Coca-Cola History

Coca-Cola History

Coca Cola is a Carbonated soft drink that is sold in stores of over in over 200 countries, it is produced in the Coca-Cola Company at Atlanta, Georgia. This company became a registered trademark in 1944. Originally Coca Cola was a patent medicine when it was invented in 1886 by John Pemberton, who fought in the civil war and wanted to create a product. He tried creating several drugs and selling them at various pharmacies, but he failed and therefore tried to enter the beverage market. However, he did not know how to advertise but luckily that was when Frank Robinson, an early marketer and advertiser come into the picture. Robinson designed the original and now world famous Coca-Cola logo and patented Coca-Cola’s formula.

Specially during holidays like Christmas when they use low pricing to increase sales and profits. The oligopoly gives Pepsi and Coca-Cola the power to increase prices without worrying about losing their customers. The Oligopoly undermines new competitors from entering the market. What they are able to do is simply lower prices below the price of the new entrants. Making new companies unable to compete, running them out of business. After the threat of new competitors is no longer existent they rise back to their normal price.

In the soft drink industry Coca-cola and Pepsi are perfect substitutes. They both have a very similar taste and pricing. Therefore we would expect that the demand for both Coke and Pepsi is similar. However, Coca-Cola has the lead in this industry, Coca-Cola outsells Pepsi Cola by around five to six times in the whole cola market.

The two firms have had an interesting past and during the great depression from 1922 to 133 in three different occasions Coke has been offered the opportunity to buy Pepsi, but they have declined every time. However, since then there has existed a lot of competition between both kola producers. They compete by spending billions of dollars on advertising, celebrity endorsements, and slogan campaigns. Therefore, why is Coca-Cola the dominating brand on the soft drink

Another of the major reasons why coke is winning this race is because they engage intensely in product differentiation, they are obsessed in maintaining a image very different from all of it competitors. Throughout the years Coke has always kept updating their bottles/ packaging in order to keep their customers interested, no bored. Likewise, Coke is constantly innovating and trying to include as many customers as possible. That is why they launch different coke editions like Coca-Cola Zero that is aimed for people who are trying to lose weight and are concerned about their