Cocacola

Who dares wins - success through intelligent risk


A Coca-Cola Great Britain case study


A story of global success

No study of business success in the twentieth century would be complete without

mentioning Coca-Cola. Coca-Cola is the product which perhaps best exemplifies global

marketing. The Coca-Cola trademark is recognised by 94 per cent of the earth's

population and Coca-Cola is the second most universally understood phrase after OK.

It is not only instantly recognisable but it can be found almost anywhere from petrol

stations and shops in Central Africa, to small villages in mountainous areas on all five

continents.

The first Coca-Cola was developed according to legend, by Dr. John Styth Pemberton

in a three-legged brass pot in his backyard. If you look at the first outdoor

advertisement for Coca-Cola which appeared in the nineteenth century you can see

that the company is based on a core strength which has an enduring quality. CocaCola is 'delicious and refreshing'. This theme has been a key feature of advertising for

the drink ever since and more recently the message was that 'Coke is the real thing'

i.e. anything else which purports to be similar, is at best, simply a pale imitation.

The Coca-Cola Company has a number of important soft drinks products the most well

known of which are:

• Coca-Cola

• Diet Coke

• Sprite

• Fanta

Key aspects of Coca-Cola´s business

The Coca-Cola Company's business policy provides an object lesson in many important

principles of business. For example:

1. Focus on the best lines - Coca-Cola concentrates on its most profitable lines. In

1984, 77of Coca-Cola's operating income came from soft drinks. Today the figure is 97,

By selling off businesses not sharing the same attractive financial fundamentals as the

soft drink business Coca-Cola now operates only in the area of high-return business.

2. Reinvestment - Re-investing profits is the key to ongoing business development. If

profits are made...