Case Study

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Top Facts(Pepsi & Coke) Coke and Pepsi both claimed a combined 72% of the US CSD market sales volume in 2009 followed by Dr Pepper Snapple Group(DPS) & Cott Corporation 1. Coca Cola was formulated in 1886 by John Pemberton,pharmacist in Atlanta, Georgia who sold it at drug store soda fountains as a “potion for mental and physical disorders” 2. Asa Candler acquired the formula established a sales force & began brand advertising of Coca Cola syrup known as “Merchandise 7X” .This formula was changed in April 1985 citing a sharp depreciation in the value of the Coca Cola Trademark. Later the original formula was sold under the name Coca Cola Classic and the new formula under the brand Name “New Coke” 3. Coke patented a 6.5 oz bottle whose unique skirt design subsequently became an American Icon 4. Candler sold the company to a group of investors in 1919 and it went public that year 5. During 1920 and 1930 Coke pioneered open top coolers for use in grocery stores and other channels, developed automatic fountain dispensers and introduced vending machines 6. Alfred Steele launched the “Beat Coke” motto & encouraged bottlers to focus on take home sales through supermarkets 7. Coke launched Fanta(1960),Sprite(1961) and low calorie cola Tab(1963) and also introduced non returnable glass bottles and 12 oz metal cans in various configurations 8. Coke also diversified into non CSD industries during the same period

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Page 1: Case Study

Top Facts(Pepsi & Coke)

Coke and Pepsi both claimed a combined 72% of the US CSD market sales volume in 2009 followed by Dr Pepper Snapple Group(DPS) & Cott Corporation

1. Coca Cola was formulated in 1886 by John Pemberton,pharmacist in Atlanta, Georgia who sold it at drug store soda fountains as a “potion for mental and physical disorders”

2. Asa Candler acquired the formula established a sales force & began brand advertising of Coca Cola syrup known as “Merchandise 7X” .This formula was changed in April 1985 citing a sharp depreciation in the value of the Coca Cola Trademark. Later the original formula was sold under the name Coca Cola Classic and the new formula under the brand Name “New Coke”

3. Coke patented a 6.5 oz bottle whose unique skirt design subsequently became an American Icon4. Candler sold the company to a group of investors in 1919 and it went public that year5. During 1920 and 1930 Coke pioneered open top coolers for use in grocery stores and other

channels, developed automatic fountain dispensers and introduced vending machines6. Alfred Steele launched the “Beat Coke” motto & encouraged bottlers to focus on take home

sales through supermarkets7. Coke launched Fanta(1960),Sprite(1961) and low calorie cola Tab(1963) and also introduced non

returnable glass bottles and 12 oz metal cans in various configurations8. Coke also diversified into non CSD industries during the same period9. In late 1950’s Coca Cola began to use advertising messages “America’s Preferred Taste”(1955)

and “No Wonder Coke refreshes best”10. In 1980,Coke switched from using sugar to using high fructose corn syrup ,a lowly priced

alternative11. Coke introduced “Diet Coke” in 1982 which not only went on to become the most popular soft

drink in the U.S but also was the nation’s third largest selling CSD12.