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30 Secrets of Coca-Cola’s Success

Coca-Cola has entered the second century of its life with the sound of joyful bubbles. This fizzy, sugar-water-like product has won nearly every laurel in the business world. It is one of the most widely sold and famous products in the world.

Coca-Cola has developed so successfully. What lessons can businesses learn from it now? In general, these lessons are very simple and obvious. Below are 30 successful management experiences selected from its development history and tested over time.

1. Sell high-quality products.

The product does not have to be able to talk or fly, but it must have some useful function that can be widely accepted by people. Once you get used to the taste of Coca-Cola, you will find it very delicious and it will make people develop a hobby. Coca-Cola makes your nostrils tickle, quenches your thirst, and has a bit of a caffeine effect. Some believe it can treat headaches, nausea, and stomachaches, among other things.

2. Believe in your own products.

It is necessary to establish a lofty image for the product and make the profession associated with it a sacred profession. Let the staff think that the product is world-class and that they are working for the best company. A salesman should have the skills of a missionary, not just a salaried salesman. In the 1920s, Robert Woodruff called all his salespeople together and made a surprise announcement that they were all fired. He rehired them the next day in a new service department with the caveat that they would no longer be salesmen because they would no longer have to promote the virtues of Coke. They are the staff whose job it is to make sure the soda is a perfectly mixed Coke on the rocks.

3. Create a sense of mystery.

Creating an aura of mystery is unethical, but can help sales. One of the company's executives recently admitted that the secret formula doesn't mean much to them. The real secret to success lies in the impact the product's trademark has had for more than a century, but the secret of the formula, those famous seven flavors, was once An important reason to attract customers.

4. The cost of the product should be low.

The cost of each bottle of Coke is extremely low, less than one cent. Coca-Cola is not a capital-intensive product, nor is it difficult or labor-intensive to produce, although its production process is highly secretive.

5. Let those engaged in circulation make a lot of money before the products reach consumers.

The reason is simple. If the cost is low, the price can be significantly increased at retail. Coca-Cola had the makings of a fortune, and over the years everyone who had anything to do with Coca-Cola became very wealthy, including bottle manufacturers, stockholders, wholesalers, and those who supplied truck pallets and vending machines. This effect makes people very grateful to the company and willing to contribute to the cause of Coca-Cola.

6. Make it affordable for everyone.

From 1886 to the 1950s, the price of a bottle of Coke was only 5 cents. Today it is not very expensive in the world. Therefore, people in third world countries can also afford it. Even in difficult times, Coca-Cola continues to sell well. Through the Great Depression of the 1930s and the recent recession, Coca-Cola's makers continued to make money.

7. Products should be everywhere.

To make the product within reach, make it ubiquitous, and make it available at any time in dance halls, barber shops, offices, trains and other places. Early Coke salesman Harrison Jones said in 1923, "Make Coca-Cola unavoidable."

8. Be smart when selling products.

This one sounds simple, but how, when, and where you market and promote your product is the key to success or failure. By 1911, Arthur Cadilla had spent more than a million dollars stimulating people's desires, making Coca-Cola the best-advertised product in the world. He also hired painters to promote its red-on-white product logos on white walls across the United States, covering an area of ??more than five million square feet. By 1913, the company had distributed more than 100 million small gifts bearing the Coca-Cola logo, which could be seen on commonly used items such as thermometers, calendars, event books, notepads, baseball cards, Japanese fans, and pictures. The Coca-Cola logo leaves a deep impression on people.

According to the salesman, a customer often had nightmares about a big white devil holding a stove and shouting Coca-Cola chasing him. Today, when the company spends more than $4 billion a year marketing Coca-Cola around the world, it's no surprise that this phenomenon is happening.

9. Promote the image of the product rather than the product.

A Coca-Cola advertiser once warned his imaginative and creative employees: We are selling something that does not exist at all, and what they drink is only an image rather than a product. At the beginning, Coca-Cola advertisements promoted its medicinal effects, claiming that it could invigorate the spirit of mental workers, relieve headaches and pains of excessive drinkers, and bring pleasure to people. But Frank Robinson, who named and inscribed the drink, soon realized that promoting Coca-Cola as a refreshing drink rather than a patented medicine could attract more customers and avoid unnecessary legal disputes and troubles.

10. Competition is welcome.

Although Coca-Cola employees don’t want to admit it, Pepsi-Cola has actually brought them a lot of benefits. People love to watch the "Cola Wars" between Coca-Cola and PepsiCo. Savvy salespeople at both companies also realized that no matter which company won a given round, the publicity built through fierce competition would help sell the goods.

11. Make reasonable use of celebrity effect.

Coca-Cola hired celebrities to advertise from the beginning, hoping that consumers would imitate baseball superstar Ty Cobb or actress Hilda Clark. By the 1930s, movie stars ranging from Clark Biber and Kate Grant to Jane Harrow and Joan Crawford were all advertising for Coca-Cola. In the late 1960s, singers ranging from Neil Demand to Leslie Gower to Ray Charles to Aretha Franklin believed that drinking Coca-Cola would make everything better.

However, there are dangers in relying too much on celebrity power. On the one hand, the audience remembers more the stars than the products. Coca-Cola has always had real stars in its commercials, and PepsiCo has had headaches with overcharging stars. Thus showing another danger in relying too much on celebrities. Although Madonna and Jackson did a lot to increase Pepsi's popularity, it wasn't as good as the company had hoped.

The Coca-Cola Company has solved this thorny problem by reviving the images of late stars such as Louis, Armstrong, Grocho Max and Humphrey Burxant in sketch advertisements.

12. Attract the desires of ordinary people.

Beginning in the 1950s, the Coca-Cola Company produced model advertising that could work in a variety of cultural contexts with little or no modification. How to do this? Coca-Cola advertising slogan has universal appeal. Drink Coca-Cola and you will become more confident, happier, more popular, sexier and younger. In order to enhance its publicity effect, Coca-Cola Company sponsors various sports competitions around the world, from sumo wrestling to football, as well as concerts.

13. Attract young people.

Advertising at sports and concerts mainly appeals to teenagers. If you establish credibility among young people, you will gain a long-term consumer market. In 1894, a Coca-Cola postcard showed three five-year-old boys wearing navy uniforms, shouting: "We want to drink Coca-Cola." In 1911, the Coca-Cola Company was sued by the government, in part because Coca-Cola contained Caffeine is addictive in children. The company has since withdrawn all advertising to children under 12. But this neither stopped distributors from sending Coca-Cola logoed pads and learning aids such as rulers, nor did it stop the company from using Santa Claus to promote its products in the thirties.

14. Do as the Romans do.

If you want to sell your products globally, don’t dress yourself up as an “ugly American.” In the 1920s, when Robert Woodruff was in charge of global development strategy, he worked hard to make Coca-Cola a German drink in Germany and a French drink in France. The Coca-Cola Company signs packaging contracts with major local companies and encourages local companies to engage in beverage supporting production by having local companies manufacture trucks, bottles, trays, and provide trademarks. The only thing the company exports and local companies import is Coca-Cola concentrate.

The Coca-Cola Company can proudly and accurately point out how much it contributes to local economic development. For decades, Coca-Cola has cultivated a large number of smart managers around the world who understand local cultural customs, and it is rumored that the company has hired many local lawyers around the world.

16. Obey the law.

Although senior Coca-Cola executives or distributors have been suspected of paying bribes and kickbacks in the past, the company's overall image is clean. General illegal activities not only fail to make profits for the company, but also damage the reputation of this huge multinational company, and the gains outweigh the losses.

17. Use influential people.

Not breaking the law does not mean you can sit comfortably in a chair like an angel. Robert Woodruff was an influential figure in the country, de facto controlling Georgia Senator Walter Joffa and Atlanta Mayor William B. Hasfyed, among others. He has a close relationship with the president. Together with his partners, he created President White House Eisenhower and even helped him decide whether to run the government as a Republican or a Democrat. Pavel Wasdine also propelled Jimmy Carter into the White House. Still, don't ask politicians to abuse their influence, as long as they can show that promoting products is in the national interest, and no special favors are needed. For example, Coca-Cola's close relationship with Carter was powerful enough to open doors for product promotion.

18. Be patient but decisive.

Coca-Cola's decision-makers knew that one day they would sell their products around the world. Currently, it is sold in 195 countries, so it is only a matter of time before its long-cherished wish comes true. War, famine, and political events will all bring temporary difficulties, but the future is bright, and they will always persist in their efforts and be ready to take advantage of every possible opportunity.

19. Observe the precepts.

Robert Woodruff's guiding ideology is anything but complicated. According to his colleagues, he never finished reading a book in his life and was virtually illiterate. His intelligence lies in strategizing and adhering to some of the most basic truths.

20. Be flexible and changeable.

When faced with a choice between tradition and change, Coca-Cola’s exposed weakness is its unwillingness to change the status quo. Arthur Cadilla did not remove cocaine from his drinks until 1903. In the 1950s, Woodruff strongly opposed large bottles of Coca-Cola, was unwilling to introduce new flavors, opposed the use of rock music in advertising, and raised retail prices and other imperative reforms. In the 1980s, Robert Gauzut was determined to stimulate this conservative company. He was proven right when he decided to produce Diet Coke. When he encountered difficulties in developing a new formula in 1985, he flexibly adopted the original formula, thereby averting a disaster. Woodroof always said, "The world belongs to those who work hard." But Gauzut said, "We are living nervously."

21. Do not use protective and negative advertising.

For Pepsi-Cola, comparative advertising has a certain effect, but it may unintentionally promote competitors. Coca-Cola looks foolish every time they take this approach; that includes a positive explanation for the presence of caffeine in Coca-Cola.

22. Expand operations when necessary.

After Robert Gouzout became the company's president in 1981, he immediately expanded his business scope and bought Columbia Pictures, which seemed to be very influential at the time. However, within ten years, he sold the film company to Sony and obtained considerable profits, and then devoted himself to the beverage business. Coca-Cola's stock appreciated 735% in the eighties and split twice in the early nineties.

23. Pay attention to the minimum profit.

This point of view seems very simple, but no one paid attention to this issue before Gauzut took office. In the competition with Pepsi-Cola, people only pay attention to market share, not market profits. Gauzut discovered that the much-lauded beverage company was actually losing money because it was spending money on five-gallon metal drums.

24. Intimidate employees.

This statement may sound a bit excessive, but successive Coca-Cola presidents have endorsed an atmosphere of mutual respect and awe. Wasdin said, "An atmosphere of anxiety and tension will make people maximize their potential." Woodruff's word "boss" contains the meaning of awe and respect.

Today's Gauzut is a person who pursues perfection, so everyone will be wary in front of him.

25. Promote managers from within the company.

The best managers at The Coca-Cola Company have all risen through the ranks, including members of the company's committees. They were all indoctrinated with the proverbial Coca-Cola belief. In order to cultivate employees' management skills, the company established a special training workshop. Those who participated in the training were so tired that they had backaches every day on the assembly line.

26. Every advertisement must achieve a certain purpose.

Because Coca-Cola is a very famous trademark, although the change of ingredients in 1985 cost the company four million dollars, it really helped the company a lot. When the company reintroduced Classic Coke under pressure from consumers, the relaunched Coke greatly outsold PepsiCo in sales. Prior to the launch of the new Coca-Cola, the cola had been losing ground for more than 20 years. Many now believe Gauzut, along with others in the company, was behind the entire incident. Don Koff admitted that they were not that smart, but they did know that even negative advertising could ultimately help a reputable product increase sales.

27. Use cash rationally.

When Robert Woodruff took over the company in 1923, he was shocked by the company's debt, and he later proudly saved a large sum of cash. As a result, conservative management has ensured that the company has never had a debt crisis, even during the Reagan administration. During Gozut's reign, the company assumed reasonable debts. Gauzut and the financial wizard Ivest believed that appropriate borrowing made sense if reinvestment could yield larger profits. A simple way is to "repurchase the shares issued by yourself to promote further rise in stock price."

28. Establish a joint venture.

Another way to use your money wisely is to break the stereotype of not owning a bottling plant. After Arthur Cadilla gave up his bottling rights in 1899, the company's main mission was to produce syrup. The lower-margin bottling industry developed.

Although the company owns some factories, they are mainly used as training bases for rotating managers, not as cash cows. Conventional wisdom holds that independent bottlers are better able to perform their functions. In 1981, Gauzut was forced to break this rule in the Philippines because the Soriano family, which owned the franchise, gave up 70% of the Coke market to Pepsi. The Coca-Cola Company negotiated the bottling plant by purchasing 30% of the distribution rights. Nevile Esdell, the Irish president, used traditional incentives and marketing tactics, including military-like confrontation, to defeat Pepsi and double its market share. From then on, Gauzut began to carry out fruitful joint ventures around the world, taking the initiative to join forces with poorly operating bottling plants and injecting money into the vertically integrated beverage system.

29. Thinking globally starts with a single step.

While Coca-Cola CEOs have scrambled to claim the phrase as their own, it may have come from Gauzut. No matter where it comes from, The Coca-Cola Company shows its wisdom and uses it to guide its operations. For example, in China and Indonesia, the first task is to establish infrastructure, build concentration plants, bottling plants, filling plants, purchase trucks, make sales signs, etc. In American terms, it seems like time has returned to 1905.

30. Pursue magical effects.

In the early 1970s, Coca-Cola Company President Wasdin tried to create what he called a "magic effect" for Coca-Cola. He believes the company should take the lead in protecting the environment, improving ethnic relations, establishing model immigration programs and producing nutritious beverages. Although the cause he promoted has had little effect, the company is still pursuing "magic effects" and is still doing something meaningful. In South Africa, the company has established a $10 million "Equal Opportunity Fund" to improve the living conditions of black people. At the same time, the Coca-Cola Foundation in the United States is funding innovative education and environmental protection projects.