🌍TNC - CASE STUDY: Coke Flashcards
Where is Coke sold?
More than 200 countries (no1 manufacturer of soft drinks globally)
Where is their headquarters?
Atalanta, USA
SO: How many associates does it have around the world?
139,600 associates - 50% outside US
SO: How many people does the Coca-cola Europe Group employ?
1,600 Company associates w approx 60,000 employees
SO: What does the Coca-Cola Europe Group company team do?
1/3 of the team provides shares for all of the Europe Group and beyond, managing group-wide resources
SO: How many business units are there?
12
consisting of 1- 4 countries each, executing plans at a LOCAL market level
Describe coke’s sales:
- Sell nearly 400 different products
- 70% sales generated outside North America
G: WHo invented Coca-Cola originally?
Recipe formulated at the Eagle Drug and Chemical company drug store (Georgia) by John Pemberton
G: What was Coke’s original name?
Pemberton’s French Wine Coca
G:What happened to Coke in 1886?
The country passed a legislation prohibiting an alcoholic version
Pemberton responded developing ‘Coca-Cola’ (non-alcoholic version)
G: Where was Coca-Cola first sold to the public?
Jacob’s Pharmacy
- Atalanta, 8th May 1886
G: what were the original claims of Coke?
PEMBERTON claimed it cured diseases such as:
- morphine addiction
- headache
- impotence
G: What happened in 1891 + 1894
First bottled Vicksburg, Mississippi 1891
Sold in bottles for the first time 1894
G: What happened in 1955?
First coke cans
G: What happened when cop[yright started to occur?
Advertising focused on the authenticity of Coca-Cola urging consumers to:
“Demand the genuine”
“Accept no substitute”
G: What happened in 1892?
Named “The Coca-Cola Company”
G: By 1900 which countries did The Coca-Cola company situate?
Canada
Panama
Cuba
Puerto Rico
France
Etc
G: How did the no. of bottlers change?
1900 - 2 bottlers of Coca-Cola
1928 - 1,000
G: When did Coca-Cola expand overseas?
1923
G: What happened to Coke in 1928?
Coca-Cola was introduced to the Olympic Games, travelling with US to 1928 Amsterdam Olympics
G: How did Coke contribute in WW2?
- Business remained steady
BUT - offered Coca-Cola to any troops for 5 cents
G: What happened after WW2 to Coke?
From the mid 1940s until 1960s the no of countries with bottling operations nearly doubled
G: When did Coca-Cola expand their flavours?
After 70 years of success:
Fanta developed 1940, introduced 1950
Sprite 1960
Minute Maid Company (juices) 1960
G: Where did Coke further expand too?
Cambodia
Montserrat
Paraguay
Macau
Turkey
Etc
G: How did Coke continue to grow in the 1990s?
Their association with sports strengthened with ongoing support of the Olympic Games, FIFA, Rugby World Cup + the official soft drink of NASCAR racing
P: What did The company aim for during 1920s and 30s?
A major push towards establishing bottling operations outside US where plants opened in countries such as:
France
Guatemala
Honduras
MExico
Belgium
Italy
Peru
Spain
Australia
South Africa
P: Where was Coke being bottled at time of WW2?
44 countries
P: What did Coke do after the fall of the Berlin Wall?
Invested heavily into plants in Eastern Europe
More than $1.5bn committed to new bottling facilities in Africa
P: How does Coke work with subcontractors?
Don’t always own their factories, subcontracting out to pre-existing bottling companies to save money
P: What populations does Coke have access too?
India (large earning)
- By manufacturing goods closer to intended market they save money on transportation costs
P: How do Cokes bottles operate?
• Bottlers buy the concentrate from the Coca Cola Company. then mix it with water and sweeteners and bottle finished product.
- Each bottling company has exclusive rights to a region of the world.
- Coca Cola owns shares in some of the companies but not all of them, some are independent.
P: Describe bottles distribution
- Bottlers are in charge of distributing the products to the retailers.
- Retailers sell the bottled products to the public to buy.
R+D: How do Coke describe their R+D?
uses sensory science, product development and consumer insights to create totally new beverages and to improve existing ones. We work with our other R&I centres around the world as well as suppliers, agencies and outside research institutes to create the best beverages in the world.”
R+D: How has R+D expanded?
“According to a Coca-Cola official, the company, which has been attempting to increase its efforts in Turkey, is now finalizing the details in order to bring the R&D centre project into fruition. Michael O’Neill, CEO of Coca-Cola Soft Drinks, stated, “The issue of tax incentives is definitely a significant factor in the decision to make Turkey a R&D centre.”
Global Marketing
A process of promoting and selling products and services
What does global marketing include?
a whole process of planning, producing, placing, and promoting a country’s products in a worldwide market
Big Mac in global marketing
Tastes the same in every country but varies items on menu according to local food tastes
- Coke’s formula and bottle are same in every country
What advertising approach does Coke use?
Standardised advertising approach but adapts for local culture
Hit me with 2 coke stats pops!!
- 2011 - avg person consumed 92 cans
- Mexico drinks 20x more than India
Where and when was the water pollution problem?
Kerala, South India, 2004
What happened to the well in Kerela/
Villager’s well ran dry and available water turned toxic after a coke factory opened
How much were damages in Kerela?
Around $30 mil
What did the villagers do in Kerela?
In 2002 they protested outside the factory which was eventually shut down in 2004
Working conditions at coke
Long hours with little pay
What does franchise operation mean for local bottlers?
They profit from the sale supporting the economy indirectly and directly
What did coke set up to help obesity and how much was spent?
. $4.86 million spent
. European Hydration Institute set up
How much was invested into expanding markets like Africa?
$90 million
How many more times did coke contain pesticide above the recommended level?
30x
How many females have been empowered by coke?
5 million
Where are the majority of coke’s profits returned to?
Shareholders in the USA
What was Coke’s marketing strategy?
. One brand
. Taste the Feeling campaign
What is meant by a one-brand strategy?
. Brings together four product variants like Diet Coke
. Will provide more health choices
How many ads were launched in 2010 and what was the aim of them?
. 10 ads
. Glimpse into intimate experience of drinking coke
Role of GIFs in taste the feeling
. Boost viral share ability
. Personalise the scene
Why was Coke inspired by Disney?
. Stay true to brand values
. Avoid erratic behavior
. Stay consistent
What is Coke’s net worth?
$235 billion
