difference between billion entrepreneurship 3638

8/7/2019 Difference Between Billion Entrepreneurship 3638

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What is the difference between2300$ and 115 billion$? StoryInventor of Coca-Cola-Part 1

Presentation prepared by

Prof.K.Prabhakar,

[email protected]

Assisted by Ms.P. Subha



Objectives

This slideshow is about how a great idea was sold for smallsum of 2300$ and inventor was not able to leverage it.

It is a story of Entrepreneurship.

This slide show provides information for you to reflect on why Pemberton failed? How others had a phenomenal success? Part 1 will talk about J.S.Pemberton.



What we all know about Coca-Cola

We all know that Coca-Cola is valuedat 115 billion $ and its rivalries andgrudges with Pepsi.

www.stern.nyu.edu/~adamodar/pdfiles/brand.pdf

We also know that its formula is the secret and very

few persons know the ingredients of coke.



Some questions which all of us may

not know

Who invented this formula?

Is he still the owner of Coca-Cola?

How this product evolved over yearsfrom the 1890¶s till now?

Let us take an excursion into history.



May 1886 Atlanta, United States of America-General state of feeling among

people

Southern parts of America was stilldepressed by its defeat in the civil war.

And the loss of war make many of thesoutherners to turn to religion and patentedmedicines. The north American all curesnake oils and Rum are all demon created

products. Patent Medicine makers in south wanted to

replace alcohol with other ingredient that issafe, healthy and morally pure.



Brief history of John Styth Pemberton

Permberton graduated from medical school at thetender age of 19 in 1850. He also received agraduate degree in pharmacy at an early age. He

worked for many years as a druggist in Columbusbefore moving with his family to Atlanta in 1870.

In Atlanta he served on the first pharmacy licensingboard in Georgia. He also created a chemicallaboratory which was the first state-run facility totest soil and crop chemicals as well as served as atrustee for the Emory University School of Medicine.During the Civil War he served in the ConfederateArmy, achieving the rank of lieutenant colonel.



John Styth Pemberton

Atlanta chemist J.S.Pemberton has beenreformulating his ³French Wine Coca-Ideal BrainTonic( French Wine Coca, was actually an imitation

of Vin Mariani, a coca-wine drink invented byAngelo Mariani in 1883) to remove the alcohol andreplace it with another that will provide same effect.

He found it in Kola nut, a stimulant that slaves fromAfrica has brought to have a wonderful hang over

cure. He blended the kola nut with coca extract and found

that the concoction is a potent ³Brain Tonic´. However, its taste was very bad.



Ultimate Product He made thirty gallon brass kettle in his

back yard to develop finally an ideal mixtureof oils, herbs, and extracts to mask theflavor of the potently psychoactive mix.

It was not a carbonated beverage. It wasthick, sweet brown syrup, packaged inreused beer bottles.

Pemberton sold them for 25 cents a bottle.The Druggists either sold the entire bottle or in small doses mixed with tap water. One of the Druggists was Jacob¶s Drug Stores.



Jacob¶s Drug Stores A customer came to Coca-Cola¶s outlet complaining

of severe hangover.

He was given a bottle of Coca-Cola by Mr. Willis E.Venable, the soda fountain man. The customer insisted to have the water from soda fountain andwanted to have the drink immediately. He wasgiven the soda fountain water mixer and he said it ismuch better than taking it with tap water. Thisincident spread in the town and many starteddemanding the same. Thus, It has become arecreation drink.



Pemberton¶s Reaction Pemberton was marketing Coca-Cola as a

medicine for all nervous afflictions-sick

headache, Neuralgia, Hysteria, Melancholia,Etc. He never considered it as arecreational drink. However, he saw theopportunity. He changed his ads to note that

Coca-Cola makes a delicious, exhilarating,refreshing and invigorating beverage inaddition to its medicinal qualities.



The birth of Coca-Cola And the Coca-Cola beverage, whose

unit sales totaled a mere 3,200

servings in 1886 ("nine drinks per day"based on the twenty-five gallons of syrup sold to drugstores by PembertonChemical Co.), is today called the

world's most popular soft drink--accounting for billions of servings atrestaurants in 195 countries.



Passing of Dry Laws Atlanta passed its first dry law, making

alcohol illegal. The coke syrup sales

jumped from 25 gallons a year to1,049 gallons the next due tomarketing effort of Frank.M.Robinson,who coined the name of the drink,

created coke¶s first ad campaign andornate script ³Coca-Cola´ logo that isstill not changed.



1887 Pember ton¶s Health began to f ail.

Coke sales was not suff icient to be f inancially sound.

On July 8th 1887, he sold a thir d of the company to Willis

Venable and another thir d to George Lowndes. Neither man had the time to mar ket, make or sell Coke so theysold their por tion of the company to Woolfolk Walker andhis younger sister Margaret Dozier. Dozier owned two-ninths and Walker four -ninths of the formula rights. Nowhere is where it gets interesting. Venable somehowdisposed of his por tion of Coca-cola twice. During some

time in 1887, he gave his share of Coca-cola to JosephJacobs, owner of Jacobs' Pharmacy. In early October ,1887 Pember ton ran a blind ad looking for additional investor s



TheB

lind Advertisement WANTED: AN acceptable party with

$2,000.00 to purchase one-half

interest in a very profitable and well-established manufacturing business,absolutely no risk, and guaranteed a

50 per cent profit on investment, withpossibilities of much large profits and rare opportunity to right party.



The Result He was able to get three investors with

this ad. He took $2,000 from each of

them. Their names were J.C. Mayfield,A.O. Murphey and E.H. Bloodworth. Inlate December the three new partners

moved to Atlanta, ready to produce allof Pemberton's wonderful medicines.



Last days In 1887, Pemberton¶s health

began to fail. Before his death,he sold the last of his stock toAsa Candler, a moreprosperous fellow druggist.With the help of two partners,Candler quietly bought the restof the stock in Coca-Cola fromVenable and other investors.The full investment hasamounted to 2300$ includingthe formula.

Pember ton died as a destitute on16 August 1888and was buried in anunmar ked pauper ¶s grave.



A write up on what is soft drink A soft drink is a drink that does not contain alcohol, as opposed to hard drinks, that do.

In general, the term is used only for cold beverages. Hot chocolate, tea, and coffee arenot considered soft drinks. The term originally referred exclusively to carbonated drinks,and is still commonly used in this manner.

F izzy Drinks

F izzy drinks (carbonated beverages) are produced by injecting carbon dioxide into thedrink at a pressure of several atmospheres. Carbon dioxide dissolves readily at normal atmospheric pressure, particularly in cold beverages, but far more so at high pressureand large volumes of gas can be dissolved. When the pressure is released the carbondioxide comes out of solution forming numerous bubbles and begins releasing the carbondioxide back into the atmosphere. After many minutes most of the carbon dioxide hasbeen released and the drink is said to be 'flat'.

The chemical phenomenon whereby carbonated drinks taste fizzy is due to carbonic acid inducing a slight burning sensation, and is only indirectly related to the bubbles- bothphenomena are caused by the carbonic acid concentration.

Carbonation can also be produced by partial fermentation in a sealed container. This isthe method used in the production of ginger beer and by careful control, and use of appropriate yeasts the alcohol level can be kept very low.

http://www.solarnavigator.net/solar_cola/soft_drink.htm



Formula of Coke The Coca-Cola formula is The Coca-Cola Company's top-

secret recipe for Coca-Cola. The formula is considered one of the most closely-held trade secrets in modern business. Onlya few top Coca-Cola employees are reported to know or have

access to the formula. Merchandise 7X is the "secret ingredient" in Coca-Cola. The

ingredient has remained a secret since its invention in 1886.The description of the ingredient is kept in a security vault in abank in Atlanta, Georgia. Only two people in the companyknow the formula at any one time.

Published accounts say it contains or once contained sugar,caramel, caffeine, phosphoric acid, coca leaf and kola nutextract, lime extract, flavoring mixture, vanilla and glycerin.

difference between billion entrepreneurship 3638

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