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Australia Edition 1

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THE MARKET The

THE MARKET The 1mportance of the soft dnnk market can never be underest1mated. Not only is it huge now. but it still has enormous potential to grow Adults today grew up With soft dnnks. For them, a soft drink 1as become as common a form or liquid refreshment as a traditional hot beverage The same applies. to an even larger extent. With the chtldren of today, \'Vho are growing up 1n a sort drink culture and consequently have greater expectations from an increas1ngly sophisticated market. At present, carbonates make up over half of the soft drinks market. with cola flavoured carbo'l£\tes account1ng for a large portion of the carb.Jnates sector. The Australian soft dnnk market is currently worth around$ 1 billion in food stores alone. Coca-Coltl holds a mass1ve 65% share of the Australian market ACHIEVEMENTS Ou1te stmply, Coca-Cola is the most valuable and powertul brand in the world. tlS borne out by the annLial valuation of the World's Top Brand Names in Rnanc1al Review (August 1994). Coca·Cofa sells nearly half of all soft dnnks consumed throughout tro world. In 1996. Coca-Co!a t)eld an enormous 48% share oi the worldwide soft drink industry. In so many countries. tne Coca-Cola drink 1s tne market leader. often taking second place in the rankings with its dtet formula or w th Fnnta. the company's orange carbonated flavour. How does Coca-Cola achieve and maintain this position of pre-em1nence? Rrst and foremost, Coca-Cola is the best recognised commercial trademark in the wor1d today. Three independent surveys conducted by Landor Associates in 1988 confirmed this. In response, a business maga~.ine in the US stated "Coca-Cola is so povveriul it's practically off the charts''. T11e company has pursued a w1n111ng policy. ensunng Coca-ColA ubiquity, with powerful global advertis:ng and a well-organised. ~~~~!C;r- all pervas1ve distnbulion system Tl11s strategy is based on the company's belief that every day, every single one of the 5.6 billion people who populate this planet is going to get thirsty. and the onus is on Coca-Cola to ensure that 11 IS available to sansfy this need The dedication of Coca-Cola sellers around the wor1d is qu1te remarkable and bears test1mony to the company's determination to proVIde "a pause for refreshment" at any 11me. anywhere. A ftne example is the lather and son team. travelling 7000 kilome· tres a week through some of the world's toughest terrain, the Australian Outbnck. to deliver Coca-Cola products to 1solated pockets of civilization dotted throughout the wlidemess. Or the 73-year old Filippino man who refuses to budge from l1is selling post 1n his local town market until he has managed to sell at least 50 cases of Coke every day. The distnbutors are supplied by a comprehensive network of bOttlers peppered across the globe. who ensure Coca-Cola ma1nta1ns a world·w1de presence. In fact. Coca-Cola's bottling system IS the largest. most w despread produchon and d1stlibut1on network in tho world As a consequence. COCB·Cola has been able to take lull advantage. establiShing a tirm foothold 1n new and emergtng rnarkets. TO(.Iay. you can buy a Coke from BeiJtng to Delhi, from Moscow to Mex1co Oty. However. Coca-Cola has not stopood at being the best -selling soft dnnk the world has ever known. By virtue of its singularly powerful brand personality, Coca-Cola has become a veh1cle for promotion in its own nght and is the backdrop to a number oi highly successful artiStiC and sporting events -The Olympics included. In addition. Coca·Cota rrerchandise is Widespread and tashionable. HISTORY The syrup that was to become Coca-cora. was first manufactured in 1886 in a three legged brass pot 1n the backyard of Dr John Styth Pemberton, a pharmaCISt in AtlaPta, Georgia. Dr Pemberton took hts new product to a local pharmacy where it was considered good enough to be sold at 5 cents a glass. Somehow. the ~;yrup got 1tsetf mtxed with carbonated water, resulting in a drink pronounced as "Dehctous and Refreshing·. This became a popular slogan associated with Coca-Cola. the name dreamt up by Pemberton's partner Frank M RobuiSOn. Desp1te some rninCY advert1s1ng - Including the first shop signs declaring - "Onnk Coca-Cola' - Pemberton never realised the potential of h1s creation. Before his death in 1888, he sold his interest in Coca-Cola to a wised-up Atlantan bus1ness mnn Asa G Candler. who soon asstnl"led complete control. He ltnally ach1eved sole ownershrp in 1891 Candler was a confirmed believer 1n the power of advertising I ie fervently plunged 1nto the word of mass-merchandising. ensuring the Coca Cola trademark was dep1cted on countless novelty products sudl as fans. calel"dars. clocks, ornate leaded glass chBJ ldeliers and ums. He distributed thousands of coupons offering a tree glass or coke. Colourful s1gns promoting the brand were displayed on trolley cars and in shop w1ndows. Hts efforts were well-rewarded. Just three years after the officialrncorporatron of The Coca-Cola Company tn 18g2, Candler was proud to announce that Coca-Cola was now drunk "in every state and territory 1n the United States". A major leap consrderlng that in 1ts hrst year on the market, Coca-Cola hac! sofd on average a mere n1ne dnnks per day. Expans1on was so impressive that in 1898, a new headquarters was housed 1n a large building in Atlanta. Candler na'Vely descnbed the lhree·storey building as "suHtcient for all our needs lor all tme to come··. Needless to say, the building was too small after just a decade. Marketing concentrated on the pressing need to vanqu1sh pale imitations of the rncreas1ngly famous Coca-Cola brand - conversely. a SIQn of tiS success. Advert1sing boards declared the stem warning "Demand the genuine· and "Accept no substl!utes··. Equal in importance to the marketing of Coca-Cola however. was the question or d1stribut1on. Tlie orig1n or today's vast Coca-Cola bottling system stems from 18g4 when a focal shopkeepel installed a bottling device at !he rear of h1s store and pro· 36

ceeded to trade crates of Coke up and down the MiSSISSippi R1ver. The first rnaJOr bottling plant was 1naugurated soonaftl;)l. Coca-Cola made great stndes under the guidance of Robert Woodruff who was elected president 111 1923. Woooi1.Jff instilled some or the ma1n tenets ot Coca ·Cola's quality and Jnternalion· alism into tho corporate thinking. He tnS1Sied on a high standard ol product. packaging and service and tocused on the 1mportance of the bottled 'llarkel As a result. bottle sales soon exceeded tounl

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