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Thursday, September 24, 2020

Strategies that helped Coca Cola lead in the business of soft drinks

Coca-cola is the largest beverage company with an established market in 200 nations. It was founded in the year 1886 when the curiosity of an Atlanta pharmacist, Dr. John S. Pemberton led him to make a unique tasting soft drink that could be offered at soda fountains. It was then sold to American Businessman- Asa Griggs Candler in 1889 who further advertised and sold it to the general public as a beverage. However, not only the taste of drink that made this company a giant but usage of certain strategies by Coca-cola made them a leader in the soft drinks industry.

Image Source: Slideshare

Coca- Cola has a wide range of products in various sizes. It follows a 2nd-degree price discrimination strategy. The company has an oligopoly market and also offers discounts on bulk purchases. Initially, it offered various free products and charged low to capture the market and increased the price gradually in the later period.

The price of its products remains the same for almost 70 years. In the US, the cost of one bottle was 5 cents from 1886 to 1959. With an established market globally it continued to sell its product to wholesalers, retailers, and also to the chain of hotels and restaurants. They also collected the used glass bottles from the retailers and reused it to save costs and resources.

Coca-Cola has an aggressive marketing strategy. It campaigns using tv, advertisements, print media, sponsorships to American Idol, FIFA, Olympics, and many more. They also promote their brand by giving hoarding and customized refrigerators. The firm is also involved in many CSR activities.

Unique secret formula and taste

The company might have many competitors but none of the rivals can satisfy the taste of loyal customers. The beverages Coca- Cola has a unique taste and its recipe is still locked in a vault in Atlanta.

Portfolio of products for every taste niche

The brand produces, sells, and distributes a range of non-alcoholic drinks including juices, water, and snacks; as well as distribute a portfolio of premium spirits. Their broad portfolio includes globally known brands such as Coca‑Cola, Coca‑Cola Light (Diet Coke), Coca‑Cola Zero, Fanta and Sprite, as well as Powerade, Illy Issimo, and the beverage mixer Schweppes. They developed their brands in Greece – including Amita, Amita Motion, Amita Proino, Frulite, and AVRA Natural Mineral Water and distribute other products such as Tsakiris snacks, Monster energy drinks, and Lavazza coffee.

 Franchise model in bottling

Coca-cola is a system of 275 small independent companies. In 1894, Mississippi entrepreneur Joseph Biedenharn installed bottling machinery behind his soda fountain store to make Coca-Cola transportable. After few years entrepreneurs in Tennessee bought the sole rights to bottle and sell Coca-Cola for $1. The number of Coca-Cola bottlers soon exploded to over 1,000 plants. In 1916, Coca-Cola bottlers agreed to the famous contour design bottle that remains iconic today. As of November 2015, the company had over 900 bottling and manufacturing facilities located around the globe.

Various bottling sizes and varieties

The company offers various sizes in the bottle so that the customers can buy according to their needs. It offers various products according to the customers’ demand which includes:

Image Source: Coco-Cola Website


  • 7.5 oz – 25g of sugar and 90 calories
  • 8 oz – 26g of sugar and 100 calories
  • 8.5 oz – 28g of sugar and 100 calories
  • 12 oz – 39g of sugar and 140 calories
  • 16 oz – 52g of sugar and 190 calories
  • 20 oz – 65g of sugar and 240 calories

They offer more than 800 beverages in the U.S. and of these, 250 are reduced or no-sugar.

 The classic front logo shows the timelessness

The CEO of the company decided back then to make its product stand out from the rivals by writing the logo in the Spencerian script. In 1923, the brand standardized its logo and decided to keep it flexible with the changing time keeping the original one untouched. Even today the logo of the brand remains imprinted in the mind of people around the globe.

Image Source: Slideshare

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