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Australia Edition 3

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THE MARKET Adults today

THE MARKET Adults today grew up with soft drinks. For them, a soft drink has become as common a form of liquid refi"eshment as a traditional hot beverage. The same applies, to an even larger extent, with the youth of today, who are growing up in a soft drink culture and consequently have greater expectations from an increasingly sophisticated market place. Australian soft drink sales are currently worth around .6 billion dollars per year. Yet after 115 years, The Coca-Cola Company sees its flagship 'Coca-Cola' brand as being in its infancy, with enormous potential to grow in a market embracing the full range of beverage choices. ACHIEVEMENTS In so many countries, 'Coca-Cola' is the market leader, often taking second place in the rankings with its diet fmmula, 'diet Coke' or with 'Fanta', the company's orange flavoured soft drink. In 1998, Coca-Cola sold more than one billion eight-ow1ce drinks per day -tl1at's more than 236mi.llion litres! How does Coca-Cola achieve and maintain this position of leadership? First and foremost, 'Coca-Cola' is the most recognised conm1ercial trademark in the world today. In fact, it is recognised by 94% of the world's population and is the most widely recognised word in the English language after 'OK.' The Coca-Cola Company has pursued a winning policy, ensuring Coca-Cola ubiquity, with powerful global advertising and a highly efficient distribution system. This 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 The Coca-Cola Company to ensure 'Coca-Cola' is available to satisfy this need. The dedication of the Coca-Cola distribution system around the world is quite remarkable and bears testimony to the company's determination to provide 'a pause for refreslunent' at any time, anywhere. A fme example is the 73-year old Filipino man who refuses to budge from his selling post in his local town market until he has managed to sell at least 50 cases of 'Coca-Cola' every day. A comprehensive network ofbottlers peppered across the globe supplies the distributors, who ensure 'Coca-Cola' maintains a worldwide presence. In fact, the Coca-Cola bottling system is the largest, most widespread production and distribution network in the world. As a consequence, Coca­ Cola has been able to take full advantage, establishing a firm foothold in new and emerging markets. Today, you can buy a 'Coca-Cola' anywhere from Beijing to Delhi, Moscow to Mexico City. HISTORY On May 8, 1886, Dr. JohnS Pemberton, a pharmacist in Atlanta, Georgia, USA mixed the syrup that became 'Coca-Cola'. His friend and bookkeeper, Frank M. Robinson, thinking that the two C's would 'look well in advettising', suggested the name 'Coca-Cola'. He wrote the words in his now fami liar Spencerian script, and the world's most recognised trademark was born. Selling his creation from Jacob's pharmacy for five cents a glass, Dr. Pemberton promoted his new product by distributing thousands of coupons that could be exchanged for a complimentaty sample. In the first year, he spent US on advettising. Pemberton sold the rights for 'Coca-Cola' to Asa G. Candler who founded The Coca-Cola Company in 1892. Candler was a confinned believer in the power of advettising. He fervently plunged into the world of mass-merchandising, ensuring the 'Coca-Cola' trademark was depicted on countless novelty products such as fans, calendars, clocks, ornate leaded glass chandeliers and urns. His efforts were well rewarded. Just three years after the official incorporation of The Coca-Cola Company in 1892, Candler was proud to announce that 'Coca­ Cola' was now drunk 'in every state and territory in the United States'. A major leap considering that in its fust year on the market, Coca-Cola had sold on average a mere nine drinks per day. Expansion was so impressive that in 1898, a new headquarters was housed in a large building in Atlanta. Candler naively described the threestorey building as 'sufficient for all our needs for all time to come'. Needless to say, the building was too small after just a decade. In 1923, Robert Winship Woodruff was elected president ofThe Coca-Cola Company. A visionaty leader, he placed strong emphasis on product quality, establishing a 'Quality Drink' campaign using highly trained service teams. Early advertising discouraged consumers from calling the product Coke. They urged "Ask for 'Coca-Cola' by its full name; nicknames encourage substitution." But people kept asking for Coke and in 1941 the Company gave in to public demand. That year, the 32

6.5 oz (185m!) bottles locally. The wholesale price was 2d per bottle, retailing at 3d (about 2.5 cents). When World War l 1 broke out in 193 9, production dwindled owing to rationing and loss of staff to the armed services. During the War, all production went to the allied forces. The influx of US soldiers into Australia meant the brand became popular through out Australia. The now legendaty promise made by Robett Woodmff to General Eisenhower that every American serviceman would "get a bottle of 'Coca-Cola' for five cents, wherever he is and whatever the cost to The Coca-Cola Company" meant that 'Coca-Cola' went wherever the US troops did, making the brand truly intemational. On the world's sixth continent. , ,. K ...,.I ••I- ·o(~d""' and MnbII ~~""'' ""fo r I)O'iow tl,. "')U..U;,. ..'ra....W:.:.Qr w ....... n.IOna ... ncnhol thO! """· Vn.u"'""PI'tlow"" l>Ofl t ... fojCII' t a l'..U~....., .t..-r...,.,,u 1 • ...,K,._., ... hrft. t\lJI.W,_w_ l'I{,.,W.,.¥· ·--llllnllwo ~"""" •kiO' .. t..-'"'"~' ""' dnd 11 And,....,tlnd tl Jl"" ........ nc~u .............. ,nu..,."" .. 1" ...... _ ..... ..,,..,...,....... z Bright Refreshment trademark 'Coke' received equal prominence in advertising with 'Coca-Cola', and in 1945 Coke was registered as a trademark. Local production of ' Coca-Cola' began in Sydney in 193 7 when The Coca-Cola Company sent out a survey team to assess the Australian mat·ket, and the Company's first Australian office was established in Sydney on October 26th, 1937. At first sales were slow and representatives were selling it by the bottle, but by the end of 1938 demand had reached I 00 cases a day. In May 1938, the Company plant began filling THE PRODUCT 'Coca-Cola' itself is a drink that needs no introduction. Most interesting however, is the legendaty secrecy that has been built up at·ound the product's fotmula. Only a select few people know the secret fommla for 'Coca-Cola'. The concentrate is made in a number of centralised production facilities, and is expmted to all countries in the world that bottle 'Coca-Cola'. The name of the flavour base i11cluded in the secret formula is referred to as 7X. 'Diet Coke' was launched in Australia on July 18th, 1983. By the end of that year it was already the second highest selling carbonated soft drink in Australia and was already developing its own image in the eyes of consumers. PROMOTION Advertising for 'Coca-Cola' has been acclaimed internationally. The first advettising theme was introduced in the early 1900s. The decades since have seen a wealth of popular themes, which quickly became recognisable around the world including: 'Things go better with Coke' ( 1963 ), 'It's the real thing' (1942 and 1969), 'Coke addslife'(l976), 'Cokeisit'(l982), 'Can't beat the feeling' at the end of the 1980s, and the 'Always' campaign introduced in 1993. In 2001, The brand changed its global slogan to 'Life tastes Good', in line with recognising that the Brand coca­ Cola was a patt of people's lives and was present at many oflife's evetyday special moments. Ten countries were chosen to develop global advertising executions, and Australia was one of those recognized for its innovative campaigns, creating 'Night Swim', "Dancing Baby" and 'Baa'. The innovative mat·keting spirit for 'Coca-Cola' also extends to packaging. In 1915, the company introduced the most famous package in history, the classic glass contour shaped bottle. It is one of the few packages in the world registered as a trademark in its own right. The Coca-Cola Company was also the first to introduce the 'six-pack' takehome carton and in 1929, the revolutionary metal standard open topped cooler. This made it possible for 'Coca-Cola' to be served ice-cold inretail stores. 193 3 marked the introduction of automatic fountain dispensers in which syrup and carbonated water were mixed as the drink was poured. Recyclable PET (Polyethylene Terepthalate) packaging was introduced in 1978. The Contour Bottle Design has been extended across the entire PET bottle range, with the introduction of2L contour in 1998. Australia was the first countty to have launched the 390m! size PET single serve bottle. The Contour Bottle Design is a proprieta1y shape and is a distinctive symbol that consumers around the world can itrunediately identify, and is a unique marketing tool that differentiates 'Coca-Cola' from its competitors. BRAND VALUES The core 'Coca-Cola' brand messages are encapsulated through marketing cmmnunication. Messages like "It's the real thing", and "Always Coca-Cola" reinforce the core elements of the brand. And now, "Life Tastes Good" reiterates tl1at Coke is patt of people's daily lives. It's the original, authentic, irresistibly popular leader. Not only does it quench your thirst with the unique 'Coca-Cola' taste, but it also rejuvenates and inspires, providing physical and emotional refreslunent. THINGS YOU DIDN'T KNOW ABOUT COCA-COLA 0 The world's longest Coca-Cola distribution route is in Australia. To reach the isolated areas ofKarratha and Port Hedland, a driver travels 1,093 miles from Perth, Western Australia! 0 I fall the bottles of Coca-Cola were loaded on to delive1y tmcks h·avelling bumper to bumper at 88km per hom, it would take more than 3 years for the trucks to pass a given point! 0 The modem-day image of Santa Claus was actually based on an idea fi·om Coca-Cola! Before Coca-Cola, pictures of Santa (St Nicholas) portrayed him in flowing robes. 33

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