Coca-Cola: Rise Of The $74 Billion Brand

After Nike, Coca-Cola is the second most valuable American brand with a broad consumer base worldwide. Its headquarters are situated in Atlanta city, and it specializes in the retailing, manufacturing, and selling of non-alcoholic beverages. No other beverage brand in the world has such a broad reach as Coca-Cola, which goes back to the 1800s for its inception and is even more legendary than Nike in that respect.

It was the creation of the pharmacist, Dr. John Pemberton, in 1886 and has remained strong to date in the twenty-first century. The tale of the rise of the $74 billion brand Coca-Cola is historical.

The Creator of Coca-Cola – John Pemberton

RELATED: 4 Ways Red Bull Made Billions From Nothing

John Pemberton was born in Knoxville in 1831 and went to fight in the Civil War when he was hardly nineteen. He suffered what should have been a mortal wound and was medicated with morphine to ease the last few minutes of pain. Miraculously, John survived the blow and recovered. He knew at that point in his life that this remarkable recovery had some unfulfilled purpose.

John got back on his feet and opened his own pharmaceutical company, but he became a morphine addict in the process of healing from his war scar. He sought herbal remedies to get rid of the addiction before it was too late, and in the process, he came across a drink called Vin Mariani, which had Coca leaves and red wine in it. This drink gave him the idea to make his own.

The Making of Coca-Cola

A post shared by Coca-Cola (@cocacola)

John prepared a drink using cola nuts, leaves, and red wine to determine if it helped him with morphine addiction. This is how Coca-Cola came into existence, but in the beginning, John called it Pemberton’s French Wine Coca. Eventually, Coca-Cola was made available to the public by May of 1886. John wanted his new drink’s distribution to be open to war veterans as theories suggested that it could cure addiction and anxiety, and depression.

He prepared the drink in his lab and made it available to his sellers. It sold pretty well in Atlanta. However, when alcohol was banned in the USA, John changed its formula to ensure that it remained a hit in the city. He removed the wine content and replaced the cola nuts with synthetic caffeine to make the drink less bitter. He also added sugar, vanilla, and citric acid to reach the right flavor.

Frank Robinson was John’s bookkeeper at that time. He suggested that he change the beverage’s name from Pemberton’s French Wine Coca to Coca-Cola as now it was a non-alcoholic drink.

The Rising Sales of Coca-Cola

A post shared by Coca-Cola (@cocacola)

The renewed drink of Coca-Cola did not sell well at first. Frank Robinson had become like a business partner to John by this time. While John was crestfallen by this disaster, Frank remained hopeful. Frank suggested to John that they had to improve the marketing strategies to make this drink a hit all over again. John was skeptical, but Frank was successful at convincing him.

The advertising of the product began with banners, billboards, and buses. People started noticing, and it started selling well once again. At this point, John got bedridden with a lately diagnosed stomach cancer and, in some time, relapsed to his morphine addiction. But John was too cautious about losing Coca-Cola and its potential to become a national drink one day. Thus, he made the brave decision of selling shares of the company.

Asa Candler became one of the shareholders and investors and played an essential role in expanding the sales of Coca-Cola to grocery stores and Pharmacies. He established the status of Coca-Cola as a fountain drink when he started handing out coupons that could be redeemed by having a glass of Coca-Cola at soda fountains. The publicity stunt increased Coca-Cola’s popularity exceedingly.

When John passed and his son Charles succumbed to morphine addiction, Asa took complete charge and founded the Coca-Cola Company. He did everything to expand the sales to America and Canada. However, expanding to European nations like Germany had some obstacles.

Fortunately enough, Coca-Cola added to its success story when Asa Candler met Joseph Whitehead and Benjamin Thomas. They proposed that Coca-Cola should try its luck as a botted beverage that people could take home. Asa was not sure at first, but he had nothing to lose, so he went with the flow.

The Excellent Branding Strategy

A post shared by Coca-Cola (@cocacola)

The bottle campaigning of Coca-Cola made it a massive success all over the world. To this day, the Coca-Cola Company carries on John Pemberton’s legacy in developing extraordinary marketing strategies.

To combat competitor brands producing similar-looking beverages in the same kind of packaging, Coca-Cola developed its contoured bottle structure that is a hit even in 2021. The brand’s attractive logo and the font were chosen by Frank Robinson back in the 1880s. The vibrant red color is undoubtedly bound to attract attention. The company makes sure that the beverage has a public engagement in all seasons by getting featured at FIFA and SUPERBOWL.

Another reason for its high sales was the frozen rates that existed from 1886 to 1959. Despite its high quality, the prices were not increased with increasing demand, and once Coca-Cola got well established, the founders knew that biting could stop them now. The net worth of Coca-Cola in 2021 is calculated to be around $200 billion.

READ NEXT: From Megabytes To Mega-Bucks: The Story of Dell

Source: Hook, Medium.com, BusinessInsider, Coca-cola Company.com

Source: Read Full Article