🌍TNC - CASE STUDY: Coke

Question 1

Where is Coke sold?

Answer 1

More than 200 countries (no1 manufacturer of soft drinks globally)

Question 2

Where is their headquarters?

Answer 2

Atalanta, USA

Question 3

SO: How many associates does it have around the world?

Answer 3

139,600 associates - 50% outside US

Question 4

SO: How many people does the Coca-cola Europe Group employ?

Answer 4

1,600 Company associates w approx 60,000 employees

Question 5

SO: What does the Coca-Cola Europe Group company team do?

Answer 5

1/3 of the team provides shares for all of the Europe Group and beyond, managing group-wide resources

Question 6

SO: How many business units are there?

Answer 6

12
consisting of 1- 4 countries each, executing plans at a LOCAL market level

Question 7

Describe coke’s sales:

Answer 7

• Sell nearly 400 different products
• 70% sales generated outside North America

Question 8

G: WHo invented Coca-Cola originally?

Answer 8

Recipe formulated at the Eagle Drug and Chemical company drug store (Georgia) by John Pemberton

Question 9

G: What was Coke’s original name?

Answer 9

Pemberton’s French Wine Coca

Question 10

G:What happened to Coke in 1886?

Answer 10

The country passed a legislation prohibiting an alcoholic version
Pemberton responded developing ‘Coca-Cola’ (non-alcoholic version)

Question 11

G: Where was Coca-Cola first sold to the public?

Answer 11

Jacob’s Pharmacy
- Atalanta, 8th May 1886

Question 12

G: what were the original claims of Coke?

Answer 12

PEMBERTON claimed it cured diseases such as:
- morphine addiction
- headache
- impotence

Question 13

G: What happened in 1891 + 1894

Answer 13

First bottled Vicksburg, Mississippi 1891
Sold in bottles for the first time 1894

Question 14

G: What happened in 1955?

Answer 14

First coke cans

Question 15

G: What happened when cop[yright started to occur?

Answer 15

Advertising focused on the authenticity of Coca-Cola urging consumers to:
“Demand the genuine”
“Accept no substitute”

Question 16

G: What happened in 1892?

Answer 16

Named “The Coca-Cola Company”

Question 17

G: By 1900 which countries did The Coca-Cola company situate?

Answer 17

Canada
Panama
Cuba
Puerto Rico
France
Etc

Question 18

G: How did the no. of bottlers change?

Answer 18

1900 - 2 bottlers of Coca-Cola
1928 - 1,000

Question 19

G: When did Coca-Cola expand overseas?

Answer 19

1923

Question 20

G: What happened to Coke in 1928?

Answer 20

Coca-Cola was introduced to the Olympic Games, travelling with US to 1928 Amsterdam Olympics

Question 21

G: How did Coke contribute in WW2?

Answer 21

• Business remained steady
  BUT
• offered Coca-Cola to any troops for 5 cents

Question 22

G: What happened after WW2 to Coke?

Answer 22

From the mid 1940s until 1960s the no of countries with bottling operations nearly doubled

Question 23

G: When did Coca-Cola expand their flavours?

Answer 23

After 70 years of success:
Fanta developed 1940, introduced 1950
Sprite 1960
Minute Maid Company (juices) 1960

Question 24

G: Where did Coke further expand too?

Answer 24

Cambodia
Montserrat
Paraguay
Macau
Turkey
Etc

Question 25

G: How did Coke continue to grow in the 1990s?

Answer 25

Their association with sports strengthened with ongoing support of the Olympic Games, FIFA, Rugby World Cup + the official soft drink of NASCAR racing

Question 26

P: What did The company aim for during 1920s and 30s?

Answer 26

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

Question 27

P: Where was Coke being bottled at time of WW2?

Answer 27

44 countries

Question 28

P: What did Coke do after the fall of the Berlin Wall?

Answer 28

Invested heavily into plants in Eastern Europe More than $1.5bn committed to new bottling facilities in Africa

Question 29

P: How does Coke work with subcontractors?

Answer 29

Don’t always own their factories, subcontracting out to pre-existing bottling companies to save money

Question 30

P: What populations does Coke have access too?

Answer 30

India (large earning) - By manufacturing goods closer to intended market they save money on transportation costs

Question 31

P: How do Cokes bottles operate?

Answer 31

• 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.

Question 32

P: Describe bottles distribution

Answer 32

- Bottlers are in charge of distributing the products to the retailers. - Retailers sell the bottled products to the public to buy.

Question 33

R+D: How do Coke describe their R+D?

Answer 33

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.”

Question 34

R+D: How has R+D expanded?

Answer 34

“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.”

Question 35

Global Marketing

Answer 35

A process of promoting and selling products and services

Question 36

What does global marketing include?

Answer 36

a whole process of planning, producing, placing, and promoting a country’s products in a worldwide market

Question 37

Big Mac in global marketing

Answer 37

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

Question 38

What advertising approach does Coke use?

Answer 38

Standardised advertising approach but adapts for local culture

Question 39

Hit me with 2 coke stats pops!!

Answer 39

- 2011 - avg person consumed 92 cans - Mexico drinks 20x more than India

Question 40

Where and when was the water pollution problem?

Answer 40

Kerala, South India, 2004

Question 41

What happened to the well in Kerela/

Answer 41

Villager’s well ran dry and available water turned toxic after a coke factory opened

Question 42

How much were damages in Kerela?

Answer 42

Around $30 mil

Question 43

What did the villagers do in Kerela?

Answer 43

In 2002 they protested outside the factory which was eventually shut down in 2004

Question 44

Working conditions at coke

Answer 44

Long hours with little pay

Question 45

What does franchise operation mean for local bottlers?

Answer 45

They profit from the sale supporting the economy indirectly and directly

Question 46

What did coke set up to help obesity and how much was spent?

Answer 46

. $4.86 million spent . European Hydration Institute set up

Question 47

How much was invested into expanding markets like Africa?

Answer 47

$90 million

Question 48

How many more times did coke contain pesticide above the recommended level?

Answer 48

30x

Question 49

How many females have been empowered by coke?

Answer 49

5 million

Question 50

Where are the majority of coke’s profits returned to?

Answer 50

Shareholders in the USA

Question 51

What was Coke’s marketing strategy?

Answer 51

. One brand . Taste the Feeling campaign

Question 52

What is meant by a one-brand strategy?

Answer 52

. Brings together four product variants like Diet Coke . Will provide more health choices

Question 53

How many ads were launched in 2010 and what was the aim of them?

Answer 53

. 10 ads . Glimpse into intimate experience of drinking coke

Question 54

Role of GIFs in taste the feeling

Answer 54

. Boost viral share ability . Personalise the scene

Question 55

Why was Coke inspired by Disney?

Answer 55

. Stay true to brand values . Avoid erratic behavior . Stay consistent

Question 56

What is Coke’s net worth?

Answer 56

$235 billion