International Marketing Plan
Executive Summary
Coca-cola Company is considered to be most well-liked and accepted largest-seller of the soft-drink in the history, along with it, considered as the most decipherable brands all over the world. It is offering various regular, low-and-no-calorie gleaming beverages; bottled water; fruit juices as well as fruit drinks; energy drinks; sports drinks; along with ready-to-drink coffee and tea. Under the name of Coke brand, Coca-Cola has with time, introduced various cola drinks. Coca-Cola Company recognized to retort to the domestic needs. And the company often thinks merely about the domestic opportunities available until and unless company is been presented by foreign opportunity itself. Coca cola have been using different market entry strategies for making their entry in different countries. FDI: Foreign-direct-investment assists Coca-Cola Company in forming deeper relationships with the host governments; its customers along with local suppliers, at mean while improved the company’s image in host country as it creates new job opportunities. The detailed strategies are dicussed throughout the paper
Introduction of Coca-Cola:
Coca-cola Company is considered to be most well-liked and accepted largest-seller of the soft-drink in the history, along with it, considered as the most decipherable brands all over the world. In 1886 Coca-cola was created by “Dr. John S. Pemberton” in Atlanta Georgia, first presented at the Jacob's Pharmacy as fountain drink by mixing up syrup of Coca-Cola to the carbonated water. Firstly Coca-Cola was portrayed to be the delicious and the refreshing one. Not much changes have been done since then, as still nothing exists that is superior to a chilled Coke to satiate the thirst. In 1887 it was patented, and in 1893 it was registered as trademark and being sold in all states and region by 1895 in US. In US Coca-Cola Company started its operation of franchised bottling In 1899, and these bottling operations began to spread out internationally in 1906.
Coca-Cola comprises of sugar, soaring carbonation levels along with caffeine. Today, coca-cola is having over five hundred beverage brands that are put on the market in over two hundred countries for sale. This sum up to thirty five hundred plus beverages in various categories, like regular, low-and-no-calorie gleaming beverages; bottled water; fruit juices as well as fruit drinks; energy drinks; sports drinks; along with ready-to-drink coffee and tea.
Under the name of Coke brand, Coca-Cola has with time, introduced various cola drinks. Most familiar among them is Diet Coke, while others counting includes Caffeine-Free Diet Coke, Coca-Cola Caffeine-Free, Cherry Coca-Cola, Coca-Cola-Vanilla, Coca-Cola-Zero, and exceptional different versions with lime, lemon, and coffee. Coke products possibly will be institute in over two hundred countries all over the world in 2013, with customers downing over 1.8 billion or more beverage servings of the company each single day.
As it has been discussed that Coca-cola offers over five hundred beverages, among some of them are as follows: Sprite: In 1961 it was first introduced, as world's top lemon-lime flavor soft drink. Sprite is been sold in one hundred and ninety countries or more and ranked at Number 3 soft-drink all over the world. Fanta: In 1940 it was first introduced, and is the coca-cola company’s 2nd oldest brand along with it is also the 2nd largest brand in all countries except US. Diet Coke: known to be Coca-Cola light in various markets, is soft drink that is sugar-and-calorie-free. In US it was introduced for the first time in 1982. Coke Zero: it was introduced in 2005 for the first time and it was the company’s biggest product instigate in twenty two years. DASANI: DASANI that is pure and crisp delivers spanking new taste along with clean and fresh style. Minute Maid: it is making juices for more than sixty years with legacy of nutrition, novelty, and eminence. Ciel: it is noncarbonated purified water bottled for the enjoyment of the customers since the year 1996.
POWERADE: it contains the combined electrolytes and the carbohydrates along with fluids meant for energy as well as hydration. It satisfies thirst as well as replenishes the carbohydrates and minerals that are consumed during intense activities such as sports. Simply Orange: it is of best-quality, soothingly pasteurized that is been offered in 6 varieties. Coca-cola light: it is a soft drink that is sugar-and-calorie-free, having a crisp delicious taste, gives little boost up during busy day. Fersca: it is having exclusive citrus taste; it is a soft drink that is caffeine-free for discriminating the adults. Del Valle Brand: it is rooted in the Latin America, have lately joined brand status in Coca-Cola Company’s brands portfolio.
Rationale behind internationalization:
Coca-Cola Company recognized to retort to the domestic needs. And the company often thinks merely about the domestic opportunities available until and unless company is been presented by foreign opportunity itself. Coca-Cola shift from submissive to vigorous extension with features of company’s business in 1920’s and began to intermingle with Cuba, France, Puerto Rico and various other countries and the United States territories. The major rationale behind the internationalization was a reaction towards increasing competitive pressure within home country. The internationalization process of Coca-Cola Company was stimulated by their home Competitors. In addition, improving the operations of the Company’s cost-effectiveness, expanding into fresh markets for targeting fresh customers and raising the consumption of its products by subsequent worldwide customers were other several factors that were behind the Coca-Cola internationalization.
Mode of entry into various countries:
Coca cola have been using different market entry strategies for making their entry in different countries. FDI: Foreign-direct-investment assists Coca-Cola Company in forming deeper relationships with the host governments; its customers along with local suppliers, at mean while improved the company’s image in host country as it creates new job opportunities. This strategy was greatly used by Coca-Cola company for entering in various host countries i.e. China. Firstly Coca-Cola factory for bottle manufacturing was formed in 1981 in Beijing, in order to gain benefits resulting from the direct investments, till now about thirty five bottling companies along with twenty nine manufacture factories for products of Coca-Cola Company in china have been formed, about thirty thousand people being working, and about ninety nine percent of the company’s stuff is Chinese local (Trout and Ries, 2000).
Joint ventures: Another market entry strategy used by the Coca-Cola Company in various countries was joint ventures. In 2008, a joint venture was finalized between Coca-Cola and the Illycaffé Spa and they introduced first-class espresso ready-to-drink coffee beverage. Joint venture was created in order to introduce 3 products that were related to ready-to-drink coffee named as Caffè, Latte Macchiato, and Cappuccino to the consumers in ten countries of Europe i.e. Croatia, Austria, Ukraine and Greece etc.
Greenfield investments: The market entry of Coca-Cola in Russia was done by range of entry-modes, i.e. joint ventures, Russian existing plant’s acquisitions as well as through green field investments for new plants construction. These strategies were considered to be the key success factors of Company’s entry in Russia (Porter, 1979).
Evaluation of the marketing mix strategies:
Marketing mix consists of 4 key essentials that are product, price, place and promotion. These key elements are been utilized in order to gratify target market as well as the potential customers of the company. These help business in achieving its predetermined goals. Regardless of the how ideal the product is, it’s significant to have gainful as well as successful marketing mix that is followed by marketing plan (Manglod and Faulds, 2009).
Product: As societies are been developing, more attention are been paid towards the health and the quality of living, for reducing their weights people are consuming foods and drinks that are of high energy. At this point, keeping in view the new trends, in 1982 Coca-Cola introduces coke with no sugar as well as with no calories though with plethora of taste named as "diet coke", which become the world’s top diet-soft-drink in just 2 years of its launch. However in 2008 "coca-cola zero" another soft-drink was published (Frazier, 1999).
Price: Pricing strategy followed by the Coca-Cola Company is very much clear about the objectives, factors, ethos, influencing, along with discounts and allowances in few transactions. Like in china, where the economic marketing is gigantic land and huge population, varieties of different raw materials, yet there is market available of huge labor force at very low cost. So when prices of the products in china are compared with other countries, there appear some price advantages.Place: Coca-Cola Company have formed a successful channel for distribution as this is considered to be the finest way to collaborate with retailers as well as wholesalers, because a good way for selling the products are been found by them and also they help the Coca-Cola Company in analyzing market for changing its marketing plan for first time. Partner of the Coca-Cola Company in china is having an efficient marketing occupation; Swire group occupied the southern part along with the central part of the market.Promotion: With trade globalization, many of the international companies steadily enters marketing, advertising is considered to be the most excellent way for publicity, effectual advertising strategies for any foreign company like Coca-Cola should take care the essential conditions of host country and the demands of the domestic customers. Since 1928, Coca-Cola Company is longest-serving sponsor. The year 2008 was considered to be the greatest year for the Company as in this year China held Olympic Games in its city, Beijing; that provides an exclusive opportunity to whole world in order to recognize China as a new country and as new “Coca-Cola China”. Moreover, Coca-Cola Company also uses brand embaseders in its various host countries for advertisement i.e. local film stars, cricketer etc. throughout many years the slogans of the Coca-Cola Company have been memorable i.e. Brrrrrrr!, jo chao ho jai coca cola enjoy etc (Kale and McIntyre, 1991).
Brand positioning and advertising strategy:
Coca-Cola Company forever been among one who first enters into the developing marketing and then build their strapping positioning. Coca-Cola no longer focuses on its formal products but is dedicated to expand varieties in its beverages, from technique of the oolong tea to the new period of the mixed-fruit-drinks, energy drinks with high-calorie, or even the basic drinking-water in order to make its position in the market. The company has considerable advertising budget, due to this company’s advertising as well as marketing campaigns been increased greatly. In 2013 company spent about seven percent of its revenues on the advertising campaigns i.e. in-store activations, programs of loyalty points, point-of-sale marketing etc. As the rival company i.e. Pepsi had before now established its sturdy brand image, Coca Cola have been adopted twofold strategy of the Jingles and the celebrity endorsements (Domzal and Unger, 1987).
Competitor analysis with respect to the host country:
Coca-Cola Company races in the segment of nonalcoholic, industry of commercial beverages. This segment of commercial beverage industry is extremely competitive, including number of firms, like Coca-Cola Company, that compete in numerous geographical areas, along with those firms which are mainly regional or those that are local in their operations. Products that are competitive includes number of sparkling beverages that are nonalcoholic; a variety of water products i.e. flavored, packaged as well as enhanced juices, waters, along with nectars; coffees, teas; energy along with sports drinks etc. These beverages are than sold out to the consumers in ready-to-drink as well as other forms. In various countries where the Coca-Cola Company is doing business i.e. US, PepsiCo is among the biggest competitor. Other important competitors include Unilever, Dr Pepper Snapple Group, Nestlé, Kraft Foods Inc. and Groupe Danone. Competitive factors that have impact on Coca-Cola include pricing, sales promotion, advertising programs, product improvement, brand as well as trademark development along with its protection (Waters,1978).
Impact of Social and cultural factors on the target market in an international environment:
Social and cultural factors greatly impact target market of the company. The company that is doing business worldwide must have complete acquaintance about its host country along with its national culture. It is essential to be acquainted with the local people along with target market’s consuming behaviors. A vital role is played by the culture of any host country in its consuming behaviors.
Issues regarding the quality of products, resource management along with the market exploitation and trade-offs of price-quality has been faced by the Coca-Cola Company. People around the world have been challenging the Coca-Cola Company for ill-treatment of the water resource. Coca-Cola had also affected the quality as well as the quantity of the ground water. The company’s waste extracts have been condemned for polluting fresh water and the ground water passing nearby along with the soil, hence detrimental to natural resources. In the face of all such social along with cultural issues raised in India, the customers are still using Coca-Cola for its sturdy brand repute all across the globe (Dickson and Ginter, 1987).
Factors influencing in developing distribution channels internationally:the distribution channels that are been use by the Coca-Cola Company depends upon needs of area in which t is operating, depends upon the market, its geographic conditions along with its customer’s profile. Pre-sale system: it separates sales and the delivery functions, allowing loading of the trucks with different products that is ordered by retailers previously, thus increasing the sales as well as distribution efficiency. Conventional-truck-route system: in this system person who holds the charge of delivery, sale immediately from available inventory on trucks. Hybrid-distribution system: in this same truck lug the products that are available for instant sale and the products that are ordered before by pre-sale system. Telemarketing system: system that might possibly combine with pre-sales visits. Distribution of Coca-Cola products is also been done by third-party wholesalers (Goizueta, 1989).
Conclusion and findings:
References
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GOIZUETA, R. C. 1989. Globalization: A soft drink perspective. Vital Speeches of the Day, 55, 360-62.
KALE, S. H., & MCINTYRE, R. P. 1991. Distribution channel relationships in diverse cultures. International Marketing Review, 8(3).
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