INTRODUCTION

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to licensed CocaCola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and western Europe. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke CaffeineFree, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special versions with lemon, lime or coffee. Based on Interbrand's best global brand 2011, Coca-Cola was the world's most valuable brand.

History

19th century historical origins

Coca-Cola founders Asa G. Candler and Dr. John S. Pemberton are seen together at Asa G. Candler & Co. pharmacy, 47 Peachtree St., Atlanta in the only extant albumen photograph from 1888. Also shown is the biography of Candler written by his son, Charles Howard Candler.

Old German Coca-Cola bottle opener

Believed to be the first coupon ever, this ticket for a free glass of CocaCola was first distributed in 1888 to help promote the drink. By 1913, the company had redeemed 8.5 million tickets.[3]

This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden, Louisiana. The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a drugstore in Columbus, Georgia, by John Pemberton, originally as a coca wine called Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a European coca wine. In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a nonalcoholic version of French Wine Coca The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health. Pemberton claimed CocaCola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal.

By 1888, three versions of Coca-Cola sold by three separate businesses were on the market. A copartnership had been formed on January 14, 1888 between Pemberton and four Atlanta businessmen: J.C. Mayfield, A.O. Murphey; C.O. Mullahy and E.H. Bloodworth. Not codified by any signed document, a verbal statement given by Asa Candler years later asserted under testimony that he had acquired a stake in Pemberton's company as early as 1887. Asa Candler, however, eventually took on a more formal position by being part of the Coca-Cola Company incorporation filed in the Fulton County Superior Court on March 24, 1888. This action included Charley Pemberton and Woolfolk Walker, along with the latter's sister, Margaret Dozier. The four made up the original shareholders for "Coca-Cola Company," a Georgia corporation. All parties held copies of the CocaCola recipe and could continue to use the formula separate of each other. Pemberton, though, had declared that the name "Coca-Cola" belonged solely to his son Charley. The situation was quite agitating to both Candler and Walker, and quickly placed the two at odds with Charley Pemberton. What further caused friction over this issue was that John Pemberton variously forgot he had actually signed over the sole rights to the "Coca-Cola" name to his son Charley earlier. Pemberton's ongoing health problems, compounded by his morphine addiction brought about from his old Civil War injury, made the situation difficult.

Use of stimulants in formula

When launched, Coca-Cola's two key ingredients were cocaine and caffeine. The cocaine was derived from the coca leaf and the caffeine from kola nut, leading to the name Coca-Cola (the "K" in Kola was replaced with a "C" for marketing purposes).

Coca cocaine
Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose; in 1891, Candler claimed his formula (altered extensively from Pemberton's original) contained only a tenth of this amount. Coca-Cola once contained an estimated nine milligrams of cocaine per glass. In 1903, it was removed. After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves the leftovers of the cocaine-extraction process with trace levels of cocaine. Coca-Cola now uses a cocaine-free coca leaf extract prepared at a Stepan Company plant in Maywood, New Jersey. In the United States, the Stepan Company is the only manufacturing plant authorized by the Federal Government to import and process the coca plant,[42 which it obtains mainly from Peru and, to a lesser extent, Bolivia. Besides producing the coca flavoring agent for Coca-Cola, the Stepan Company extracts cocaine from the coca leaves, which it sells to Mallinckrodt, a St. Louis, Missouri, pharmaceutical manufacturer that is the only company in the United States licensed to purify cocaine for medicinal use

Kola nuts caffeine

Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for example, the ingredient label states "Flavourings (Including Caffeine)." Kola nuts contain about 2.0 to 3.5% caffeine, are of bitter flavor and are commonly used in cola soft drinks. In 1911, the U.S. government initiated United States v. Forty Barrels and Twenty Kegs of Coca-Cola, hoping to force Coca-Cola to remove caffeine from its formula. The case was decided in favor of Coca-Cola. Subsequently, in 1912, the U.S. Pure Food and Drug Act was amended, adding caffeine to the list of "habit-forming" and "deleterious" substances which must be listed on a product's label.

Coca-Cola contains 34 mg of caffeine per 12 fluid ounces (9.8 mg per 100 ml).

Production
Ingredients

Carbonated water Sugar (sucrose or high-fructose corn syrup depending on country of origin) Caffeine Phosphoric acid Caramel color (E150d) Natural flavoringsA can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar, approximately 10 teaspoons 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories

Formula of natural flavorings

The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world, who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. The Coca-Cola Company owns minority shares in some of its largest franchises, such as Coca-Cola Enterprises, Coca-Cola Amatil, CocaCola Hellenic Bottling Company and Coca-Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in the world. Independent bottlers are allowed to sweeten the drink according to local tastes.

The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling Company".

Acquisitions
The company has a long history of acquisitions. Coca-Cola acquired Minute Maid in 1960, the Indian cola brand Thums Up in 1993, and Barq's in 1995. In 2001, it acquired the Odwalla brand of fruit juices, smoothies and bars for $181 million. In 2007, it acquired Fuze Beverage from founder Lance Collins and Castanea Partners for an estimated $250 million. The company's 2009 bid to buy a Chinese juice maker ended when China rejected its $2.4 billion bid for the Huiyuan Juice Group on the grounds that it would be a virtual monopoly. Nationalism was also thought to be a reason for aborting the deal. In 1982 Coca-Cola made its only non-beverage acquisition, when it purchased Columbia Pictures for $692 million. It sold the movie studio to Sony for $1.5 billion in 1989.

Revenue
According to the 2005 Annual Report, the company sells beverage products in more than 200countries. The report further states that of the more than 50 billion beverage servings of all types consumed worldwide every day, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion (the latest figure in 2010 shows that now they serve 1.6 billion drinks every day). Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78% of the company's total gallon sales. Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:

42% in the United States

37% in Mexico, India, Brazil, Japan and the People's Republic of China 20% spread throughout the rest of the world

In 2010 it was announced that Coca-Cola had become the first brand to top 1 billion in annual UK grocery sales.

Lobbying
In the U.S., Coca-Cola is a major lobbying force working to gain favorable legislation for the beverage industry. In both 2005 and 2006, it spent $1 million each year on lobbying. In 2007 that increased to $1.7 million, and by 2008, to $2.5 million. In 2009, total lobbying expenses jumped to $4.5 million, or nearly double the previous year. Much of the increased lobbying expenses are due to the industrys fight against increased taxes on soft drinks and other sweetened beverages.] For 2009, Coca-Cola has 38 lobbyists at 7 different firms lobbying on its behalf.

Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

4Ps OF MARKETING MIX

1. 2.

Products
Embracing the concept that libraries offer products to customers is initially difficult. But once you make the leap, a stroll through the library with pad and pencil will show you a plethora of its products. Let us start at the front door of a public library and identify products for a target market, children under age 12. Remember, a product can be a good, service, idea, place, or even person. Upon entering the library, the program room is on the immediate left, and is full of children who are watching a puppet show. The puppet show program is a product (in this case the product is a service). Moving along and up several doors to the right is the children's room. Shelves are filled with products (goods) such as picture books, magazines, audio-books, and videos. Banking the walls are four computers that are designated for juveniles only. The products here include computer access (a service), an online dictionary, online spelling and math programs, and educational games (which are goods). The children's librarian is stationed behind her desk, and serves as a guide to services and materials. The product is the service she

3. 4.

5.

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7. 8.

is providing. She is specially trained for this position. The community is aware of the expertise of the children's librarian and her staff. In this case, the product is a person. Large posters line the wall with the bold letters "R-E-A-D," or the faces of the Cat in the Hat and other children's favorites. The posters are promoting children coming into the library (and the product is now a place). The children are coming to read. The product is the whole concept, which is an important idea. All of the above represent the library's product line for children. The library offers each targeted customer group a product line. Why is this a useful concept? Because there is so much expense associated with providing the products. Each product must be reviewed over the life cycle for its ultimate ability to satisfy customer wants and needs. The whole of the library's product lines represents the product mix. For example, the range of materials and services for adults, outreach, programming, Internet and email access, reference, and so on is the library's product mix.

2.Price
he price can be measured in nickels and time, not dimes (alone). Price is what people give up to obtain a product. That price may be "dimes," which we all understand, but alternately it may be time, or anything else of value to the other person. Consider long ago when people simply traded with each other. Perhaps they would farm a plot of land so their family could grow their own food, or trade intricate shells for handhewn tools. In today's world, someone who owns a beach house may give away a weekend in exchange for the recipient painting the walls of two rooms. And in today's world, time is a commodity that is valued. For marketing librarians, it is critical that we understand this broader concept of price, and from the user's perspective. To a user, the price is her costs for procuring the good. Let us go back to the library and identify possible user costs associated with the puppet show targeted to children under 12.

From the library's perspective, the puppet show costs staff time, materials, and space in the program room. But from the user's perspective, the costs may include any or all of these factors: 1. Time and transportation are required to bring the child to the puppet show. 2. Parent is aggravated by limited parking. 3. The time of day is inconvenient for the parent. 4. Too much noise during the show reduces the value. 5. Parent is required to attend with the child. 6. The room is small and too crowded. Reviewing each product in this manner provides strategic knowledge to the librarians about what might prevent a potential customer from attending the puppet show, or about why its attendance figures are low.

3.Place
In my first MLS column 2 years ago, "Stores and Libraries: Both Serve Customers" (vol. 16, no. 1, Jan./Feb. 2002), I illustrated the point that libraries are traveled-to entities just like retail stores. And just like retail stores, your optimal location affects sales or usage due to factors such as distance between facilities, topographical barriers, and population characteristics. People choose whether or not to travel for products. This is where the above price factor "cost of travel time" enters into a partnership with place. Hours of access (facility and online availability) also affect travel to a place. Libraries' product mixes range from children's materials to meeting room space to Internet access and virtual reference services. The last one

would be considered a specialty good, with a narrow and deep inventory. Retailers know that people will travel a greater distance for a specialty good, or spend more time acquiring it. Also, libraries carry convenience goodsthings you run in and out foras do typical quick-stop stores. Stores offer milk and snacks and newspapers. Libraries offer the latter, along with ILL delivery and videos. Unlike convenience stores, though, libraries are not usually located close to all users homes. The library is bound by place for many of its goods, and cannot accommodate all consumers' information access needs and travel habits. So what is the solution? The key word is convenience. In order to overcome our lack of flexibility to provide the optimal location for our many product lines and broad product mix, we must act on those aspects of location that we can control, or at least affect. In short, librarians must strive to make their products or services available to the target markets with the most convenience possible. The puppet show can illustrate: 1. The show could be offered at other locations by a bookmobile or by sending staff off-site to schools, day-care facilities, or housing centers. 2. The puppet show could be offered at various times in order to accommodate the different schedules of parents and caregivers. 3. You could produce a video of the puppet show for check-out. Children love familiarity and would enjoy seeing their favorite librarian in a television-like format. 4. A take-home, cut-it-out-yourself version of the puppet show characters could be available from the children's librarian. The key concept is to consider "place" from the users' point of view. You need to increase customer convenience despite the fact that libraries exist in only a few locations. Offering online access to catalogs and reference are two ways that libraries are striving to do this today.

4.Promotion
In the old days, before Library Literature was online, the first exercise in my marketing class was for students to find "marketing" in the multivolume index. They would all pile down the stairs to the library school's library and dig through mountains of printed pages. Lo and behold, they'd find "marketing" under "publicity." Herein lies a problem, because that's like indexing "body" under "pinky finger." Marketing is a tried-and-true systematic process that includes marketing research, segmentation, and then development of the marketing mix strategy, which includes promotion. (The final step is marketing evaluation which will be the subject of my next column in the May/June issue.) There is one essential point that we all need to remember when planning programs and marketing: We must identify whether anyone wants or needs our intended product before we promote it! We have traditionally leaped to develop and publicize services before asking, "Does anyone want or need this?" And, we fail to ask when potential patrons need the product, what costs would be too high to pay, and where they would want to pick it up. We are not the only field that falls in love with its own ideas, then implements and promotes same without customer research. For instance, remember New Coke? The story of its creation and failure is permanently ingrained in marketing research history. The Coca-Cola Co. created New Coke without identifying customer desire for a change. New Coke was developed by management in response to Pepsi's growing market share. Ultimately, poor sales signified that no one wanted a new version; drinkers preferred the old, and New Coke faded. And while failure for libraries is not counted in the millions of dollars, it can add up to loss of valuable staff time and other resources.

Bibliography WWW.GOOGLE.COM WWW.COCA COLA.COM WWW.MARKETING MIX.COM