Coca-Colas Thirst for Perfection by Austin Ray Schuchard

College Composition II Mrs. Frahm April 23, 2014

Schuchard 1 Thesis Statement: Behind the plastic bottle, the iconic Coca-Cola Co. conceals a cache of global secrets to entice even more fans.

I. History of Coca-Cola A. John Styth creates first cola 1. brewed first batch in 1886 in Atlanta 2. originally created as brain tonic 3. was pharmaceutical B. Formula still in vault 1. secret attracts imagination 2. speculation of corrupt formula 3. Indian government forced Coca-Cola out a. in the year 1978 b. Coca-Cola refused to disclose formula C. Diet Coke is created 1. 1982 Diet Coke is created by Coca-Cola 2. Diet Coke added to product line D. New Coke pulled 1. in 1985 Coke makes biggest mistake 2. New Coke pulled after three months E. Coca-Cola bears added 1. 1993 polar bears introduced 2. tag Always Coca-Cola starts in ads F. Coca-Cola sponsors American Idol 1. 2002 Coca-Cola sponsors American Idol 2. Pepsi-Cola sponsors X Factor in rebuttal to Coca-Cola G. Coca-Cola shifts businesses 1. Coca-Cola business moves to Wieden and Kennedy business 2. 2006 Wieden and Kennedy snag Diet Coke H. Diet Coke Plus fails 1. sales in Great Britain drop 2. receive accolades for trying in 2008 I. Coca-Cola global speculations 1. late 1990s Belgium faces contamination scare 2. 2000s mass layoffs and unfaithful CEO causes stir

II. How Coca-Cola Receives Coca A. Stepan Company 1. Stepan Company confirms deal with Coca-Cola a. imports and processes coca b. Coca-Cola uses coca in soft drinks 2. Stepan works for other company a. works for Mallinckrodt Inc. i. Mallinckrodt produces cocaine

Schuchard 2 ii. used for coating of drugs ia. pharmaceutical manufactory ia. received permission from U.S. government b. purchased Maywood Company i. main importer of coca in 1959 ii. Stepan processes through Maywood ia. ships coca to Coca-Cola factories ib. sends to plants around world B. Shocking amounts of coca 1. in 1980s reports of coca were shocking 2. fifty-six metric tons to 588 metric tons of coca 3. Drug Enforcement Administration a. government officials and scientist drug search b. studies Coca-Cola and importer 4. Randy Donaldson a. Coca-Cola spokesman b. Ingredients from the coca leaf are used, but there is no cocaine in it and it is all tightly overseen by regulatory authorities.

IV. Philippine Along With India Plants Started A. Philippine president Aquino ready to work with Coca-Cola 1. built in province of Misamis Oriental 2. plant largest in country a. rival to Sta. Rosa, Laguana factory b. president approves one billion dollar construction i. decision after visit to U.S. ii. meet with Coca-Cola officials 3. Bill Schultz a. County CEO b.This will be one of our largest plants in the region and is expected to generate significant employment opportunities in the area. c. speaks about Philippine plants 4. previous president Arroyo a. made budget in 2009 for plant b. 11-hectace property in Villanueva c. investment also included employee training 5. all plants in Philippines collaborate a. twenty-three plants and forty-seven sales offices i. marketing ii. logistics b. both plants and sales office give 7,000 jobs B. Coca-Cola is trying to return to India 1. small plant planned a. set up in free-trade zone b. 75 percent ingredients shipped outside of India

Schuchard 3 c. remaining ingredients sold in domestic market 2. Indian government has no decision yet a. approval of two bottling plants b. Coca-Cola must incorporate India into soft-drink title 3. history of plants in India a. 1977 Coca-Cola had twenty-two bottling plants b. sold Fanta and Indian soft drinks c. only accounted for 1 percent of market 4. George Fernandes a. socialist leader b. We want them to stay out.

V. India Fails at Coca-Cola Plant A. Coca-Cola plant started in 2000 1. Plachimada in Kerala 2. six bore wells dug B. National and State governments approved 1. aware of drought prone area 2. believed development for India C. Plants caused wells to dry up 1. residents walked miles for clean water 2. local medical officer claimed water unfit for drinking D. Residents affected most 1. prior to plant received one pound sterling for days work 2. got twenty days of work per month a. after plant created only worked five days b. crops were not properly watered c. people set up revolt i. set up 24/7 opposition ii. revolt lasts longer than 647 days E. Coca-Cola refused renewal license in Plachimada 1. All-Indian Soft-Drink Manufacturers Association addresses Coca-Cola a. failed to complete application forms b. failed in export-geared project application 2. also faced illegal pesticide level in products

VI. Discrimination Cases A. Cyrus Mehri of Iran fights Coca-Cola Co. 1. fought companies a. Westinghouse b. Fina c. Sikorsky Aircraft d. Texaco Corp. 2. claimed racial decimation on companies

Schuchard 4 a. revealed tapes to judges b. tapes showed Texaco managers making racist comments 3. took on toughest competition a. claims systemic discrimination of African American employees b. shows international Coca-Cola documents i. lower pay ii. less promotions iii. performance reviews 4. Mehri a. activist b.Ive never had so much evidence this early in any case c. Mehri predicts next action d. is going to blow peoples minds. B. Former foes question Mehri 1. 37 year old man a. fit for prevailing in difficult cases b. fails to settle even 2. sometimes settling even is best for clients 3. experts believe it is difficult to convince judges a. class-action status b. individual problem patterns

VII. Coca-Cola Fights Back A. Coca-Cola shows no sign of giving up fighting Mehri 1. Coca-Cola has many ties with civil-rights groups a. on good terms since 1960s b. set up desegregation in Atlanta 2. Coca-Cola has allies in discrimination fight B. council made for diverse management 1. May 26, 1999 starts council 2. co-headed by Carl Ware 3. report to CEO Douglas Ivester C. Carl Ware 1. Coca-Colas group President 2. Coca-Cola has made great strides in developing diverse management

VIII. Positive Ads A. Ad for the original Coke 1. [Coke] is the perfectly balanced combination of these valuable tonics in the form of a healthful drink. 2. first ad for Coke in 1906 B. Coca-Cola created Open Happiness 1. collaborated with well-known band members 2. recorded song in different languages

Schuchard 5 C. Open Happiness collaborated with Atlantic Radio 1. signed on famous band members a. Cee-Lo Green of Gnarls Barkley b. Patrick Stump from Fall Out Boy c. Brendon Urie of Panic at the Disco d. Travis McCoy of Gym Class Heroes e. Janelle Monae 2. Janelle Monae is Grammy nominated D. Open Happiness launches in 2009 1. replaces award winning Coke Side of Life campaign 2. three years of campaigning E. Coca-Cola has history of song recording 1. Open Happiness stands out 2. sells on iTunes and Amazon.com F. Open Happiness reaches No. 1 on top 100 1. Baidu.com 2. leading Chinese website 3. only reached No. 37 on iTunes

IX. Branding A. Coca-Cola spent $402.7 million on measured media in U.S. 1. in 2002 2. according to TNS Media Intelligence/CMR 3. company plans to spend little in 2003 on product ad B. Historical first in branding campaign 1. in 2003 Coca-Cola advertised entire line of drinks 2. usually Coca-Cola advertises products individually 3. James Gregory a. chief executive of CoreBrand LLC b. The job of this ad is not to replace traditional brand building of the specific products. Its really to tell a story to a different public C. Print ads will post entire line of Coca-Cola drinks 1. posted in newspapers 2. plastered on billboards around nation D. Douglas Draft comments 1. Chairman and Chief Executive for Coca-Cola 2. Our broad product line, led by Coca-Cola, is the foundation of our commitment to consumers. E. Commercials play games with viewers 1. Coca-Cola often avoids branding in commercials. 2. listeners can often connect Coca-Colas ad songs and commercials

Schuchard 6 X. International Market A. Shares of 2010 Carbonated-Soft-Drink 1. Coke is 17 percent 2. Diet Coke is 9.9 percent 3. Pepsi is 9.5 percent 4. Diet Pepsi 5.3 percent B. United Kingdom market 1. Cola market grew 3.3 percent in 2008 2. Coca-Cola enjoyed 4.6 percent volume increase 3. Diet Coke also grew 2.2 percent 4. both products causes a 5.5 percent increase for Coca-Cola C. Sales of Coca-Cola in 2006 1. sales of Coca-Cola in U.S. fell two percent 2. 1.8 million cases in 2006 3. according to newsletter Beverage Digest D. Coca-Cola portfolio in Great Britain shows potential 1. marketer Cathryn Sleight details market potential a. Powerade b. Relentless energy drink c. Glaceau i. acquired $4.1 billion ii. May of 2007 2. sales of healthier drinks shows most potential E. International Market for Coca-Cola 1. Stuart Easwood a. one of Coca-Colas international business development directors b. Coca-Colas domestic sales accounted for ten percent c. $430 million dollars in soft-drink market 2. Philippine market a. money made will construct Little Red Schoolhouses b. Coca-Cola Co. set goal of one hundred by 2012 c. eighty already made d. benefits over 400,000 students in Philippines F. Gary Roethen 1. Zeneith International Market director 2. If you look back over the past ten years, Coke as a business has fundamentally changed.

XI. Healthy Choices Great Tactic A. Carbonated soft-drinks are losing market to choices 1. bottled water 2. non-carbonated drinks a. teas b. juices 3. sports drinks

Schuchard 7 4. functional drinks with nutritional supplements B. Over one hundred different options in carbonated drinks 1. newest drinks are functional a. no-calorie b. added vitamins c. added minerals 2. better-for-you choices 3. Gary Hemphill a. Director at Beverage Marketing b. People want products that are healthier for them c. neither company should dominate sales d. serve segments of diet market C. Coca-Cola is betting on Coke Zero 1. no-calorie line of carbonated drink in 2005 2. aimed to younger guys 3. Neville Isdell a. Coke CEO b. ...most successful launch that weve had of any brand in 20 years. c. in reference to Coke Zero 4. Katie Bayne is chief marketing officer of Coke North America a. Bayne believes Coca-Cola listened to consumers b. consumers asked for no-calorie drinks c. asked for drink that flavors like Coke Classic D. Diet Coke Plus 1. spring of 2007 Coca-Cola sold Diet Coke Plus 2. no-calorie drink enhanced with vitamins and minerals a. B12 b. zinc E. 2010 Philippines records hit double digits 1. fueling its no-added preservative formulation 2. Pulp Minute Maid with real pulp and juice F. Minute Maid went over $1.3 million dollar TV campaign 1. revamp of new variants 2. added to brand after change

XII. Coca-Cola Defeats Pepsi-Cola A. March of 2011 Coca-Cola trumped Pepsico 1. Diet Coke ranked No. 2 2. first in two decades for Coca-Cola 3. Coca-Cola holds both leading position on market B. Coca-Cola focus on innovation 1. works on brand 2. Pepsico took decades to catch up C. Dan Schafer 1. Coca-Cola spokesman

Schuchard 8 2. Its an accomplishment, but weve also delivered three straight quarters of growth here in North America. Each of these things shows us we just have to keep on doing what were doing. D. Pepsico spokesman speaks up about ranking 1. Its a tale of two companies, both in the same category, both facing the same market dynamics 2. executive with Pepsi said 3. One of them stayed on the course and recognized that brand building is a longterm proposition. It built on its heritage, protected its brand and invested in its brand and its people. The other went into a tailspin, trying to reverse its fortunes overnight at any cost. It lost its best people, lost its continuity and, unfortunately, lost its direction, E. Pepsi Refresh program ruins rank chances 1. Pepsis Refresh program has audience talking. a. discussion of either positive or negative affecting b. discussion of where money was taken from 2. John Sicher a. editor and publisher of Beverage Digest b. In the Cola wars, the Refresh Project by itself isnt enough to market Pepsis cola brands F. Pepsico faces downgrade 1. according to Credit Suisse analyst Carlos Laboy 2. said divergent philosophies between Pepsico and Coca-Cola holds Pepsico back

Schuchard 9 One company had focused its talents on pleasing the entire world with its rich and classic taste of soft-drinks available at almost every store in the world. The Coca-Cola Co. has worked very hard to please the residents of several countries including America. The Coca-Cola Co. produced a large variety of different drinks to satisfy the public; whether it is Coke or Dasani, everyone is a fan of at least one Coca-Cola product. Instead of satisfying the world with new promotions and different opportunities, Coca-Cola had put their main focus on becoming favored by everyone and kept the Coca-Cola name alive in the world. Behind the plastic bottle, the iconic Coca-Cola Co. conceals a cache of global secrets to entice even more fans. Cokes history dates back to 1886 with an Atlantic pharmacist by the name of John Styth. Styth originally brewed the drink as a brain tonic. He served it as a pharmaceutical treatment, and the original formula contained cocaine. (May) The original formula is still locked up in a vault, and a small amount of people had access to that formula. Many believed that the formula was corrupt and speculated about the ingredients included. (Zmuda) Coca-Cola was forced out of India after refusing to disclose the formula to the Indian Government (Hazarika). The formula of Coca-Cola is an honor to those who have had the right to see it. After ninety-six years of production, the Coca-Cola Co. added to its production line a healthier Diet Cola. Diet Coke contained no calories and less sugar. In 1985, New Coke came out for sales but within three months it was pulled from production. Coca-Cola revamped its image by adding the iconic polar bears and the tag line, Always Coca-Cola to its ads in 1993. Sponsoring a fan crazed TV show was Coca-Colas next advertising tactic. Coca-Cola started sponsoring American Idol in 2002 and Pepsi tried to even the competition by sponsoring X Factor. (Zmuda) Adding new brands to the line, Coca-Cola Co. strengthened its numbers in both the market and number of fans.

Schuchard 10 Coca-Cola Co. moved its business to Wieden and Kennedy from Berlin Company for its management of business, and in 2006 Wieden and Kennedy also snagged the Diet Coke brands business from DraftFCB business. (Zmuda) Coca-Cola attempted a Diet Coke Plus in Great Britain in 2008 (Alarcon). Unfortunately the business failed, and the pop was pulled from production. Other than failures in business, Coca-Cola has faced harsh criticism and scandal. In the late 1990s Coca-Cola received a scare from a Belgium contamination case; in the 2000s, CocaCola had mass layoffs and unfaithful CEOs. (Zmuda) Coca-Cola received criticism from large businesses but also by fans that knew of its faults. Cokes main ingredient is currently coca from coca leaves. Coca-Cola signed a deal with Stepan Company and Stepan had confirmed its business with the Coca-Cola Co. importing and processing the companys coca for the formula. Stepans business partner was not only CocaCola, but also Mallinckrodt Inc. Stepan imported cocaine for Mallinckrodt, which Mallinckrodt used for the coating of medicines. The company had received proper permission to import and use cocaine in its products. Stepan purchased the Maywood Company in 1959 and Stepan imports faithfully through Maywood Company. (May) Coca-Cola had ensured that cocaine was removed from the formula and that no conjecture was made of where the coca was imported from. Documents showed 56 to 588 metric tons of coca was produced for America in 1980. The Drug Enforcement Administration investigated the production in a drug search. The investigators searched the company and also the importers of the companys coca. Randy Donaldson, a CocaCola spokesman clarified by saying, Ingredients from the coca leaf are used, but there is no cocaine in it and it is all tightly overseen by regulatory authorities. (May) Coca-Cola made a distinct gap between the rest of Stepan Companys business and its excess import of coca.

Schuchard 11 Coca-Cola had become an international craze. Bottling plants for Coca-Cola had sprouted all over the world including the Philippines and India. Philippine president Aquino said he was ready to work with a Coca-Cola factory in Misamis Oriental province. This bottling plant became the largest plant in the country, and was a rival to Sta. Rosa, Laguana factory. The president made a decision for the one-billion-dollar construction after first visiting the U.S. and meeting with Coca-Cola officials. Bill Schultz, county CEO, said, This will be one of our largest plants in the region and is expected to generate significant employment opportunities in the area. (Cokes 1B) The Coca-Cola officials were proud to work with the Philippine government to create bottling plants in domestic locations. The Philippine president previous to the construction advised a budget in 2009 for the plant. The 11-hectace property lies in Villanueva, and also included in the budget was employee training. After the bottling plants were constructed, the companies collaborated together. The money from the 23 plants and the 47 sales offices planned to aim toward marketing and logistics. These plants and business offices in the Philippines offered over 7,000 people constant and sturdy jobs. (Cokes 1B) Even with its best efforts, Coca-Cola had struggled with foreign markets and with foreign customers. Coca-Cola also attempted to return to India after already being kicked out of the country. Coca-Cola constructed a factory in a free-trade zone. The ingredients made from the factory would be shipped out of India. A set 75 percent of ingredients would be exported and the remaining ingredients would be sold in the domestic market. As a compromise, the Indian government was forcing Coca-Cola to incorporate an Indian title onto the soft-drink labels. Back in 1977 there were 22 plants in India which sold Fanta and Indian soft drinks. In the domestic market, the drinks only accounted for one percent of the sales. George Fernandes, Indian socialist

Schuchard 12 leader, spoke out about the bottling plants returning to India saying, We want them out. (Hazarika) Coca-Cola had made flaws in India, but taking a closer look at a certain case gave a clearer view of obstacles. Coca-Colas failure in India was simply advertised by one plant. In 2000, a Coca-Cola plant was started in Plachimada in Kerala, which included six bore wells that dug into the ground. National and local governments approved the factory construction in the drought prone area, saying it was development for India. The plants dried up the ground and left the village without clean, drinkable water. A local medical officer claimed the water unfit for drinking after enduring the plants wells. The residents had to walk miles to get unsoiled water. (Thomas) Bottling plants took plenty of work to run and several employees. Prior to the bottling plant, the residents received one pound of sterling for a days worth of work, and worked 20 days a month. After the plant was constructed, the residents only worked five days out of the month because the crops were unable to be properly watered. People of the village set up a 24/7 opposition mob outside the factory which lasted longer than 647 days. CocaCola was refused a renewal license in Plachimada. (Thomas) The All-Indian Soft-Drink Manufacturers Association found that Coca-Cola failed to complete application forms for the export-geared project (Hazarika). The plant also faced illegal pesticide levels (Thomas). CocaCola would face problems when its production lines increased and multiplied. Along with Coca-Colas failure in some international countries, it also dabbled in discrimination. Cyrus Mehri of India fought Coca-Cola Co. after fighting companies like Westinghouse, Fina, Sikorsky Aircraft, and Texaco Corp. Mehri revealed tapes to judges for the Texaco case against managers for making racist comments during meetings. Mehri took on his hardest competition fighting Coca-Cola against discrimination of African American employees.

Schuchard 13 He dug up Coca-Cola documents showing lower pay, less promotions, and performance reviews of the discriminated employees. Mehri exclaims, Ive never had so much evidence this early in any case, and predicted the next move in his case .is going to blow peoples minds. (Foust) Mehri took on a monster that would soon envelop his reputation and time. Former foes of Mehri questioned this 37-year-old mans tactics, believed he was indeed fit for prevailing in difficult cases but failed to settle even when it was beneficial to the clients. Experts believed that it was difficult to convince judges on class-action status and individual problem patterns. Coca-Cola gave no slack to Mehri showing him its ties with civil-rights groups which it created back in the 1960s in Atlanta. Coca-Cola also devised diverse management council on May 26, 1999, which was co-headed by Carl Ware. The council had to report to CEO Douglas Ivester. Ware, Coca-Colas Group President, said that Coca-Cola had made great strides in developing diverse management. (Foust) Coca-Cola Co. knew exactly how to cover up any scandal and how to face altercations with a firm and sleek protocol. Along with making remarkable comebacks after disputes, Coca-Cola had memorable and positive advertisements of its products. Originally Cokes first ad said, [Coke] is the perfectly balanced combination of these valuable tonics in the form of a healthful drink, which was first published in 1906 (May). Coca-Cola created Open Happiness by collaborating with wellknown band members. They also recorded the same song in different languages. Open Happiness worked with Atlantic Radio signing famous band members: Cee-Lo Green of Gnarls Barkley, Patrick Strump from Fall Out Boy, Brendon Urie of Panic at the Disco, Travis McCoy from Gym Class Heroes, and Janelle Monae. Janelle Monae is a Grammy nominated singer. (Stelter) Extensive work paid off for Coca-Cola, drawing in many new fans just because of its unique style.

Schuchard 14 The launch of the Open Happiness started in 2009. This campaign replaced the threeyear award-winning Coke Side of Life campaign (Zmuda). Coca-Cola had a long history of song recording in campaigns, but Open Happiness stood out by selling on iTunes and Amazon.com. The song reached number one of top 100 on Baidu.com a leading Chinese website, but only reached as high as number 37 on iTunes. (Stelter) Coca-Cola took every step to stand out from the rival brands and held close to the brand name with consistent ad campaigns. Coca-Cola prized itself over the years with its name and brand. Coca-Cola spent $402.7 million on measured media in the United States in 2002 according to TNS Media Intelligence/CMR. The company however decided to spend little in 2003 on its product ads. Coca-Cola Co. made history within its company by advertising its entire line in 2003. Usually Coca-Cola only advertised its products individually. James Gregory, chief executive of CoreBrand LLC, said, The job of this ad is not to replace traditional brand building of the specific products. Its really to tell a story to a different public. Print ads, posted in newspapers and on billboards nationwide, displayed Coca-Colas entire line of drinks. Douglas Draft, chairman and chief executive for Coca-Cola, commented saying, Our broad product line, led by Coca-Cola, is the foundation of our commitment to consumers. (Steinberg) The marketing paid off for Coca-Cola by enhancing its fan base and strengthening its previous fans loyalty. The branding and advertisement that Coca-Cola had done influenced the markets both positively and negatively. The shares of Carbonated-Soft-Drinks in 2010 were Coke leading with 17 percent, Diet Coke second with 9.9 percent, Pepsi at 9.5 percent, and Diet Pepsi in last with 5.3 percent. (Zmuda) The United Kingdom Cola market grew 3.3 percent in 2008. Coca-Cola enjoyed 4.6 percent volume increase. Diet Coke also increased 2.2 percent, and together both products produced a 5.5 percent volume increase for Coca-Cola. (Alarcon) Back in 2006, the

Schuchard 15 Coca-Cola market dropped 2 percent to 1.8 million cases according to Beverage Digest (Petrecca). Even when the companys stock dropped, it knew exactly what needed to be done to regain ground in the soft-drink market. Coca-Colas portfolio in Great Britain showed great potential for Coca-Cola Co. CocaCola Marketer, Cathryn Sleight, detailed market potential in Powerade, Relentless energy drink, and Glaceau. Glaceau alone acquired $4.1 billion since May 2007 (Alarcon). Sales of healthier drinks showed most potential in all markets, and the international market of Coca-Cola showed great potential as well. Stuart Eastwood, one of Cokes international business development directors, said Coca-Colas domestic sales accounted for 10 percent of the domestic sales creating $430 million in the soft-drink market (Hazarika). The smallest victories are very significant for Coca-Cola Co.s pride. The money created by the Philippine market constructed Little Red Schoolhouses. CocaCola Co. made plans to create 100 Little Red Schoolhouses by 2012 and already had 80 created prior to the deadline (Cokes 1B). The school houses benefited more than 400,000 students in the Philippines. Gary Roethen, Zeneith International Market director, summarized Coca-Colas success saying, If you look back over the past ten years, Coke as a business has fundamentally changed. (Alarcon) Coca-Colas business had captured all of its fans attention over the years and had ensured its spot in its customers hearts. Coca-Cola Co. had taken many strides to improve its products and sales over the years. Coca-Cola realized that its carbonated soft-drinks were losing in the markets to choices like bottled water, non-carbonated drinks such as teas and juices, sports drinks, and functional drinks with nutritional supplements. There are over 100 soft-drinks in the carbonated soft-drink market, but the newest drinks are functional, no-calorie, drinks with added vitamins and minerals. They

Schuchard 16 became better-for-you choices in the market. Gary Hemphill, director at Beverage Marketing, replied to requests of healthier drinks saying, People want products that are healthier for them but neither megabrand should dominate these sales; only serve segments of the Diet Market. (Petrecca) Coca-Cola created many new brands that embraced new crowds and brought a new market of consumers. Coca-Cola felt confident in Coke Zero. Its no-calorie drink in 2005 was aimed to younger males who found diet unfit. Neville Isdell, Coca-Cola CEO, said it was the most successful launch that weve had of any brand in 20 years. Katie Bayne, chief marketing officer of Coke North America, believed Coca-Cola actually listened to consumers when asked for a no-calorie drink that flavors like Coke Classic. Coca-Cola produced Diet Coke Plus in the spring of 2007. This drink was a no-calorie drink enhanced with vitamins and minerals including B12 and zinc. (Petrecca) Philippine records hit double digits in 2010 fueling its no-added preservative formulation Pulp Minute Maid brand made with real pulp and juices (Cokes 1B). Minute Maid went over a $1.3 million TV campaign to revamp its new variants and brand (Alarcon). There is only one aspect that Coca-Cola bragged about and that was its control in the cola market. Coca-Cola had one rival that had shown any competition, Pepsico. In March of 2011 Coca-Cola trumped Pepsico by beating Pepsi with Diet Coke in the market. This was a first in two decades for Coca-Cola, holding both leading positions on the market. Coca-Cola focused on innovation while Pepsico took decades to catch up to Coca-Colas brand. Dan Schafer, Coca-Cola spokesman, said, Its an accomplishment, but weve also delivered three straight quarters of growth here in North America. Each of these things shows us we just have to keep on doing what were doing. (Zmuda) Coca-Cola had always been on top and the newer follower, Diet Coke, only enforced Coca-Cola Co.s brand name on consumers worldwide.

Schuchard 17 A spokesman connected with Pepsico spoke up about the ranking and said, Its a tale of two companies, both in the same category, both facing the same market dynamics. One of them stayed on the course and recognized that brand building is a long-term proposition. It built on its heritage, protected its brand and invested in its brand and its people. The other went into a tailspin, trying to reverse its fortunes overnight at any cost. It lost its best people, lost its continuity and, unfortunately, lost its direction. (Zmuda) Pepsico had no chance in the market only holding onto second place, so it is understandable that Coca-Cola beat them out. Pepsi Refresh Program also ruined its rank chances. Pepsicos Refresh Project program had the audience talking about whether the project was aimed at fixing the negative or promoting positive futures. John Sicher, editor and publisher of Beverage Digest, said, In the Cola wars, the Refresh Project by itself isnt enough to market Pepsis cola brands. Pepsico faced downgrading according to Credit Suisse analyst Carlos Laboy. Laboy believed divergent philosophies between Pepsico and Coca-Cola held Pepsico back. (Zmuda) Coca-Cola remained poise when news of its victory over the rival, Pepsico, erupted to the beverage talk. Whether customers decided to go to Coke or Pepsi at the fast food cola fountains, CocaCola maintained a firm grip on its branding and name, and also continues to produce its broad line of soft-drinks and healthier products. Coca-Cola had spread throughout the world and even in times of struggle the company listened to the consumers problems and made changes. Coca-Cola stood firm and stayed positive with uplifting advertisements and campaigns. Consumers believed that blemishes on a market have lasting effects, but Coca-Cola decided to illuminate those flaws by making distinct changes to enhance products and business. In the end, Coca-Cola had worked hard to reach the top of the charts, beating out its largest rival Pepsico, and continued to proudly and confidently mellow its brand name into its fans hearts.

Schuchard 18 Works Cited Alarcon, Cameron. Analysis: Coca-Cola Battens Down the Hatches. Marketing Week 30 Oct. 2008: 6. Gale Student Resources In Context. Web. 6 April. 2011.<http://ic.gale group.com/ic/suic/MagazinesDetailsPage/MagazinesDetailsWindow?displayGroupName= Magazines&prodId=SUIC&action=e&windowstate=normal&catId=&documentId=GALE %7CA18811962&mode=view&userGroupName=ndk12h_58356z214&jsid=e578753d20b 7cd660343fe06b5319fe>.

Daxim Lucas Philippine Daily Inquirer, Manila / Asia News Network. "Coke's $1B Philippine Plant Nears Completion." McClatchy - Tribune Business News. 04 Apr. 2011 eLibrary. Web. 06 Apr. 2011.

Foust, Dean. "A DIFFERENT COLA WAR." BusinessWeek 3632 (1999): 38-40. Academic Search Premier. EBSCO. Web. 13 Apr. 2011.

Hazarika, Sanjoy. "INTERNATIONAL REPORT; Coke Proposal Challenged in India." New York Times 6 Feb. 1989. Gale Student Resources In Context. Web. 4 Apr. 2011.<http://ic. galegroup.com/ic/suic/NewsDetailsPage/NewsDetailsWindow?displayGroupName=News &prodId=SUIC&action=e&windowstate=normal&catId=&documentId=GALE%7CA1756 48217&mode=view&userGroupName=ndk12h_58356z214&jsid=657344c1e8f254ccbf4fe f0e764b2c79>.

May, Clifford D. "How Coca-Cola Obtains Its Coca." New York Times 1 July 1988. Gale Student Resources In Context. Web. 4 Apr. 2011. <http://ic.galegroup.com/ic/suic/NewsDetails Page/NewsDetailsWindow?displayGroupName=News&prodId=SUIC&action=e&window state=normal&catId=&documentId=GALE%7CA175910462&mode=view&userGroupNa me=ndk12h_58356z214&jsid=52e0c57c48beb249ae698c3c5fee3839>.

Petrecca, Laura. "So Many New Soft Drinks, So Little Time." USA Today 14 Mar. 2007: 03B. Gale Student Resources In Context. Web. 4 Apr. 2011. <http://ic.galegroup.com/ic/suic/News DetailsPage/NewsDetailsWindow?displayGroupName=News&prodId=SUIC&action=e& windowstate=normal&catId=&documentId=GALE%7CA160563671&mode=view&userG roupName=ndk12h_58356z214&jsid=5269757b1c5aad591cbdaf50a456893b>.

Steinberg, Brian. "Coke's New Marketing Message: Not Just Soda." Wall Street Journal. 28 Aug. 2003: B5. eLibrary. Web. 06 Apr. 2011.

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Stelter, Brian. "Marketing a Drink, But Never by Name." New York Times 16 July 2009: B4(L). Gale Student Resources In Context. Web. 4 Apr. 2011. <http://ic.galegroup.com/ic/suic/ NewsDetailsPage/NewsDetailsWindow?displayGroupName=News&prodId=SUIC&action =e&windowstate=normal&catId=&documentId=GALE%7CA203640034&mode=view&u serGroupName=ndk12h_58356z214&jsid=7d4b42bbe070483bbc69e18c34f723bc>.

Thomas, Mark. "In India, Pressures On the Water Supply Created by a Coca-Cola Plant Have Caused Wells To Dry Up. Is It Just a Politically Motivated Thirst That Has Led Local People to Protest?" New Statesman [1996] 2 Feb. 2004: 18. Gale Student Resources In Context. Web. 4 Apr. 2011.<http://ic.galegroup.com/ic/suic/MagazinesDetailsPage/ MagazinesDetailsWindow?displayGroupName=Magazines&prodId=SUIC&action=e&win dowstate=normal&catId=&documentId=GALE%7CA113300918&mode=view&userGrou pName=ndk12h_58356z214&jsid=fdaaf19ef57bf39616e4a8027585fa0d>. Zmuda, Natalie. How Pepsi Blinked, Fell Behind Diet Coke. (Cover Story). Advertising Age 82.12 (2011): 1. MAS Ultra-School Edition. EBSCO. Web. 6 Apr. 2011.

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