Coca-Cola's History

February 28th, 2024

In my international marketing class, we were assigned to write blog posts focusing on a particular topic. My chosen subject was cross-cultural consumer behavior, examining how companies either succeed or falter in adapting their advertising and products to diverse regions. I thought about Coca-Cola and how a company that big could survive for as long as they have.

Through some research, I discovered Coca-Cola's exemplary localization strategies. Enlightened by my own experience and research, I wrote a blog post detailing their history and marketing successes. I loved the blog post so much that I decided it would be worthwhile to share here as well!

When I was traveling to Atlanta many moons ago, I carved out some time to visit the Coca-Cola Museum. The massive museum takes guests through the history of the famous soda and how the brand became the powerhouse it is today. It’s a fascinating museum worth visiting if you’re ever in Atlanta, but the best part is the end. Not because the tour is boring but because the end has a hall with soda fountains containing every drink Coca-Cola makes from all over the world. I think I made myself sick by drinking all 60 of the flavors available, but it was completely worth it to see how different parts of the world prefer different flavors. 

Coca-Cola had its beginnings in late 1800s Atlanta when Dr. John Pemberton created a sweet syrup that was supposed to cure headaches (Alonso, 2023). However, the product didn’t succeed until he combined the syrup with carbonated water and sold it at a pharmacy (Alonso, 2023). After Pemberton’s death, majority owner Asa Griggs Candler created the beginning of the gigantic conglomerate we know now (Alonso, 2023).

Coca-Cola’s first international export was to Cuba in 1899 (Alonso, 2023). However, they wouldn’t see major global success until the 1920s (Alonso, 2023). This was because the then-CEO, Robert Woodruff, shipped Coca-Cola to American soldiers serving in WWI (Alonso, 2023). This exporting led to locals finding the drink and generating a market for Coca-Cola abroad. Since then, the company hasn’t looked back. The brand has emerged as a prominent player in the global soda industry, standing as one of the largest producers worldwide. With a widespread presence in 200 countries, it commands a substantial 42% share of the global market for carbonated beverages (Alonso, 2023; Tutor2u, 2023).

But what has made Coca-Cola so successful internationally? 

There are a few different aspects to their success. 

One key aspect is Coca-Cola’s emphasis on entering and developing emerging markets (Alonso, 2023). The company realized that the developing world contained 80% of the population; therefore, a large market share was missing (Alonso, 2023). Plus, emerging markets offered a substantially higher growth rate, which could help the company expand faster than if it were working only in developed nations (Alonso, 2023).

However, entering developing nations with just Coca-Cola could not guarantee success, as different places had different tastes. So, the brand diversified and began purchasing brands worldwide (Alonso, 2023). Now, Coca-Cola owns over 500 different brands and markets each one uniquely to their location (Cuofano, 2024). 

This localization strategy is another reason that Coca-Cola is so successful internationally (Shitrit, 2022). For example, Coca-Cola generated different versions of its iconic recipe in India to fit more in line with local preferences (Shitrit, 2022). In China, the company utilizes localized marketing campaigns to draw in consumers (Shitrit, 2022). To do this, they get Chinese celebrities to endorse Coke and even put their faces on the bottle (Shitrit, 2022).

On top of this, Coca-Cola also uses all of its subsidiary brands to bolster its market share and keep customers engaged with the brand, even if it’s not Coca-Cola itself (Shitrit, 2022). For instance, they introduced cream soda in South Africa because Coke wasn’t as popular (Shitrit, 2022). 

Their marketing campaigns are another key aspect of Coca-Cola’s success. The Coke brand is well-known and well-respected, thanks to its campaigns. When first breaking into the European market, they sold the Coca-Cola brand as an exclusive taste of America (Alonso, 2023). The share-a-coke campaign has been one of their most successful international campaigns. Interestingly, it was started in 2011 in Australia and focused on printing individual names on Coke bottles (Mupeti, 2023). This was meant to incentivize consumers to buy a bottle with a friend’s name and share it with them (Mupeti, 2023). Within just Australia, the campaign increased sales by 7% and sold more than 250,000 personalized Coke Bottles (Mupeti, 2023).

Coca-Cola launched the US “Share a Coke” campaign in June 2014 (MayeCreate Design, 2015). They saw a 2% increase in soft drink sales, and the average Coke consumption increased from 1.7 billion servings per day to 1.9 (MayeCreate Design, 2015, paragraph 1). They were also able to make #shareacoke the number 1 global trending topic on social media (MayeCreate Design, 2015, paragraph 1).

While Share-a-Coke stands out among Coca-Cola's successful marketing campaigns, it is undeniably one of their most triumphant endeavors. Coca-Cola consistently excels in crafting emotionally resonant advertisements that drive consumer purchases. The campaign's emphasis on personalization and localization has significantly contributed to its success. It is also an example of how Coca-Cola’s marketing and brand led to its thriving presence on the global stage.

Always Busy,

Sam

Works Cited: 

Alonso, T. (2023, February 8). How Coca-Cola Became One of the Most Successful Brands in History. Cascade. https://www.cascade.app/studies/how-coca-cola-became-successful

Cuofano, G. (2024, January 8). What Does Coca-Cola Own? Coca-Cola Companies In A Nutshell? FourWeekMba. https://fourweekmba.com/what-does-coca-cola-own/#:~:text=Diverse%20Brand%20Portfolio%3A,juices%2C%20water%2C%20and%20more.

MayeCreate Design (2015, May 7). 3 Marketing Lessons from the “Share a Coke” Campaign. MayeCreate Design. https://mayecreate.com/blog/3-marketing-lessons-from-the-share-a-coke-campaign/#:~:text=This%20content%20is%20available%20in:,-TEXT&text=In%20June%20of%202014%2C%20Coca,trending%20topic%20on%20social%20media.

Mupeti, L. (2023, March 13). The Emotional Appeal of Coca-Cola’s ‘Share a Coke’ Campaign: Lessons for Marketers. LinkedIn. https://www.linkedin.com/pulse/emotional-appeal-coca-colas-share-coke-campaign-lessons-leslie-mupeti/

Shitrit, K. M. (2022, August 22). 4 Brands that impress with their localization strategy. Localization Station. https://www.localizationstation.com/posts/examples-of-localization-strategies#:~:text=When%20creating%20its%20marketing%20materials,were%20created%20especially%20for%20them.

Tutor2u (2023, March 19). Why is Coca-Cola so profitable? Tutor2u. https://www.tutor2u.net/economics/reference/why-is-coca-cola-so-profitable#:~:text=Here%20are%20some%20data%20that%20demonstrate%20the,global%20soft%20drink%20market%2C%20according%20to%20Euromonitor.