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Coca-Cola is the brand which perhapsbest exemplifies global marketing. It isenjoyed hundreds of millions of times aday by people all over the globe. It can befound almost anywhere in the world, fromlarge cities to remote villages, across fivecontinents.

The Coca-Cola Company sells nearlyhalf of all soft drinks consumed aroundthe world. No othersoft drinks company

sells even half as much! The Coca-ColaCompany has a number of importantsoft drinks brands, the best known ofwhich are Coca-Cola, Diet Coke, Sprite,Fanta and Lilt.

In Ireland, the Coca-Cola brand is themarket leader in the carbonated softdrinks (CSD) market, with a market shareof 25 per cent. Its next nearest competitor,7-UP, has 17 percent of the market and itsnearest rival in the cola market, Pepsi, has3 per cent market share.

The Coca-Cola contour bottle is one ofthe brands key icons and is the symbolof the brands authenticity. It wasdeveloped in 1916 to create a distinctidentity for the brand in consumersminds and to protect the brand frombeing imitated by competitors. Today itrepresents the very essence of the brandsidentity in the marketplace and remainsinstrumental in differentiating the brandfrom all other competing products.

This business study describes the creationof the Coca-Cola contour bottle and howthis contour bottle has become a centralcomponent of the consumer strategy forCoca-Cola . I t examines how thi sContourisation Strategy impacts on allaspects of the brands marketing mix. Itdescribes the successful introduction ofCoca-Cola into the Irish market andexamines the reasons for the success ofthe more modern packaging format.

The early yearsDr John Styth Pemberton, a pharmacist inAtlanta, Georgia, invented Coca-Cola in1886. According to legend, he produced thesyrup for Coca-Cola in a three-legged brasspot in his backyard. He carried a jug of thenew product down the street to Jacobspharmacy. It was sampled, pronouncedexcellentand placed on sale for five cents aglass as a soda fountain drink. Whether bydesign or accident, carbonated waterwas teamed with the new syrup to producea drink that was at once described asboth Delicious and Refreshing.

Thinking that the two Cs would look well inadvertising, Dr Pembertons partner andbookkeeper, Frank M. Robinson, suggested thename and penned the now famous trademarkCoca-Cola in his unique script. The firstnewspaper advertisement for Coca-Colasoon appeared in The Atlanta Journal,inviting thirsty citizens to try the newpopular soda fountain drink. During thefirst year, sales averaged a modest ninedrinks per day.

In 1888 Dr Pemberton sold his interest inCoca-Cola to Asa G. Candler. Candlerformed The Coca-Cola Company in 1892and immediately invested all his energyinto advertising and marketing theproduct. He distributed souvenir fans,calendars, clocks and countless othernovelties, all depicting the Coca-Colatrademark. So successful were his effortsthat by 1895, Coca-Cola was being drunkin every state and territory in the UnitedStates.

As demand for the product grew, productionwas increased and it was made available instraight-sided bottles. The bottling ofCoca-Cola meant it could be consumedvirtually anywhere. Consumption was nolonger restricted to soda fountains. However,this led to a new problem. How couldCoca-Cola be protected from its imitators?Ea rl y advertisements warned of the perilsof poor imitations. Demand the genuineandAccept no substitutes reminded consumersto accept nothing less than the real thing.However, as soft drink competitionintensified, so did imitation. What wasneeded was a distinctive form of packagingfor the bottle. This would prevent Coca-Colafrom inferior imitations.

The Coca-Cola bott le creation of a design icon

The now well-known bottle was designed

by the Root Glass Company according to a

brief which required:

a Coca-Cola bottle which a person will

recognise as a Coca-Cola bottle even if hefeels it in the dark. The Coca-Cola bottle

should be so shaped that, even if broken, a

person could tell at a glance what it was.

Swedish-born bottling plant superintendent

Alex Samuelson gathered design ideas based

on the main contents of the Coca-Cola drink.

He researched illustrations of a cocoa bean,

created designs and then passed them on to

the Root Glass Companys mould supervisor,

Earl Dean. The Coca-Cola Company

approved the shape of the bottle in 1916. The

curves, grooves and flutes of the glass bottle

were unlike anything else. The design was

unique and an icon was born. Most

importantly, however, no one could imitate

the new Coca-Cola bottle because it was

patented.

The Coca-Cola Trademark

Atrademark is a design and/or words, used toidentify a company or a product. A trademarkis protected by legal registration. This enablesit to be used exclusively by the holder of thetrademark. Any imitation of a trademark is anillegal activity.

The familiar shape of the Coca-Cola bottleand the flowing script of its trademark are theworlds most widely recognised commercialsymbols. Coca-Cola is recognised by 94per cent of the earths population, andCoca-Cola is the second most universallyunderstood phrase after OK!

The Coca-Cola trademark incorporates anumber of elements which have becomesynonymous with the brand. These include:

s the Coca-Cola red and white graphicss the Coca-Cola brand name written in

the universally known Spencarian Scripts the famous contour shape of the

Coca-Cola bottle.

Together, these elements are instrumentalin differentiating Coca-Cola from all other

competing brands.

Coca-Colas uniquelyshaped contour bot tle

The packaging of a product serves a numberof functions. At the most basic level, itcontains and protects a product. However,packaging is also an important marketing tool.It is critical in describing a product, attractingconsumer attention and differentiating the

product from competitors.

The Coca-Cola contour bottle is perhaps one ofthe most unique forms of product packaging.While it was originally introduced as a meansof protecting the brand from imitation, it is nowthe most central part of the Coca-Cola brandidentity. The bottle communicates theuniqueness, originality, superior refreshmentand enduring values of the brand.

A market research survey was carried out toexamine consumers attitudes to the contourshape. In this survey, consumers describedthe contour bottle as communicating a varietyof positive meanings. It was seen as:

s a symbol of the ultimate enjoyment andrefreshment from Coca-Cola

s possessing a sensual look and feels a symbol of good timess universally known and universally

accepteds a symbol which unites consumers

around the worlds an aesthetically beautiful symbol.

The Cont ourisation Str ategy

So important is the contour shape in themarketplace, that it is now the core elementof Coca-Colas consumer strategy. This hasbecome known as the ContourisationStrategy. The strategy involves using thecontour shape to emphasise the uniqueness ofCoca-Cola over other competing productsand to communicate to consumers the corebenefits of the brand:

Coca-Cola contour is the most refreshingbeverage delivered in the most refreshing way.Coca-Cola in a contour bottle is a guarantee ofthe ultimate refreshment experience.

The objectives of the Contourisation Strategyare to:

1. motivate consumers to purchase theCoca-Cola brand over other soft drinkbrands

2. maximise consumer enjoyment of theCoca-Cola product

3. create a distinct identity for Coca-Colain the mind of the consumer.

Business2000

The

Coca-Cola

bottle -

The shape

of the

century

John S. Pemberton, the creator of Coca-Cola in 1886. Soda Fountain from which Coca-Cola was first sold in 1895.

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The ContourisationStr ategy in action

The unique contour shape of the Coca-Colabottle is reinforced and communicatedthroughout every element of the brandsmarketing mix. This ranges from promotionaland advertising strategies right through to thedistribution of the product in retail outlets.Some examples of this are outlined below.

Contour in a modernpackage format

In 1994, Coca-Cola was launched in Irelandin a 500ml PET (polyethylene terephthalate)contour format. This introduction was a keycomponent of the Contourisation Strategyand was important for two reasons:

s The PET bottle format provided theideal opportunity to translate all of thesymbols and meanings associated withthe original glass contour bottle into amodern package design. The messageto the consumer was that the original

Coca-Cola taste could now be enjoyedin a modern Coca-Cola package. Thepromise to the consumer is that Coca-Colain contour is the ultimate thirst quenchingand refreshing experience.

s The launch of the 500ml PET contourbottle also created an entirely newsales opportunity for Coca-Cola. Thispackaging format was immediatelyperceived by consumers as a much moreconvenient way to consume Coca-Cola.

The screw top cap made the productmuch more portable and allowed it tobe consumed in any situation. Thiscreated a whole new range of consumeroccasions in which Coca-Cola could beconsumed. As a result, an entirely newuser base of customers began toconsume the product.

An advertising campaign was designed forthe launch, which reflected the productsbenefits of portability and flexibility. Thecampaign was designed to communicatethat Coca-Cola in PET contour formatcould be consumed whether playing sport,

driving, walking around town or justhanging out with friends. The message tothe consumer was have you grabbed oneyet?.

The Outcome

Since its launch, Coca-Cola in 500ml PET

format has achieved phenomenal salessuccess. The 500ml category now represents13% of the total CSD market. The growth ofthe category has been driven by Coca-Cola.

What is perhaps most remarkable aboutthis success is that the growth has notcome at the expense of sales of any otherimpulse products in the Coca-Cola range -a situation known as cannibalisation .Instead, its growth in sales has beenachieved by:

s attracting a whole new group ofconsumers to experience Coca-Cola ina refreshing and convenient packageformat

s encouraging existing Coca-Coladrinkers to consume more of theproduct by providing it in a largerformat, which can be consumed on anyoccasion

s encouraging existing Coca-Coladrinkers to drink the product on moreoccasions because of the addedconvenience of a resealable bottle.

Summary

The Coca-Cola Company began building itsglobal network in the 1920s. Now operating

in nearly 200 countries and producinghundreds of millions of servings a day, theCoca-Cola brand is without doubt one ofthe most successful marketing stories ofthe 20th Century. The ContourisationStrategy and the introduction of Coca-Colain 500ml PET format are two moresuccessful additions to this wonderfulstory.

Describe the activities which helpedto establish the early success of

Coca-Cola in the marketplace.

Outline the reasons why a distinctiveform of packaging was required for

Coca-Cola in the earlier years.

Examine the key success factorsbehind the design of the contour

bottle.

(a) Explain what is meant by the termtrademark.(b) Outline the advantages of havingthe logo of a company or productprotected by a trademark.

(a) Describe the various elements ofthe Coca-Cola trademark.(b) Examine the reasons why theCoca-Cola trademark is the worldsmost widely recognised commercialsymbol.

(a) List the various functions ofproduct packaging.(b) Outline the different messageswhich are communicated through the

Coca-Cola contour package.

Outline the objectives of theContourisation Strategy. Describe

how these objectives were fulfilled.

Take a brand of your choice anddescribe how the various elements of

its marketing mix (product, price, place,promotion and packaging) communicateits brand identity.

Examine the reasons behind thephenomenal success of Coca-Cola in

500ml PET contour format.

(a) Explain what is meant by the termcannibalisation.(b) Outline how Coca-Cola in PET

contour format enjoyed sales growthwithout cannibalising sales of otherCoca-Cola products.

What lessons can other companieslearn from the Coca-Cola business

study?

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TASKS AND ACTIVITIES

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While every effort has been made to ensure the accuracy of

information contained in this case study, no liability shall attach

to either The Irish Times Ltd or Woodgrange Consultants Ltd for

any errors or omissions in this case study.

The mar keting mix and the Coca-Cola contour shape

Product PackagingThe key consumer packages forCoca-Cola are now all available in contourshape. The image of the contour bottle alsoappears on 330ml Coca-Cola aluminiumcans. The contour bottle is a key element ofthe Always Disc, which serves as asignature of authenticity in all packagingand advertising for Coca-Cola.

PricePrice is only one element in the value equationfor the consumer. The 500ml bottle does notcost more than the 330ml can in terms of priceper 100ml, and thus delivers additional valuethrough the convenience, portability etc. of itspackaging format. This supports the valueproposition on other factors than price alone.

PlaceIn retail stores, a merchandising plan existswhich places the Coca-Cola contour bottle inthe most prominent shelf position inrefrigerators. This is designed to maximisethe impact and appeal of the product at themost important stage in the consumer

decision-making process - the point of sale.

PromotionThe contour bottle features in alladvertisements for Coca-Cola. It is alsoused on every form of promotionalmaterial targeted at both consumers andthe retail trade. The Always Disc is apowerful consistent feature in all

advertising and promotional materials.

ALWAYS

REFRES H I

NG

Coca-ColaandCokeareregisteredtrademarksofTheCoca-ColaCompany.

Merchandising of products in cooler cabinets.

Contour bottle always used in advertising.

500ml PET launch advertising. Coca-Cola in 200ml glass and 500ml PET contour bottles.

Republic of Ireland Total Market Share of330ml & 500ml (all brands)

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