Coca Cola  : The Tenacious Brand.

Cristiano Ronaldo , one of the greatest footballers of all times and the most followed individual on Instagram , created a controversy during the Euro Football Championships in June this year.  CR7, as he is famously known , removed bottles of Coca Cola ( the official sponsors of the Mega Event ) kept in front of him during a press conference. The Portuguese picked up  the bottles of Coca Cola, set them aside as he settled for the presser and said ‘ Agua ‘( water in Portuguese), thus indicating his preference. The aftermath of his action was telling . Coca Cola’s share price was eroded by 1.6 % shaving off 4 billion dollars from its market capitalisation and that too in quick time.

Though the Cola giants faced an unprecedented situation, they did not panic and came up with a very matured response which killed the controversy in no time. “ People have different tastes and needs “ , was the response of Coca Cola’s spokesperson . There was no criticism of CR7’s action and hence there was no noise created . More the noise, more would have been the damage to Coca Cola. However nothing of this sort happened and inspite of  the erosion in the market value of Coca Cola’s scrip at that time, it is highly unlikely that there would be any dent in the balance sheet numbers of Coca Cola going forward.

So what keeps Coca Cola going is something to ponder about and in my opinion the following points might just help assess   the Cola Behemoth’s strategy .

1. Pioneers of the ‘ Cola Market ‘.

It was way back in 1892 when Asa Griggs Candler incorporated the Coca Cola Company in Atlanta after purchasing the Cola Formula from pharmacist John Stith Pemberton and launched Coca Cola, the non alcoholic Cola drink , the first of its kind. It’s first advertisement read “ Coca Cola, Delicious!, Refreshing!,Exhilarating!,Invigorating!”. Asa Candler thus created  a new market which became synonymous with Coca Cola . With no competition in the created market for years, Coca Cola became an imposing brand in the minds of the consumers which till this time has not been dislodged. Coca Cola the brand stands tall and mighty and has reaped the benefits of being the pioneer of the Cola Industry.

2. Competition from Pepsi Cola : A blessing in disguise.

Coca Cola fought tooth and nail and even filed a lawsuit against Pepsi for the use of the word Cola . Losing the legal battle and the strong  competition from  Pepsi was actually a blessing in disguise for Coca Cola. The presence of Pepsi expanded the Cola market and with both the companies trying to out do the other , huge interest was generated in the general public which sucked in more Cola drinkers. Both Coca Cola and Pepsi prospered and even today the situation is no different. The competition is massive and so is the market.

3. Deep pockets and famous brand ambassadors.

Coca Cola with  its deep pockets have always been lavish spenders when it comes to marketing, sponsorships and endorsements. They have been sponsoring Mega events and the best of celebrities in the world keep vying for a Coca Cola endorsement . Such is the strength of the brand.  However Coca Cola too derives huge patronage at the back of its famous Brand Ambassadors. LeBron James, the NBA legend, was Coca Cola’s brand ambassador for 18 years . Such endorsements give further credence to the Brand making it that more powerful.

4. Surviving the Health  Tirade.

In the past decade or so, Cola drinks have come under a lot of criticism for being unhealthy and harmful . The CR7 action at the presser was no different. However it has to be understood that Coca Cola in particular, the pioneers of the Cola drink, never claimed that their beverage was a health drink or it was nutritious to have it. They have simply said that it was delicious and refreshing all these years. Also there has been no such research directly linking a Cola drink to any disease and with Diet Coke , Coca Cola was able to sober down the health brigade.And with eminent and supremely fit sportspersons still very much endorsing the brand , Coca Cola has been adding more consumers than losing them.

Coca Cola is no ordinary brand . It is so well entrenched and rigid that the brand  has outrun many of its detractors in the past and will continue to do so in the future as well.

You may drink what you like, you may endorse what you like , but Coca Cola is going to survive this generation and even the next. It is a brand which is tenacity personified.