12.29.2019 - Summarized by Kaetlyn Bennett

If you’re being ignored,

that’s a good time to concentrate

on finding yourself and

creating your own mystery.

– Lykke Li

 

J: Today, we explore the mystery surrounding the Coca-Cola formula, the imitators, and the war … on today’s, Straight Shot marketing podcast.

 

Welcome everyone! Today, we continue in our series on the Lessons From Coca-Cola. So let’s get back into our story

We started in The Beginning

• The creation of the product, hiring Frank Robinson as marketing expertise, and changes to the product as a result of competition (Mariani’s French Wine) & societal changes (Temperance);

• Then we discussed the marketing innovations that were developed and that the company was sold to Asa Candler;

• Then in Part 3, we discussed how Candler understood what it would take and dedicated resources to building his company through communicating the company brand.

 

Today are going to jump back into the story and explore some of the challenges that he faced and how he positioned the company for success. So, Zachary, can you start us off:

 

THE MYSTERY OF THE FORMULA

Z: Surely, well when Candler took ownership of the company, he understood two things.

• He needed to establish and communicate the brand

• But also that he needed to have a superior product.

So that’s what I want to talk about now – the product. Specifically, the formula for the product and how that came to impact the brand.

 

As a businessman and new owner, Asa Candler trusted no one with the formula.

• He ordered all the ingredients himself

• then locked away the purchasing records, and only he had the key.

• It was said both ingredients storage and mixing were locked behind a fireproof door.

• He even devised a way to let people know how to produce the syrup (mix it) without knowing its ingredients or formula

 

J: Sounds crazy doesn’t it? A little obsessed?

 

Z: It sounds that way but what he was doing was creating Mystery. In doing so, he’s flavored, carbonated sugar water would have intrinsic value.Mystery brought value.

 

J: We had a quote at the top of the show from Lykke Li about mystery, but there were a few more that we gathered. Let’s discuss them:

-Mystery is the fundamental emotion that stands at the cradle of true art and true science. - Albert Einstein

-Mystery creates wonder and wonder is the basis of man’s desire to understand – Neil Armstrong

 

Z: Mystery is attractive.

• Prince created mystery about himself from the 80s until he passed away and he built quite the legacy.

• Billie Eilish is creating mystery as to what she looks like with her hiding under baggy clothes.

Mystery invites intrigue. Intrigue sells product. Intrigue motivates.

Mystery is intangible… and yet it adds value by creating a sense of excitement and the promise of what could be on the inside. Mystery creates focus…focus on you.

 

J: Games of thrones used elements of mystery in their world-wide hunt for the throne that we discuss in the New Jacking episode.

 

In 1916, Asa Candler was elected mayor of Atlanta. 3 years later, he sold the company to a group of investors, lead by Ernest Woodruff, for $25million. The formula was used as collateral for the loan.

• The bank kept it in NY sealed away in a vault for six years. After size years, it was brought home to Atlanta with big fanfare.

 

THE IMITATORS

Another reason the formula was so valued and protected was because there grew a rise of imitations.

• They say Imitation is the highest from of flattery but in business it can mean lawsuits.

Several imitated the logo but they could never duplicate the taste. Here’s a list of a few of the imitations: Celery-cola, Koke, Afri-kola, Cola-nip, Sherry-coke, My-coca, Cherry coq, and Red Seal Cherrykoke

 

Z: Now, Coca-Cola was militant about its brand and began to advertising this fact, even offering a reward for any company found selling imitation coke under a coca -cola label. Warnings where made public in their advertising.

• Perpetuating the mystery and the brand

 

J: In response, Newspaper began running articles fueled by rumors that Pemberton didn’t create the formula by himself as others claimed credit.

Around the world in Scotland, Spain, India, and even in Tennessee. People started to sell fake formulas to companies

• Diva Brown become a minor celebrity selling her version

• In 1977, an Atlanta newspaper published a “real” formula

• In 2011, a radio DJ did a show on air, trying to recreate Coke with one of the fake recipes

 

Z: I actually have the recipe – the one from that show. I will add it as Bonus Content on our smart phone app for those that would like to try it. If you’d like to try it and have any questions about it, email us. I haven’t tried it but I do have some more details on how to do make it at home. But it’s serious, try at your own risk. I haven’t tried it. Coke responded to the radio segment say “aww, nice try, but not quite” They won again and again, driving other would be colas out of business, further establishing the Coca-Cola brand in the minds of the people.

 

Another opportunity that came out of this imitation frenzy was the bottle.

• They wanted to develop a bottle so unique, that you would know it’s the real thing. Which was also a campaign slogan that they used – Coke. It’s The Real Thing.

 

J: Now, we went over how they sold the bottling rights in a previous episode.

But these bottlers were independent and only licensed to Coca-Cola, so they used any manner of bottles.

 

Z: Back in the day, if you reached into a cooler filled with ice and soft drinks, you couldn’t tell one from the other until you brought it out to read it.

 

J: And even then was no consistency amongst the labels- you never new what look you were going to get because it all depended on the bottler. So Coca-Cola set out a challenge to the bottling companies… develop a unique bottle.

The contour bottle we all know and love was designed in 1915 by the Root Glass Company of Terre Haute, Indiana. It became the standard. But it wasn’t Trademarked in 1977.

 

Z: The bottle became a symbol of the brand and they began marketing with it… and it became an icon.

• They had it on POS materials: Calendars, thermometers, lamps, displays, signage

• In advertising: print ads, tv ads, and more.

Now, you don’t even need to say the name to know who it is.

 

J: So leadership of the company was passed to Robert Woodruff in 1923 ( he was 33 years old) – his father, Earnest Woodroof, who led the company of investors that bought the company from Candler, didn’t care anything about running the company. Under his leadership, by the 40s and 50s the company had grown to be very international. It was the most distributed product in the world.

Z:  Let’s talk about the 40s, Woodruff, and expansion… particularly during WWII

J: We’ll talk more about that, right after we take a break to hear from our sponsor.

 

WORLD WAR II

 

J: Welcome back, Zachary you were just wanting to talk about World War II. As you know, WWII was a global war which started in 1939 and lasted through 1945. It effected EVERYONE.

 

Z: During WWII, Woodruff was faced with sugar shortages .. sugar was a prime ingredient in Coca-Cola so this was a BIG problem. So Woodruff went to the government to convince them that Coke was a war time necessity.

He was able to do this, because of the company’s branding.

• Coca-Cola had become as American as apple pie.

• Synonymous with American pastimes and enjoying life.

 

J: He won exclusive rights to be sold in training camps. Not only that but any Coca-Cola that went to the troops was exempt from sugar rationing. Under leadership of Robert Woodruff, 64 bottling plants were established in Europe, Africa, and the Pacific so that over the course of the War Coke could be given to GIs to remind them of home, America.

Coke also donated games like Ping-Pong, checkers, bingo, etc. to help them enjoy their R&R.

 

Z: Coca-Cola was considered a morale booster in ww2. It was a taste of home and became an icon to the GI. Coke was devoted to them and they were devoted to Coke.

 

J: Just as smart as Harley Davidson’s at the same time and for the same reason

 

Z: Side note to our story, you know Fanta?

 

FANTA

 

Z: Fanta came about because after America entered the war, the company stopped supplying Coca-Cola syrup to Nazi Germany. So bottlers in Germany, started using left over fruit from making cider, lollipops, etc. The name Fanta comes from the German Fantasie (meaning imagination) – when naming it, through another employee contest, Max Keith, the plant manager told the employees to let their imagination run while.. and so a Salesman thought of the name. After the war, Coke came back to Germany and Fanta came to the Coca-Cola.

 

J: Today more than 70% of Coke’s revenue is from international markets. Their global expansion led them to them supporting the Olympics… since 1928, they have been the Olympics longest running sponsor.

 

So Zachary, what’s our Straight Shot for today?

 

THE STRAIGHT SHOT

In today’s episode, you can see how the brand was developed over time. Their advertising shows that it:

• started as medicine

• grew to be the promise great taste

• then enjoying life with Coca-Cola

• Since then it has been ever changing with society and lifestyles of the day, but always a companion to good times and this became the focus of the brand

 

Other brand attributes include its uniqueness:

– taste/formula, bottle, reach and diversity of customers

 

The important thing to take away from this is the lesson that BRANDING works.

• Branding gives you value.

• Branding gives you longevity.

• Branding gives you preference in the marketplace.

 

We accomplish branding in a bit of a more scientific way now-a-days. But a dedication to Brand Communication, and creative strategy to showcase those communications, is what built the Coca-Cola empire.

 

J: In the next episode, we’ll talk about what happens when that empire is threatened. Yes, it’s THE COLA WARS.

 

You won’t want to miss it. So be sure to subscribe to our YouTube channel, or where your get your podcasts, or you can download the Straight Shot Marketing Podcast app from your smart phone’s app store. Or, you can text the word REFORMATION to 90210 and we’ll send you text notifications every time a new episode is released.

 

Don’t forget to comment on our promo videos in our social media accounts on Facebook and Instagram. Let us know what you think of them.

 

Until next time, bye.

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