It's The Real Thing

I had a tough time when considering “which firm or product I liked which was effective in bringing all of the elements of the marketing mix together to create a beautiful symphony for their consumers.”  It’s not that I don’t think there are plenty of great businesses out there capable of accomplishing such a deed; it’s just that I’m not very brand loyal.  Sure, I love Nike products and their “Just Do It” attitude, but if I can get a reasonably close approximation from Under Armor, Adidas, or even the Target and Wal-Mart brands, whose names escape me, for less that’s where my dollars will go.  My wife says I’m cheap.   I prefer to think of myself as “value conscious.”

Besides Nike, I considered Samsung for their TV’s and Apple for the iPad.  But as was the case with Nike, I’ve been known to purchase a competitor’s product if the price was right.  I love to read, so I thought about books, but that’s just too generic.  The book sellers weren’t an option either since sometimes I purchase titles from Barnes & Noble, sometimes from Amazon, or whenever possible from used book stores. 

The perfect product struck me while I was at a friend’s Super Bowl party last night.  You see, Coca-Cola is the one product I will always choose above all others without regard to cost.  When I went to get a drink at my friend’s house, the options were Diet Coke (which is what he drinks) and a couple of ultra-cheap knock-offs of the full sugar version (which he obviously doesn’t drink, but I do).   As I drank the counterfeit soda, I couldn’t believe I didn't immediately think of Coke when considering which firm truly does create a “beautiful symphony” for their customers.

The product itself, essentially syrup and carbonated water, doesn’t get any simpler.  And yet, few have been able to achieve the financial results and brand loyalty Coca-Cola has enjoyed for well over 100 years.  In his 1993 letter to shareholders, Warren Buffett quoted this sentence from a Fortune article about Coke:  “It would be hard to name any company comparable in size to Coca-Cola and selling, as Coca-Cola does, an unchanged product that can point to a ten-year record anything like Coca-Cola's.”  That Fortune article was written in 1938 and is still true 75 years later.

When it comes to place, there are few businesses that can match Coke’s variety of channels or ability to sell their product virtually everywhere on the planet.  I have purchased a Coke in Death Valley, the Middle East, a tiny island in the Indian Ocean, Eastern Europe, and Iceland.  I once drank a Coke in a fishing village in Mexico.  The place was so isolated it had only gotten electricity five years prior and you had to a get there via boat since it didn’t have cars or streets.  With the exception of the North and South Poles, I’m not sure there is a place on the globe where you can’t find Coca-Cola.

From the iconic red and white lettering to the distinctive bottle, promotion is another area Coke is nearly unrivaled.  A company that has not one but two official museums, which draws visitors from 6 continents, 70 countries, and all 50 states, knows a thing or two about promoting a brand.  It is no accident that Coca-Cola associates itself with epic events, such as the Super Bowl or the Olympics, and touching moments.  Whether it is teaching the world to sing, Mean Joe Greene tossing his jersey to a kid, or a lesser known commercial for a new product, Coke understands the significance of the association with important and moving moments in life.

Soda consumption in the U.S. has declined in recent years due to health concerns (apparently people don't know Coke keeps you thin) and pressure from government.  It is an issue Coca-Cola monitors closely.  Trailing only the original Coca-Cola classic, Diet Coke recently became the number two best-selling soft drink, edging out Pepsi.  If there is a single company built to handle a changing landscape, it is Coca-Cola.  By the way, that imitation Coke that I opened last night?  I took a couple drinks then just left it sitting on the counter.