Coca-Cola pursues an assumed global strategy, allowing for differences in packaging, distribution, and media that are important to a particular country or geographical area. extremely costly for competitors to take over. Our franchise business model has enabled us to develop a strong global footprint with a local touch in markets around the world. Began in 1866, constant development in the brand packaging and positioning leads in the great success of the Coca Cola Company. The positioning and brand management strategy of Coca-Cola has created a bright image in the mind of the customer as " Real One Product". Its’ international success, is achieved by the company’s strategy and tactics, which complement each, other and work in harmony providing the optimum return bounded by, efficiency. If Coca-Cola Hbc Ag decides to choose the price penetration strategy, it will have to set the lower price than competitors. The secret to its success is still unknown in fo r mula, yet starting in its first year of operation in 1886 in Atlanta, Georgia, creator John Pemberton sold an average just of nine servings of Coca-Cola every day. them that serve to fragment markets such as trade barriers and tariffs, communication links, raw material differentials, different market demand and, differing competitive circumstances. (1985), “Designing Global Strategies: Profiting from Operational. This section offers a detailed industry analysis as well as implications of the external factors for the company. be eased out by the low cost producing global corporation. Their intention, although not quite realized in the … Positioning Coca Cola position its products as refreshing and thirst quenching. Preliminary This paper argues that meanings Competitors Analysis in the Marketing Strategy of The Coca-Cola Company. to work well and without wasting time or resources). click here. Both strategy and tactics should be. 70% of the company volume and 80% of, the company profit come from outside the United States. Independent business people, who are native to the nations in which they are, located, (with some exceptions) locally own bottling and distribution, preferences and location. This became refreshment not just in a physical sense but also in spirit, and not just to refresh people but also communities. The factors that favour globalisation are issues such as cost economies, transport costs and networks, learning and experience, technological and. Note: Industry growth for nonalcoholic ready-to-drink excludes white milk and bulk water. The terms “glocal strategy” and the “glocalization” of business activities are introduced to enhance the accuracy of the present usage by scholars and by practitioners of the term global strategy and the phenomenon often described as the globalization of business activities. orientation) and not on the customer (marketing orientation). Figure 9. Based on a Jamaican financial services case study, reflects the key debates found across the hierarchical organisation structure. The Coca-Cola Company is recognized all over the world. An example for such successful implementation of marketing strategy is Coca Cola. Coca-Cola went from a cocaine-infused elixir in 1886 to a ubiquitous sugary drink by 1929. (1957), “Strategies for Diversification”. This has proven to, is greatly influenced by weak equity markets and the number of regulatory. The detailed competitor analysis is highly important for the development of The Coca-Cola Company Marketing Strategy. Selena gomez endorsement of this coca-cola as an example, the design of the bottle is very exquisite. the world market as a whole rather than at markets on a country-by-country, Levitt (1983) argues that the optimum global strategy is to produce a, single standardised product and sell it through a standardised marketing, programme. When evaluating M&A opportunities we must ensure we strike the right balance between strategic rationale, financial returns, and risk profile. Over the last decade EuroMed have developed a cross-disciplinary academic community which comprises more than 30,000 students and scholars from all over the world. and plant will also be maximised over time. Our vision is to craft the brands and choice of drinks that people love, to refresh them in body and spirit. One component that makes the beverages industry especially attractive is that it is diversified across multiple channels with strong pricing power both in the developing and developed world. Life Assurer) Retail Distribution Division. COCA-COLA STRATEGY AND POSITIONING 3 punch, raspberry lime, and orange vanilla (“World of Coca-Cola”, 2015). Coca Cola Place & Distribution Strategy: Following is the distribution strategy of Coca Cola: Coca Cola being in the market for more than 130 years and operating in more than 200 countries worldwide, it has developed excessive distribution network. international positioning of Coca-Cola by utilising a number of models. This can be achieved by concentrating efforts on, maintaining its existing strength by investing to grow at maximum digestible, Coca-Cola should maintain its marketing orientation not only in its, strategic approach but also in its tactical day-to-day operations. 5. It is therefore unlikely that they would seek to do, this. results show that standardization and globalization may be at opposite ends of an evolutionary It builds up a … Coca-Cola claims 47% of the, global market, compared with 21% for PepsiCo and 8% for Cadbury, Schweppes. The design or make up of the, product can create cost advantages, for example, the use of alternative, materials. key On that basis will Coca Cola Marketing Strategy Vintage Coca Cola ad. Its essence, is that it covers a broad spread of the world’s countries and that it strives to. ASSOCIATING THE PRODUCT WITH A SPECIFIC GROUP OR EVENT: Coca cola uses Strategy of Attitude Change by associating Coca cola with different groups and events. Coca-Cola does not have a specific subdivision, but through the development of new products, and constantly adjust the new marketing strategy (Marketing91, n. d). All of these issues are discussed alongside the impact of an ethnocentric approach. As we continue our journey as a total beverage company, disciplined portfolio growth plays an integral role in that journey. by targeting new geographical areas and target segments. The paper discusses the basic should take in order for its strategy to be successful? The products are said to bring joy, as apparent from Coca Cola’s latest tagline – Little drops of joy. represents the mean position between adaptation and standardisation. Like many other companies, Coca-Cola bases its marketing strategy on 4Ps: product, promotion, price, and place. thinking and putting their plan to action. It is also achieved through. Pepsi’s Repositioning of the Coca-Cola Brand Pepsi “the Choice of a New Generation” and the Pepsi Taste-test Challenge. This by default has implications for the, associated marketing mix and hence the overall strategic positioning and, Information Time Energy, The question of whether to standardise or modify overshadows all the tactical, decisions that are required from a strategist/international marketer. The Boston Consulting Group Matrix (see figure 9), is one of these models. The detailed competitor analysis is highly important for the development of The Coca-Cola Company Marketing Strategy. They claim that this outlook focuses on the product (product. This is illustrated in figure 1 that follows. It is found that the resource-based view of the firm complements economic analysis, and that both are essential to a complete understanding of global strategy. Strategic Focus Matrix Source: McDonald and Leppard (1993) As previously mentioned, The Coca-Cola Company has an impressive geographic presence. It describes an exploratory analysis which is aimed at gaining insight into the success factor to form a strategic positioning within global supply chains. Coca cola offers sixteen different types of drinks that vary from soft drinks, water, sports drinks and juices. This is illustrated below in figure 2 in the Vrontis’ Framework of, We have developed Vrontis’ AdaptStand Framework further, adding the, following calculations, to illustrate a subjective view of where Coca-Cola is, positioned on the continua. Published in conjunction with the EuroMed Academy of Business, books will be published annually and based on the best papers from their conferences. As diverse as the beverages industry is, it has been outpacing the growth in other consumer product categories over the last three years and we anticipate this growth trajectory will continue into the future. Thirdly, due to the influence and dominance the leader has in, the market it is able to use its position to negotiate lower pricing with, suppliers and to command higher market price for its products. discusses the findings and suggests future research possibilities. The international marketers should have to search for the right balance, between standardisation and adaptation and therefore determine the extent, of globalisation in a business and adapt the organisation’s response, accordingly. This portfolio is well managed and enables the, best fit between the company’s strengths and weaknesses to the, In considering the strong competitive position of the firm in a highly, attractive market, it is suggested that Coca-Cola should Protect its Position, (Mckinsey Matrix). One of the basic guides for directing the path of this enterprise is its strategic marketing planning based on the analysis of the 5Cs or company, customers, collaborators, context and competition. 2. It is also recommended that they can capitalise on ‘first mover’ advantage, and therefore ‘drive’ market innovation. The production and operational processes a firm employs can also, reduce costs. Target audience, primarily teenagers, (people under 20 = 50% of, population). No matter how it. Coca-Cola will have a challenging job positioning Coca-Cola Zero more effectively to 18-24s, who are the hardest consumer group to target through conventional marketing campaigns. Globalization by itself does not lead to less inflation, just greater sensitivity to foreign economic conditions. and Duffy, M. F. (1998), “Standardization vs. consciously standardise its marketing strategy between those countries. This is illustrated in table 1 below. Levitt, T. (1983), “The Globalization of Markets”. It, represents a very real tension between the profitability promised through cost, effectiveness, which is greater when activities are controlled centrally, and, the market effectiveness that is promised if the offering is differentiated to. Hence, the global strategy is localized through a specific geographic marketing plan. effective/efficient distribution networks and manufacturing systems. Once, a dominant position is gained it is difficult for the competition to dislodge the, incumbent firm provided the position merits continuation and that it is. strategies for adding new products or businesses to the portfolio. The Coca-Cola’s positioning in the Cost Leadership quadrant is achieved, not only through economies of scale in research, development and, promotion, but also through learning, knowledge and experience in, production and operational processes. Its headquarters are in Atlanta, Georgia. The fourth, reason is that the market leader has in place excellent management teams, and it has successful procedures and processes developed throughout the, Many have written on topics related to global strategy, but only a limited, Mesadag (2000) argues that global marketing is a particular form of, international marketing which – in its truest form does not exist. Firstly, scale economies coupled with an increase in the learning, experience resulting in the most effective and efficient use of production, techniques and technology. Coca-Cola was faced with a decision: to improve and reposition the product or withdraw it and introduce a new brand and product. Again, the solution is to develop new products in new markets. In terms of beverages' quality, the company is considered one of the three top largest beverage companies in the world and this implies that the company's beverages' quality appeals to many consumers around the world (Delventhal, 2018). stated that being global is the main strength of the Coca-Cola Company. Presents results on the issue of developing and implementing a corporate identity strategy when going international, and the potential implications of having an ethnocentric approach. The discussion focuses on, and is exemplified through, the globalization of business activities and the term “global strategy”. Examines how Coca-Cola has strategically positioned it self within the world's soft drinks market. Positional advantage, can be gained by forward planning, greater skill and resources, or luck! theory around these concepts. Just think about that when evaluating the Coca-Cola’s ad campaigns. Besides, this segment covered those companies' Case Study Jewel and Kalam; AJEBA, 19(2): 13-23, 2020; Article no.AJEBA.61566 14 main steps to capture local business and create and enhance their brand value by securing profit margins by maintaining productivity. (JEL E3). When your annual global marketing budget approaches $4 billion, your marketing strategy should be flawless. If we consider Coca-Cola’s global strategy with, reference to Ansoff’s (1957), illustrated in figure 8, it highlights a clear. It contributes to the highest sales of soft drinks globally. Access scientific knowledge from anywhere. The company ultimately decided to reposition the product due to already high brand awareness. Coca-Cola will have a challenging job positioning Coca-Cola Zero more effectively to 18-24s, who are the hardest consumer group to target through conventional marketing campaigns. The Coca-Cola Company operates its business in multiple geographic areas such as Eurasia & Africa, Europe, Latin America, North America and Pacific. country by virtue of its position in another. Has the Rise in Globalization Reduced U.S. Inflation in the 1990s? It is one of the most, visible companies in the world. However, the new campaigns launched by Coca Cola are aimed at stressing the universality of the brand. Markides, C. (1999), “Six Principles of Breakthrough Strategy”, Mesadag, M. (2000), “Culture-Sensitive Adaptation or Global Standardization, Medina, J.F. This positioning will determine the, competitive advantage a firm can have namely, low cost or differentiation. The mathematics underpinning this model is quite rudimentary. Going from a predominantly sparkling soft drink company to offering a diverse array of products across categories. Given that they operate in over 200 countries, they, are faced with a clear choice of whether to standardise their product offerings, globally and reap the potential benefits of economies of scale, adapt their, offerings to a particular market (which may facilitate increased market, specific penetration), or adopt an integrated approach utilising both, approaches simultaneously (Vrontis’ AdaptStand approach). This gave Pepsi a huge leap in market share. Today, we have approximately 225 bottling partners across more than 200 countries and territories and sell our brands in more than 20 channels within approximately 30 million customer outlets globally. The Coca‑Cola Company’s purpose remains clear: To refresh the world and make a difference. Branding strategy is one of the best strategic options that can be applied by Coca-Cola Company to help in getting more customers (Sinha, & Sheth, 2017). adaptation process – due to the increase of the level of work environment internationalization, is (1987), “The Myth of Globalisation”, Doyle, P. (1983), “Marketing Management”, unpublished paper, Bradford, University Management – Centre, In: Brooksbank, R. (1994), “The. 8. Coca-Cola brand strategy / positioning case study If you want to get access to Coca-Cola brand strategy analysis including brand essence, brand values, brand character, brand … Identify the key role export promotion plays in successful economic. Although the company may strive for a, completely standardised strategic approach, drawing on the associated, economies of scale, in reality they are following the Integrated AdaptStand, The company’s effectiveness and profitability is obviously well supported, by their strong competitive position and market share in their primary product, market – Coca-Cola. Understand how the world is “shrinking” and how intrastate regional markets now face global competition Competitors Analysis in the Marketing Strategy of The Coca-Cola Company. All rights reserved. The developing and emerging world representing 80 percent of the world’s population; over 6 billion people. Coca-Cola pursues an assumed global strategy, allowing for differences in packaging, distribution, and media that are important to a particular country or geographical area. local CSD brands. Aaker (1998) also points to the, time as a way of cost reduction. ). Other, activities include being an external examiner, moderator for Nottingham Trent, University (in its cooperation with a number of Greek Business Schools) and, a visiting lecturer at a number of Universities. Coca-cola follows the marketing mix strategy. The Strategic Positioning of Coca-Cola in their Global Marketing Operation environment internationalization and to match them with available adaptation tools. *Tea & coffee includes ready-to-drink beverages onlyNOTE: The leadership position donut charts represent the percentage of markets where we have a leadership position in the markets in which we play for that category cluster. Seeks to identify the dimensions which are relevant in the shaping of strategies for international marketing; it thereby addresses business managers. The study explains a representative case of Demetris, and Iain, ... As a result, banking is highly concentrated in most national markets ( Bergstresser, 2008 ). heritage. Prahalad, 1985) that a multi-market presence confers. As these foreign markets developed further, the Coca-Cola Company was, faced with the problem of how to further penetrate them. The corporate strategy guides the, performance of a company’s overall business activities and the allocations of. It is apparent from the following figure (figure 5) that businesses finding, themselves to the left of this matrix are destined to die, strategy being the key, Considering Coca-Cola’s international performance, we can argue that the, company is thriving as it is effective-doing things right (having the desired, effect, producing the intended result) and efficient-doing the right thing (able. Positional advantage is how the arrangement of these resources, and skills are used to out manoeuvre the competition. argued (1999) that in order to think globally, a company must act locally. Its fundamental concept is that although products/, Strategic Business Units (SBU’s) may be managed as individual entities on, an operational basis, strategically they should be viewed as a portfolio. Each book in the series will examine a current and pressing theme and consist of a range of perspectives such as HRM, entrepreneurship, strategy and marketing in order to enhance and move our thinking forward on a particular topic. Ends by pointing out that occasionally there is scope for a “cross-cultural leap” for products with unpromising antecedents within the hypothesis of the duration of usage symptom. was developed, it is the strategy that underpins the success of the company. concentrates and syrups. Coca-Cola thus needed to adopt a similar but differentiated strategy in, Product quality, consumer trust and perceived value are traits Chinese, consumers look for in leading brands. The positioning strategy used by Coca-Cola has allowed them to paint a suitable image of themselves in the mind of their customers as the only “Real One”. Cummings, S. (1993), “The First Strategists”, In: de Wit and Meyer (2001). Vrontis’ Framework of AdaptStand Integration, •Consumer mobility and consistency with customers. The acid test is whether a business is better off in one. Is Coca-Cola guilty of imposing these ideals and adopting an ethnocentric. The study covered and explained STP's concept and why STP is essential in the international business area in the first segment. If Coca-Cola were to follow the direction advocated, by the BCG matrix and liquidate those poorly performing countries in the, ‘Dog’ area this would perhaps have implications for the Coca-Cola, Company’s global presence. This goes in line with the definition of marketing (both at a, national and international level), which is about identifying, anticipating and. Coca Cola utilizes “Multisegment” focusing on procedure which implies that the organization has more than single, all around characterized, market section. (Coca-Cola Company, Annual Report, 1998) It is a business with a popular, affordable product, with a strong foothold in many countries, The global soft drinks market is dominated by 3 household names: Coca-, Cola, PepsiCo and Cadbury-Schweppes. Our company started in 1886 and grew with a purpose to refresh the world. The company has also used their promotion and packaging. given to “standardization” and “globalization” might have created some confusion and precipitated assumptions underlying the marketing function as a necessary point of departure to build a sounder The Coca-Cola Company has adopted both a Differentiation and a Cost, Lower Cost Differentiation, The use of a differentiation strategy is where the firm attempts to be diverse, unique value to its customers. 1996) or the capabilities based approach (Stalk, et al. Coke is often associated with happiness and it’s a fact that in Mandarin, Coca-Cola means “Delicious Happiness”. Dana, L.P. and Oldfield, B.M. These products serve as the principal raw materials for the end-user beverage products of the company. McDonald and Leppard (1993) have developed a strategic focus matrix, The elements relating to the marketing mix have been emboldened to show, clearly, where they are positioned in relation to time. The paper Coca Cola is one of the most leading company in soft drink beverage industry. Coca-Cola is adjusting its approach (both at a, strategic and a tactical level) so that it can tap into these differences and, provide the appropriate marketing activities and beverages to connect with, Coca-Cola’s effectiveness and profitability is obviously well supported by, their strong competitive position and market share in their primary product, Buzzell and Gale (1987) state that there is a definite correlation between, the size of a firm’s market share and the level of profitability i.e.