Coca-Cola and its Relationship to Capitalism and Inequality - Research Paper Example

Coca-Cola and its Relationship to Capitalism and Inequality Definition of a commodity It is important to define what a commodity is and what it means, all products of labor made for exchange are called commodities. It can define as “a commodity is, in the first place, a thing that satisfies a human want; in the second place, it is a thing that can be exchanged for another thing” (Lenin).for a commodity to be truly be classified as a commodity it should have two properties: use-value and value. Therefore when a commodity possesses use value it become a true commodity, for example clothes are used for warmth. It is also very important to note that every commodity is as a result of human labor. Therefore, a certain amount of human labor is embodied in a commodity. Definition of capitalism Capitalism is an indirect system of governance for economic relationships, for one to understand capitalism as an indirect system of governance means to transcend the boundaries of standard neoclassical economics analysis, moving beyond merely the markets of pure economics to include the institutions and authorities of political economy. According to Karl Marx, there are major factors that contribute to capitalism; these are the basic features of capitalism. The first one is that capitalism is an indirect system of governance. Relationship of Coca-Cola to capitalism From the above it can be said that capitalism is a system of economics that gives one the right to own. And do whatever one likes with his/her possession. It then makes the system to be the most efficient in terms of making a living. A perfect capitalist society one works for money that is backed by commodities, and these commodities give the currency strength. Marx’s understanding of commodities (products of labor intended for exchange) is central to understanding his ideas about the nature of capitalism. Commodities produced to subsist and to satisfy their needs have use value. Under capitalism, where workers produce for others and exchange commodities for money, products have exchange value. Because it is often unclear where a commodity’s value comes from, it takes on an independent, external reality. This is what Marx called the fetishism of commodities, when the value of an object or commodity is believed to be tied to something “natural” or independent of human action, such as markets. For this fact the reality that value originates from labor and the satisfaction of needs is disguised. Process involved in making a commodity (Coca-Cola ) A good example of a commodity that can epitomize the capitalism of a commodity is Coca-Cola. This is a giant brand that has established itself all over the world. It is a global commodity. Looking at the industrial description and practices, coke and coke by-products, including coke oven gas, are produced by the pyrolysis (heating in the absence of air) of suitable grades of coal. This process also includes the processing of coke oven gas to remove tar, ammonia (that is recovered from ammonia sulphate), phenol, naphthalene, light, and sculpture before the gas is used as fuel for heating the oven. Coca-Cola is a carbonated soft drink sold in stores, restaurants, vending machines in more than 200 countries; it is produced by the Coca-Cola Company of Atlanta, Georgia, and is often referred to as simply coke. This is a commodity that has dominated the arena of the soft drink globally from the 20th century up to now. Though the chemical process is known, to make genuine Coca-Cola, one needs the famously secret concentrate known as Merchandise “7x” This is a highly confidential formula that is kept in a bank in the united states. The only people who knows the content and the description of this formula is only few of the companies’ employees. These trusted American employees are the only people who can measure and mix the content. This process is confidential and the fact that the contents of this formula aren’t supposed to be shared it makes Coca-Cola to be a capitalist commodity. Mixing is made in America and syrup like substance is made which is then transported to other countries where the franchisees mix it with sugar and water. The water is passed through various filtration processes to make sure that the water is pure enough. Carbon dioxide which makes it fizzy is also delivered to the canning plant where it is stored and then piped into the manufacturing process through a carbonator and cooler. The company will specify what equipment franchisees will use to carry out these processes. Samples are normally taken regularly for chemical analysis; the staffs of the company make regular checks to ensure that standards of cleanliness and quality are achieved. The Coca-Cola Company specifies that every bottling and canning plant in the world follow the specific mixing and filling instruction for Coca-Cola and its other products. There is so much strict attention to quality control, as well as well as refreshing flavor, has contributed to the success and continued growth of Coca-Cola and its allied brands. After mixing the syrup with clean and purified water then the mixture which is now ready to coke is bottled. The bottles are cleaned and when the mixture is filled it passes to capping machine. There is an inspection to ensure that the bottles are filled correctly and that all caps or crowns fit properly and do not leak. The bottles are then collected and placed into crates. The Coca-Cola stock is rotated to ensure that before the commodity leaves the plant it is always fresh. The product is sold at various outlets either wholesale or retail. The Coca-Cola products are purchased in a variety of packages, and in various capacities. Social relationships involved in creating Coca-Cola Coca-Cola is a commodity that deals with people all over the world. The commodity is not selective it has represented itself all over the world including on the third world countries. And it has enabled itself to make huge profits and employee a lot of people across the globe. Though the commodity main ingredients are not disclosed they are transported to franchisees in different country. The consumer relates so much with the commodity in different part of the world this include personal relationships. England for example the consumers are able to relate with the commodity when it comes to football the commodity. Consumers who are really football fanatics are able to relate themselves with a Coca-Cola. Commodity fetishism is the manner in which there is the perception of social relationship involved in production. This is not necessary a relationship with people, but as economic relationship among the money and commodities exchanged. Coca-Cola advertisement has enabled itself to represent itself in almost all the social classes. This is from the upper class, middleclass and to the low class. The capitalism can be said to be evident to the extent that it uses the franchisee to set the prices of the Coca-Cola. The society can’t do away with Coca-Cola as it is a commodity that is almost in all household all over the world. People have been able to associate themselves with the commodity in all aspects. Some take Coca-Cola not because it is the only option but because it is cheap and readily available. The promotional methods that are placed to market the Coca-Cola can also be said to be also a source of social relationship. The charismas convoy of Santa will associate the society of Coca-Cola. The commodity has also tried to connect with the consumers socially by predicting the trend. A good example is Diet Coke which is a brand that targets those with medical problems regarding sugar in their bodies. The brand is sugar free; this means that Coca-Cola Company has related itself with consumers in health matters. When other are taking the normal sugared brands the ones with sugar problems will be taking the sugarless brand, and for this reason their health problems are kept in check. The advertisements in the Coca-Cola company are in a manner that they target the society in that particular region. A good example is that the advertisements that are made in Africa are very different from the ones done in Asia or other continents. In Africa the advert that was there in 2013 tried to relate with the people and praising Africa saying how beautiful Africa is. And the small things that the Africans cherish such as band. A part of the advert though, faced criticism it suggested that when the rest of the world are worried about the feature Africa is busy drinking Coca-Cola. Though the commodity wanted to associate itself with the Africans it faced criticism and it was viewed as oppression. America also had issues with the product after the advert that they tried to sing “Beautiful America” in various languages. Though the Coca-Cola Company wanted to associate itself with the people it was not welcome and they had to apologize. The ‘representations’ that Coca-Cola has for us (consumers) Therefore, it can be said that Coca-Cola has some representation to the consumers. First it is the most available non-alcoholic drink that is sold and marketed as a joyful and refreshing drink for all age groups. The Coca-Cola company mission statement can enhance that it makes itself represent itself to the consumers in a manner that is very appealing. The statement is to refresh the world, inspire moments of optimum and create value. The values of Coca-Cola include leadership, collaborations, integrity and accountability. Though the values are up to the expectations of any consumers they have serious implications that contradict these values. The fact that the commodities are sold in restaurants and vending machine it represents itself fully to the customers. It can be taken in restaurants after taking a burger or any snack, it can also be found in alcoholic joints such as Bars. Some people that met reported to me that they use the drink while taking some brands of alcohol such as gin, whisky, brandy or vodka. Some persons on the beaches are seen quenching their thirst using Coca-Cola. Children are taking Coca-Cola as their refreshment. The result of taking Coca-Cola all over the world makes has contributed to so much capitalism. The first object is that Coca-Cola is an American company that has established itself all over the world, almost over 200 countries. The revenues realized are ploughed back to America and what is left is very small and not significant compared to what the Americans take. This makes America to continue to attain more superpower to it and third world countries like the ones from Africa continue to suffer, yet they have put so much labor to the commodity. The commodity though it has tried to target the market it is not that affordable to everyone all-over the world. The commodity is so much a luxury that the majority of the poor people of Africa can’t afford it. Those who afford the commodity to quench the thirst make the disparity to be felt. 500 ml of Coca-Cola product can cost about half a dollar, Africa and other poor countries in Asia are reported to live and survive with about half a dollar per day. There is no water in some countries and famine has occurred in this regions, thus it is difficult to afford the commodity making the gap between the haves and have nots to be wider. The fact the formula in that has been kept secret for the past years and is not disclosed to anyone raises alt of questions. First the prices of the product can be oppressive, this is because of the product or the main ingredient can be so cheap that price offered to the final product becomes oppressive. The Company has also achieved to build up a form of inequality. The raw material can be very much and readily available in other countries which have the commodity. But because of the company’s “capitalist nature” it doesn’t want to share the information so that it can help other countries. History of the commodity Coca-Cola is a company which has grown tremendously through the centuries into the premium brands it is today. Started by Atlanta pharmacist, Dr. John S. Pemberton, Coca-Cola offered people the opportunity to indulge in soft drinks and was sold at soda fountains. Dr. John S. Pemberton created the syrup with flavors and then with the help of a pharmacist, carbonated it making it have a distinct taste. Meanwhile, his partner, Frank M. Robinson gave this flavored soft drink the name Coca-Cola and designing the script and trademark of Coca-Cola which has never been changed up to now. This soft drink became the market leader in 1888 which is three years from its inception in the market. Dr. Pemberton sold some interest s of the brand to Mr. Candler who propelled the exposure of Coca-Cola to regions outside Atlanta. Bottling of the Coca-Cola soft drink was incepted in 1894 after the market for the brand had grown tremendously in various regions. This was inspired by the need to market the brand widely by increasing it portability. The first bottling machinery was installed in Mississippi soda fountain. After five years, there was large scale bottling of the drink after rights to bottle and sell the drink in other regions was secured by three businessmen; Benjamin Thomas, Joseph Whitehead and John Lupton who exposed Coca-Cola globally. Bottling of the Coca-Cola worldwide faced several challenges especially due to the presence of many such brands in the market. This led to massive imitation of the bottle such that the competitors cashed on the quality brand of Coca-Cola. This prompted the marketers to produce a distinct and unique bottle which could be differentiated in the market from the rest of the competitors. This led to the development of the contoured bottle which was trademarked in 1977. This bottle was very unique and the loyal customers of this soft drink would recognize it even in the dark. Marketing strategies for the Coca-Cola drink were made globally since the promotion of the brand has already reached the global market. The marketers issued coupons to its customers promoting the brand through the offering of free samples. Many people taste the soft drink which increased their sales opened new markets for them. In 1887, the marketers were considering a new and innovative way of marketing their products to a wider margin of people. This led to their first newspaper advertisement. At this point, the advertising of the Coca-Cola drink was associated with pharmacies. This had already changed by 1970 where marketing was linked to fun and happy times with friends. In the recent decade, Coca‑Cola has experienced innovative advertisement which has opened it to the most remote parts of the globe. It has become a household name in many parts. In 2009, the company reached high heights with the “Open Happiness” campaign which depicted this drink as a relaxing drink which refreshes after work. The promotion with this slogan has been taken to the Television, newspapers, billboards, sporting events and stores worldwide. The association of Coca‑Cola with happiness and well ness has been fundamental in opening and sustaining global markets. Conclusion Coca-Cola as a commodity has created oppression in some manner, from the production process to the consumption process. The oppression is evident even from the advertisement processes. This is a commodity that can be said to represent capitalism in many aspects. The terrorism who are against America have sworn not to take the commodity as they feel it being ac American commodity is an oppressive commodity. It is also very clear that the value of the so called “7x” is not known and what the consumers see is just price tags of the commodities in the vendors, retail outlet and shops. The fact that the company doesn’t want to even consider dishing out the patents of this commodity to other countries is because it wants to continue to dominate the market of the soft drinks. This can be the highest order of capitalism that enhances inequality. References Gouldner, Alvin W. (1960). The Norm of Reciprocity: A Preliminary Statement. American Sociological Review 25(2): 176–177 Palmer, Adrian. (2000). Principles of Marketing. Oxford: Oxford University Press. Read More