Coca-Cola Company - Adaptation versus Standardization - Essay Example

Coca-Cola Company Introduction The Coca-Cola Company is considered the globe’s largest drinks selling business, occupying over half of the international marketplace in carbonated soft beverages in addition to a considerable portion of the noncarbonated section. It possesses four of the globe's five best-purchased soft drinks. Its main brand is certainly Coca-Cola itself, which is the globe's best-recognized and most precious brand. Nevertheless, the business sells roughly 500 additional beverage products varying from deviations like Diet Coke and brother products, for example, Fanta and Sprite to an enormous choice of carbonated and noncarbonated fluid-centered beverages. Progressively more Coca-Cola has established that its absolute size endeavors next to it. Competition powers now observe the business's every shift, efficiently ruling out the attainment of anything except marginal goods; and market infiltration and economic recessions in both up-and-coming and full-grown markets caused sales expansions to cut out for more than ten years. Ever since 2006, although, the company's performance has commenced to fizz once more, principally through belligerent development of non-cola goods, comprising bottled water (Anpad, 2011, 6). In the current globalized market, businesses have perceived the internationalization of their actions as a means to be competitive. Judgment-making relating to the global marketing mix has turned into being severe; particularly due to control this understanding influences performance. Therefore, many authors have depicted the need for investigation that connects standardization and adjustment to performance (Calantone et al, 2004, 45). In spite of such support, no accord on the association flanked by the two previous and the other has yet been attained. The writing regarding which is the unsurpassed verdict is still open to doubt, believing the consequence (optimistic or pessimistic) of standardization and adjustment on performance. A number of authors consider that an affiliation amid standardization and performance never exists. Others, in distinction, have established a constructive link amid the adaptation of the merchandise and its performance. For this reason, the conformity concerning the outcomes of these policies on performance symbolizes a breach in the writing (Zou & Cavusgil, 2002, 34) that this study aspires to accomplish. Even though, companies’ policies might sway performance, the outcomes hitherto are not decisive, particularly those that cope with the connections amid the promotion mix and performance (Shoham, 2002). In addition, conflicting and confusing outcomes have come from the writing, whirling marketers’ judgment making into a tricky strategy. This inconsistency bellows for the progress of more brief and precise theories, techniques, and tactical frameworks, given that marketers require understanding under which conditions each policy emerges to be additionally suitable. Other researchers have formerly attempted to comprehend the relationships amid the marketing mix constituents and performance, other than they had diverse objectives. Leonidou, Katsikeas and Samiee (2002, 14), suggested a research in which there was also a meta-analysis conduction to appraise the associations amid the marketing mix parts and performance. However, their analysis did not believe adjustment and standardization of the mix factors, and was as well centered on a more multifaceted structure that embraced additional variables and forebears. Shoham (2002) examined the extent of homogeny of the marketing mix concerning a satisfaction-centered performance gauge, but he specially deemed the export promotion mix’s extent of consistency and export planning effect on sell overseas performance. Explicitly, in place of this study, he tested the extent of standardization/adjustment policy, and not as a discrete approach, as this paper treats it. To conclude, Theodosiou and Leonidou (2003, 90) have as well researched the associations amid the promotion mix and performance. However, their piece of writing is an integrative scrutiny of the writing, never a meta-analysis. In addition, they apprise the antecedents of the promotion mix and their consequence on performance via a more intricate blend of these features. Briefly, this study is diverse from these preceding ones since it carries on a meta-analysis, which examines the affiliation amid the role of the policies of standardization and adjustment of the promotion mix and performance in a global framework. Theoretical Background The growth of the Coca-Cola Company into overseas markets commands a judgment-making course, since there are many aspects that sway such an internationalization course. Among the most imperative judgments concern the Coca-Cola promotional mix. By budding an ample marketing mix the Coca-Cola Company can gratify the requirements of their aimed market and get to their organizational goals augmenting the performance. Consequently, the company’s products that emerge a marketplace for the initial time require to be customized to the features of that nation, since it is never probable that a solitary policy will be capable of gratifying all customers, particularly taking into consideration the current markets heterogeneity (Vignali, 2001, 67). Therefore, Coca-Cola Company attempts to think on what is the unsurpassed policy for the promotion mix – adjustment or standardization. Adaptation versus Standardization The major objective of a worldwide strategy is running of the immense disparities that materialize beyond domestic confines (Ghemawat, 2007, 56). International marketing is never a standardization synonym in promotional processes. Even though, every constituent of this process is vulnerable to standardization, this could be among the policies taken up by the business. The policies of worldwide marketing trail three diverse perspectives. The initial is the concentration-dispersion viewpoint, which scrutinizes the organizational organization of the Coca- Cola Company. The subsequent policy is the integration-independence viewpoint that concerns the competitive course encountered by businesses. The third strategy is the focal point of this paper tackling the adaptation-standardization viewpoint that is connected to the extent of regulation or standardization of the promotional mix features (Lim, Acito, & Rusetski, 2006, 20). Some individuals comprehend that the central query is never to standardize or to acclimatize marketing policies, except the extent to acclimatize them. Therefore, numerous authors rebuff the tremendous use of merely one or an additional strategy. As a replacement, they believe that there exists a requirement for the concurrent use of both policies, where the extent of standardization or adjustment should rely on domestic and peripheral factors. For them, the Coca-Cola business ought to be concurrently focused on the aspects that require international standardization in addition to, those needing a confined variation; integrating constituents of policies, standardizing the features that carry profits, and acclimatizing those that gratify the requirements of the confined market (Vrontis & Kitchen, 2005). Performance The Coca-Cola performance is a multifaceted and versatile occurrence that is composed of diverse views of the business, a division, or the development success. Some researchers confirm that it is not likely to portray performance accomplishments using merely one viewpoint and/or a solitary metric. Individually, dissimilar viewpoints ought to be heeded when assessing if achievement has been attained or not. This is the reason that success could be unstated via diverse viewpoints (for example extent, level et cetera). In spite of this viewpoint that performance is a comprehensive and multifaceted occurrence, numerous writers have attempted to identify it. A handful of these descriptions has been lengthily studied and put in practice both on the educational and the decision-making fields. For instance, Kaplan and Norton’s (2000, 71) Unbiased Scorecard verifies performance by deeming four diverse outlooks: monetary, client, internal trade course, and knowledge and growth; Four diverse techniques to performance: company survival, accounting gauges, manifold stakeholder perceptions, and current-value dimensions. Hypotheses The Coca-Cola Company’s hypotheses study was founded on the latest trends of connection between the mixture of the market and the performance. This was also transformed by the principle and adaption of the components. The components in their independent state are considered as the variables of the mixture of promotion, brand, good, price, and distribution. On the other hand, the components considered to be dependent include performance by the company, centering on the factors dealing with moderation, standardization and adaption. Whereas, most of the studies project an essential persuasion from the standardization of the promotion mix on the presentation of the company the others present an inverse connection. The hypothesis suggested includes concepts such as the impact on the international market by the homogeneity of the goods produced by the company. Another case of hypothesis proposition could be the impact on the performance of the promotional activities by the company. Another hypothesis aspect could be directed at impact of a positive performance on the distribution by the company in the international markets. Methodology A Meta procedure of analysis has been assumed by the company after taking into judgment all the factors requiring deliberation. The confrontational concerns regarding the knowledge and theory accrued after numerous studies is significant to the development of the research methodology. The Meta analysis procedure endeavors to make a contribution to the development of concerns of particular subject areas and their applicability, as well as possibility in the making of generality, a significant apparatus for attaining an understanding. Accordingly, the objective will be contrasting the results with regards to the exceptional apprehensions on the areas research should be conducted through carrying out scrutiny of the examination. Data Collection Some procedures were originally assumed to recognize studies that would be integrated into the research sample. In the commencement of the procedure of Meta analysis, the study conducted should take into consideration the association that exists in the adaption and standardization of at least a single element of the promotional mixture, as well as, the performance. Another factor to be considered involves the assortment of notions relating to the level of performance. It articulates that the preferred activities should be considered in order to achieve targets directed at the behavioral or economic front. The company has failed to adopt any form of constrain regarding the commercial units or components that should be investigated such as the branch offices or headquarters encompassing a number of countries operational, the diversity of the industry, the initial country of product origin, as well as the experiences by the foreigners. These procedures are necessary in the attainment of the main objective which is not to investigate political, social, or environment components that may perhaps get in the way of the existing connection. The principal focus is to reflect on the strategic factors of adoption and standardization of the promotional mixture as transformers of performance. The data collection work is supposed to be a fractious sectional since an analysis should be performed. Internal and External Strengths and Weaknesses of Coca Cola Coca-Cola Company has numerous strengths that are both interior and external. Launching of a product in the nature of a Coca-Cola brand tends to result in the illustration of both the internal and external weaknesses. Regarding the internal strengths, comes out as a strong company on itself. Coca-Cola Company also possesses Odwalla, even though it is not involved in the production of organic products. Odwalla is a juice manufacturing company that produces juice. The product does not get promoted as a brand of Odwalla, but the knowledge concerning the process of manufacturing juice by Odwalla will be a significant strength for the Coca-Cola Company. Currently, the exists an increase in the amount of organic products amounting to about 70% Americans being involved in the purchase of anything organic at least on one occasion. Even though, these organic products are on the increase in the market, that factor does not pose much threat or competition to Coca-Cola Company. Coca-Cola Company boasts of a superior brand loyalty that their customers regard it. Supposing the product gets to be launched, enthusiastic consumers of Coke will prefer the soda or organic fruit over any other market challengers merely because it is a creation of Coca Cola; consequently the consumers have total trust in the product. Also, touching on the weakness that exist internally, the Coca-Cola has never been engaged in the production of any organic product, neither does it have any ties with the equipment required in ensuring that productions occur. Therefore, it has to develop a fresh procedure of production which implies additional expenses. Other juice manufacturing plants owned by Coca-Cola include Fruitopia and Minute Maid. Therefore, supposing the sales of sodas and fresh organic juices emerge as a hit that may perhaps possibly affect the sales of products by its subsidiary companies. Nevertheless, Coca-Cola Company is a global leading soft drinks manufacturer and also has its product brand acknowledged universally. Coca-Cola is a soft drinks manufacturer giant with a dominant share of the market, as well as, an outstanding publicity to the markets that are emerging. In addition, the company is extremely financially stable, having a significant cash flow, balance sheet, which is strong, and dividend policy, which is reliable. However, the growth on the levels of revenue has been a plane in the previous years with the stock transacting at a price that is about the 20times the revenue, an overvaluation for a company exhibiting its present rate of growth. The popularity of Coca-Cola Company counts as part of the superiority that it encompasses. Threats Notwithstanding the fact that Coca-Cola having dominated in the target market, it has had to deal with numerous threats. In spite, again of the fact almost the total control of the majority of the beverage market is managed by the Coca-Cola Company the ever changing well being awareness approach of the market may perhaps a solemn impact on the Coca-Cola products. Therefore, the perception to regard this as dominant danger to its market operations should be considered. In the contemporary world, human beings are consistently making attempts to transform their consumption and drinking tendencies. Consequently, this could be detrimental to the Coca-Cola products sale. In addition, it is likely that the concern regarding the legitimacy side of undertaking, may perhaps also be affected either directly or indirectly. Usually, there exist concerns that touch on the supremacy, popularity, and wealth of companies. There are always individuals who endeavor to discover blunders with the most excellent and consequently attempt to mastermind their fall. Therefore, the Coca-Cola Company has to make an effort in being careful the various lawsuits it is charged with for the sake of maintaining sanity in its operations and undertakings. The minister in charge of health concerns may perhaps be perceived as a threat to the Coca-Cola Company. In addition, some individuals could also make attempts taking advantage of the detrimental side of products by the Coca-Cola Company and may consequently threaten the accomplishment and sales status. Another hazard that could potentially be detrimental is the competition presented by the competitors. The major competition that the Coca-Cola Company is faced with is posed by Pepsi, which also happens to be in the business of selling drinks that are closely related. Therefore, Coca-Cola Company needs to be cautious that Pepsi fails to progress into being an accomplished soft drink. The other soft drink products such as the inorganic juices, milk, and coffee among numerous other products also present imminent threats to the Coca-Cola Company product. Another potential threat that could be encountered by the Coca-Cola Company involves individuals developing strong senses for other products. That could be done at the expense of Coca-Cola beverage products and consequently threatening the potential achievement it could be projecting. Bibliography ANPAD (2011). The Influence of Adaptation and Standardization of the Marketing Mix on Performance: a Meta-Analysis. Available at < http://www.anpad.org.br/bar/> CALANTONE, R. J., KIM, D., SCHMIDT, J. B., & CAVUSGIL, S. T. (2006). The Influence of Internal and External Firm Factors on International Product Adaptation Strategy And Export Performance: A Three-Country Comparison. 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