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The history of coca cola
Historical background of coca cola
Historical background of coca cola
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Introduction: History of Coca-Cola (Coke): Coca-Cola was formulated by John S.Pemberton, originally as a cocawine called Pemberton's French Wine Coca, and originally sold as a patent medicine for five cents a glass at soda fountains, which were popular in America due to a contemporary view that soda water was good for your health. Coca-Cola is the trademarked name, registered in 1893, for a popular soft drink sold in stores, restaurants and vending machines around the world. History of Pepsi: Caleb Bradham, a New Bern, North Carolina pharmacist, renamed "Brad's Drink," a carbonated soft drink he had created to serve his drugstore's fountain customers. The new name, Pepsi-Cola, was first used on August 28, 13 years after Coca-Cola. In 1902 Bradham applied for a trademark to the U.S. Patent Office, issued stock and began selling Pepsi syrup. By 1923, Pepsi-Cola Company was declared bankrupt and its assets were sold to a North Carolina concern, Craven Holding Corporation, for $30,000. Roy C. Megargel, a Wall Street broker, bought the Pepsi trademark, business and goodwill from Craven Holding Corporation for $35,000, forming the Pepsi-Cola Corporation and in 1932 the trademark was registered in Argentina. The beginning of the Cola war: 1975 heralded the Pepsi Challenge', a landmark marketing strategy, which convinced millions of consumers that the taste of Pepsi was superior to Coke. Simultaneously, Pepsi Light, with a distinctive lemon taste, was introduced as an alternative to traditional diet colas. In 1983 Coke launched aspartame/saccharin blend Diet Coke. In response in 1989 Pepsi-Cola introduced an exciting new flavor, Wild Cherry Pepsi. Thus Diet Pepsi's 'The Other Challenge' campaign was based around a 54-46% lead over Diet Coke in independently researched taste tests in Australia. It was only in 1996 that Pepsi unveiled a revolutionary 'blue' look worldwide 'to transform the image and attitude' of one of the world's best-known brands. 'Pepsi Blue represents a quantum leap into the future and redefines how the Cola Wars will be fought and won in the 21st Century.' Purpose of the case study: Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
In 1885, John S. Pemberton, an American pharmacist, created the formula for what is now known as Coca-Cola. Being a pharmacist, Pemberton’s original intention was for this concoction to be used as medicine in order
Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.
John Pemberton (1830-1888) invented Coca-Cola on May 8th, 1886 in Atlanta, Georgia, USA. He had invented many syrups, medicines, and elixirs before, including a very popular drink called French Wine of Coca, which contained French Bordeux wine, cocaine, and caffeine (from the kola nut). When Atlanta banned alcohol consumption in 1885, Pemberton had to change the formula of his French Wine of Coca, omitting the French wine. He added sugar, citric acid and essential oils of many fruits to the drink, and the original Coca-Cola was created (named for its main ingredients, cocaine and the kola nut). It quickly became a very popular soda fountain drink. Pemberton became partners with Frank Robinson and David Roe, but the partnership soon quarreled. Pemberton sold his interest in Coca-Cola. Cocaine is no longer an ingredient of Coca-Cola, but caffeine, sugar, citric acid, and fruit oils remain (although the formula is a closely-guarded secret).
Since the mid 1980’s many of us have become familiar with the terms “the Cola Wars” (Wikipedia, 2010). Coca Cola and Pepsi have been the two largest soft drink competitors in the world for quite some time now. What makes these companies successful? What gives them the retention to prosper for years across the globe? For this project I analyzed the financial statements from 2003 through 2005 of both companies to gain insight as to these questions and others. By reviewing and then analyzing the data it becomes visible that these two companies are still standing strong in a market that is still dominated only by each other.
On August 28, 1898, Bradham renamed his drink “Pepsi-Cola." He believed the drink was more than refreshment but a “healthy” cola, aiding in digestion, getting its roots from the word dyspepsia, meaning indigestion.
For well over a century, both Coca-Cola and Pepsi have been battling it out for the top spot in the soft drink market. For the first 12 years after Coke’s creation, it reigned supreme, having no competition until Pepsi’s creation in 1898. As Pepsi was taking its first steps as a company, Coca-Cola was already selling a million gallons of Coke
In 1886 Coca-Cola was first formulated and in 1893 Pepsi-Cola was invented. It was during the time of the Great Depression when the competition between these two products truly began. Pepsi cut the price of its 12-oz bottle to 5 cents – which is what Coke was charging for their 6.5-oz bottle. During this time Pepsi competed directly with Coke and marketed to consumers that they were “twice as much for a nickel, too.” The most intense competition between the two CSD companies occurred during the years of 1975 - 1990s where Coke and Pepsi fought over the $66 billion industry.
Coke and Pepsi have been raging war for over a century now, turning their sodas into a multi-billion-dollar industry. Coke has been able to drive more earnings for its bottom line, and while Coke’s net income has been trending downward in recent years, it manages to stay ahead thanks to superior margins. Pepsi, on the other hand, has produced consistent net profit margins of around 10%, while Coke margins have been in the 15-18% range for the past several years (O’Brien). Every company has a Market Cap, which is basically a fancy way of saying how much the company is worth, and Coca-Cola’s market cap is a whopping $180 billion. Pepsi’s Market Cap is $150 billion, which may not seem like a big difference, but $30 billion is a lot of cheddar. Therefore, Coca-Cola owns 51% of the soft drink market, whereas Pepsi only owns 22% of it. Coke claims to own a total of 35 different brands, including Fanta, Sprite, Powerade, Vitaminwater, and many others. Pepsi owns 22 different brands, including 7up, Gatorade, and Mountain Dew “Coke (Coca-Cola) vs Pepsi - Soda
Pepsi-Cola was introduced during the new culture of consumption era (1880-1920). At this time a new consumer society emerged as goods that once had been affordable to a few became available to many. (Sivulka, 2012, p.42) The drink we know today as Pepsi was first created in 1898 by Caleb Bradham and was known as “Brad’s Drink” and the drink was sold at the drugstore he owned. It was later called Pepsi-Cola, after the digestive enzyme pepsin and kola nuts used in the recipe. Bradham’s goal was to create a fountain drink that tasted good and would help with digestion and boost energy. The first celebrity to endorse Pepsi-Cola was Barney Oldfield who was an automobile racer. Oldfield described the drink as a, “A bully drink...refreshing, invigorating, a fine bracer before a race.” In the early 1930s Pepsi-Cola hit rock bottom filing bankruptcy due to the Great Depression. Roy C. Megargel, who was a Wall Street broker, bought the Pepsi trademark, business and good will from Craven Holding Corporation for $35,000, and it was named the Pepsi-Cola Corporation (Pepsistore, n.d.).
Pepsi all started when Caleb Bradham started experimenting with spices and syrups to give his customers a new kind of drink. He first named his drink “Brad’s Drink,” but later decided to call it “Pepsi-Cola.” In 1902 he launched the business and applied to the U.S. Patent Office to receive a trademark. A very clever decision was made later to bottle Pepsi-Cola so that more people could enjoy his beverage. In 1910, Pepsi-Cola had twenty-four businesses in the America. Pepsi was becoming popular so fast, New Bern featured Pepsi-Cola on a postcard. The company was the first in the United States to change from horse transport to vehicle transport, which would make the delivering Pepsi much faster. In 1913, Greensboro Patriot gave Bradham much praise making more people interested in Pepsi. Famous race car driver Barney Oldfield, gave praise to the drink in newspaper ads. A slogan was then born “Drink Pepsi-Cola. It Will Satisfy You”.
Pepsi Company (PepsiCo) owns many brands of beverages, snacks and other foods. Its major product, Pepsi Cola, is one of the most popular carbonated beverages. Besides that, PepsiCo owns the brands Quaker Oats, Gatorade, Frito-Lay, Tropicana, Mountain Dew, Naked, Mirinda and SoBe. In order to maintain, or preferable expand, its market share, PepsiCo constantly introduced new products under its brands. This is a marketing strategy known as Product Development. By modifying the formulas and ingredients, PepsiCo had invented and marketed more than 50 types of carbonated beverages under the brand of Pepsi. To name a few, Pepsi Free introduced in 1982, Pepsi AM introduced in 1989, Pepsi Tropical introduced in 1994, Pepsi Blue introduced in 2003, Pepsi Edge introduce in 2004, Pepsi Lime introduced in 2005, and Pepsi Ice introduced in 2007. Some of the products survive and being accepted by consumers, however large number of the new formula Pepsi had failed and been removed from the market shelves in as short as 6 months.
Caleb Davis Bradham invented the recipe for Pepsi Cola in 1893. Mr. Bradham was born in Chinquapin, North Carolina, on May 27, 1867 (Trade Ideas Incorporated, 2009).
During the 1990s, PepsiCo launched new products and engineered a global re-branding campaign in an effort to grow sales volume; reinvigorate their stagnant brand; and to close the increasingly large sales and market share gap between itself and its primary competitor, Coca-Cola. In 1993, Pepsi jump-started its marketing efforts by adding two brands to its portfolio: Crystal Pepsi and Pepsi Max. Crystal Pepsi, which was initially offered in the United States, failed to earn the company more than 2 percent volume share. Pepsi Max, which was launched in the United Kingdom, proved more successful, but because one of its primary ingredients was an artificial sweetener not yet approved by the Food and Drug Administration, it wasn't brought to market in the United States.
Coca Cola is a soft drink that was invented in 1886. In 1916, the Coca Cola Company began manufacturing of its most famous bottle. In 1928, the company’s president led an expansion plan of Coke overseas when he introduced the soft drink to the Olympic games. In the 1960s, the company expanded with the introduction of new flavors, while in the 1980s, Coca Cola focused on innovation and change. As the company’s presence grew globally, Coca Cola found a home in countries around the world.
Coca-Cola started out small in Atlanta, once as a Candler started the Coca-Cola company he " begun an active and innovative marketing campaign that spurred the wide distribution of Coke across the United States." Once he had this going he had to strategically plan on how to bottle his soft drink and get it ready for shipping. Once the product was bottled he had to plan on how his product would be distributed. "In 1899 the Coca-Cola company first signed a bottling contract, As a Candler did not believe bottling would be successful and sold the bottling rights to Benjamin Thomas and Joseph Whitehead." They successfully bottled the Coca-Cola product. Now that bottling and shipping the product wasn't the issue, Coca-Cola was shipped throughout the Un...