Branding for Global Companies in 21st Century - Assignment Example

REQUEST The global economy is facing changes at its every turn, at each every nook. But there appears to be one thing that has maintained its identity as the century passed - Coca-Cola Company, its brand and brand identity. And it is under this very interesting theme that a Conference on Global Branding in the 21st century is to be undertaken. This is noble a conference in the sense that it will not be speaking from the mainstream global branding which is marked by the imprints of high-technology and developments. But, rather, it will be highlighting the possibility of something old, something local being a powerful force to reckon with in the global market. And no other company carries that laurel except our company - Coca-Cola Company. It is in this spirit that I am asking your office to allow me to attend the said conference. For it will not only be a proper venue to allow other companies to learn from what we have gained in our vast experiences as the number one manufacturer of carbonated beverages in the world today. But, that it is a moment also our company to re-learn many things from the experiences of other companies as they embark in global market. This is very important since it is in fact considered as one of the fundamental benefits that the global world is gaining from the global market, global economy - it is the exchange of ideas among and between nations. It is the possibility of getting hold of the newest and most innovative ideas and concepts in any place in the world. And it is in this context that I am asking your office to please allow me to attend the conference. For, it is not only the venue where the old meets the young and the neophyte but it is also the forum where legitimate exchange of information among competing organizations can be achieved. Thus, fostering and enhancing not only the well-stocked reservoir of knowledge that we gain in our gargantuan experiences. Innumerable data and information under the research and development section of our company that we used as we compete globally. But that it is the sphere where competitors do not eat and tug each other's tail, but it is the place where they meet eye to eye to exchange with one another viable information that may be utilized in their companies. In the end, though it may appear that Coca-Cola has already much to offer in terms of experience and knowledge with regards to the theme of the conference, it will still be worthwhile to attend the said conference on Global Branding in the 21st Century for the age old belief still has not lost its power. It has not lost its esteem - "knowledge is power." And in a global world like ours, the one who has the most information, possess the most dynamic and important power of all. ON GLOBAL BRANDING INTRODUCTION The contemporary period is marked by one characteristic that is simply unknown prior to this period - globalization. Globalization is a term that has been defined in many ways and interpreted and understood in various forms. Since, globalization as a contemporary phenomenon permeates not only the economic, financial, market and business developments but it has also penetrated culture, tradition, communication, ideas and the likes. But in all of these it can be claimed that the salient feature of globalization is the fact that "it allows financial capital to move around freely" (Soros, 2002: 3). And in this framework we will try to address the challenges posed to Coca-Cola Company of global branding in the 21st century. Being such, this report will not look into the strategic positions and organizational effectiveness that Coca-Cola has used as it meet the global demand of the 21st century. But rather we will look into the Coca-Cola brand, a century old brand, that has survived and defied the many challenges of market itself and the formidable task that it faces as it compete in the global market, in the global village. THE COMPANY "Coca-Cola Company, founded on l896, is the world leading manufacturer, marketer and distributor of non- alcoholic beverage concentrates and syrups. It currently operates in over 200 countries worldwide and is most famous for the innovative soft drink, "Coca-Cola, but can now boast in the region of 230 different brands" (Vrontis and Sharp, 2003: 290) and to present this fact is the table below. TABLE 1: GLOBAL CARBONATED MARKET SHARE ____ __________________ __ _______________ %VALUE___ Coca-Cola 47 Pepsi Cola 21 Cadburry Schweppes 8 Cott 2 AmBev 1 Others 21 _________________ TOTAL 100____ Source: The Strategic Positioning of Coca-Cola, 2003 This table only shows that Coca-Cola has been successful in its endeavor as it goes global. Although it cannot be denied that one of the fundamental reason of Coca-Cola's success can be attributed to its product which is popular and affordable. But what should also be highlighted at the same time is the fact that Coca-Cola's brand has greatly worked towards its advantage. So much so, that even as Coca-Cola has entered and become one of the major global companies in the global market, it stills utilized and retained its red and white mark. And with this, it is able to cut across boundaries, enter into global marketing activities "across countries without labeling these countries as domestic or foreign" (Akhter, 1995:2). Thus, basically creating a borderless market. More over, this fact is attested by the data which shows "that Coca-Cola, from the period of 1982 - 1990, has gained 6.3% increase in its sales outside the United States." (Akhter, 1995:6) this data also presents the fact that aside from increase in profit it can be deemed that "globalization of markets, marketing opportunities in other countries"(Akhter, 1995:4) are some of the primordial reasons why companies enter into global market. Being such, as global marketing is conducted across countries new challenges, new ideas, and new perspectives are being encounter by the global companies. Coca-Cola: Global Brand Brands are "part of a strategy aimed at differentiating supply. Companies seek to better fulfill the expectations of specific groups of customers. They do so by consistently and repeatedly providing an ideal combination of attribute - both tangible and intangible, practical and symbolic, visible and invisible - under conditions that are economically viable for the company since, the company wants to leave its mark on a given field and set its imprint on a produc" (Kapferer, 1992:10). Thus, it is through the use of brand by companies that their product, which are tangible goods and services, are communicated to the buyers in the "shortest, fastest and most ubiquitous manner"(Wheeler, 2003: 4). Out of brands, the notion of "brand identity" emerged. Brand identity is the "expression of the deep-rooted identity of a brand. It allows a certain freedom of expression, since it recognizes the preeminence of deep identity over the strictly formal features"(Kapferer, 2003: 34). Implying the idea that brand identity is "the visual and verbal expression of the brand" (Wheeler, 2003: 4). This demonstrates the ideation that both brand and brand identity are created in order to touch the heart and mind of the customer so that technically the product is logged in the memory. Being such, important care and diligence should be undertaken in the creation of brand identity since a company with no brand identity is no company at all. It is tantamount to the maxim business without advertisement is no business at all. Thus, an effective brand identity will: Be bold, memorable, and appropriate. Be immediately recognizable Provide a clear and consistent image of the company Communicate the company's persona Be legally protectable Have enduring value work well across media and scale and Work both in black and white and color Source: Designing Brand Identity, 15 Thus, it is in this context that we try to analyze the Coca-Cola brand. The Coca-Cola trademark has been registered on 1893. From then it has been using the red and white trademark, which is technically, the envy of most companies who has gone global. Since the very trademark that Coca-Cola uses now is still basically the same trade mark that it had used since 1896. And what makes matter more great is the fact that with the utilization of the same brand and brand identity it is able to enter into global market. And this is a big feat since normally, companies who have decided to go global have to changed some of the product line or even changed the name of the product before it can penetrate foreign market. But with coke, it is different. What is it in the Coke that enable it to do just that Coca-Cola's brand value is worth "$83.8 billion dollars" (Joachimsthaler, 2000:19) the highest value of global brands among those company whose global brands are worth over $1 billion. A significant factor should be noted here. Coca-Cola's brand value is not a result of innovation or changes that it has to undergo as it goes global but it is basically based on ""it's century-old heritage and customer loyalty" (Joachimsthaler, 2000: 19). It is in this line where I would like to focus. One of the most common strategy of most companies going global is by assimilating and adapting to the culture, tradition, norms and values of the foreign country where it is to be doing business. There is no harm in doing that for that is, in fact, the most rational approach and proven to be one of the most effective one since the start of the global market. But, what should be taken into account here is that fact that customers do not look much into the idea that the product that they are buying is a global product but rather, it is still the same old measure stick that customer uses - does it satisfy my need It is in here that things seemingly differ with Coca-Cola. Coca-Cola Company, aside from meeting the demands of foreign countries by creating more than "230 brands in 200 nations" (Vrontis and Sharp, 2003: 291) have worked for its advantage in its all American image - the image of young, bubbly, buzzling American. This image has become one of the predominant factors that have helped in the global strategy of Coca-Cola. But over and above that is the fact that even if Coca-Cola has gone global (doing business in 200 nations) it is still local. Local in the sense that it has always been the strategy of Coca-Cola which they have always emphasize is the idea that "in order to think globally, a company must act locally" (Taylor, 1995: R35). Thus, setting the framework wherein though it is highly associated with America, it is seen at the same time as part of the dynamic and movements of the society and culture of the foreign nation where you find Coca-Cola. This may appear to be incongruent with one another. But her lies the beauty and the vast power that global market has with it. It shows us that even if each and every society differ from one another regarding certain basic principles that may govern and affect the movement of products in their particular local or national market, what is astonishing is that globalization has made it possible for various companies to penetrate foreign market. And that in the act of penetrating the market they do not really disrupt and transform the inherent culture and values of the society but that they adapt to it. And taking it as apart of their strategy to act locally, to respect the structures and systems at place in the local market. Never discounting the importance of the attitude and intrinsic movement of the local market where they are going to invest. Coca-Cola Company is simply an epitome of that. As it continues to bask in its All-American image as it compete globally and yet it maintains at the same time the feeling and consciousness among its customers that it never really is different from them, it never gives you that sense that in fact it is a multinational company. In short what I am trying to imply is the idea that as the world moves into global markets creating global village yet it maintains at the same time that each and every culture is distinct and have many points of difference. Yet, Coca-Cola has been able to show us that it is possible to arrive at a common point in this pluralistic world. It presents the idea that what Coca-Cola had done is something innovative yet it can be appreciated as being within the mainline of advertisement. Because due to their global branding for the 21st century is not something, which is a result of high technology or avant-garde, state of the art machines. But rather it is the same old rolling ball given a new twist. Coca-Cola company shows that a company can ride through the various changes that each specific time, space, money, energy and information found in the local market to find the proper trends and concepts that is suitable for both the company and the possible target market and customers. At the same time work with the macro systems and structures- politics, economics, social, technology, legal and environment - at play in the foreign nation. Further more, Coca-Cola's global branding has achieved significant milestones in the wold of "branding". For it continues to retain its brand identity no matter where it goes, no matter how geographically and culturally different one nation from the other, Coca-Cola is simply not bounded by it. In the United States the slogan "Coke is it" is merely translated in different languages while keeping the same basic idea, in fact no wonder some people considers the Coca-Cola brand a rare brand. It very global just like Pantene, Mars and likes that no matter where it goes, no matter where it sells its product it will still be using the brand, the same brand identity technically changing nothing from it. As Coca-Cola meets the demands of the 21st century market, it carries with it the stock of tradition that is represented by the brand that it still carries up to now. The Coca-Cola brand speaks of and represents the billions and billions of loyal customers that the soft drinks have. It does not bank on any new changes but it anchors on age-old known brand that has swayed the world in the past and is still swaying the global world in the present. But it is not only that. As the world moves forward leaving no nation totally independent and existing by itself, it creates the idea of nation depending upon one another. It embodies as nations try to harness the global market in the global economy. And in the process of enhancing the market, it has become equipped in charting the movement of each and every nation in the world. Thus, bringing to the fore the notion that global companies are not just driven by increase in profit and sales but that they too are made socially conscious and socially responsible not only to their "mother land" but too all the local / foreign markets where they now belong. In this demand, Coca-Cola Company is not lagging behind. By sponsoring Olympics it shows that its sole concern is not only to gain profit but it is also concern with the world creating and establishing harmonious relationship among nations and enhancing physical balance. Reference Lists: Aaker, D. & Joachimsthaler, E. (2000). Brand Leadership. New York: Free Press. Akhter, S. (1995). Concepts. Strategies. Practice. Global Marketing: Text & Readings. Ohio: South-western College Publishing. Czinkota, M., Ronkainen, I., Tarrant, J. (1995). The Global Marketing Imperative. Illinois: NTC Business Books. Dahringer, L. & Muhlbacher, H. (1991). International Marketing: A Global Perspective. Massachusetts: Addiso - Wesley Publishing Co. Effron, J.E. & Santos, E. (1999). International Marketing. Philippines: International Academy of Management and Economics. Harvard Business Review on Brand Management. (1999). Boston: Harvard Business Scholl Press. Jain, S. (2001). International Marketing. Ohio: South-western Publishing Co. Kapferer, J.N. (1992). Strategic Brand Management: New approaches to creating and evaluating brand equity. New York: Free Press. Temporal, P. (2000). Branding in Asia: The creation, development and management of Asian Brands for the Global market. Singapore: John Wiley & Sons Ltd. Soros, G. (2002). On Globalization. Oxford: Public Affairs Ltd. Vrontis, D. & Sharp, I. (March 2003). The Strategic positioning of Coca Cola in their global marketing operation. The Marketing Review, pp 289-309. Wheeler, A. (2003). Designing Brand Identity: A complete guide to creating, building, and maintaining strong brands. New Jersey: John Wiley & Sons. www.cocacola.com Read More