INTERNATIONAL MARKETING

International Marketing



International Marketing for Coca Cola

Marketing

Marketing is not just creative play at work it is a social science that requires as much research as it does creative tinkering (Mudambi, 2002, pp.1). Marketing should always follow a strategy, and strategy is born out of understanding derived from research. Market research is essentially a study of human belief and behavior.

Company Background

Coca Cola is one the corporate giants of the global market today. The company has made many important marketing decisions during its journey from a chemist trial to the global enterprise it is today. It has adopted all the necessary changes and acquisitions to meet both the customer and employee expectations and demands. The company has been able to boost its global outreach by inspiring its workforce through attractive pays, benefits and recognition (Mudambi, 1998, pp.239).

The soft drink industry in the US is marked by high concentration. The three leading beverage producers in the US market include Pepsi Cola, Coca Cola, and Dr. Pepper, which have combined sales of more than 100 million dollars (Mockler, 2002). These companies form the major portion of the manufacturing industry. A remarkably small number of manufacturers of soft drinks exploit niche markets. Many centres bottling and distributing soft drinks meet US demand (Morck and Yeung, 1991, pp.165). In US, the manufacturing is located in large cities, and numerous distribution warehouses are located throughout the country. The bottling and distribution are highly automated and highly efficient. Small and medium-sized US companies supplying niche markets.

Production tends to be located near main urban centres, although it occurs more in large plants serving larger regions. In bottling plants, ingredients are added to concentrated powder syrups. Then they are added to water and carbon dioxide, and drinks are manufactured and bottled. Some syrup is used by operators of catering services in the fountain drinks. The industry uses about twenty times more SGHF than sugar as a sweetener. The bulk of raw materials is made locally, in large part of the United States. (Carlsson, 2003)

Successful Strategies Used by Coca Cola

The culture at Coca-Cola has shifted from the conservatism of the 1960s and 1970s to one of “daring to risk success”. Risk can involve failure, but if corporate value systems place too much emphasis on penalising failure rather than on rewarding success, people will not take risks - neither the people or the business will flourish. Coca-Cola was able to turn their experience of launching New Coke into a success by recognising its mistakes (Tong, 2006, pp.71). The emphasis today is on being bold enough to face new challenges and being able to seize market opportunities. Ploughing back profits into investment has enabled the company to provide the impetus to take fresh risks. And the emphasis on consumer orientation has meant that products have continued to be successful, providing the impetus and cash-flow for new growth.

Through “pre-search”, Coca-Cola is able to produce products that consumers want, and if they do not prove to be successful they are bold ...