🥤Coca Cola🥤 (11)

Coca Cola

= arguably one of the biggest brands in the world

global product with a powerful brand
- 1.9B serving of Coca Cola products consumed every day

- sold in 200 countries
- generates $45B a year
- 2nd most recognised word in world after "ok"

Coca Cola Products

costa, coke, Diet Coke, fanta, sprite, dasani

facts about Coca Cola

founded in 1892 Atlanta Georgia

- 32 million cases in 2022

- sold 32.7 billion cases in total

- $4.3 billion advertising spend

- 82,500 employees in 2022
... 9000 = US, 73,500 = international

- 3,900 products sold world-wide

- red and white logo recognised by 94% of people in world

- plastic waste audit named it "the most polluting brand in the world"

- first Olympic sponsor in 1928

- around 10,000 coke products consumed every second

- 64 plants overseas in 1929, now over 300 plants
... 1 job supplies 10 more jobs in local community
(multiplier effect)

marketing initiatives

= franchising
(when a company grants permission to individual groups licensing them to carry out commercial activity under their brand name)

= trade mark name/ brand trademark

expansion

· From 1980's onwards, started to tap into previously hostile or isolated markets that hadn't already been tapped into, low economical areas with history of conflicts

· Started to trade with countries that had good relationships with US meaning that trade and transport were easier

· In WW2 started to cooperate with US army to sell coke to soldiers at affordable prices

· First Olympic sponsor in 1928

· Later became sponsors for FIFA, Nascar, Tour de France

· Provided relief for UN AIDS initiatives, 9/11 terror attack, earthquake relief in Haiti, etc.

standardisation of product

Use a standardised product where they create a huge batch of coke, then ship it to global contractors who tailor the packaging, advertising, and sometimes even the taste to the likes and dislikes of the population

= consistent marketing theme across all their sales and distribution outlets

...may be modified so that it doesn't conflict with markets customs, politics, or current events

(Coke can terminate their contracts with contractors at any time, so if there are any bad relations with the US, coke can prevent the distribution of the products immediately)

positives of Coca Cola: social

1. 5by20 initiative
= enables the economic empowerment of 5 million women by 2020

2. awards grants to companies throughout the world
... particularly in LICs

3. massive employment opportunities north directly and indirectly related to industries

4. Provided relief for UN AIDS initiatives, 9/11 terror attack, earthquake relief in Haiti, etc.

positives of Coca Cola: economic

1. franchise operation means that many local bottlers profit from sale, supporting local economy directly and indirectly

2. investment in new markets drives economic growth
($2B investment in india in 19 years)

3. investment in new plants in expanding markets
e.g., asia, North America
($90M R&D centre in Shanghai)

4. multiplier effect 1 job supplies 10 more jobs in local community
(multiplier effect)

5. 73,500 employees = international

positives of Coca Cola: environmental

1. Introduced the first ever plant recyclable PET plastic beverage bottle made 30% from plants

2. Partnership with WWF to address challenges for freshwater conservation

3. Initiated sustainable agricultural schemes
(e.g., constructing rainwater harvesting system at tea suppliers in China)

4. Replenishes the water it uses
(e.g., funds local projects to protect watersheds)

5. Use marketing network to increase awareness of recycling and distribution network for disaster relief

negatives of Coca Cola: environmental

1. Exhaustion of local water supplies
... 2012, Coca-Cola used 2.1 litres of water per litre of coke

2. Water pollution (e.g., Kerala, India, 2004)

3. Pesticide residue identified in some Coca-Cola products
... e.g., Centre for Science and Environment found that coke contained 30 times the amount of pesticide residue considered acceptable by the EU

4. Plastic Waste Audit named Coca-Cola the "most polluting brand in the world"

negatives of Coca Cola: economic

1. long hours for little pay
... poor working conditions in some plants

2. majority of profits are returned to shareholders in the USA

3. vulnerability of bottling plants to the effects of top down decision making at remote HQs in Atlanta
... have no influence over production or wages

negatives of Coca Cola: social

1. harsh working conditions in some bottling plants

2. millions spent countering the links to obesity

3. workers encouraged to abandon union memberships in LDEs
(guatemala 2010)

4. concerns about involvement with corrupt/anti governmental groups to maximise profits
e.g., accused of hiring hitmen from paramilitary group in Colombia to kill 10 trade union members