sample of case study of coca cola company

Case Study Of Coca-Cola: What Led To Its Success?

Aashita Singh

Updated on: August 23, 2023

In a world brimming with countless beverages, one name stands tall – Coca-Cola. This fizzy elixir has captured the hearts and palates of billions around the globe, becoming a symbol of refreshment, happiness, and, of course, capitalism. The story of Coca-Cola is not just a tale of sweet bubbles, it’s a narrative of resilience, innovation, and the ability to adapt to the ever-changing tastes of consumers. So let’s pop the top and delve into the remarkable case study of Coca-Cola and what led to its success, and the hurdles it has faced.

Coca-Cola’s Profile:

The year was 1886, and the place was Atlanta, Georgia, where the Coca-Cola saga begins with Dr. John S. Pemberton , a pharmacist with a penchant for experimentation. In the heart of his laboratory, he mixed together a curious blend of coca leaf extract and kola nut, creating a syrupy concoction that he believed had medicinal properties. This brew, initially intended as a patent medicine to soothe headaches and fatigue. But, later on it was mixed with carbonated water to create a fizzy drink. It was first sold at Jacob’s Pharmacy on May 8, 1886. 

It was Frank M. Robinson , Dr. Pemberton’s bookkeeper, who gave the concoction its iconic name. He played a pivotal role in the brand’s early history by suggesting the name Coca-Cola and designing the now-famous logo. 

• He believed that “Coca-Cola” conveyed a sense of euphony and captured the drink’s two main ingredients. 
• He even penned the flowing script of the Coca-Cola logo that remains an indelible part of the brand’s identity. 

Coca-Cola Case Study to Rise to Prominence: 

Despite Pemberton’s vision, financial difficulties led to the sale of Coca-Cola formula in 1887 for a mere $2,300.  

Its key points:

• Asa Griggs Candler , a visionary businessman, acquired the rights to Coca-Cola and embarked on a mission to make it a national sensation.
• His aggressive marketing tactics and bold advertising campaigns set the stage for Coca-Cola’s expansion. 
• In 1894, Candler incorporated The Coca-Cola Company and pushed it for widespread distribution. 
• Soon, the beverage was available in every U.S state, solidifying its position as an American favorite. 
• Its sales increased by a phenomenal percentage because of Candler efforts. 
• The evolution of Coca-Cola would not be complete without mentioning the groundbreaking contour bottle, introduced in 1915. 
• It is said to be the stroke of genius – the contour bottle. 
• Designed to be distinctively recognizable even in the dark or shattered into pieces.
• This bottle not only protected the secret formula but also became a symbol of Coca-Cola’s commitment to quality.

• This curvaceous bottle not only protected the secret formula of the brand itself.
• This distinctive packaging contributed to Coca-Cola’s worldwide recognition. 

NOTE: We have detailed article about various functions of packaging ! Do check that out!!

In 1919, Ernest Woodruff bought up the company. Thereafter, Ernest’s sons continued to run the company until they transformed it into an international brand. The company was officially listed on the New York stock exchange in 1919 under the symbol KO. 

Coca-Cola’s study to International Expansion:

• With success at home! Coca-Cola set its sights on global domination. During World War II, the company provided American troops with Coca-Cola, using slogans like “The pause that refreshes” to boost morale.
• After the war, international expansion continued, with bottling plants established worldwide. 
• The introduction of Coca-Cola during the war created its demand in the international market. 
• After that, Coca-Cola began establishing its partnerships with distributors and bottling companies all around the world.  
• At present, the company operates and works in more than 200 countries and territories. 
• Coca-Cola was launched in India in 1956, with the slogan “Refresh Yourself”. 

Some key points of Coca-Cola Case Study:

• The company brand value was estimated at $97.9 billion in 2022.
• The brand logo can be recognized by 93% of the global population.
• For advertisement the company has used $ 4 billion annually for advertising, between the years 2015 to 2021, except for the year 2020 (due to pandemic). 
• The company is recorded to have 225 bottling partners and 900 bottling plants globally. 
• The brand employs around 700,000 employees.
• The company is recorded to have the same price between the years 1856-1959, at 5 cents.  
• Offers beverage options of beverage to more than 200 brands to consumers worldwide. 
• Partners with 24 million retail customer outlets. 
• Company has a profile that includes $ 21 million brands. 
•  In 2022, Coca-Cola was the most valuable brand in the non-alcoholic area globally at $ 35.4 billion

Who Owns Coca-Cola?

There are various shareholders holding shares in the company.

Coco-Cola is a public listed company.

But the topmost are – Berkshire Hathaway, The Vanguard Group, BlackRock.  However, the largest share of the brand company is said to be of Warren Buffett. 

• Vanguard holding 8.16%
• Berkshire holding 9.25%
• BlackRock holding 4.58%
• Warren Buffett holding 9.30% 

NOTE: You can our other success stories of business like Ola Case Study !

Coca-Cola’s Growth Strategy:

In the competitive landscape of the global beverage industry, Coca-Cola has managed to maintain its position as a market leader for over a century. let’s see one another part of Case Study of Coca-Cola-

Ever wonder how it has achieved such remarkable and enduring growth? 

Let’s delve into Case Study of Coca-Cola’s growth strategy:

• Product Diversification: One of Coca-Cola’s core strategies for growth is product diversification. While Coca-Cola classic remains the flagship product, the company has expanded its portfolio to cater to changing consumer preferences. This includes offerings like Diet Coke, Coca-Cola Zero Sugar, and an array of flavored and non-carbonated beverages such as water, juices, and teas. 
• Developed market focus: Coca-Cola has identified the importance of growing developing markets. Coco-Cola’s 70% of all beverages which are commercialized are being consumed in the developed world as compared to the developing world which is 30%.

• Global Expansion: Coca-Cola’s global reach is a testament to its growth strategy. With operations in over 200 countries, the company has successfully expanded its footprint worldwide. It tailors its product to local tastes and preferences, ensuring relevance in diverse markets. Local partnerships and distribution networks are key components of this strategy, allowing Coca-Cola to penetrate even the most remote corners of the globe.
• Innovation and New markets: innovation is at the heart of Coca-Cola’s growth strategy. The company continually invests in research and development to create new beverages and packaging solutions. An example of this is the introduction of smaller-sized cans and bottles to address consumer health concerns about portion control and health. 
• Branding and Marketing: Coca-Cola’s branding and marketing efforts are legendary. The company consistently runs high-impact advertising campaigns, often featuring celebrities and memorable slogans. Its marketing goes beyond mere product promotion, it aims to create emotional connections with consumers. For example, Share Coke Campaign. 
• Sustainability and Corporate responsibility: Sustainability has become a vital component of Coca-Cola’s growth strategy. The company realized the importance of environmental and social responsibility. Started taking Initiatives such as reducing water usage, recycling programs, and commitments. Which contributes to their sustainable sourcing of ingredients to its long-term growth plans. 

7. Strategic Partnerships: Coca-Cola strategically partners with various organizations and events to enhance its visibility and association with positive experiences. Sponsorships of major sports leagues, music festivals, and cultural events create opportunities for brand exposure and engagement with consumers. 

Some memorable marketing campaigns of Coca-Cola that led to its success: 

When it comes to marketing mastery, few brands can rival Coca-Cola. Over the years, this iconic beverage company has crafted some of the world’s most memorable and emotionally resonant advertising campaigns. 

Some of them are:

• Share a Coke (2011) : It was a stroke of genius. Personalization of packaging was a popular marketing tactic of Coca Cola. It personalized its bottles and cans by printing the common names of individuals.  The company encouraged people to find their names on the bottles. Also, it asked people to share the bottle or can of coke with their friends or family members.
• Taste the Feeling (2016) : It featured simple, relatable moments of people enjoying Coca-Cola and emphasized that the drink was for everyone, for every feeling, and for every day. The campaign included coke, diet coke and zero sugar coke. 
• Thanda matlab Coca-Cola (2003): Aiming at the idea of refreshing drinks or Thanda, the campaign focuses its attention to local markets to win the people’s trust in the country. They made Coca-Cola and Thanda synonyms of each other.
• Open Happiness: In 2009, Coca-Cola introduced the “Open Happiness” campaign, this optimistic and cheerful message encouraged people to find happiness in the little moments and share them with others. The campaign included a variety of feel-good ads, catchy jingles, and interactive marketing initiatives, inviting consumers to be part of the happiness movement. 

Case Study of Coca-Cola : How Coca-Cola makes money?

Coca-Cola, the world’s most iconic beverage, has a recipe for success that extends far beyond its secret formula. Its ability to generate substantial revenue is a testament to its diverse income streams and strategic business model. 

Some of them are :

Core product sales: At its heart, Coca-Cola generates a significant portion of its revenue from the sales of its core products, including Coca-Cola zero sugar, and various flavored variants.

Diversified beverage portfolio: Coca-Cola isn’t just about cola anymore. The company has diversified its product portfolio to include a wide range of beverages, catering to diverse consumer tastes. 

Non-Alcoholic ready-to-drink coffee: Coca-Cola has also ventured into the thriving market of non-alcoholic ready-to-drink coffee. With acquisitions like Costa Coffee and brands like Georgia Coffee, it has tapped into the caffeine cravings of consumers worldwide. 

Partnerships and Licensing: Coca-Cola earns revenue through partnerships and licensing agreements. For example, it collaborates with other companies to produce co-branded products, like Coca-Cola with coffee, and it licenses its brand for use in various merchandise, from apparel to collectibles.

Sponsorships and Marketing Campaigns: Coca-Cola invests heavily in sponsorships of major events, sports leagues, and cultural activities. These partnerships provide brand exposure and promotional opportunities, driving consumer engagement and sales. The company’s marketing campaigns, often featuring celebrities and memorable commercials, also contributes to its revenue.

Challenges to Coca-Cola Success: 

Coca-Cola, the behemoth of the beverage industry, is no stranger to challenges, despite its remarkable success. It faced numerous challenges that ranged from the preferences of consumers and concerns related to the environment. 

Let’s explore the hurdles this iconic company faces on its path to sustained prosperity.

• Health and Wellness concerns: One of the most significant challenges Coca-Cola faces is the shift in consumer attitudes towards health and wellness. With growing awareness about the health risks associated with excessive sugar consumption, sales of sugary carbonated beverages like Coca-Cola classic have been under pressure.

• Sugar and Obesity: Linked to health concerns is the ongoing controversy surrounding the role of sugary beverages in the obesity epidemic. Coca-Cola, along with other soda manufacturers, has faced legal battles, health advocacy campaigns, and regulatory pressures. Responding to this challenge Coca-Cola has introduced low-calorie and reduced-sugar alternatives and actively participates in public health discussions.
• Changing consumer preferences: The ever-evolving consumer preferences pose a constant challenge. The desire for diverse and unique flavors, healthier options, and transparency in ingredient sourcing requires Coca-Cola to innovate continually. 
• Competition in the beverage market: The beverage landscape is highly competitive, with numerous players vying for consumer attention. Coca-Cola competes not only with traditional rivals like PepsiCo but also faces competition from emerging beverage categories like energy drinks, ready-to-drink coffee, and plant-based beverages. 
• Supply chain disruptions: Disruptions in the supply chain, whether due to natural disasters, pandemics, or other unforeseen events, can disrupt production and distribution. These disruptions may lead to temporary shortages or increased costs. 
• Competition: The most prominent challenger to Coca-Cola’s throne is none other than PepsiCo and ThumbsUp. The rivalry between Coca-Cola and PepsiCo, often referred to as the “Cola Wars” is legendary. PepsiCo’s flagship product, Pepsi, competes head-to-head with Coca-Cola Classic. Both brands engage in intense marketing campaigns and strategic pricing to win the favor of consumers. 

Future plans of Coca-Cola : 

In a world of evolving tastes, shifting consumer preferences, and increasing environmental consciousness, Coca-Cola, the global beverage behemoth, is setting its sights on the future. Coca-Cola is planning to take a dynamic approach in marketing investment. 

Coca-Cola’s future plans are a blend of sustainability, diversification, digital engagement, innovation, and a relentless focus on the consumer. As the world of beverages evolves, Coca-Cola is determined to stay ahead of the curve, refreshing not only the taste buds, but also the expectations for a more sustainable beverage experience. 

The future, it seems, is bubbling with excitement for Coca-Cola. 

Conclusion : 

The Coca-Cola success story is a testament to the power of innovation, branding, and adaptability. It has conquered challenges, embraced change, and remained a symbol of joy for generations. The world may evolve, but the timeless allure of a Coke and a smile endures. By staying true to its core values while embracing change, Coca-Cola continues to fizz its way to the top. 

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Coca-Cola Business Strategy: Goals & Case Study (2024)

Coca-Cola, as the market leader in the soft drink industry, has a wide portfolio and operates in global markets. As a household name, its active corporate and marketing activities are worth studying. Let's have a look at Coca-Cola's international corporate strategy and marketing activities including its branding and pricing strategies.

Coca-Cola Company case study

The first Coca-Cola was sold in 1886 at a pharmacy in Atlanta, but now globalisation and diversification of the product range have changed its original brand image significantly.

Globalisation is one of the most distinctive features of Coca-Cola. The products are not just produced and bottled in its home town in the U.S., but in other countries as well.

Besides, as mentioned above, Coca-Cola uses a standardised brand image around the world.

Coca-Cola is one of the biggest global soft drink companies. It has a wide portfolio with brands in multiple soft drink categories including carbonated drinks, energy drinks, juices, and coffee. Its overall portfolio is diversified and more importantly, there are some products that are sold as region-specific, making up part of their strategy.

A corporate strategy is a medium-to-long-term plan for a business to reach its corporate objectives. It includes the activities that should be carried out, the time in which the tasks should be done, and the person who is responsible for the tasks to achieve corporate objectives.

Merging with or acquiring competitors, re-branding, or expanding the market from domestic to international are all examples of corporate strategies.

F unctional strategy of the Coca-Cola Company

Functional strategies are specific goals set out for different divisions of an organisation to reach its functional objectives.

The divisions usually include Marketing, Finance, Operations, and Human Resources . However, for multinational conglomerates like Coca-Cola, there could be more specific teams under each division. For instance, the operations division may include the IT department, Logistics, and Customer Service. See Also Coca-Cola Business Model Home | Coca-Cola Brand Spotlight: Coca-Cola - Branding Strategy Insider What is a USP? How to Create Your USP

In terms of operational strategy, bottling partnerships have helped Coca-Cola seize growth opportunities via vertical acquisitions. Global partnerships help Coca-Cola with cost control by reducing transportation costs and reaching economies of scale. This is an example of a functional objective for the operations division.

C oca -C ola marketing strategy

Effective and active marketing activities around the world are strong contributors to Coca-Cola’s revenue and market shares. Market and human insights are used heavily as indicators in Coca-Cola’s marketing activities. This means that Coca-Cola can target specific consumer segments well by understanding their profiles, including age, gender, and lifestyles. Hence, instead of individual products, brands under the conglomerate can be wrapped within different brand images to match their target demographics.

Sprite is a brand under The Coca-Cola Company marketed as a brand for younger generations, specifically Gen Z, as their focus is on promoting the ideas of current affairs, pop culture, and some popular consumer lifestyles such as the wider use of all things digital.

Many multinational conglomerates, such as Pepsi Co, choose to localise their brand images and adapt to the local markets, which result in different brand images around the world. Coca-Cola chooses to use a universal or standardised image around the world regardless of the location they operate in.

The advantage of this lack of segmentation strategy is consistency. Consistency in the brand image could bring travellers a sense of belonging, which trigger the consumers’ impulse to purchase the same product in other geographical locations.

The disadvantage of this strategy is related to reputation. A bad reputation would leave an impact regardless of the location. The same brand image might not suit different cultures.

Some brand images may be universally accepted or create a common effect. For example, Coca-Cola uses family gatherings and festive celebrations for its marketing in different markets. This works because most cultures share the same feelings of happiness for gatherings. See Also What Are Brand Values? A Definition and Complete Guide

From the perspective of the marketing mix , Coca-Cola diversifies its portfolio to target many niche needs such as co*ke Zero, Diet co*ke, Coca Cola Life, Glaceau Vitaminwater, and Glaceau Smartwater.

For place , it distributes globally, while region-specific products are also developed to target local consumers. In addition, its distribution channel and strategy of utilising bottling partnerships have enabled it to distribute products efficiently. The most prominent point in regard to place is ease of access. Products of Coca-Cola can be found in convenient shops, supermarkets, vending machines, restaurants and bars.

In terms of promotion , Coca-Cola invests a considerable amount of money in advertisem*nts. It uses a mix of digital and physical channels including TV commercials, sports sponsorships, social media advertisem*nts, and a series of ongoing campaigns.

For its pricing strategy, it offers competitive prices to prevent consumers from switching to other brands, as there are plenty of alternatives, such as Pepsi, available in the market. Besides, psychology pricing is one common pricing tactic it uses. It also tends to use discounts on bulk purchases to stimulate sales.

C oca -C ola expansion strategy

Although Coca-Cola is operating in most parts of the world, it has different market shares and products depending on the market. Coca-Cola has a high dependency on its bottling partners around the world. Hence, first of all, to expand, it has to improve its logistics and bottling systems.

Secondly, it is planning to reach a balanced combination of global, regional and local brands so its consumer base can grow gradually and sustainably. Also, it has a rather diversified portfolio and is planning to make use of the wide range of products to acquire customers with different interests. This means that Coca-Cola will not only continue its focus on soft carbonated drinks but will also put more effort into products such as nutritional drinks and coffee.

Thirdly, by joining social networks and participating in popular culture-related activities such as using TikTok and making YouTube videos for its promotion, it connects effectively with consumers, shortens the distance between the brand and consumers and benefits from the knowledge of the latest consumer trends.

S trategic goals of the Coca-Cola Company

Table. 1 Objectives of Coca-Cola (source: Coca-Cola investor overview presentation, 2021)

In order to achieve the long-term corporate objectives, businesses tend to set up some short-term strategic goals to make sure they are on track. In this case, Coca-Cola tends to develop goals for different functional areas depending on its long-term objectives.

Moreover, its overall main objective is claimed to be growing the company, the industry, and crafting brands and drinks that people love . In 2021, Coca-Cola set up a pipeline to assess its level of innovation. The goals of the pipeline included gaining new drinkers. This number was assessed weekly, significantly increasing frequent users from its existing customer base and increasing the value of each transaction significantly.

In general, the corporate goals of Coca-Cola can be summed up as gaining new customers, gaining market share, improving stakeholder impact, and ensuring the ability of the organisation to remain a market leader. Coca-Cola achieves this by pursuing a wide range of global strategies.

Coca-Cola Business Strategy - Key takeaways

• Coca-Cola is a market leader in the carbonated soft drink industry worldwide
• The strategy of franchising to its global bottling partners has enabled it to grow quickly.
• By partnering with local small bottlers in under-developed markets, it is able to strategically merge or acquire these small local businesses to expand the local markets.
• The marketing activities and strategy of using a standardised brand image around the world are contributing to its stable status as a household name worldwide as well.
• Marketing mix of Coca-Cola: Product: a wide portfolio including classic co*ke, Zero, Fanta and so on; Place: operates in global market, can be found in shops, restaurants and vending machines; Promotion: across different media and communication channels, using a series of campaigns; Price: competitive pricing at the market level.

Investors Coca-Cola, https://investors.coca-colacompany.com/about/presentations

Marketing91, https://www.marketing91.com/marketing-strategy-of-coca-cola/

Investopedia, https://www.investopedia.com/articles/markets/112515/how-does-cocacola-actually-make-money.asp

What is the strategic goal of the Coca Cola company? ›

Strategic goals of the Coca-Cola Company Moreover, its overall main objective is claimed to be growing the company, the industry, and crafting brands and drinks that people love . In 2021, Coca-Cola set up a pipeline to assess its level of innovation.

Coca-Cola initially employed an undifferentiated targeting strategy. In recent times, it has started localizing its products for better acceptability. It incorporates two basic marketing channels: Personal and Non-personal .

The problems faced by Coca-Cola Company are high sugar harmful to health, increase in competitors, plastic bottle waste and water scarcity . These issues will lead to many negative impacts to social and natural environment.

The decision making process in the Coca-Cola company is centralized. There are six step in the decision making of the Coca-Cola company which are recognize need to make decision, generate alternatives, assess the alternatives, choose among alternatives, implement choose and last the learn from feedback .

To refresh the world, To inspire moments of optimism and happiness, To create value and make a difference .

Strategic goals are specific, long-term objectives that a company sets for itself to achieve its desired future state , These strategic goals are both financial and non-financial objectives, so they can take a lot of different forms depending on the organization's particular business model.

Coca-Cola has been declared the worst plastic polluter in the world. It pumps out 200,000 bottles a minute, an equivalent of 3 million tons of plastic packaging a year.

Coca-Cola Co. (KO) - Get Free Report adopted a sustainable packaging initiative World Without Waste in 2018 to help solve the global plastic waste crisis with a goal of making 100% of its packaging recyclable by 2025 and using at least 50% recycled material in packaging by 2030.

5.1 Conclusion Coca-Cola as the world's leading soda beverage, with the strength of high resources company and also a very good and well-known brand image will be accepted at ease almost all over the world . Therefore, the strategy of Coca-Cola focuses on covering the full market segmentation, anywhere.

• EMISSIONS REDUCTION.
• WATER REDUCTION AND STEWARDSHIP.
• WORLD WITHOUT WASTE.
• OUR PEOPLE AND COMMUNITIES.

What are Coca-Cola sustainability goals? ›

Our global sustainability vision is committed to a ' World Without Waste ' which includes the aim collect and recycle a bottle or can for every single one we sell and make 100% of our packaging recyclable.

As an example, a strategic goal example is to enter new markets , so you would set a goal of getting into X, Y, and Z markets by a certain date. You could also set a goal of having 15 regional markets in total by a specific date.

Goals are broad, long-term outcomes that are reasonable to achieve within a time frame and with available resources. Objectives are specific and break down goals into more explicit directions by providing quantitative measurements. A strategy is a specific plan you'll use to meet objectives and goals .

Through skillful advertising efforts, Coca-Cola is widely recognized as a symbol of American culture through its influence on politics, pop culture, and music around the globe . Key statistics and facts about The Coca-Cola Company: Owns 43.7% of the US carbonated soft drinks market.

As per media reports, industry experts believe that it is because the brands are not big enough to thrive in a large distribution system of companies like co*ke , which is designed to maximise the sales of soda.

Coca-Cola needs to increase the distribution of such products . Increasing the distribution of packaged drinking water like Kinley. Working on sustainability and green marketing It can improve its brand image in the market.

Focusing on a world without waste Making all our packaging more sustainable and 100% recyclable globally by 2025 and use at least 50% recycled material in our packaging by 2030.

Full-color cans will designate single flavors, and stacked colors will communicate dual flavors . No changes have been made to Coca‑Cola Flavors formulas. The brand debuted the first phase of this packaging change in 2021 for Coca‑Cola® Original Taste and Coca‑Cola® Zero Sugar.

The Coca-Cola Company (NYSE: KO) is a total beverage company with products sold in more than 200 countries and territories . Our company's purpose is to refresh the world and make a difference. Our portfolio of brands includes Coca-Cola, Sprite, Fanta and other sparkling soft drinks.

The Coca-Cola Company markets, manufactures and sells: beverage concentrates and syrups; and, finished beverages (including sparkling soft drinks; water and sports drinks; juice, dairy and plantbased drinks; and tea and coffee).

What is the summary background of Coca-Cola Company? ›

Coca-Cola started in 1886, when pharmacist John Pemberton created a caramel-coloured liquid and combined it with carbonated water . The rights to the formula were bought in 1888 by businessman Asa Griggs Candler for just $2,300, and the Coca-Cola Company (KO) was subsequently incorporated in 1892.

The major challenges to case studies are based on generalization, validity, reliability, theory role, authority, and authenticity, dependency, and longevity of the case .

The public issue that The Coca-Cola Company (TCCC) faced was access to safe and clean drinking water, and possibly a water shortage around the world . The "performance-expectation gap" defined in the book explains the gap between corporate performance versus stakeholder expectation.

Coca-Cola has been accused of dehydrating communities in its pursuit of water resources to feed its own plants, drying up farmers' wells and destroying local agriculture . The company has also violated workers' rights in countries such as Colombia, Turkey, Guatemala and Russia.

The Coca-Cola Case is an unsettling feature-length documentary by directors German Gutierrez and Carmen Garcia exploring the subject through the lens of America's favorite soft drink, investigating the allegations that co*ke orchestrated the kidnapping, torture and murder of union leaders trying to improve working ...

• STEP 1: READ THE CASE STUDY AND QUESTIONS CAREFULLY. • ...
• STEP 2: IDENTIFY THE ISSUES IN THE CASE STUDY. ...
• STEP 3: LINK THEORY TO PRACTICE. ...
• STEP 4: PLAN YOUR ANSWER. ...
• STEP 5: START WRITING YOUR CASE STUDY ANSWER. ...
• STEP 6: EDIT AND PROOFREAD. ...
• STEP 7: SUBMIT.
• Read and Examine the Case Thoroughly. Take notes, highlight relevant facts, underline key problems.
• Focus Your Analysis. Identify two to five key problems. ...
• Uncover Possible Solutions/Changes Needed. ...
• Select the Best Solution.

Your draft should contain at least 4 sections: an introduction; a body where you should include background information, an explanation of why you decided to do this case study, and a presentation of your main findings; a conclusion where you present data; and references.

Coca-Cola received Ethical Consumer's worst rating for Carbon Management and Reporting and its Palm Oil policy. It's also a leading plastic polluter. In October 2020 Coca-Cola was facing a lawsuit for plastic pollution from the Earth Island Institute and Plastic Pollution Coalition .

Our Code of Business Conduct serves to guide the actions of our employees, officers and directors in ways that are consistent with our core values: honesty; integrity; diversity; quality; respect; responsibility; and, accountability .

Why did Coca-Cola become actively involved in global development issues? ›

Questions: 1. Why did Coca Cola become actively involved in global development issues? Coca Cola sees a win-win situation by involving itself in global assistance issues in the developing world . The company is gaining critical brand loyalty in what may be important markets in the future.

Even one or two colas a day could increase your risk of type 2 diabetes by more than 20% . Sugar intake is linked to high blood pressure, high cholesterol, and excess fat, all of which increase the risk of heart disease. Colas and other sugary drinks have been linked to an increased risk of pancreatic cancer.

Since 1917, our efforts have covered a wide range of topics including: water sustainability, women empowerment, community well-being, sustainable packaging, climate protection, human and workplace rights, and sustainable agriculture .

• It hydrates you. According to scientific studies, consuming soda can have the same impact on the body as drinking the eight glasses of water; despite concerns that soda has the complete opposite effect. ...
• Contains caffeine. ...
• Eases digestion. ...
• Eases nausea. ...
• Precautions.

The pricing strategy of Coca-Cola is what they refer to as ” meet-the-competition pricing ”: Coca-Cola product prices are set around the same level as their competitors, because Coca-Cola has to be perceived as different but still affordable.

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Coca-Cola Marketing Case Study

From the star ‘Coca-Cola’ drink to Inca Kola in North and South America, Vita in Africa, and Thumbs up in India, The Coca-Cola Company owns a product portfolio of more than 3500 products . With the presence in more than 200 countries and the daily average servings to 1.9 billion people, Coca-Cola Company has been listed as the world’s most valuable brand with 94% of the world’s population recognizing the red and white Coca-Cola brand Logo . Moreover, 3.1% of all beverages consumed around the world are Coca-Cola products. All this because of its great marketing strategy which we’ll discuss in this article on Coca-Cola Marketing Strategy .

Coca-Cola –

• has a Market capitalization of $192.8 Billion (as of May 2016).
• had 53 years of consecutive annual dividend increases.
• with the revenue of over $44.29 billion, is not just a company but an ECONOMY.

The world knows and has tasted the coca cola products. In fact, out of the 55 billion servings of all kinds of beverages drunk each day (other than water), 1.7 billion are Coca-Cola trademarked/licensed drinks.

Marketing history

Market research in the beginning.

It all started 130 years ago, in 1886, when a Confederate colonel in the Civil War, John Pemberton, wanted to create his own version of coca wine (cola with alcohol and cocaine) and sent his nephew Lewis Newman to conduct a market research with the samples to a local pharmacy (Jacobs pharmacy). This wasn’t a new idea back then. The original idea of Coca wines was discovered by a Parisian chemist named Angelo Mariani.

Pemberton’s sample was sold for 5 cents a glass and the feedback of the customers was relayed to him by his nephew. Hence, by the end of the year, Pemberton was ready with a unique recipe that was tailored to the customers taste.

Marketing Strategy In The Beginning

Pemberton soon had to make it non-alcoholic because of the laws prevailing in Atlanta. Once the product was launched, it was marketed by Pemberton as a “Brain Tonic” and “temperance drink” (anti-alcohol), claiming that it cured headaches, anxiety, depression, indigestion, and addiction. Cocaine was removed from Coke in 1903.

The name and the original (current) Trademark logo was the idea of Pemberton’s accountant Frank Robinson, who designed the logo in his own writing. Not changing the logo till date is the best strategy adopted by Coca-cola.

Soon after the formula was sold to Asa G Candler (in 1889), who converted it into a soda drink, the real marketing began.

Candler was a marketer. He distributed thousands of complimentary coca-cola glass coupons, along with souvenir calendars, clocks, etc. all depicting the trademark and made sure that the coca cola trademark was visible everywhere .

He also painted the syrup barrels red to differentiate Coca-Cola from others.

Various syrup manufacturing plants outside Atlanta were opened and in 1895, Candler announced about Coca-Cola being drunk in every state & territory in the US.

The Idea Of The Bottle

During Candler’s era, Coca-Cola was sold only through soda fountains. But two innovative minds, Benjamin F. Thomas and Joseph B. Whitehead, secured from Candler exclusive rights (at just $1) for bottled coca cola sales.

But Coca-Cola was so famous in the US that it was subjected to imitations. Early advertising campaigns like “Demand the genuine” and “Accept no substitutes” helped the brand somewhat but there was a dire need to differentiate. Hence, in 1916, the unique bottle of Coca-Cola was designed by the Root Glass Company of Terre Haute, Indiana. The trademark bottle design hasn’t been changed until now.

Coca-Cola Worldwide

In 1919, Candler sold the company to Robert Woodruff whose aim was to make Coca-Cola available to anyone, anytime and anyplace. Bottling plants were set up all over the world & coca cola became first truly global brand.

Robert Woodruff had some other strategies too. He was focused on maintaining a standard of excellence as the company scaled. He wanted to position Coca-Cola as a premium product that was worthy of more attention than any of its competitors. And he succeeded in it.  Coca-Cola grew rapidly throughout the world.

Coca-Cola Marketing Strategies

The worldwide popularity of Coca-Cola was a result of simple yet groundbreaking marketing strategies like –

Consistency

Consistency can be seen from the logo to the bottle design & the price of the drink (the price was 5 cents from 1886 to 1959). Coca-Cola has kept it simple with every slogan revolving around the two terms ‘Enjoy’ and ‘happiness’.

From the star bottle to the calendars, watches and other unrelated products, Candler started the trend to make Coca-Cola visible everywhere. The company has followed the same branding strategy till now. Coca-Cola is everywhere and hence has the world’s most renowned logo.

Positioning

Coca-Cola didn’t position itself as a product. It was and it is an ‘Experience’ of happiness and joy.

Franchise model

The bottling rights were sold to different local entrepreneurs , which is continued till now. Hence, Coca-cola isn’t one giant company, it’s a system of many small companies reporting to one giant company.

Personalization & Socialization

Unlike other big companies, Coca-Cola has maintained its positioning as a social brand. It talks to the users. Coca-Cola isn’t a company anymore. It’s a part of us now. With its iconic advertising ideas which include “I’d Like to Buy the World a Coke” & “Share a Coke”, it has maintained a special spot in the heart of its users.

Diversification

Coca-Cola, after marking its presence all over the world, took its first step towards diversifying its portfolio in 1960 by buying Minute Maid. It now operates in all but 2 countries worldwide with a portfolio of more than 3500 brands.

Coca-Cola Marketing Facts

• Logo & bottle design hasn’t changed since the start.
• During its first year, Coca-Cola sold an average of 9 drinks a day.
• Norman Rockwell created art for Coke ads.
• Coke has had a huge role in shaping our image of Santa Clause.
• In the 1980s, the company attempted a “Coke in the Morning” campaign to try to win over coffee drinkers.
• In 1923, the company began selling bottles in packages of six, which became common practice in the beverage industry.
• Recently, it was in the news that Verizon acquired Yahoo for around $5 billion which is more or less the same amount the Coca-Cola Company spends on its advertisements.
• The number of employees working with the Coca-Cola Company (123,200 to be exact) is more than the population of many countries.

Go On, Tell Us What You Think!

Did we miss something?  Come on! Tell us what you think about Coca Cola Marketing Case Study  in the comment section.

A startup consultant, digital marketer, traveller, and philomath. Aashish has worked with over 20 startups and successfully helped them ideate, raise money, and succeed. When not working, he can be found hiking, camping, and stargazing.

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Table of Contents

Coca-cola target audience , geographical segmentation , coca-cola marketing channels, coca-cola marketing strategy , coca-cola marketing strategy 2024: a case study.

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Coca-cola has colossal brand recognition as it targets every customer in the market. Its perfect marketing segmentation is a major reason behind its success. 

• Firstly, the company targets young people between 10 and 35. They use celebrities in their advertisements to attract them and arrange campaigns in universities, schools, and colleges. 
• They also target middle-aged and older adults who are diet conscious or diabetic by offering diet coke. 

Income and Family Size

It introduces packaging and sizes priced at various levels to increase affordability and target students, middle class, and low-income families and individuals.  

Coca-Cola sells its products globally and targets different cultures, customs, and climates. For instance, in America, it is liked by older people too. So, the company targets different segments. It also varies the change accordingly, like the Asian version is sweeter than other countries. 

Coca-Cola targets individuals as per their gender. For example, Coca-Cola light is preferred by females, while coke zero and thumbs up are men's favorite due to their strong taste.

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Coca-Cola initially employed an undifferentiated targeting strategy. In recent times, it has started localizing its products for better acceptability. It incorporates two basic marketing channels : Personal and Non-personal.

Personal channels include direct communication with the audience. Non-personal marketing channels include both online and offline media, such as

• Promotion Campaigns 
• PR activities 

Social Media

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A uniquely formulated Coca Cola marketing strategy is behind the company's international reach and widespread popularity. The strategy can be broken down into the following:

Product strategy 

Coca-cola has approximately 500 products. Its soft drinks are offered globally, and its product strategy includes a marketing mix. Its beverages like Coca-Cola, Minute Maid, Diet Coke, Light, Coca-Cola Life, Coca-Cola Zero, Sprite Fanta, and more are sold in various sizes and packaging. They contribute a significant share and generate enormous profits. 

Coca-Cola Products

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Pricing Strategy

Coca-Cola's price remained fixed for approximately 73 years at five cents. The company had to make its pricing strategy flexible with the increased competition with competitors like Pepsi. It doesn't drop its price significantly, nor does it increase the price unreasonably, as this would lead to consumers doubting the product quality and switching to the alternative.  

Place Strategy 

Coca-cola has a vast distribution network. It has six operating regions: North America, Latin America, Africa, Europe, the Pacific, and Eurasia. The company's bottling partners manufacture, package, and ship to the agents. The agents then transport the products by road to the stockist, then to distributors, to retailers, and finally to the customer. Coca-Cola also has an extensive reverse supply chain network to collect leftover glass bottles for reuse. Thus, saving costs and resources.

Coca-Cola’s Global Marketing

Promotion Strategy  

Coca-Cola employs different promotional and marketing strategies to survive the intense competition in the market. It spends up to $4 million annually to promote its brand , utilizing both traditional and international mediums for advertisements.   

Classic Bottle, Font, and Logo

Coca-Cola organized a global contest to design the bottle. The contest winner used the cocoa pod's design, and the company used the same for promoting its shape and logo. Its logo, written in Spencerian script, differentiates it from its competitors. The way Coca-cola uses its logo in its marketing strategy ensures its imprint on consumers' minds. 

Coca-Cola’s Gripping Advertisements

Localized Positioning

The recent 'Share a coke' campaign, launched in 2018 in almost fifty countries, has been quite a success. The images of celebrities of that region and messages according to the local language and culture of the area target the local market. 

Coca-Cola Advertisement Featuring Celebrities

Sponsorships 

The company is a well-recognized brand for its sponsorships, including American Idol, the NASCAR, Olympic Games, and many more. Since the 1928 Olympic Games, Coca-Cola has partnered on each event, helping athletes, officials and fans worldwide. 

Coca-Cola as Official Olympics Partner

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With technological advancement, social media and online communication channels have become the most significant part of the Coca-Cola marketing strategy. It actively uses online digital marketing platforms like Facebook , Twitter, Instagram, YouTube, and Snapchat to post images, videos, and more.  The Coca Cola marketing strategy primarily includes SEO , email marketing , content marketing , and video marketing .   

Coca-Cola’s Instagram Posts 

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Case Study Analysis of Coca-Cola – Segmentation, Targeting, Customer Analysis Summary

• Coca-Cola VALS
• Coca-Cola Customer Analysis
• Coca-Cola Product Market
• Segmentation & Targeting Analysis

Introduction

Coca-Cola Company is one of the most global successful multinational corporations headquartered in Atlanta, USA. The corporation has branches in more than 200 countries, which are doing well both in sales and management.

This case study focuses on the research about Coca-Cola Company and analyzes its VALS information, Customer Analysis, Product Market, Segmentation and Targeting, Competition, and Competitive Market Analysis.

Coca-Cola Values and Lifestyle Survey Information (VALS)

Regarding VALS information, the corporation recently used psychographic procedures in dividing its market. Based on the available information, the buyers are classified into various categories using psychological traits, depending on the person’s lifestyle (SRI-BI 1).

Here, the person’s lifestyle determines his/her purchasing behavior and helps in determining the consumers’ attitude, aspirations, opinions, hopes, desires, beliefs, fears, prejudice, needs, fears, and desires (SRI-BI 1). Therefore, the company uses the information received using VALS to develop brand personalities and images. As a result, the corporation increases the preference for its product and boosts the overall sales.

Coca-Cola Case Study: Customer Analysis

Since the company provides a range of energy and soft drinks, its customers are drawn from all categories of people regardless of age, race, sex, culture, and other social attributes (Perreault 24). The company has numerous brands specifically to satisfy the needs and tastes of its worldwide consumers (Lagos, Schirf and Smith 2). Indeed, the global success of the company products results from the rise in consumer preferences.

Notably, people from all social classes identify with the range of coca-cola soft drinks available in the market. Those from high, medium and low-class purchase coca-cola products because the drinks are of different prices to cater for the financial position of the customers (Lagos, Schirf and Smith 2). As a result of innovation, the company has been able to meet the consumer needs and aspirations

Coca-Cola Product Market Analysis

The company has a range of products, which guarantee the consumers’ health needs. The products are of great taste and low fats. Furthermore, it has fruit juices for adults and children to supplement fruits, which people need for health and refreshment. Other products include energy drinks, mineral water, sport drinks, soft drinks, tea and coffee drinks.

Considering the company products, energy drinks include play and rehab among others. Juices include fuze, acueducto, andina fresh and others. Mineral water includes vio, acquamist and others. Soft drinks include Coca cola, Fanta, and Sprite among others. Tea and Coffee include deeppresso and other products.

Coca-Cola Segmentation and Targeting Analysis

Coca-cola segmentation analysis summary.

The criteria that the company uses to classify its customers are measurable, responsive to marketing mix and reasonable (Perreault 42). Therefore, the segmentation criteria that the company applies include economic, geographic, demographic, behavioral and psychographic.

Under economic segmentation, the market is divided based of the level of income (Perreault 55). Therefore, this classification has people contain people from high-income, medium-income and low-income categories.

Geographic segmentation acknowledges variables climate, population growth, region, and population density (Perreault 56). The company invests more on regions with high population growth and density.

Demographic segmentation relies on human variables including age, ethnicity, gender, occupation, education, family status and others (Perreault 57). These variables are different aspects and the company applies then only on areas deemed essential, in the sense that those factors do not affect the consumer choices and preference.

Behavioral segmentation enables the company to use variables such as price sensitivity rate of usage; benefit sought, and brand loyalty (Perreault 58). In this area, the company uses such attributes to improve on the quality of its products.

Psychographic segmentation helps the company determine the consumers’ lifestyle, attitude toward the product and value he/she attaches to it (Perreault 59). Through this segmentation, the company is able to understand the customers’ preference and desires thus make informed choices during distribution.

Coca-Cola Targeting Analysis Summary

Through enhancing promotion and advertising, the company targets high and middle class people because this category consists of people with enough money to purchase such luxury products (Shimp 37). In addition, the company has innovated economy packs, costing less so that the consumers from low class do not miss these luxurious products.

Such innovation has made the products and the company popular among the public. For instance, coca-cola soft drink is one of the most popular brands that the company has. Furthermore, its cost is reasonable and pocket friendly for all the consumers drawn from all classes because the product is packed in relatively small quantities.

Coca-Cola Competition Analysis Summary

Since there are other companies manufacturing soft drinks and the non-alcoholic ones, the Coca-Cola Company operates in a very competitive business environment.

Some of the innovative approaches to encounter competition include product’s diversification, price reduction, carrying out targeted advertising and promotions (Lagos, Schirf and Smith 2). Competition is very healthy since it increases innovation while improving the quality of the products (Blythe 78).

Coca-Cola Company competes in a number of industries including soft drink, beverage, juice, non-alcoholic beverage, health & nutrition, energy, sports, coffee & tea manufacturing.

Owing to the steady increase in demand for the above soft drink, the company faces stiff competition from the other business players in the industry. Perhaps, the high demand for the luxury drinks led to emergence of other industries in this field to bridge the gap (Blythe 102).

Coca-Cola Competitive Market Analysis

As a business entity, coca-cola company faces a stiff competition from other players in the soft drink industry. Notably, competition is imminent and the company is doing enough to minimize its impacts on the consumers through advertising and promotion (Shimp 44).

The major competitors threatening the operations of coca-cola company include American Beverage Corporation located at Verona, Aquaterra Corporation located at Mississauga, Pepsi, National Beverage Company, and Cott Corporation among others.

American Beverage Corporation manufactures and distributes its soft drink and non-carbonated products to different countries around the globe (Blythe 105). Majorly, the company dominates the sales of its products in the US, Canada, United Kingdom, but also in other parts of the world. Moreover, the company products target users from different groups including age, religion, gender, cultural background and social class.

Aquaterra Corporation is another key competitor to Coca-Cola Company. It manufactures various soft drink flavors, which are sold in many countries around the world (Blythe 106). Many of their customers prefer the products due to the company’s health considerations.

Coca-cola also faces competition from Pepsi Company that is known for its famous soft drinks, including Mountain View and Pepsi among other products. Pepsi Company market and distribute a number of products worldwide, with its niche market in the US (Lagos, Schirf and Smith 2). In addition, the company is also increasing its non-carbonated beverage production, due to the rising consumer preferences for the drinks.

National Beverage Co. is another stiff competitor to the company. It manufactures, markets, develops, and distributes various beverage products in the US and other parts of the world (Lagos, Schirf and Smith 2). The company and others take advantage of the growing world population that needs the soft drinks. Specifically, the company manufactures distinct brands with a variety of flavor according to the customer demands.

Some of their brands, which have attracted a number of consumers, include Faygo and Shasta (Lagos, Schirf and Smith 2). It also has cola drinks, VooDoo Rain for the young consumers, St. Nick’s Holiday and Ohana fruit-flavored drinks (Lagos, Schirf and Smith 2).

Since the customers are increasingly becoming health conscious, the company exploit this by producing premium beverages to achieve this, and maintain its customers.

Cott Corporation is another competitor producing high quality premium drinks such as juices, high energy and organic beverages among others. The company sells its products in the US, Canada, United Kingdom, and other parts of the world (Lagos, Schirf and Smith 2). In addition, the company products target consumers from different categories including age, religion, gender, cultural background and social class.

In general, Coca-Cola Company remains the dominant business entity that provides refreshing soft drinks. Though it has a lot of competitors in the field of soft drinks, fruit-flavored drinks and other non-carbonated drinks, it uses innovative techniques such as economy packs, intensified marketing and informed marketing segmentation to remain competitive.

Since the products are luxury drinks, their users are drawn majorly from the high and middle classes. This means, competition is very high and the best company can only survive in this market through innovation and diversification, being affordable and manufacturing products, which guarantees the consumer of healthy life. Indeed, Coca-Cola Company has succeeded in its diversification strategies and in the quality of is products.

Blythe, Jim. Essentials of Marketing Communications , (3rd Ed.). New York: FT/Prentice Hall, 2006. Print.

Lagos, Theresa. Schirf, Lisa and Smith, Vicente 2001, Analysis of the Coca-Cola Company . PDF file. Web.

Perreault, William. Basic Marketing: A Marketing Strategy Planning Approach , (17th Ed.). New York, NY: McGraw-Hill Publishers, 2009. Print.

Shimp, Terence. Advertising, Promotion, and Other Aspects of Integrated Marketing Communications. (7th Ed.). Mason, Ohio: Thomson South-Western, 2007. Print.

SRI-BI, 2006, The VALS Segments . PDF file. Web.

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Communications Strategy: The Coca-Cola Company Case Study

Summary of the communication strategy, analysis of the communication strategy, communication strategy integration reflection, video voice-over.

Establishing effective communication is pivotal in any type of relationship. In the corporate world, companies function as the settings where communication occurs between multiple stakeholders, including management, employees, suppliers, distributors, customers, and media. The choice of communication strategy represents the overall image of the company and contributes to its competitive advantage in the market.

However, when considering internal corporate communication, the strategy that is chosen for management-employee interaction plays a pivotal role in effective cooperation and achievement of company goals. The level of transparency of exchanged information, trust between the parties, and approachability of management constitute some of the critical elements of effective communication inside the company. This case study aims at analyzing and discussing the application of the corporate communication strategy employed at the Coca-Cola company.

Communication is one of the most significant values at Coca-Cola since it is integrated into the company’s priorities. Indeed, according to the company’s official statement on corporate functioning and inclusivity, the organization fosters effective and transparent communication that allows for every individual to be heard (The Coca-Cola Company, 2021). Thus, the first attribute of open communication between management and employees is the equity of everyone’s voice in the company. Moreover, according to the corporation’s corporate culture, communication is the essence of trustworthy, consistent, and accountable relationships, which are “more critical than ever in creating environments where individuals of all backgrounds can thrive” (The Coca-Cola Company, 2021, para. 3).

Therefore, the second attribute of the communication strategy at Coca-Cola is relationship-building which is the priority for practical cooperation between management and employees. Finally, the flow of the information achieved by the ease and accessibility of communication channels within the company allows for timely feedback obtaining, which ultimately reduces dissatisfaction with work, increases productivity and creativity. Thus, the communication strategy implemented at Coca-Cola is an effective and engaging approach to problem-solving, equity provision, and relationship-building.

The analysis of a communication strategy allows one to identify the advantages and disadvantages of a given approach. According to Opran (2018), “an important part of an organization is internal communication or communication with the employees, representing the vital flux that makes possible the accomplishments of an organization” (p. 163). In the particular case of Coca-Cola, the transparent communication achieved through facilitated communication channels has several advantages at multiple levels. Firstly, sales are likely to grow under the influence of the continuous sharing of ideas from talented and creative employees. Secondly, services within the company are improved due to the continuous identification of unmet needs.

Thirdly, the value chain is enriched due to the relationship-building with multiple stakeholders based on trust and accountability (The Coca-Cola Company, 2021). Finally, continuous improvements of organizational performance, both internal and external, are ensured by means of timely problem-solving and idea exchange. However, there are some disadvantages of this approach to communication organization inside the company. It is time- and cost-consuming since the processing of feedback, complaints, ideas, and opinions requires workforce, time, and monetary losses.

The predominant number of advantages of the analyzed communication strategies outweighing the disadvantages encourages for practical implementation of this strategy in other organizational settings. To integrate this communication strategy in my workplace, I would need to be equipped with proper technological tools and personnel. Indeed, to ensure the flow of information within multiple communication channels, employees and employers should have unrestricted access to communication means.

They might include corporate e-mails, memo exchange, social media, a specifically designed online feedback platform, or manual means. Furthermore, personnel should be hired to collect, process, analyze, and interpret communication content, especially feedback and idea exchange. Moreover, following the example of Coca-Cola’s management, my organization would need to implement leadership’s initiatives on engaging in direct communication with employees to facilitate transparency, trust, and relationship building. In such a manner, company goals will be achieved in a more efficient and productive manner while corporate culture and internal workplace atmosphere will strive and motivate employees for further achievements.

In summation, as the analysis of the case study demonstrated, the effectiveness of corporate communication strategy implemented at a company allows for increasing employees’ loyalty, productivity, and creativity through timely problem-solving and idea-sharing. The communication strategy employed by the Coca-Cola company has established the organization’s favorable corporate culture with a well-functioning community of loyal, productive, and creative employees. Furthermore, the strategy allows for generating better sales outcomes, contributes to the value chain, services, and overall improvement through continuous feedback obtainment and new ideas search inside the company.

Therefore, the abundance of advantages this communication strategy provides allows for determining it an effective one. It is encouraged for other organizations to employ the communication strategy in order to achieve company goals, build strong relationships between management and employees, and promote person-centered corporate culture. In such a manner, the businesses will obtain competitive advantages by means of continuous improvement through investing time and effort into corporate relationships.

The Coca-Cola Company. (2021). Learning and communication tools help build more inclusive culture . Web.

Opran, E. R. (2018). Internal communication campaigns and employees’ motivation. Social Sciences and Education Research Review, 5 (1), 162-168.

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Insights from Coca Cola Crisis Management Case Study

Have you ever wondered how a global giant like Coca Cola manages to navigate through a crisis? 

Picture this: one of the most beloved beverage brands in the world, facing a crisis that threatens its reputation and consumer trust. 

What would you do if you were in their shoes? 

In this Coca Cola crisis management case study, we delve into the fascinating world of Coca Cola’s crisis management strategies. 

Join us as we unravel the gripping tale of how this iconic company tackled a major crisis head-on, learning valuable lessons along the way. 

Get ready to discover the power of effective crisis management and the role it plays in safeguarding a brand’s legacy.

Brief history of Coca Cola and brand reputation and market share 

Coca Cola, the world’s most recognizable beverage brand, has a rich and fascinating history that dates back over a century. It all began in 1886 when pharmacist John Pemberton created a unique syrup and mixed it with carbonated water, giving birth to the iconic Coca Cola drink.

From its humble beginnings as a soda fountain beverage, Coca Cola quickly gained popularity and expanded its presence across the United States.

As the brand grew, it ventured into international markets, establishing its first international bottling plants in the early 1900s. Today, Coca Cola is a truly global company with a remarkable presence in over 200 countries, offering a diverse portfolio of beverages beyond its flagship cola, including juices, teas, sports drinks, and more.

The brand’s global reach and market penetration have made it an integral part of people’s lives, transcending cultural boundaries and becoming a symbol of refreshment worldwide.

Coca Cola’s brand reputation is synonymous with excellence and innovation. Over the years, the company has nurtured a strong brand identity built on trust, quality, and a commitment to delivering refreshing beverages to consumers.

The distinctive red and white logo is instantly recognizable, evoking feelings of nostalgia and joy.

With its relentless pursuit of customer satisfaction, Coca Cola has successfully captured a significant portion of the global beverage market. Despite fierce competition, the brand has maintained a dominant position, consistently ranking among the top beverage companies in terms of market share.

Coca Cola’s ability to adapt to changing consumer preferences , introduce new products, and leverage its brand equity has solidified its position as a leader in the industry.

However, even the strongest brands are not immune to crises, as we shall explore in the following sections.

Description of the Crisis Incident

In the annals of Coca Cola’s history, there have been instances where the brand faced significant crises that posed immense challenges to its reputation. One notable crisis involved allegations of product contamination, which sent shockwaves through the company and its consumers.

Imagine the scene: rumors started circulating that certain batches of Coca Cola products were contaminated, raising concerns about the safety and quality of the beloved beverage.

The news spread rapidly, fueled by social media and sensationalized media coverage, creating a sense of fear and uncertainty among consumers.

As the crisis unfolded, consumers expressed worries about potential health risks associated with consuming Coca Cola products. Speculations and negative narratives further fueled the crisis, amplifying the impact and posing a threat to the brand’s credibility and customer trust.

For Coca Cola, the crisis was a critical moment that demanded swift and effective action. The company faced the daunting task of managing the situation, addressing the concerns of its stakeholders, and restoring faith in its products. How did Coca Cola navigate through this tumultuous period? Let’s delve into their crisis management strategies and discover how they triumphed in the face of adversity.

Media coverage and public reaction

The crisis surrounding Coca Cola triggered a flurry of media coverage, with news outlets and social media platforms buzzing with discussions, speculations, and varying viewpoints. The sensational nature of the allegations and the widespread popularity of the brand ensured that the crisis garnered significant attention from the public and the media.

News reports, both traditional and digital, dissected the crisis, amplifying the concerns raised by consumers and shedding light on the potential consequences. Social media platforms became the breeding ground for discussions, where users expressed their opinions, shared experiences, and voiced their worries about the safety of Coca Cola products.

The intensity of the media coverage and public reaction put immense pressure on Coca Cola to address the crisis promptly and transparently. The company found itself navigating a landscape where every move was under scrutiny, and its response would shape public perception and future consumer behavior.

Initial response by Coca Cola

When confronted with the crisis, Coca Cola swiftly mobilized its crisis management team to address the situation head-on. Recognizing the importance of immediate action, the company adopted a proactive approach to manage the crisis and mitigate potential damage to its brand reputation.

Coca Cola’s initial response focused on three key pillars: transparency, accountability, and communication. The company acknowledged the concerns raised by consumers and the media, demonstrating a commitment to address the crisis with utmost seriousness.

First and foremost, Coca Cola conducted a thorough investigation into the alleged product contamination, leaving no stone unturned to uncover the truth. This transparent approach aimed to regain consumer trust by ensuring that the safety and quality of their products were of paramount importance.

Simultaneously, Coca Cola took accountability for any shortcomings or mistakes that may have contributed to the crisis. The company issued public statements expressing genuine regret for the distress caused to consumers and reassured them of their commitment to resolving the issue promptly and effectively.

Immediate actions taken by Coca Cola to address the crisis

In the face of the crisis, Coca Cola implemented a series of immediate actions to address the situation and regain consumer confidence. These actions were aimed at ensuring the safety and quality of their products, as well as effectively managing the crisis at hand.

Product Recall and Investigation

As a responsible measure, Coca Cola initiated a comprehensive product recall of the affected batches in collaboration with regulatory agencies. This demonstrated their commitment to consumer safety and allowed for a thorough investigation into the alleged contamination.

Enhanced Quality Assurance Procedures

Coca Cola implemented rigorous quality assurance procedures to prevent future incidents and maintain the highest standards of product safety. They reviewed and strengthened their manufacturing and packaging processes, as well as enhanced monitoring and testing protocols.

Collaboration with Regulatory Bodies

Recognizing the importance of regulatory compliance, Coca Cola collaborated closely with relevant regulatory bodies throughout the crisis. They provided full cooperation, shared information, and adhered to the recommendations and guidelines set forth by these authorities.

Communication strategies employed 

Effective communication is crucial during a crisis, and Coca Cola employed various strategies to ensure transparent and consistent messaging to stakeholders. These communication strategies aimed to address concerns, provide accurate information, and rebuild trust in the brand.

Press Releases

Coca Cola utilized press releases as a primary means of communicating official statements and updates regarding the crisis. These press releases were disseminated to the media and made available to the public, ensuring timely and accurate information about the steps being taken to address the situation.

Social Media Engagement

Recognizing the power of social media in shaping public perception, Coca Cola actively engaged with consumers through social media platforms. They responded to queries, addressed concerns, and provided updates on the progress of the investigation. This direct engagement helped to establish a sense of transparency and responsiveness.

Website Updates

Coca Cola dedicated a section on their official website to address the crisis and provide comprehensive information to concerned consumers. This platform served as a central hub for sharing details about the investigation, product recalls, and ongoing efforts to resolve the crisis.

Stakeholder Communication

Coca Cola prioritized communication with its stakeholders, including distributors, retailers, and business partners. They provided regular updates to these stakeholders, addressing any potential impact the crisis might have on their operations and assuring them of the measures being taken to rectify the situation.

Spokesperson Representation

Coca Cola designated trusted and credible spokespersons to represent the company and communicate with the media. These individuals were well-versed in the crisis details and effectively conveyed the brand’s commitment to consumer safety and resolution.

The role of company leadership in crisis management

During a crisis, strong and effective leadership is crucial in guiding the organization through the challenges and ensuring a successful resolution. In the case of Coca Cola, company leadership played a vital role in crisis management, demonstrating their commitment, decisiveness, and ability to navigate through adversity.

Strategic Decision-Making

The leadership at Coca Cola spearheaded the strategic decision-making process during the crisis. They analyzed the situation, gathered information, and collaborated with experts to make informed choices that would best address the crisis and safeguard the brand’s reputation. Their ability to make tough decisions quickly and effectively guided the crisis management efforts.

Communication and Transparency

Company leadership took the responsibility of communicating with stakeholders, including employees, consumers, distributors, and regulatory bodies. They ensured that the messaging was transparent, consistent, and aligned with the company’s values. By openly addressing concerns, admitting any mistakes, and providing regular updates, leadership fostered trust and credibility during the crisis.

Team Mobilization and Empowerment

Effective crisis management requires the mobilization and empowerment of cross-functional teams within the organization. Coca Cola’s leadership ensured that the crisis management team had the necessary resources, support, and authority to address the crisis effectively. They encouraged collaboration, innovation, and open communication within the teams to expedite the resolution process.

Continuous Learning and Improvement

In the aftermath of the crisis, company leadership played a crucial role in fostering a culture of continuous learning and improvement. They conducted thorough evaluations of the crisis management process, identified lessons learned, and implemented measures to prevent similar incidents in the future. Their commitment to learning from the crisis helped enhance the company’s resilience and preparedness for potential future challenges.

05 lessons learned from coca cola crisis management 

These lessons learned from Coca Cola’s crisis management case study serve as valuable insights for other organizations facing similar challenges.

Let’s discuss each of these lessons learned:

Swift and Transparent Communication

The crisis taught Coca Cola the importance of immediate and transparent communication. By promptly addressing concerns, providing accurate information, and engaging with stakeholders openly, the company was able to regain trust and control the narrative surrounding the crisis.

Collaboration with Regulatory Bodies and Experts

Coca Cola’s collaboration with regulatory bodies and external experts proved vital in validating their actions and ensuring compliance with industry standards. This collaboration enhanced the credibility of the company’s crisis management efforts and helped regain confidence in their products.

Proactive Approach to Crisis Resolution

Coca Cola’s proactive response to the crisis demonstrated the significance of taking ownership and accountability for the situation. By swiftly initiating product recalls, conducting investigations, and implementing enhanced quality assurance procedures, the company showed a commitment to consumer safety and resolution.

The crisis served as a catalyst for continuous learning and improvement within Coca Cola. The company evaluated the crisis management process, identified areas for improvement, and implemented measures to prevent similar incidents in the future. This commitment to learning from the crisis enhanced their resilience and preparedness.

Importance of Leadership

Strong leadership played a critical role in guiding Coca Cola through the crisis. The ability to make strategic decisions, communicate effectively, and empower teams was instrumental in navigating through the challenges and restoring consumer trust. The crisis highlighted the importance of having capable leaders who can steer the organization through turbulent times.

Final words 

Coca Cola crisis management case study provides us with valuable insights and lessons that can be applied to various organizations facing similar challenges. The company’s response to the crisis surrounding alleged product contamination showcased the importance of swift and transparent communication, collaboration with regulatory bodies and experts, taking a proactive approach to resolution, fostering a culture of continuous learning, and demonstrating strong leadership.

The Coca Cola crisis management case study serves as a reminder that crisis management is not just about resolving immediate issues but also about building trust, maintaining open communication, and continuously improving processes. By incorporating these lessons, organizations can transform crises into opportunities for growth and demonstrate their ability to weather storms and emerge even stronger.

About The Author

Tahir Abbas

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16 Coca-Cola: ‘Taste the Controversy’: A Case Study on Marketing Challenges

• Published: June 2022
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The not so lucky situations and criticism of the Coca-Cola brand come from its first-ever product. As the history from many sources says, Dr John Smith-Pemberton, Coca-Cola creator, fought in the Civil War, and had some injuries. He made a special formula in order to help him deal with the constant pain in his body: the Pemberton’s French Wine Coca which also had a great taste at the time, had alcohol in it. It quickly became very popular until a vote by the state legislature Atlanta and Fulton County in favour of the national temperance movement. The national temperance movement prohibited the use of alcohol and heavily criticized medicinal wine such as French Wine Coca. Pemberton was forced to drop the wine ingredient in his French Wine Coca. After some further experimenting, he decided on the use of sugar syrup as a substitution for the wine and that is when Coca-Cola was born. He invented many drugs, but none of them ever made any money. So, after a move to Atlanta, Pemberton decided to try his hand in the beverage market. In his time, the soda fountain was rising in popularity as a social gathering spot. Temperance was keeping patrons out of bars, so making a soda-fountain drink just made sense. And this was when Coca-Cola was born.

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Home » Management Case Studies » Case Study: Quality Management System at Coca Cola Company

Case Study: Quality Management System at Coca Cola Company

Coca Cola’s history can be traced back to a man called Asa Candler, who bought a specific formula from a pharmacist named Smith Pemberton. Two years later, Asa founded his business and started production of soft drinks based on the formula he had bought. From then, the company grew to become the biggest producers of soft drinks with more than five hundred brands sold and consumed in more than two hundred nations worldwide.

Although the company is said to be the biggest bottler of soft drinks, they do not bottle much. Instead, Coca Cola Company manufactures a syrup concentrate, which is bought by bottlers all over the world. This distribution system ensures the soft drink is bottled by these smaller firms according to the company’s standards and guidelines. Although this franchised method of distribution is the primary method of distribution, the mother company has a key bottler in America, Coca Cola Refreshments.

In addition to soft drinks, which are Coca Cola’s main products, the company also produces diet soft drinks. These are variations of the original soft drinks with improvements in nutritional value, and reductions in sugar content. Saccharin replaced industrial sugar in 1963 so that the drinks could appeal to health-conscious consumers. A major cause for concern was the inter product competition which saw some sales dwindle in some products in favor of others.

Coca Cola started diversifying its products during the First World War when ‘Fanta’ was introduced. During World War 1, the heads of Coca Cola in Nazi Germany decided to establish a new soft drink into the market. During the ongoing war, America’s promotion in Germany was not acceptable. Therefore, he decided to use a new name and ‘Fanta’ was born. The creation was successful and production continued even after the war. ‘Sprite’ followed soon after.

In the 1990’s, health concerns among consumers of soft drinks forced their manufactures to consider altering the energy content of these products. ‘Minute Maid’ Juices, ‘PowerAde’ sports drinks, and a few flavored teas variants were Coca Cola’s initial reactions to this new interest. Although most of these new products were well received, some did not perform as well. An example of such was Coca Cola classic, dubbed C2.

Coca Cola Company has been a successful company for more than a century. This can be attributed partly to the nature of its products since soft drinks will always appeal to people. In addition to this, Coca Cola has one of the best commercial and public relations programs in the world. The company’s products can be found on adverts in virtually every corner of the globe. This success has led to its support for a wide range of sporting activities. Soccer, baseball, ice hockey, athletics and basketball are some of these sports, where Coca Cola is involved

The Quality Management System at Coca Cola

It is very important that each product that Coca Cola produces is of a high quality standard to ensure that each product is exactly the same. This is important as the company wants to meet with customer requirements and expectations. With the brand having such a global presence, it is vital that these checks are continually consistent. The standardized bottle of Coca Cola has elements that need to be checked whilst on the production line to make sure that a high quality is being met. The most common checks include ingredients, packaging and distribution. Much of the testing being taken place is during the production process, as machines and a small team of employees monitor progress. It is the responsibility of all of Coca Colas staff to check quality from hygiene operators to product and packaging quality. This shows that these constant checks require staff to be on the lookout for problems and take responsibility for this, to ensure maintained quality.

Coca-cola uses inspection throughout its production process, especially in the testing of the Coca-Cola formula to ensure that each product meets specific requirements. Inspection is normally referred to as the sampling of a product after production in order to take corrective action to maintain the quality of products. Coca-Cola has incorporated this method into their organisational structure as it has the ability of eliminating mistakes and maintaining high quality standards, thus reducing the chance of product recall. It is also easy to implement and is cost effective.

Coca-cola uses both Quality Control (QC) and Quality Assurance (QA) throughout its production process. QC mainly focuses on the production line itself, whereas QA focuses on its entire operations process and related functions, addressing potential problems very quickly. In QC and QA, state of the art computers check all aspects of the production process, maintaining consistency and quality by checking the consistency of the formula, the creation of the bottle (blowing), fill levels of each bottle, labeling of each bottle, overall increasing the speed of production and quality checks, which ensures that product demands are met. QC and QA helps reduce the risk of defective products reaching a customer; problems are found and resolved in the production process, for example, bottles that are considered to be defective are placed in a waiting area for inspection. QA also focuses on the quality of supplied goods to Coca-cola, for example sugar, which is supplied by Tate and Lyle. Coca-cola informs that they have never had a problem with their suppliers. QA can also involve the training of staff ensuring that employees understand how to operate machinery. Coca-Cola ensures that all members of staff receive training prior to their employment, so that employees can operate machinery efficiently. Machinery is also under constant maintenance, which requires highly skilled engineers to fix problems, and help Coca-cola maintain high outputs.

Every bottle is also checked that it is at the correct fill level and has the correct label. This is done by a computer which every bottle passes through during the production process. Any faulty products are taken off the main production line. Should the quality control measures find any errors, the production line is frozen up to the last good check that was made. The Coca Cola bottling plant also checks the utilization level of each production line using a scorecard system. This shows the percentage of the line that is being utilized and allows managers to increase the production levels of a line if necessary.

Coca-Cola also uses Total Quality Management (TQM) , which involves the management of quality at every level of the organisation , including; suppliers, production, customers etc. This allows Coca-cola to retain/regain competitiveness to achieve increased customer satisfaction . Coca-cola uses this method to continuously improve the quality of their products. Teamwork is very important and Coca-cola ensures that every member of staff is involved in the production process, meaning that each employee understands their job/roles, thus improving morale and motivation , overall increasing productivity. TQM practices can also increase customer involvement as many organisations, including Coca-Cola relish the opportunity to receive feedback and information from their consumers. Overall, reducing waste and costs, provides Coca-cola with a competitive advantage .

The Production Process

Before production starts on the line cleaning quality tasks are performed to rinse internal pipelines, machines and equipment. This is often performed during a switch over of lines for example, changing Coke to Diet Coke to ensure that the taste is the same. This quality check is performed for both hygiene purposes and product quality. When these checks are performed the production process can begin.

Coca Cola uses a database system called Questar which enables them to perform checks on the line. For example, all materials are coded and each line is issued with a bill of materials before the process starts. This ensures that the correct materials are put on the line. This is a check that is designed to eliminate problems on the production line and is audited regularly. Without this system, product quality wouldn’t be assessed at this high level. Other quality checks on the line include packaging and carbonation which is monitored by an operator who notes down the values to ensure they are meeting standards.

To test product quality further lab technicians carry out over 2000 spot checks a day to ensure quality and consistency. This process can be prior to production or during production which can involve taking a sample of bottles off the production line. Quality tests include, the CO2 and sugar values, micro testing, packaging quality and cap tightness. These tests are designed so that total quality management ideas can be put forward. For example, one way in which Coca Cola has improved their production process is during the wrapping stage at the end of the line. The machine performed revolutions around the products wrapping it in plastic until the contents were secure. One initiative they adopted meant that one less revolution was needed. This idea however, did not impact on the quality of the packaging or the actual product therefore saving large amounts of money on packaging costs. This change has been beneficial to the organisation. Continuous improvement can also be used to adhere to environmental and social principles which the company has the responsibility to abide by. Continuous Improvement methods are sometimes easy to identify but could lead to a big changes within the organisation. The idea of continuous improvement is to reveal opportunities which could change the way something is performed. Any sources of waste, scrap or rework are potential projects which can be improved.

The successfulness of this system can be measured by assessing the consistency of the product quality. Coca Cola say that ‘Our Company’s Global Product Quality Index rating has consistently reached averages near 94 since 2007, with a 94.3 in 2010, while our Company Global Package Quality Index has steadily increased since 2007 to a 92.6 rating in 2010, our highest value to date’. This is an obvious indication this quality system is working well throughout the organisation. This increase of the index shows that the consistency of the products is being recognized by consumers.

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“Always read the small print”: a case study of commercial research funding, disclosure and agreements with Coca-Cola

• Original Article
• Open access
• Published: 08 May 2019
• Volume 40 , pages 273–285, ( 2019 )

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• Sarah Steele 1 ,
• Gary Ruskin 2 ,
• Martin McKee 3 &
• David Stuckler 3 , 4  

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Concerns about conflicts of interest in commercially funded research have generated increasing disclosure requirements, but are these enough to assess influence? Using the Coca-Cola Company as an example, we explore its research agreements to understand influence. Freedom of Information requests identified 87,013 pages of documents, including five agreements between Coca-Cola and public institutions in the United States, and Canada. We assess whether they allowed Coca-Cola to exercise control or influence. Provisions gave Coca-Cola the right to review research in advance of publication as well as control over (1) study data, (2) disclosure of results and (3) acknowledgement of Coca-Cola funding. Some agreements specified that Coca-Cola has the ultimate decision about any publication of peer-reviewed papers prior to its approval of the researchers’ final report. If so desired, Coca-Cola can thus prevent publication of unfavourable research, but we found no evidence of this to date in the emails we received. The documents also reveal researchers can negotiate with funders successfully to remove restrictive clauses on their research. We recommend journals supplement funding disclosures and conflict-of-interest statements by requiring authors to attach funder agreements.

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Introduction

In the wake of criticisms about a lack of transparency of financial support for medical and scientific research, several multinational corporations (MNCs) recently committed to publishing relevant information on the scale and nature of their investments in research, publishing lists of projects they fund and developing principles to apply to their relationship with researchers. But are these measures sufficient to disclose the potentially complex nature of these relationships and associated contractual obligations?

To answer this question, we have undertaken a case study about one of the corporations that seeks to position itself at the forefront of this process, The Coca-Cola Company. The company is an appropriate example to study because, following criticism of its activities, it has published a ‘Transparency List’ of researchers whom it funded from 2010 to 2017. It also progressively refined an explicit set of principles for the researchers it funds, providing a basis for comparing its stated intentions and its practice. In 2016, it brought together its principles formally [ 1 ]. It also released the list of partnerships and research funding with an explicit statement that those researchers that it funded on the list were:

“expected to conduct research that is factual, transparent and designed objectively”;

to have “full control of the study design, the execution and the collection, analysis and interpretation of the data”;

“encouraged to publish” and

“expected to disclose their funding sources in all publications and public presentations of the data”. It added that the company did not “have the right to prevent the publication of research results” and that funding was not “conditioned on the outcome of the research”.[ 2 ]

These four major assertions provide a base for comparing Coca-Cola’s stated intentions to its actual practices. We see on Coca-Cola’s own website that it makes these claim around its research funded since 2010 [ 2 ](Fig.  1 ):

At least on the surface, these principles conflict with anecdotal reports of the corporation’s activities following their publication. As one example, in 2015, a New York Times exposé revealed that Coca-Cola designed its funding of the Global Energy Balance Network (GEBN) to divert attention from the role that sugar-sweetened beverages play in the obesity epidemic by excessively emphasising the role of lack of exercise [ 3 ]. The Times article asserted that Coca-Cola, just like Big Tobacco, had sought to influence public health and medical researchers, and to deploy them to promote the Company’s agenda, even though some of these researchers reported the funding to be ‘unrestricted’, meaning that it can be used for any purpose or by an organisation, rather than being given for a specific project or purpose [ 3 , 4 ]. GEBN was subsequently closed in November 2015, on which Coca-Cola declined to comment [ 5 ]. A 2019 article revealed Coca-Cola’s funding of bodies like the International Life Sciences Institute in China, showing how the latter organisation is deployed to shape obesity science and related policy [ 6 , 7 ]. A feature in the British Medical Journal suggested also that the transparency list was incomplete, and highlighted how Coca-Cola acts to exercise ‘soft power’ by using its funding to influence everything from conferences to academic positions [ 8 ]. So how can these pieces of information be reconciled? Does Coca-Cola really uphold its public commitments on research funding? Have its grants—past and present—really allowed researchers to operate free from influence as Coca-Cola suggests on its website?

Here, we seek evidence supporting or rejecting Coca-Cola’s four major research principles detailed above, using information obtained from United States (US) state and federal, as well as Australian, British, Canadian and Danish Freedom of Information (FOI) requests for communications between Coca-Cola and leading public health academics or federal or state agency employees who were known to receive funding from or to collaborate with the company. Our FOI requests yielded a large volume of material on Coca-Cola’s engagement in public health-related issues. These include five agreements between researchers or their host organisation and Coca-Cola, plus a large amount of related correspondence that enables us to assess whether these principles were being observed previously as asserted, and are now being upheld in relations with researchers. We look both at the legal (or de jure ) aspects of the agreements and how they were operationalised in practice in the relationships with researchers (de facto).

A non-profit consumer and public health research group in the United States, U.S. Right to Know (USRTK), based in Oakland, California, investigates the food and agrichemical industries, examining their public relations, political and lobbying campaigns, as well as the health risks associated with their products [ 9 ]. (One author, GR, is a co-director of USRTK). Drawing on the approach used in past studies of corporate behaviour and related litigation [ 10 ], between 2015 and 2018, USRTK sent 129 FOI requests to United States (US), Australian, British, Canadian and Danish public bodies related to Coca-Cola’s links with public health actors, including academics. USRTK selected the higher education institutions because they were governed by FOI laws (that exist in many jurisdictions around the world to encourage openness and transparency by public bodies, including at the state and federal level in the US, as well as in Australia, Britain, Canada and Denmark where USRTK also sent requests), or because USRTK identified these institutions as having received funding from Coca-Cola through its recent public disclosures [ 2 ].

The responses yielded 87,013 pages of documents, including five research agreements made with Louisiana State University [ 11 , 12 ], University of South Carolina [ 13 ], University of Toronto [ 14 ] and the University of Washington [ 15 ]. The research team archived the FOI responses using document discovery software used across the legal services industry, extracted the research agreement and then two members of the research team read the documents to assess the concordance between Coca-Cola’s principles detailed above. One of these researchers is trained as a lawyer (SS) and the other is a public health researcher (DS).

Inevitably, the sample has potential limitations to its external validity. First, the sample is not comprehensive, as redactions and removal of some emails from the batch are allowed in line with certain legislative exemptions, and it is impossible to ascertain whether FOI responses form a complete sample of communications and other contractual documents between Coca-Cola and associated researchers. As with a small number of cases, quantitative study was not feasible, we thematically and legally evaluated the agreements by testing whether there existed evidence to confirm or refute Coca-Cola’s four major assertions on research transparency and independence of researchers. To limit the scope for personal biases in interpretation, the entire research team engaged in reflexivity, reviewing the selection and interpretation of the source material. Second, the five research agreements pre-date Coca-Cola’s publication of its transparency principles in 2016, although its own website states that all of the disclosed health and well-being research complied with these four assertions. Furthermore, several researchers themselves publicly claim that the funding had no influence on their research, which we examine more fully below [ 16 ]. Third, we report extracts as they appear in the agreements and quote any related emails “in their own words” to allow readers to assess critically our interpretations. To ensure reproducibility of our study, all agreements and cited communications are posted on Internet.

We summarise our findings in as they pertain to each of Coca-Cola’s four major research transparency assertions [ 2 ].

Researchers retain full control over the design, execution, analysis and interpretation of research

The documents obtained by FOI indicate that, although it does not have the capacity to direct and control the day-to-day conduct of studies, Coca-Cola retains varied rights throughout the research process, including the power to terminate studies early without giving reasons. Several agreements reveal that the company maintains the right to receive and comment on research prior to submission for publication. However, the researchers may reject these changes. Thus, the company can influence but not direct the research output, but may use termination provisions as a mechanism to discontinue research.

The emails we obtained reveal that academic partners recognise Coca-Cola’s influence on the research it funds, even where it is not directing the research. For example, Tommy Coggins, Director of University of South Carolina’s (USC) Sponsored Award Management and Research Compliance, in an email to Professor Tom Chandler of USC’s Norman J. Arnold School of Public Health, explained that several of the research agreements entered into at the University allowed Coca-Cola to have:

a substantial say in how it [the research] was conducted and how results are handled, including ownership of all IP. None of this is wrong or unusual, but it is a typical industry research agreement. Also, contains a good bit of language about confidentiality and sharing results with Coca-Cola, but no bar on publication [ 17 ].

Coggins was commenting on a study that aimed to uncover the “extent to which variation in total energy expenditure and variation in total energy intake contribute to changes in body weight and fat among young adults”. The agreements we obtained specify that Coca-Cola’s comments are non-binding unless its suggested revisions to drafts pertain to information covered in the confidentiality provisions in the agreement, under which Coca-Cola retains the right to redact content accordingly.

Taking a specific example, as part of the “Sponsored Clinical Trial Research Agreement” between Coca-Cola and the Board of Supervisors of Louisiana State University, represented by Pennington Biomedical Research Center (PBRC), we find a 2012 research agreement for a study with Timothy Church as Principal Investigator related to fluid balance and performance with ad libitum water, flavoured placebo or carbohydrate-electrolyte beverage intake during exercise in the heat (known henceforth as the “The APEX Study”) [ 18 ]. The contract sets out mutual obligations of all parties as including regular reports to and data sharing with Coca-Cola, as well as the standard termination provision, which allows Coca-Cola to retain all data. Article 6.1 specifies:

Publication prior to delivery of the final report of any information gained in the course of performing the Project must be in a peer reviewed journal, must be approved in writing by both parties prior to such publication, and must acknowledge that the Study was funded by The Coca-Cola Company. Notwithstanding the foregoing, the Sponsor will not be approving the content of the publication, but has a right to review and provide comment before submission for publication [ 12 ].

Thus, while Coca-Cola contends that its guidance is not tantamount to approval, it does retain the right to comment on papers prior to publication, and holds the ability to terminate studies at any time without reasons.

Indeed, Coca-Cola may simply terminate an agreement if the findings are not in its interests or if its comments and revisions are rejected. Such provisions do, however, vary amongst the research agreements we obtained. As one example, we show a “Research Agreement” between Coca-Cola and the South Carolina Research Foundation, a non-profit entity that accepts donations for USC, to fund a study entitled “Energy Balance” in 2010–2015. Section “ Discussion ” of the agreement provides that Coca-Cola can make non-binding suggestions and may only redact information covered by its confidentiality provisions in Section “ Results ”. According to Section “ Results ”, “Confidential Information” includes disclosures made “orally or in writing” pertaining to “technical or business information regarding the Sponsor’s products, marketing plans, public relations plans or Protocol”. Notably, this agreement empowers Coca-Cola to terminate the agreement with notice and to require the return or destruction of all of this Confidential Information. Specifically, Section 6.2 states that, as long as 15 days written notice is given and with no need to give a reason:

6.3.4: SCRF shall immediately discontinue any work and shall take such precautions as requested by Sponsor, including returning to Sponsor or certifying in writing to Sponsor that it had destroyed all documents and other tangible items containing Sponsor Confidential Information [ 13 ].

Other agreements contain provisions that do allow for recall of all research documents and materials on termination. In the Church APEX study, detailed above, the termination provisions of this agreement are stronger, stating in Article 4.4 that:

Upon receipt of a notice of early termination, PBRC will immediately discontinue all work under this Agreement and return all copies of Sponsor data, or other materials, and deliver to sponsor all work in progress, including incomplete work… [ 12 ]

Such termination provisions could, hypothetically, allow Coca-Cola to quash studies progressing unfavourably, or allow Coca-Cola to pressure researchers using the threat of termination. However, we found no evidence that this has occurred in our FOI batches. In one instance, we did find Coca-Cola had ended a study with little or no information being sent to researchers or their institutions. For example, emails between researchers at USC pertaining to the Active Healthy Living Programme funded by Coca-Cola, state:

As you know, the contract with Coca-Cola to develop and evaluate the Active Healthy Living Program has terminated. While I am not sure, because they have not communicated with us in several months, it appears that Coca-Cola has dropped the program. We put a lot into development of the program, and if possible, I would like to obtain/retain the intellectual property. Please look into where we stand with this, and let’s figure out next steps. Thanks [ 19 ].

Our FOI, however, does indicate that Coca-Cola may be willing to negotiate the terms of agreements to moderate language regarding pre-publication communication and consultation with Coca-Cola. In emails between University of Toronto Professor John Sievenpiper and Coca-Cola’s Susan Roberts regarding a proposed, then signed, research agreement, Sievenpiper requests revision of provisions he regards as restrictive. The original text, which Sievenpiper requests to be deleted in its entirety, states:

U of T will afford TCCC [The Coca-Cola Company] the prior right to review and approve (or reject) any communication or other material developed by U of T or its employees, contractors or agents discussing this Agreement or the underlying grant, the related work or accomplishments of U of T and/or TCCC, or any related or other association between U of T and TCCC, or otherwise mentioning TCCC’s name or displaying TCCC’s trademarks [ 14 ].

Sievenpiper comments that it is “very restrictive for being an ‘unrestricted grant’”, and Coca-Cola agreed to change the wording to “consult with each other in good faith regarding any communication with third party/ies…”. This involved significant back and forth emails and discussion, suggesting that the original wording may be standard wording in other Coca-Cola research agreements.

Researchers are encouraged to publish and Coca-Cola does not have the right to prevent the publication of research results

Our research confirms that Coca-Cola encourages researchers to publish in peer-reviewed publications and generally only retains limited rights to delay publication to protect its proprietary interests or to obtain a patent. However, many agreements contain the above-discussed termination provisions, allowing either fixed-notice period termination, or early termination according to the agreement’s terms (as described above), some restricting publication following such a termination.

For example, in the agreement pertaining to Church’s APEX study, Article 6.1, provided above in full, states that publication “ must be in a peer reviewed journal, must be approved in writing by both parties prior to such publication, and must acknowledge that the Study was funded by The Coca - Cola Company”. While this indicates that Coca-Cola does encourage publication as it states, and does not have a right to prevent publication, only providing comments, Article 6.2 makes clear that Coca-Cola can issue a written notice to require a delay to publishing where its proprietary interests are at stake; but there is no general right to control publication of results unfavourable to Coca-Cola’s commercial interests [ 12 .] The provisions do, however, convey a right of Coca-Cola to comment and prompt revisions, as discussed above.

Similar provisions are found in a “Research Agreement” between Coca-Cola and the South Carolina Research Foundation [ 13 ]. Section “ Discussion ” on “Publication Rights and Use of Project Results” states similarly that Coca-Cola can require a delay where it wishes to file a patent or protect its proprietary interests, and that such a delay should not exceed 120 days. Retention of a capacity to delay publication is consonant with ordinary industry-funded research provisions, but in public health research it may delay significant findings from reaching the public.

Notably, the APEX study agreement does not contain provisions that allow Coke to prevent publication absolutely, but does require written permission for publication of all peer-reviewed publications where such publication would be prior to the final report to Coca-Cola (Art 6.2). This, in concert with the termination provisions that require cessation of research and the full and complete handover of all study documents, may enable Coca-Cola to shape unfavourable findings in advance of publication (Art 4.4). Thus, while Coca-Cola cannot stop publication, termination provisions could allow it to prevent publication through termination and recall of documents, along with the written consent requirement obligation in Article 6.2. Notably, this provision only has effect prior to the report to Coca-Cola, and thereby is not absolute in its effect. The agreements themselves are unclear as to the nature of the required reports and whether they will be made public and subject to peer review.

Researchers are expected to disclose their funding sources in all publications and public presentations of the data

We found that the agreements identified in our study routinely allow for the attribution that a study, paper or report was “funded by The Coca-Cola Company”. For example, Article 6.3 of the research agreement between Coca-Cola and the South Carolina Research Foundation states:

Publication shall acknowledge authorship according to generally accepted criteria for authorship and subject to journal requirements, if applicable. PBRC agrees that if Sponsor so requests, and only if Sponsor requests, substantive releases and/or written reports contemplated by this Article 6 may include language to the effect that, “The Study was funded by The Coca-Cola Company” [ 13 ].

Notably, the phrasing “PBRC agrees that if Sponsor so requests, and only if Sponsor requests…” does not grant the University the right to use this attribution on all outputs. However, the peer-review provisions in Article 6 seem to imply that Coca-Cola expects the disclosure of funding sources in publications, as this is routine practice amongst reputable journals. The provision extends to publicity related to the research, placing the funding attribution within the hands of Coca-Cola rather than with the host or researcher. The contracts allow for a funding declaration to be phrased in a way that does not extend to a complete and detailed declaration of Coca-Cola’s input into the research, although the agreements are silent as to whether more robust statements are allowed.

Coca-Cola does not make funding conditioned on the outcome of the research

The research agreements contain no provisions on any outcomes of any study. However, as noted above, this could hypothetically be exercised through the termination provision. Thus, while we found no direct conditions pertaining to outcomes of the research, the effect of permissive termination provisions and recall of data provisions could indirectly have a ‘chilling effect ‘on researcher’s work, influencing what researchers conclude. Past research has revealed that researchers do strive to maintain positive relations with Coca-Cola and produce results favourable to them [ 20 ].

Our review of Coca-Cola’s research agreements reveals that it uses terms in line with standard funding agreements seen with other corporate actors. Specifically, these contractual agreements contain no provisions granting the company absolute control over the studies it funds, but they could allow it to assert influence over studies and resultant publications. We found that Coca-Cola requires regular reports and input into projects, and maintains the ability to terminate agreements early and without reason. Of course, in some cases such early termination provisions are justifiable; for example, when there is improper behaviour like harassment or bullying, a failure to deliver work in accord with the contract or the other such examples, which tend to be given as reasons for termination. In contrast, the contractual terms for early termination  without  reasons are arguably beyond the legal scope needed to address such justifiable concerns, although they are not uncommon in commercial agreements generally and there is no evidence of their use in our batch. In light of past evidence of ‘soft influence’, whereby researchers sought to please funders in ways which, albeit not contractually specified, in practice operated to the same effect, the company’s continued input and early termination provisions undermine its public assertions of researcher independence [ 20 ].

Before interpreting the implications of our study for research, policy and improving management of COIs, we must acknowledge several limitations. First, our case studies focused on Coca-Cola may not generalise to other segments of food and beverage industries. However, the contractual agreements appear to be commonly employed between private actors and public researchers. Second, several recipients of USRTK’s FOI requests returned or did not respond to them, or, in some cases, they redacted material submitted. It is possible that we have been unable to detect contracts, which may have existed but were not obtainable through FOI, thus creating an omission bias in our analysis. The direction of such bias, however, would likely be to hide particularly egregious contracts. Third, despite a large document set, we only identified five research contracts. There may be heterogeneity in Coca-Cola’s contracts with researchers given our observations that researchers could negotiate their terms. That said, there was relatively limited variation across the five agreements.

Our research reveals a need to improve reporting of COIs. Many declarations of funding and routinely employed COI statements fail to specify the true amount of input and influence Coca-Cola has (irrespective of whether it chooses to exercise it). While it is beyond the scope of our study to review all Coca-Cola funded research, we note that concerns have been raised elsewhere about the completeness of COIs in studies funded by Coca-Cola on topics of nutrition and physical inactivity [ 21 ]. Examples include publications arising from the Energy Balance grant at USC state “ Supported by an unrestricted research grant from The Coca - Cola Company” [ 22 ]. Stephen Blair, one of the leads at USC, records that he has received funding from Coca-Cola, amongst others, in the preceding 5 years, as does co-author Gregory Hand. However, nowhere in the article is there a statement setting out the nature and amount of input Coca-Cola had, only that the funding was “unrestricted”, which, as the email discussions between Coggins and Chandler indicate, was not how the grant was understood by USC. Coggins, as Director of Sponsored Award Management and Research Compliance at USC, makes clear the “ the Energy Flux and Balance studies were conducted under the terms of Research Agreement with SCRF… [and] are not “un - restricted” …” [ 17 ]. Such attributions of funding are similarly made with regards to the results of Timothy Church’s APEX study, and are a reflective example of the agreement provisions regarding funding statements across the agreements we received and resultant publications [ 23 , 24 ].

Our research points to particular concerns about early termination provisions. The termination provisions in some of the agreements that allow Coca-Cola to discontinue the studies it funds if results are unfavourable, in contrast to the assurances it makes on its website about not being able to prevent publication, should be cause of concern. Although not all agreements we reviewed allow for full recall of research documents and materials, we identified several agreements that in effect allow Coca-Cola to terminate a study, if the findings are unfavourable to Coca-Cola. We observed push-back by researchers receiving unrestricted grants regarding restrictive provisions, revealing that the researchers were aware that there could be a problem. Coca-Cola was receptive to requested revision, but this may be due to the ongoing relationship the Company had with this particular researcher. Certainly, some of the agreements allow for unfavourable developments or findings to be quashed prior to publication. Future research will be needed to identify when and the extent to which funded studies were not published. This is but one source of potential ‘publication bias’, whereby only positive results are made publicly visible. Given the hidden nature of unpublished, funded studies, this is an extremely challenging area of research as there is no way for researchers to ascertain who produced the studies, why they remain unpublished and what their results may be.

We acknowledge that many provisions in Coca-Cola’s research funding agreements are standard, including its early termination provisions. While recent termination of a non-industry-funded United Kingdom study due to findings of bullying by a primary investigator evidences how these provisions may be exercised to encourage positive research environments [ 25 ], we note that early termination may be used to discontinue studies in a less positive way. We found evidence that in at least one study Coca-Cola discontinued funding, seemingly without reason given to those involved, but found no evidence that this related to unfavourable findings or prospective publications. We did find evidence suggesting that Coca-Cola exerts influence on the design, conduct and write-up of studies, retaining rights to comment and have input throughout the research process.

Turning to implications for COIs, this study adds to a growing body of literature of their limited usefulness. Qualitative studies with researchers reveal diverse interpretations of what COIs and influence mean [ 26 ]. It is also easy for COIs to be inadequately reported. Most of what is detected comes to us through journalistic exposés [ 27 ]. Our study adds to these insights, showing that such general (and notably brief) declarations may fail to capture Coca-Cola’s full involvement in the studies they fund, from design through to publication.

To remedy these weaknesses, we propose far more ‘hard’ information about funding, rather than relying on self-reports. Specifically, we call for journals to require authors receiving Coca-Cola or other industry financial support to provide more robust COI and funding statements, including declaring the specifics of input allowed in the study’s research agreements. In addition, journals should require authors of funded research to upload the research agreements for studies as appendices to any peer-reviewed publication, allowing these to be published with ease and at little expense on the existing electronic platforms where supplemental information is commonly provided. A reader’s appraisal of a study’s scientific objectivity would best be supported by knowledge that Coca-Cola has input at various stages of the research and publication processes, an understanding facilitated by access to the research agreement governing the study.

For medical and public health professionals, the lack of robust information on the details of input by industry and on studies terminated before results enter the public realm makes it impossible to know how much of the research that enters the public realm reflects industry positions and content, as opposed to fully unbiased and uninfluenced research results. It is critical that professionals and scholars be able to appraise influence. We know that people trust studies with an industry partner less and approach these studies with greater suspicion about bias [ 28 ]. Greater information is needed to appraise influence.

Where studies are terminated without having been registered in advance, as should be the case with clinical trials, it may be that termination acts as suppression of critical health information. We therefore call for industry funders to publish complete lists of terminated studies as part of their commitment to act with integrity, and for clear declarations of involvement as standard publication practice.

Data availability

All cited responses received to our Freedom of Information requests have been web-linked to allow the response to be read in full by all. The Freedom of Information responses are available online on the USRTK website and links have been provided to allow the individual FOI response referenced to be read in full. These are PDF copies of the documents we received in conjunction with the relevant state laws. There are no additional data to provide.

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This work was funded by Laura and John Arnold Foundation. The sponsor had no input on the study design, conduct, analysis or write-up, and has not commented on, or received, the submission.

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GR collected the data via Freedom of Information Requests. SS and DS analysed the data. All authors contributed to the writing and revision of the manuscript.

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SS and MM have no competing interests to declare. DS is funded by a European Research Council Grant: 313590-HRES and the Wellcome Trust. GR is a co-director of U.S. Right to Know, a non-profit public interest, consumer advocacy and public health organisation. Since its founding in 2014, USRTK has received the following contributions from major donors (gifts of $5000 or more): Organic Consumers Association $554,500; Laura and John Arnold Foundation: $198,800; Dr. Bronner’s Family Foundation: $183,000; CrossFit Foundation: $50,000; Westreich Foundation: $25,000; Panta Rhea Foundation: $20,000; Community Foundation of Western North Carolina (Little Acorn Fund – M): $5,000.

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Steele, S., Ruskin, G., McKee, M. et al. “Always read the small print”: a case study of commercial research funding, disclosure and agreements with Coca-Cola. J Public Health Pol 40 , 273–285 (2019). https://doi.org/10.1057/s41271-019-00170-9

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