...Coca-Cola: International Business Strategy For Globalization Dr. Michael Ba Banutu-Gomez, Professor, Management and Entrepreneurship, William G. Rohrer College of Business Rowan University, Glassboro, NJ ABSTRACT The purpose of this research was to analyze the efficiency of global strategies. This paper identified six key strategies necessary for firms to be successful when expanding globally. These strategies include differentiation, marketing, distribution, collaborative strategies, labor and management strategies, and diversification. Within this analysis, we chose to focus on the Coca-Cola Company because they have proven successful in their international operations and are one of the most recognized brands in the world. We performed an in-depth review of how effectively or ineffectively Coca-Cola has used each of the six strategies. The paper focused on Coca-Cola's operations in the United States, China, Belarus, Peru, and Morocco. The author used electronic journals from the various countries to determine how effective Coca-Cola was in these countries. The paper revealed that Coca-Cola was very successful in implementing strategies regardless of the country. However, the author learned that CocaCola did not effectively utilize all of the strategies in each country. Key Words: Coca-Cola, International Business, Strategy, Globalization, International Marketing, Labor Relations, Distribution, Diversification, Management, Channels, Costs, Gains and Collaboration. INTRODUCTION...
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...Branding Nike and coca cola are the two companies that I have chosen. A brand is a symbol/picture or tagline that a business is known by. There are two types of branding, commodity branding and concept branding. A commodity brand is one which communicates messages to customers about particular products they might spend their money on for example food clothes you wear and furniture. A concept brand is one which communicates an idea or campaign which you would like customers to think about or get involved in for example cancer research, Oxfam and 5 a day. Another ways of classifying is who made the product or and its own label. The manufacturer creates the brand for example Coca-Cola and Nike are the manufacturers for its product. They will have to create the distinctive logo/packaging and the advertisement goes with it. When the shop itself creates the brand, it is known as ‘own label branding’ for example big supermarkets such as Tesco. There are many benefits of branding to a business which builds up a brand name. The customers will pay higher prices for products that have brand names for example the customers will buy coca cola drink instead of a drink that is plain for example Tesco’s soft drinks therefore more shops will stock branded products because they know customers will buy them this means the company will get higher profits because they sold it in a higher prices. When it comes to clothes and footwear Nike is one of the businesses that customers will buy their...
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...Barriers to entry One of the 5 forces that shape the soft drink industry is barriers to entry. The Coca Cola company says on its website it is facing strong competition from well-established global companies and many local participants. For this particular industry, the competitive forces are benign, (favorable). Most of the companies in the soft drink industry are profitable. The Coca Cola Company's main competitors are Dr.Pepper, Nestle and PepsiCo. These companies definitely have the advantage over there competitors. In porters 5 forces, Porter refers to supply-side economies of scale, where firms such as the CCC and PepsiCo can produce at large volumes enjoy lower costs per unit because they can spread fixed costs over more units, employ more efficient technology, or command better terms from suppliers. According to Porter's article, supply-side scale economies deter entry by forcing the aspiring entrant either to come in the industry on a large scale, which requires dislodging entrenched competitors. How does a newcomer circumvent the barriers to soft drink industry? Perhaps create new distribution channels of their own. Creating a niche market for their drink in the form of marketing to a certain segment in the soft drink industry Rivalry Among Existing Players * The industry is not growing rapidly. The growth rate for the industry is not rapid; it is in fact relatively small. This makes it very difficult for new entrants to compete with the already thriving...
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...exceptional marketing programs and well as aggressive business strategies have become recognized the world around. Many of these are part of our everyday life and if not then we see them every day in our comings and goings. Two of these world-wide brands that many of us know are also extremely similar in both product as well as marketing strategy. Those two brands are The Coca-Cola Company and PepsiCo, Inc. On May 8, 1886, a pharmacist named Dr. John Pemberton carried a jug of Coca-Cola syrup to Jacobs’ Pharmacy in downtown Atlanta, where it was mixed with carbonated water and sold for five cents a glass. (Our Heritage, 2012) Three years later in the summer of 1898 a young pharmacist named Caleb Bradham began experimenting with combinations of spices, juices and syrups, trying to create a refreshing new drink to serve to his customers. His success came in the form of the beverage now known around the world as Pepsi-Cola. (Pepsi Legacy, 2005) And from that day forward the rivalry between Coca-Cola and Pepsi would become legendary. These two beverage companies are competing for the top spot in a massive global market. The cola and carbonated beverage industry reaches to nearly every corner of the planet, and the vast majority of the market share belongs to the two giants Coke and Pepsi. With such a huge market and enormous revenue potential in an industry such as this, it is no wonder that the Coke versus Pepsi competition is so fierce. So how does either of these companies create an advantage...
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...Coca Cola’s Marketing Challenges in Brazil: The Tubaínas War Case Analysis I. Summary The case study deals with Coca Cola’s attempt to pursue different strategies in order to stand up to the strong growth of the so called tubaínas. Tubaínas is defined as the numerous brands of inexpensive, carbonated and sweet beverages which are manufactured and distributed locally throughout Brazil by hundreds of small companies. Due to the significant growth of the tubaínas in Brazil, Coca Cola intended to find a way to impede and even defeat the steady increase, to sustain their performance and strength. II. / III. Statement of the problem / Causes of the problem One of the biggest problems Coca Cola faced was its declining market share in 1999 which dropped to 48%. It became evident that Brazil seemed to be a challenging market for Coca Cola concerning sales, market share and profitability despite the existing high brand awareness all over the world. The decline was the result from the rising social class C which included typical workers in the lower middle class and accounted for around 28% of total national consumption of soft drinks. The outcome of a market study conducted by Boston Consulting Group showed that brand awareness was the least significant factor in the beverage purchase decision of Class C. However lower-priced products, also referred to as B brands, played a decisive role and were preferred. Another market study, published by A.C. Nielsen/CBPA study supported the...
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...Branding a product is process that takes years of consistent advertising efforts. It is the process of integrating a product into the household repertoire of words. The Coca-Cola Company has demanded respect in the American culture through its 100 and more years of success. Coca-Cola has become so widely recognized that they in their most recent advertisement no words are present it is only a red silhouette of a Coca-Cola bottle. With its inception in 1886 Coca-Cola was an instant success. While its original intent was for pharmaceutical use, it was wasn’t long before all consumers of America were enjoying its refreshing and delicious characteristics. In 1906 Coca-Cola handed its advertising over to the expertise to D’arcy which starded the Coca-Cola brand the world loves today. Coca-Cola’s first advertisements were simple usually involving one or more arrows pointing to either the classic Coca-Cola red circle or a Coca-Cola product (Taschen 34 images 1-4) . Since the drink was and is advertised as a thirst quenching product D’arcy utilized the red circle by making it represent a Sun and the arrow(s) represent the Sun’s heat rays, while never forgetting to include “ 5¢ Everywhere.” D’arcy very commonly made use of the color blue as a gradient on the line fading from red heat to blue refreshment. These original advertisements, while the main focuses were the arrow and the classic red Coca-Cola circle, also contained a lot of text, which often included “demand the the genuine...
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...MANUFACTURING FACILITY OF COCA-COLA BOTTLING CO. CONSOLIDATED IN CHARLOTTE, NORTH CAROLINA Final Report Presented by TEAM G Abilash Patni Diana Montoya Hemant Chidrula Matthew Elliot Sandeep Singh Varunprasad Natu EMGT 6901 Advanced Project Management Fall 2015 Systems Engineering and Engineering Management Department The University of North Carolina, Charlotte * ACKNOWLEDGEMENT Completion of this project would not have been possible without the kind support and help of many individuals and organizations. Our team would like to extend my sincere thanks to all of them, especially the following groups and departments from Coca-Cola for their support and cooperation to make this project a success: Maintenance, Production, Materials, Marketing, Customer Relations, and Quality. Without their willingness to help in the planning and construction of the renovation of the Charlotte facility, success would not have been possible. ABSTRACT veloping, upgrading/converting the current practices and bottling facility into “glass” where everyone will be able to see through. Charlotte, NC home of the first Bottling Company for Coca-Cola, places #57 in the top places that drink most soda nationwide [7], home of the Hornets, Carolina Panthers, and Motor Speedway, with a population of close to 800,000 makes it the 17th largest city in the US based on population, and the perfect home for another attraction: A renovated transparent Coca-Cola Manufacturing facility....
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...Coca Cola Co. Name MGT 521 Date Professor’s Name Coca Cola Co. “On May 8, 1886, a pharmacist named Dr. John Pemberton carried a jug of Coca-Cola® syrup to Jacobs’ Pharmacy in downtown Atlanta, where it was mixed with carbonated water and sold for five cents a glass” (Coca Cola Co, 2012). Coca Cola is one of the all time biggest beverage company in the industry, that went from selling a few drinks a day from a pharmacy in Atlanta, Georgia to selling billions a day all over the world. According to the Fortune 500, Coca Cola Co ranks number 59 on the 2012 list with revenues of $46,542. millions and profits of $8,572. Millions (CNN Money, 2012). SWOT Analysis The SWOT Analysis is “ a planning tool used to analyzed an organization’s strengths, weaknesses, opportunities, and threats” (Nickels, W.G, McHugh, J. M. & McHugh, S.M., 2010). Coca Cola Company is the major distributor, maker, and seller in the world, but one of the company’s biggest threat is the competidor such as Pepsi Co. that tries to stay at the same leves as Coca Cola. Strengths Some of the strengths that Coca Cola have are the well known brand, popularity, consumer faithfulness, good advertising and promotion, strong financial position and profits, and International Trades. Coca Cola has been in the Market for over 100 years and is well known all over the world. The company’s ads are popular, specially during Christmas season and Super Bowl. Coca Cola’s branding is recognized worldwide...
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...The role of advertisement in the branding context Name Institution Course Professor Date Introduction Giving a particular brand hype in the competitive market of goods and services to capture new category of market customers and retaining the loyalty of existing customers is the challenge most businesses experience. Companies use advertising as a promotional strategy of a particular brand, through radio, newspaper ads, door-to door, television, internet promotions among many other means of facilitating ads basically to persuade a customer to purchase a product or service. An advertising campaign entailing a coordinated communication to relay a reasonably integrated and cohesive theme about a brand is the package of course of action towards promoting a company’s product and services (Hansen & Christensen, 2004). A company finds itself in a confined set-up to propagate an advertisement campaign of the complex and dynamic environments within which the company is supposed to convey its communication to different audiences. This research paper is steered on the basis of the analysing the context of advertisement how a company rescues a brand that is in its downward fall within the market performance. The challenge associated with this course of rescuing the brand to reinstate its grounds on the stiff competitive market is appropriateness in decision making in the marketing mix. The paper articulates further with precision the roles and advantages attributed...
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...Coca-Cola Marketing Analysis Morgan Hight April 8, 2013 Steven Richards MKT/498 Coca-Cola Marketing Analysis In 1886, an Atlanta pharmacist by the name of Dr. John S. Pemberton developed the first Coca-Cola Coke. The product was created by using flavored syrup and carbonated water at Pemberton’s local pharmacy. Frank M. Robinson, Dr. Pemberton’s business partner and bookkeeper, is credited for giving the product its name, Coca-Cola, as well as the trademark script on the product that is still used today. Prior to his death in 1888, Dr. Pemberton sold portions of his dynamic business, with majority of the business being sold to Atlanta businessman, Asa G. Candler. Under Candler’s leadership, Pemberton’s original goal was accomplished, distributing Coca-Cola through soda fountains. In 1984, Joseph Biedenhard installed a bottling machine in his soda fountain, making him the first to bottle a Coca-Cola. The first Coca-Cola sold for only five cents. For only $1, three business men from Chattanooga, Tennessee, Benjamin Thomas, Joseph Whitehead, and John Lupton, purchased bottling rights from Asa Candler, and later developed what would become the Coca-Cola worldwide bottling system ("Coca-Cola History", n.d.). Today, The Coca-Cola Company’s number one competitor is Pepsico Inc., the maker of Pepsi. Other competitors include, Dr. Pepper Snapple Group Inc. and Nestlé. Coca-Cola dominates the beverage world controlling 51% of the global carbonated soft drink business...
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...2012, London.UK. COCA-COLA: International Business Strategy for Globalization Michael Ba Banutu-Gomez William G. Rohrer College of Business, Rowan University, USA Key Words International Differentiation Strategy, Global Strategy, International Marketing Strategy, Culture in International Marketing Strategy, Coca-Cola Strategy, International Distribution Strategy, Choosing Distributors and Channels, The Challenge of Distribution, Hidden Costs And Gains In Distribution, International Collaborative Strategy, International Labor Relations and Management Strategy, and International Diversification Strategy. Abstract The purpose of this research was to analysis the efficiency of global strategies. This paper identified six key strategies necessary for firms to be successful when expanding globally. These strategies include differentiation, marketing, distribution, collaborative strategies, labor and management strategies, and diversification. Within this analysis, we chose to focus on the Coca-Cola Company because they have proven successful in their international operations and are one of the most recognized brands in the world. We performed an in-depth review of how effectively or ineffectively Coca-Cola has used each of the six strategies. The paper focused on Coca-Cola's operations in the United States, China, Belarus, Peru, and Morocco. The author used electronic journals from the various countries to determine how effective Coca-Cola was in these countries...
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...In this task, I am going to be describing and comparing how marketing techniques are used to market products in two organisations. The first organisation I will be talking about is Apple, and the second being Coca Cola. Marketing means that a business will identify the needs of the consumer and produce products that meet the requirements of them. In order for a business to perform and succeed, it needs to make sure that their customers are at the heart of operations. Should businesses do this, it would mean that they are market-orientated. As well as this, there are other forms of orientation for business. These include; * The production concept * The sales concept When a business uses a marketing concept, and putting customers at the heart of decisions. By doing this, a business operates more efficiently by prioritising investments on product development for the customers. Objectives In order for a business to grow and succeed, it is essential that it has its objectives outlined. The first aim a business will have when it starts out, is to survive. Once this goal has been achieved, it means that they can now focus on growth objectives, which means that they can focus on increasing market share and increasing profits. When businesses set objectives, they follow SMART guidelines. SMART stands for; * Specific – The objective must be clear and concise * Measureable – Objectives must be able to assess properly * Achievable – The objective needs to be reasonable...
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...your choice. Question 2 Critically evaluate how this organisation is responding to its changing environment by adapting (or not adapting) one element of its marketing activities from the following: · products · services · branding · marketing channels · pricing · marketing communications. Introduction Founded by the pharmacist and US-American John Stith Pemberton (1831-1888) in 1886, the Coca Cola Company is the world's leading manufacturer in the soft drink industry. Once started with just one product, Coca Cola, meanwhile the company conceived more than 500 brands. Not only the range of products changed but also the quanitity of countires the Coca Cola Company is operating in. One of the major goals of the organisation is quite self-explanatory and transparent. They want to manufacture products with a tremendous quality which encourage the company to remove from the top competitors and satisfy the customers appropriatley. The destination of the company in the soft drink industry as the world's leading producer is among others based on the effective evaluation of its internal and external environment. In the following essay i am going to thematize diverse aspects. (Source: Homepage of the Coca Cola Company) Political: In consideration of the fact that 71 % of the net income arises from the sale in interantional markets, adverse political determining factors in global markets can damage the company's businesses. Social: The tendencies...
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...renamed Pepsi-Cola, a title that was trademarked in 1903. Although the brand's name hasn't changed since, its logo has undergone a number of tweaks and major revamps. The first visible changes were made in 1940 and 1950, when red and blue colors replaced the original red logo along with a slight alteration to the shape. Another change to the logo was made in 1962 when the word “Cola” was dropped from the logo, making it just “Pepsi”. The reason for dropping the word “Cola” was to separate themselves from Coca Cola. The logo again embraced some minor changes in 1998, with Pepsi’s success reflected by a sphere which still is part of the world’s most popular logo today. The Pepsi logo was revamped by New York-based Arnell Group for $1 million, much to the criticism of both the press and the consumers. The new design featured a “smile”, with a less formal rounded lowercase typeface. Many people believe the one million dollar logo that the Arnell Group came up with was the same logo as an old diet Pepsi logo that was only used for a short period of time as you can see in this picture of the tee shirt below. Compared to the new logo, it has very similar lettering. Pepsi has changed their logo with the different generations, whereas Coca-Cola has stood strong battling the test of time. Many people believe Pepsi has failed in the marketing war with Coca-Cola solely on the fact that their logo although remembered is never the iconic logo that Coca-Cola has...
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...Buying Behavior in Purchasing Coca-Cola or Big Cola | Research methodology | TABLE OF CONTENTS CHAPTER 1 BACKGROUND 2 1.1. BACKGROUND 2 CHAPTER 2 LITERATURE REVIEW 4 2.1. LITERATURE REVIEW 4 2.1.1. Brand 4 2.1.3. Product 6 2.1.4. Price 7 2.1.5. Place 8 2.1.6. Promotion 9 2.1.7. Consumer Buying Behavior 9 CHAPTER 3 RESEARCH METHODOLOGY 11 3.1. RESEARCH METHODOLOGY 11 3.1.1. Population 11 3.1.2. Sampling Procedure 11 3.1.3. Non Probability Sampling 11 3.1.4. Research Design 12 3.1.5. Exploratory Research Design 12 3.2. Questionare 12 REFERENCES 14 CHAPTER 1 BACKGROUND 1.1. BACKGROUND A set of ideas that made sense a century ago shaped the modern perspective on shopping. Some of these old-fashioned ideas are people shop for dollar value, which shopping decisions make practical sense or that shopping is mostly about acquiring needed goods and services.. Modern shoppers buy things to reward themselves, to satisfy psychological needs or to make themselves feel good. Modern shoppers buy things because they are expensive. They buy things to make a statement, to show off their personality or to boost their self-esteem. It is no longer sufficed to see a shopper as a rational creature making decisions. It is no longer enough to think that the shopper acts in a way that makes sense from an economic of logical point of view (Pooler, 2003). For many years now, the cola soft drink market is led by the Coca-Cola Company and PepsiCo Inc. According...
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