Coca-Cola was established as a fountain Soda in1886 by John Pemberton, a pharmacist who was based in Atlanta, Georgia. Pemberton intended to sell it as a patent medicine. A businessman, Asa Griggs Candler, acquired the brand from Pemberton between 1988 and 1991. Candler made some packaging changes to the original drink and initiated marketing strategies that led the brand to become popular beyond Atlanta. Also known as Coke, Coca-Cola has, over time, expanded to become one of the most celebrated carbonated soft drinks globally (Coca-Cola Company, 2014). In fact, Coke is currently perceived as a cultural brand by many consumers in the target markets. In other words, the brand has, over time, gained the meaning of an iconic brand in the global market. Many consumers of coke have developed emotional bonding to the brand, and use it frequently in their lives for different purposes, including quenching thirst, as a gift and as a symbol during occasions and cerebrations.

Since its establishment, Coca-Cola has evolved to become one of the most popular soft drinks all over the world. During the first two years after establishment, Pemberton used free drink coupons to advertise the brand. However, his advertisement budget was slim and thus, his strategy did not support the brand beyond the local market in Atlanta. When Candler acquired the brand, he expanded the marketing budget through the use of items such as clocks, pencils, napkins, painted wall signs, soda fountain urns and calendars to advertise it. As a result, the brand became popular beyond the city of Atlanta, and even beyond the state of Georgia (Coca-Cola Company, 2014). In other words, the increased popularity led to the expansion of the market for the brand. During the early 1990s, the Coca-Cola started using celebrities to advertise its brand. An increase in advertisement budget enabled the company to sponsor radio programs and outdoor billboards. By 1950, the company advertised its brand extensively in the national magazines and televisions. Increased advertisements steered coke to become the most popular soft drink in the US by mid 1950. During and after the World War II, the company expanded advertisement beyond the US. Since then, grown continuously to become popular in all continents in the world (Middleton, 2010).

As mentioned earlier, Coca-Cola initially targeted the local market in the city of Atlanta. Increased marketing prior to the World War II enabled the company to expand sales in the whole of the US. The war period gave the company opportunity to expand its brand beyond the US. During the war, 64 of Coca-Cola Company bottling plants used to supply more than five million bottles of coke to the military troops on the front line who used the brand as part of their cerebrations for their successful efforts (Middleton, 2010). Coke became associated with success and the US’s spirit of “can do” attitude. As a result, Coke became a well known brand beyond the US. The company took the opportunity to expand its business to foreign markets, such as Europe, Australia and Asia, using the franchising model. As Middleton (2010) explains, many consumers of coke during that period formed emotional bonds with the brand. During the second half of the twentieth century, the company managed to dominate major markets in all continents, including Africa.

Coke has thrived through outwitting competitors in the beverage industry to achieve its current status. The competitors of coke include the produceers of soft drinks and other types of beverages such as water, wines, juice, beer and liquor. Pepsi, a producer of soft drinks, has been the major competitor of coke throughout its history. Other major competitors of coke in different markets include Pepper Snapple Group, Inc., Red Bull GmbH, Nestlé Waters, Cott Corporation, Heineken NV, Diageo plc, Nestl and Britvic Plc. Although there are many competitors for the brand, coke has, over a long time, taken the biggest share in the global market. However, some of the competitors take leadership in their local markets (Middleton, 2010).

Part B Application

Coca-Cola company started featuring cerebrates in advertisements as early as 1900, with Hilda Clark, music performer. Later, the company featured different celebrities with the aim of passing specific messages to the consumers and to enhance its popularity. Most of the celebrities selected by the company are fit for the ads because they have talents, and they portray aspects that are of interest to many people in the society. In 1963, for instance, coke put up a multifaceted campaign through different media such as radio, TV and print media with a famous slogan, “Things Go Better with Coke.” The campaign featured sports celebrities and American singers who were famous at the time,including Ray Charles, Aretha Franklin, Roy Orbison, Jan and Dean and The Coasters. Together, they performed the coke jingles using their own style. The song gained an overwhelming support with many audiences requesting that it be played again after debut in the radio or TV in the media (Gardiner, 2012). The ad demonstrated that the coke was the solution to the many recurrent problems that many people encounter every day such as stress and boredom. Significantly, the ad lifted coke further and helped it to maintain brand superiority in all demographic market segments.

Later in 1980s, Coke produced an ad portraying Joe Green, who was then the leading American defender in football. The ad showed a confrontation in a dark tunnel in which a black man physically intimidated a white child. But it was later learnt that the man’s actions were driven by affection to the white child. That way, coke communicated a clear message of love and affection for all people (Gardiner, 2012). In particular, ad demonstrated the need for American society ends racial conflicts (Gardiner, 2012). Recently in 2009, the company unveiled a campaign that featured a famous artist, Janelle Monae, singing the song “Are You Getting Enough Happiness?” The ad, which was targeted to billions of coke consumers in the world, aimed at passing the message that coke brings happiness to the users.

Apart from featuring such celebrities, coke can also use other famous characters such as famous human rights activists, inspiring leaders and successful, famous business persons. In most cases, such persons act as role models for many people in the society and thus, it is likely for the audiences emulate them. Coca-Cola can use such persons to stress their messages. A good example is the coke ad that was unveiled in 1955 (Gardiner, 2012). In the ad, Coca-Cola featured the first African American lady, Mary Alexander, a rights activist student from Clark University in its ads. By daring to take this step, Coca-Cola communicated a very clear message to American society that it is “accessible to everyone despite their skin color and social status.” As a result, the brand became popular to the African Americans. In short, featuring such people can help to boost the popularity of the brand (Gardiner, 2012).

Coca-Cola Company has been using celebrities as endorsers in order to counter competition. To enhance positive brand image, the company has recently featured famous celebrities such as Jennifer Lopez and Michelle Kwan. The two are selected because they have avoided scandals, and they have developed positive image to the society. Bill Cosby has also featured recently as an endorser of coke, where he is portrayed as a friendly family man (Coca-Cola Company, 2014).