColawrotealettertoeveryeveryemployeewithinthecompanyaswellastoeverymajornewspaperintheU.S.todeclarethevictory.Theletterstatedthefollowing:"Itgivesmegreatpleasuretoannouncethataftereighty-sevenyearsofgoingatiteyeballtoeyeball,theotherguyjustblinked.Coca-Colaiswithdrawingitsproductfromthemarketplace,andisreformulatingtheblendtomakeCoketastemorelikePepsi...Thereisnoquestionthelong-termmarketsuccessofPepsihasforcedthismove...Maybetheyfinallyrealizedwhatmostofushaveknownforyears,PepsitastesbetterthanCoke.Well,peopleintroubletendtododesperatethings...andwe'llhavetokeepoureyeonthem.Butfornow,Isay,victoryissweet,andwehaveearnedacelebration.We'regoingtodeclareaholidayonFriday.Enjoy!BestRegards,RogerEnricoPresident,CEOPepsi-ColaUSA(Oliver128).Coca-Colaofficialssaid,"ThenewformulawillboostCoke'sshareby1percent.Thatisworth200milliondollarsayear."Coca-Colamanagementhadtodecide:Donothingor"buytheworldanewCoke"(ThingsGoBetterWithCoke14).Theydecidedtodevelopthenewformula.RobertoGoizueta,thepresidentoftheCoca-ColaCompanystated,"TheoldCokeformula,withitssecretflavoringingredient,calledMerchandise7X,willstaylockedinthebankvaultoftheTrustCompanyofGeorgiainAtlanta,nevertobeusedagain"(Demottet.al55).ManyCokeofficialswereveryoptimisticaboutthischangeandsaid,"Thisisthemostsignificantsoftdrinkdevelopmentinthecompany'shistory"(Demottet.al54).ThechangebacktotheoldCokewasknownastheSecondComing.RobertoGoizuetasaid,"Today,wehavetwomessagestodelivertotheAmericanconsumer,first,tothoseofyouwhoaredrinkingCoca-Colawithitsgreatnewtaste,ourthanks...Butthereisasecondgroupofconsumerstowhomwewanttospeaktotodayandourmessagetothisgroupissimple:Wehaveheardyou"(Oliver178).OnJuly10,1985,eighty-sevendaysafterthenewCokewasintroduced,theoldCokewasbroughtbackinadditiontothenewone.Thiswasgreatlyduetodroppingmarketshareandconsumerprotest.Themarketsharefellfromahighof15percenttoalowof1.4percent(Miller38).RobertoGoizuetaandDonaldKeoughtookfullblameforthisfailedproductlaunch.DonKeough,Coca-Colapresident,saidinresponsetothecomeback,"Thetruthis,wearenotdumbandwearenotthatsmart"(Newbottle18).RobertoGoizueta'sresponsewas,"Wehaveheardyou"(Moore8).Thiswassaidtobeaclassicmarketingretreat.Coca-Colaexecutivesadmittedthattheyhad"goofed"bytakingtheoldCokeoffthemarket.OneoldCokeloyalistsaid,"Thecompanyhadspoiledthetasteofitsninetynineyearoldsoftdrinkandbetrayedanationaltrust"(Moore8).IkeHerbert,aCokemarketersaid,"Youwouldhavethoughtwehadinventedacureforcancer"(Pendergrast366).TheCoca-Colacompany'seighthundrednumberreceivedeighteenthousandcallsofgratitude.Onecallersaidtheyfeltasifalostfriendhadreturnedhome.ThecomebackofoldCokedrovestockpricestothehighestlevelintwelveyears.Thiswassaidtobetheonlywaytoregaintheleadonthecolawars(ClassicComebackOfAnOldChamp12).In1979,fifteenhundredemployeesmovedtothenewcorporateheadquartersinAtlantalocatedonNorthAvenue.Thenewcorporateheadquarterscametobeknownas"TheTower."Duringthetimewhentheresearchforthenewformulawastakingplace,itwasknownas"TheBunker"(Oliver53).TheknowningredientsinpresentdayCoca-Colaarewater,caffeine,phosphoricacid,vanilla,variousoilsandessencesandextractsofthecocaleafandthekolanut.TheoneinfourhundredpartofcocainewasremovedfromCoca-Colain1903(Demott54).FiveyearsaftertheinfamousCokefiasco,theCoca-ColacompanytriedtobringbackthereformulatedCoke.TheefforttophaseinCokeIIintothesodamarketwasquiteunsuccessful(Miller38).DuringtheWoodruffera,Mr.WoodruffmadeapromisetothearmedforcesoftheUnitedStatestosupplyCoca-Colatoeveryserviceperson.Hesaidthatcostsandlocationdidnotmatterandhesupplied5billionbottlestotheservice.Inthemid-1970's,morethanhalfofCoca-ColasoldwasoutsideoftheU.S.Coca-Colaproductsoutsellclosestcompetitorsbymorethantwotoone.OneineverytwocolasandoneineverythreesoftdrinksisaCoca-Colaproduct(Facts,Figures,andFeatures16).Thebestknowntrademarkintheworldissoldinaboutonehundredandfortycountriesto5.8billionpeopleineightydifferentlanguages.ThisiswhyCoca-Colaisthelargestsoftdrinkcompanyintheworld.Coca-Colaisworthmorethan58billiondollarsonthestockmarket(Coca-Cola,TheCoca-ColaCompany232).Formorethan65years,Coca-ColahasbeenasponsoroftheOlympics.The1996SummerOlympicswillbeheldinAtlanta,Georgia,thehomeofCoca-Cola.OnegreatearmarkthattheCoca-ColacompanyhasishelpingthepeopleofAtlanta.Theyaccomplishthisthroughscholarships,hotlines,donationsandcontributions,etc.AnotherlargeaccomplishmentthattheCoca-Colahas,isbeingthefirstcompanytomakeanduserecycledplasticbottles.OnewaytoseealloftheachievementsoftheCoca-ColacompanyistovisittheWorldofCokeinAtlanta.Ithousesacollectionofmemorabilia,samplesoftheproducts,exhibits,andmanyotherexcitingitems(Facts,Figures,andFeaturesMultiplePages).________________________________________