ADVERTISING: Change for Coke

In 1906, the young D’Arcy Advertising Co. of St. Louis welcomed a new account: a small soft-drink manufacturer. In the next 49 years, the agency made Coca-Cola’s name and “The Pause that Refreshes” known around the world, helped boost yearly sales to $200 million. Last week Coke and D’Arcy parted; the $15 million-a-year account was given to Manhattan’s McCann-Erickson agency.

In making the change, Coca-Cola said that it hoped to “integrate international and domestic advertising,” pointed out that McCann-Erickson has worked for Coca-Cola Export Corp., and has offices all over the world. But behind the change, also, may be the fact that Coke is having trouble holding its top position. Last year Coke’s net earnings dropped 8% while other companies’ jumped (Pepsi-Cola’s by 13%). In January of this year, Coke and D’Arcy tried a new sales approach, kicked off a big ad campaign featuring models in plush surroundings instead of home-town folks in corner drugstores. Trade magazines promptly kidded Coke for being years behind Pepsi-Cola. When Coke began introducing bigger bottles, Pepsi remarked: “It’s fun to be followed—to be recognized as the leader.”