Interational Marketing

8/3/2019 Interational Marketing

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International Marketing

Coca-Cola

Rohit Dalmia-10Jatin Aya-01Mohit Chablani-09

Shashikant Bohra-07Pradeep Bisht-06Ginjan Maker-


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Rohit Dalmia-10


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About Coca-ColaCoca-Cola is the most popular and biggest-selling soft drink in history, as well as one of thebest known products in the world.

It was created in Atlanta, Georgia, by Dr. John S.

Penberton. Coca-Cola was first offered as afountain beverage by mixing Coca-Cola syrupwith carbonated water.

Even though Coca-Cola may have started in the

United States, its popularity is universal. Today,coke is found in every part of the world.

1.6 billion servings per day.


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About Coca-Cola Being the biggest company in the soft drink

industry, Coca Cola enjoys the largest marketshare.

Coca Cola controls about 59% of the world

market. Has operations in more than 200 countries.

Have diverse workforce of approximately55,000 Company employees.

It offers a portfolio of world class qualitysparkling and still beverages, starting withCoca-Cola and extending through over 4


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More than 400 brands are nearly 2,400 beverage products.Four of the world's top-five soft-drink brands are ours: Coca-Cola, Diet Coke,Sprite Fanta.Thums Up Limca, which are formulated to appeal to local cultures andlifestyles.

The Company strives continuously to expand beverageofferings to meet consumers' evolving needs and tastes.


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On Facebook, Cokehas 5,392,938friends.

Page showspromotions that aregoing on and fanscan post pictures oftheir Coke

artwork/designs and

Coca-Cola, DietCoke, Minute Maid,Sprite, Fanta, Hi-C,and vitaminwater all

have their ownindividual twitteraccounts.

This way everyone

can keep up to date


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Interacting via

Facebook

Current Promotion:

Coca-Cola added an

application on theirFacebook page toocean-ize a photo.This is just a fun wayto alter yourFacebook pictures.

Every time someoneuses this applicationCoke is going tomake a donation tothe OceanConservancy.


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Coca Cola global system

Global business is organized into six geographic

Operating Groups

1. Africa Group2. Pacific Group

3. European Union Group

4. Latin America Group5. Eurasia Group

6. North America Group


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Major Brands of Coca-

ColaCokeSprite

Fanta

Coke diet

Coke classic


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Mohit Chablani-09


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Coca Cola Pakistan The Coca-Cola Company began operating in

Pakistan in 1953.

Brands Coca-Cola, Fanta, Sprite

The coca cola system in Pakistan operatesthrough eight bottlers, four of which aremajority-owned by Coca-Cola BeveragesPakistan Limited (CCBPL).


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Contd

Plants are in Karachi, Hyderabad, Sialkot,Gujranwala, Faisalabad,Rahimyar Khan, Multan

and Lahore.Major competitor is pepsi , they compete brandswith each other. Like they compete Coke with Pepsi

and Sprite with 7up .So the major competitor ofCoke is Pepsi.


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PEST POLITICAL FACTOR The political environment of Pakistan affectsthe coca-cola beverages and Coca-ColaExport Corporation, to some extent.

The political instability in Pakistan causestrade and import policies to change rapidlyas the government changes which causesmany problems in the import of raw

materials. Trade barriers such as tariffs and duties on

the import of syrup (concentrate) from USAincreases the operational cost. A relaxation

has been given by the current government.


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Contd

So the situation for the beverage industry is getting

better day by day for the last couple of years.

Political variables which effects Cokeis elections & military take over Because in the days of

elections and marshal laws condition the countriesproduction in any field is declined. So it affects slightlythe revolution of Coke.


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ECONOMIC FACTORS

The economic conditions of the country is notthat strong & hence has not any markedincrease in the consumer buying power

(inflation).

In recession, price of bottles are droppeddown to increase the sale and to achieve thetarget of the company

So overall economy of Pakistan directlyaffects the cost and price of the Coca-ColaCompany.


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SOCIAL FACTORS

One of the greatest social barriers to coca-cola Lahore

is the restriction of coke in the campuspremises. Jamiats strike to coke affects thesales and overall image of coke

On the contrary in the all parts of the country

coke is viewed as the partner in the majorevents like Basant and promoter of musicthereby making a place in the hearts of younggeneration of the society.


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TECHNOLOGICAL

FACTORS

The making of Coke, Fanta, Diet coke andsprite involves "mixing and blending, fillingand capping

For this process, concentrate or syrup isimported from USA and is then mixed in thelocal plants

Machinery for the local plants was alsoimported but now the coca-cola companyfollows Local content law as most of the spareparts are locally made.

The system is automated and equipment is


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Shashikant Bohra-07


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4 P's of Coca Cola in Pakistan

Product


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PROMOTIONCompany do sponsorships with different

college and schools cafes and sponsors theirsports events and other extra curriculumactivities for getting market share.

UTC Scheme

UTC mean under the crown scheme, coca colaoften do this type of scheme and they offer

Very handy prizes in it. Like once they offerbicycles, caps, tv sets, cash prizes etc. This

scheme is very much popular among children.


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Sponsorship


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The crescent moon and star yes, the same symbol featured on the flags of so manyMuslim countries is an internationally-recognized symbol of the Islamic faith in much thesame way as the cross represents Christianity and the star of David Judaism. When Ilearned the symbol of the Islamic faith will appear on Coca-Cola packaging during

Ramadan 2008, I found myself wondering whether or not the Atlanta-based soft drinkmaker will soon include the Christian cross and Jewish star of David in future holidaypackaging designs targeting people of those faiths.


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PRICE

Some times Coca Cola Company change theirproduct prices according to the season.

Summer is supposed to be a good season forbeverage industry in Pakistan.

So in winter they reduce their prices tomaintain their sales and profit. But normally

they reduce the prices of their pet bottles or 1litter glass bottle.


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Coca-Cola signed a sponsorship agreementwith eight of Pakistans National cricketplayers.

Coca-Cola Ramzan Campaign

A very special occasion for the people ofPakistan Ramzan saw another very special

Coca- Colas promotion, marketing the popular1.5 liter PET bottle & the 1 liter bottle with asuper price-off promotion. The emphasis onenjoying Coca-Cola at Iftar with friends &

family.


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Place (distribution)

Coca Cola Company makes two types ofselling

Direct sellingIndirect selling

In direct selling they supply their products inshops by using their own transports. In thistype of selling company have more profitmargin.

Indirect Selling

They have their whole sellers and agencies to


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Gunjan Maker


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Coca Cola China

The company built its first bottling plant in China in the decadefollowing World War I and was the first US company to distributeits products in China after Deng Xiaoping opened the country toforeign investors in 1979.

Today, Coca-Cola has an ownership stake in 24 bottling joint-ventures--in most cases indirectly through two Hong Kong-basedcompanies that it partly owns: Swire Beverages and Kerry Group.

Coca-Cola also operates a wholly foreign-owned enterprise thatproduces beverage concentrate in Shanghai and is the direct joint-venture partner in a similar facility in Tianjin.


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PESTLE Analysis China

Political Factor

PoliticalBureaucracy, corruption and a lack of transparency are keyobstacles to conduct a business in China.

Tax incentives are offered to foreign investors as part of the "open door"development strategy.

Lack of coordination between central and local authorities.

Lack of federal structure

Investment climate to be insecure


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Economical Factor

EconomicFavorable government policies (Free-market economy)

Developing the capital markets Undertaking significant bank reforms


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Social Factor

Quality of lifestyle is increasing as theincreasing of purchasing power and

education levelDecline in poverty,per capita income was$6,500 which is one of the highest in Asia in2009One child policy to reduce population rateand decrease the pressure on the resourcesof the country


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Technological Factor

Quality of lifestyle is increasing as theincreasing of purchasing power andeducation level.

Decline in poverty,per capita income was$6,500 which is one of the highest in Asia in

2010.

One child policy to reduce population rate

and decrease the pressure on the resourcesof the countr


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Legal Factor

The acquisition of Huiyuan by Coca-Colafailed

Facilitation of (Foreign Direct investment)FDI: Clear and fast procedures andprocesses for foreign investments

Reporting and accounting standards;

Only a very small group of certifiedaccounting professionals

Lack of modern financial reporting


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Enviormental factor

State Environmental ProtectionAdministration

Inspection of industrial companies on aregular basis

Coca Cola will be inspected and supervisedregularly to make sure that it meets the

environmental standards in its industrialoperations


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Jatin Aya-01


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4 Ps of Coca Coca Cola in China

Product

Coca-Cola has been able to diversify its products to include carbonated drinks such as Coke Classics and other soda products such as Sprite, Fanta, BarqsRoot Beer and Dr. Pepper as well as bottled water, RTD tea drinks and juice

drinks u nder the brand names Qoo, Sensation, Tianyudi and SMART. Thediversification to other soft drink sectors was influenced by the growing demandfor healthy bevera ges in its targeted market.

The diversity of the quantity of demand and the cost of packaging ha s alsoaffected the products of the company. The companies packaged their produc ts in

glass bottles of different sizes and shapes. However, after the developmen t ofplastic containers the packaging shifted to plastic containers especially f or largervolumes of soda making it lighter when carried. At present, the demand for betterconvenience resulted to the packaging of sodas in cans. Coca-Cola pr oducts aresold in glass bottles, plastic containers and cans.


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Price

The pricing strategy of Coca-Cola is based on the pricing dynamics relative to i tscompetitors as well as the value of its products. In China, as is true in the internationalmarket, the fiercest competitor of Coca-Cola is Pepsi so that pri cing is in a way influencedby the interplay of these competitors in a given mar ket. However, Coca-Cola holds theadvantage in pricing because it had a head sta rt of several years giving the company a

stable market share relative to Pepsi, which suffered several bankruptcies. The productprice of Coca-Cola became the i ndustry benchmark. The strategy of Pepsi then was to sellits products at half t he price of Coca-Cola. The company was able to gain a share in themarket. ( 200 3). This pricing dynamics between Coca-Cola and Pepsi continue today. Insuperm arkets, the price of coke is still higher by 15 to 20 cents when compared to Pep si.

The higher price given by Coca-Cola to its products is supported by the value of the brand

equity of its different soft drink products. Coca-cola was able to se ll at a higher price thanits competitors because of its stable share market sha re due to its marketingcommunications message linked to brand equity of product stability. This makes Coca-Colaa true leader in the industry due to its abilit y to determine the industry pricing benchmark.Despite its slightly higher prici ng, it is still able to maintain a market share by establishing ahigh value for its products through associations with consistency and dependability.


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Promotion

Coca-Cola applies consistency and dependability even in its promotional activities. The company actually makes use of pattern advertising ( 2003). Thecompany d evelops advertisements containing its determined marketingcommunications messag e. The manner of advertising adheres to variousspecific audiences. However, des pite the consistency of its advertisingframework for its different markets arou nd the world, Coca-Cola also implementslocal adjustments. The adjustments cover the 1) translation of words and lyrics inthe local dialect of particular marke ts and delivered in a manner appropriate andacceptable to the local culture, 2) basic adjustments to the advertising formatsuch as the use of locally signific ant words, phrases, messages and thearrangement of these elements to deliver a cohesive promotional campaign

aligned with the basic marketing communications me ssage of the company; 3)audio-visual adjustments made to the advertising format such as colour scheme,character selection, video stream and other audio-visual aspects of thecampaign.

.


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Promotion

Apart from pattern advertising, Coca-Cola also adheres to product differentiatio n( 2003) by withdrawing from the explicit cola war with Pepsi. The cola war persisted until the late 1900s with taste-tests and celebrity endorsements of competing personalities. In succeeding years Coca-Cola reverted to its marketing strategy of appealing to the stability and consistency found in the value accorded t ofamily and friendship differentiating the company, product and brand from its

competitors


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Place

All the soda brands are marketed in the commonchannels of distribution except i n the exclusive

retail venues that companies bid to have. Insupermarkets, these brands are sold side by side inthe display shelf not giving a single brand any edgerelative to the buyer. The rivalry over the channels

of distribution was e levated to obtaining exclusiveselling contracts in restaurants, places for vend ingmachines, recreation areas, and popular events.


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Place

In China, the focus of Coca-Cola is in direct-to-retail distribution through theestablishment of a minimum of one sales centre in cities with a tot al populationof 1 million. The sales centres that also serve as warehouses are completelyowned and operated by Kerry, Swire and other bottling firms with whic h thecompany has entered into joint venture agreements. For logistics support,delivery trucks numbering around twenty in large cities are on standby in the sales centres to cater to retail orders. Apart from its own distribution centres, Coca-Cola also partners with large wholesalers with valuable experience in the a rea of

retailing and independent wholesalers able to reach out to local communit ies.Apart from this, Coca-Cola also builds strong partnerships with government unitsby sponsoring welfare programs.


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Pradeep Bisht-06


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Latest news from China

Coca Cola Co. said Thursday it plans to invest $4 billion inChina as food brands scramble to expand in its fast-growing consumer market.

The investments will take place over three years beginningin 2012 and raise Coca Cola's total investment in Chinabetween 2009 and 2014 to $7 billion, the company said.

Global food brands are investing heavily in China, looking to arelatively healthy economy that expanded by 9.5 percent in thequarter ending in June to drive sales amid global uncertainty.


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Assumtion of Coca Cola in China

Corruption and bureaucracy in China may affect Coca Cola in the near

future. Increase in purchasing power of the people will lead to increasedsales of Coca Cola. Inflation in prices may not affect sales of Coca Colaas we are assuming purchasing power of people will also increase Anti-monopoly law affecting ban on further acquisitions. New entrants, bothlocal and international, will not be able to compete with Coca Cola'sgrowing markets. Shift of industries to the rural areas will increase

markets and thus market share for Coca Cola.


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ConclusionCoca-Cola is one of the most well recognized

brands in the entire world.

They have achieved this by proper usage ofsocial media (Facebook, Twitter, Youtube, ect.)

Coca-Cola needs to keep using theseresources to keep up a positive image forCoke and get feedback from their customers

while bringing in new customers in the yearsto come.

Interational Marketing

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