Coca-Cola Magic: Thirty Business Lessons
1) Sell a good product.
And if it contains a small dose of an addictive drug or two, all the better.
2) Believe in your product.
Make your product an icon and your job a religious vocation.
3) Develop a mystique.
An air of mystery, with a touch of sin, sells.
4) Sell a cheaply produced item.
Coca-Cola has always cost only a fraction of a cent per drink to produce.
5) Everyone who touches your product before it reaches the consumer should make substantial amounts of money.
For many years, everyone who touched it became wealthy, including bottlers, stockholders, wholesaling jobbers, and those who provided the trucks, bottles, pallets, dispensers, etc.
6) Make your product affordable to everyone.
So that a Third World denizen can purchase the beverage without going broke.
7) Make your product widely available.
- "Let's make it impossible ever, to escape Coca-Cola."
8) Market your product wisely.
How, when, and where you market and advertise your product will
ultimately determine its success.
9) Advertise an image, not a product.
"It isn't what a product is, but what it does."
10) Welcome an arch-rival.
"It keeps us, and them, on our toes and keeps us lean. We're magnificent competitors."
11) Use celebrity endorsements wisely − but sparingly.
For one thing, viewers may remember more about the star than the product. Coca-Cola has always remained the real star of its commercials.
12) Appeal to universal human desires.
The Coke message has universal appeal − by drinking this product, you will be self-assured, happy, popular, sexy, youthful, and well
coordinated.
13) Get 'em young.
Obviously, if you can achieve loyalty among youthful consumers, you've possibly fostered lifelong consumption.
14) Develop cultural sensitivity.
If you intend to sell your product around the world, do not trap yourself in an "Ugly American" image.
15) Hire aggressive lawyers.
If you succeed, you will undoubtedly need lawyers to protect your trademark, defend your good name, and scare off potential competitors.
16) Don't break the law.
It simply isn't worth it to risk the reputation of a huge multinational concern.
17) Become masters of influence.
Just because you don't break the law doesn't mean you must sit back and act like an angel.
18) Be patient but implacable. Plan for the long haul.
There will be bumps along the road, but set your goals on the horizon.
19) Adhere to simple commandments.
Genius lay in looking at the big picture and in concentrating on
a few elemental truths.
20) Be flexible enough to change.
"We live nervous."
21) Don't use defensive, negative advertising.
Maybe for an Avis or a Pepsi, comparative ads make sense. Maybe. You're still giving your
opponent free publicity, however.
22) Diversify only when necessary.
Coca-Cola, whose stock performance has been historically extraordinary, is one of the least diversified companies in the world.
23) Pay attention to the bottom line.
In the paranoid anti-Pepsi culture, Coke men were more concerned with share-of-market figures than with profits. Goizueta discovered, among other things, that the highly regarded soda fountain sector was actually losing money because of costly capital expenditures on metal five-gallon drums.
24) Terrify your employees.
"A certain degree of anxiety and tension has to exist for people to function at the highest level of their potential."
25) Promote from within.
The best Coca-Cola managers, almost without exception, have come up through the ranks, inculcated with the company mission.
26) All publicity is good publicity, at least after a certain point.
Even negative publicity can ultimately help a well-entrenched product.
27) Use cash wisely.
It made sense to borrow money if you could then re-invest it at a substantially higher rate of return.
28) Form joint ventures.
Another wise use of cash involved breaking a long-standing company commandment: thou shalt not own bottling plants.
29) Think globally, but act locally.
Regardless of its provenance, though, Coca-Cola has demonstrated its wisdom, dipping into its own history for guidance.
30) Pursue the halo effect.
The firm should appear to be in the vanguard of the environmental movement, progressive in race relations, setting up model programs for its Minute Maid migrant workers, creating nutritional soft drinks, and the like.
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