Ideas Rule the World-The Coca Cola Example
Why would I want to write on a topic that says: "Ideas rule the world"?
Well, that would be because everything you see and touch was once an invisible idea in someone else's mind until it was brought into being. Like a dream, an idea sprouts up in the mind, flies around in our brains till its used or naturally fades out. The uniqueness and power that set apart any successful businesses or individual, starts with the kind of ideas they come up with (usually influenced by their state of mind, environment and situations).
There are several instances in history where great ideas were born and have made success. I would like us all to look into the origin of the world famous Coca Cola:
Coca-Cola is a carbonated soft drink sold in almost all the countries of the world. Coca-Cola is manufactured by "The Coca-Cola Company" and is often referred to as Coke. Coke is one of the most recognizable brands in the world, yet, not too many of us can tell the story of how it started.
THE COCA-COLA IDEA
In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank Robinson.
Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted "Coca Cola" into the flowing letters which has become the famous logo of today.
The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886.
About nine servings of the soft drink were sold each day. Sales for that first year added up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in expenses, so the first year of sales were a loss.
"Hmm, it could be risky! Isn't it?"Well, proceed...
Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut.
"But surprisingly what happened?" A man built a business around the idea...
In 1887, another Atlanta pharmacist and businessman, Asa Candler bought the formula for Coca Cola from inventor John Pemberton for $2,300. By the late 1890s, Coca Cola was one of America's most popular fountain drinks, largely due to Candler's aggressive marketing of the product. With Asa Candler, now at the helm, the Coca Cola Company increased syrup sales by over 4000% between 1890 and 1900.
Advertising was an important factor in John Pemberton and Asa Candler's success and by the turn of the century, the drink was sold across the United States and Canada. Around the same time, the company began selling syrup to independent bottling companies licensed to sell the drink. Even today, the US soft drink industry is organized on this principle.
Until the 1960s, both small town and big city dwellers enjoyed carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the drug store, the soda fountain counter served as a meeting place for people of all ages. Often combined with lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft drinks, and fast food restaurants became popular.
"But the idea did not end there!" Because...
On April 23, 1985, the "New Coke" formula was released. Today, products of the Coca Cola Company are consumed at the rate of more than one billion drinks per day.
In Peru, but it was purchased by the Coca-Cola Company Inca Kola in 1999. In India Coca-Cola bought Thums-Up, a local drink, which had more sales than Coke.
Coca-Cola has been an Olympic sponsor since 1928, when it was the first-ever sponsor of the Olympic Games. Coca-Cola also sponsored the Summer Olympics held at Atlanta in 1996. From 1978, Coca-Cola has sponsored every FIFA World Cup and other competitions organized by FIFA.Coca-Cola is still sponsoring this year's Beijing Olympics.
Now,what would have happened if Asa Candler did not step in?That would be the topic of another day
It is not enough to have an idea, but it is a good start. Like I mentioned in the previous post, "To create a business, you need to come up with an idea". Then,you have to build a business around your idea;and once you're in business, you need more ideas for design,engineering, capacity building, marketing, creative problem solving, customer retention, etc.
Day in day out, you would need to think and generate new creative ideas to sustain the existing ideas.
In the information age,the accelerated pace of change and current ease of new entrants to new markets due to technological advances leaves no time to be sluggish in generating and nurturing ideas. The success or failure of a business depends on just one idea as well as the timing of the idea.
Most companies are not short on new ideas, but they are short on ways to assess, prioritize, and execute those new ideas. For example, IBM existed when Dell took advantage of the Internet and started online computer sales.
Dell Computers had "an idea" IBM lacked and developing that single idea at that time, made Dell money and a strong brand name. Dell's idea was to produce and sell Computer Systems based on Customers' requirements and specifications. Ideas don't just bring you out of your shell; they possess the power to creatively stand you out.
New ideas are also born by combining/modifying existing ideas to form an invention (e.g. "car" and "kitchen," = "mobile restaurant,"). Firms must enthusiastically welcome new ideas and suggestions. If an idea is given proper attention, it may become the hero in town, the next great marketing campaign, or even the perfect incubator for your next innovative product or service.
Who would create the next Billion Dollar idea? We'll see to that as we go on.
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