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Trade Secret Law - Coco-Cola's Strategy: A Case Study

Coco Cola the dominant one in the non-alcoholic beverage business industry has been serving since the last 100+ years. The minds behind the brand had attracted every section of the society. The strategy behind advertising their products have been the real reason behind it.

The Right Strategy

Coco Cola's business minds invests it's most in creative thinking. The company targets all ages, for example, the youngsters and children are targeted by the use of celebrities in their advertisements. Also, the brand has left no stone unturned by introducing diet coke for the people who are fitness conscious. Another factor used by the brand is "income". There are a large range of cans and bottles made by the company to make it affordable under every family's income. This created a larger customer base than expected.

The biggest confusion came in, when it was seen that the people of different geographical regions have a different liking for beverages. Coco Cola have overcome it by introducing region specific coke, for example in Asia the beverage is comparatively sweeter than in United States of America.

Undoubtedly, the marketing strategy and the business method had played a great role in making Coco Cola a grand success but the recipe behind it cannot be left unappreciated. The owners of Coco Cola have kept the recipe still a secret and haven't revealed it for the competitors to use.

How is Coco Cola's Secret Recipe protected?

It has been said that a vault in the Atlanta City protects the secret formula behind the world's most popular brand till date. It has only been shared with a very few important members of the company. In fact, the factories where it is made, has not the recipes but the bags containing the ingredients to be used while making it.

The Bags are marked as "X" and "Y" to prevent any kind of leakage of the secret kept for years. The bag also contains instructions printed on it with respect to making the final product. The distribution agencies are given powdered mixtures, which they can add in carbonated water and then further make the beverage for its supply and selling.

However, a very interesting point to note here is that the recipe is not patented as is kept as a "Trade secret" from the world. This smart move has been the only reason for the brand's immense popularity through the years, in this business generating world. Although, the only disadvantage of "Trade secret" would be that it cannot be prevented if the recipe is found using reverse engineering. But the brand is not concerned because the recipe is extremely hard to be found.

Thus, a mixture of right marketing strategy and perfectly planned trusted system had made Coco Cola as the most sipped drinks for years.

Written By: Ananya Trivedi, Student at JECRC University, Jaipur

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