When Roberto Goizueta took over as CEO of Coca-Cola in the 1980s, he was faced with intense competition from Pepsi that was eating into Coke’s growth.
His executives were Pepsi-focussed and intent on increasing market share 0.1% a time.
Goizueta decided to stop competing against Pepsi and instead compete against the situation of 0.1% growth.
He asked his executives, what was the average fluid intake of an American per day?
The answer was 14 ounces.
What was Coke’s share of that?
2 ounces.
Goizueta said Coke needed a larger share of that market.
His executives were Pepsi-focussed and intent on increasing market share 0.1% a time.
Goizueta decided to stop competing against Pepsi and instead compete against the situation of 0.1% growth.
He asked his executives, what was the average fluid intake of an American per day?
The answer was 14 ounces.
What was Coke’s share of that?
2 ounces.
Goizueta said Coke needed a larger share of that market.
The competition wasn’t Pepsi.
It was the water, tea, coffee, milk and fruit juices that went into the remaining 12 ounces.
The public should reach for a Coke whenever they felt like drinking something.
It was the water, tea, coffee, milk and fruit juices that went into the remaining 12 ounces.
The public should reach for a Coke whenever they felt like drinking something.
So, Coke put up vending machines at every street corner & the sales of Coca-cola took a quantum jump !!!
Roberto Goizueta
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