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Coca cola in china market - Essay Example

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Despite its attempt to popularize its products in China,Coca Cola Company faced a lot of challenges.The company had entered the new foreign market with very high expectations,but her methods of market approach and advertisement strategies failed to give the results …
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Coca cola in china market
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This proved futile as the local media always gave first preference to the local firms’ products during its advertisement in peak hours. This disadvantaged coke as a whole leading to decrease in sales in the markets. To overcome this, company should have launched its own website (Staff, 2012). This would have helped the company to acquire and control a broader market place. Many customers would have followed the launched online hub to get information about the company’s product. This would have increased the sales as consumers would be at ease to get information on new company products and offers thus creating their commitment to the products.

Secondly the company incorporated the initial American culture it had early adopted in the US market in other foreign markets. This led to its failure in many external markets like in Germany. People disliked the idea of coca cola using American culture in advertising and developing its products. The foreign customers were angered by this act of coke using American culture to advertise products in their countries. This they viewed as an infusion of foreign culture that competed with their own culture (Chan, 2012).

Many consumers boycotted the coca cola company products and instead shifted to locally produced products. . This led to few people getting to know of the existence and advantages of the coca cola products. This method adopted by coke proved to be too expensive but very ineffective as it failed to achieve its goal of popularizing coke products in China. Instead coca cola could have invested the money it used to finance the road shows in sponsoring the Olympics. Many Chinese involve themselves in Olympics either as participants or viewers.

By getting involved in sponsorship of the Olympic games coca cola would have attracted many Chinese who create their time to watch the Olympics thus creating a large pool of customers across China (Chen, 2012). In china coca cola could have used traditional ways of packaging mostly used to integrate Chinese culture in a product. Coca cola would have succeeded more in China if it adopted a new packaging method with unique features like red stars that mostly appeal to Chinese youths this would have enabled the company to segment a market of the young customers (Li, 2012).

In its advertisement coca cola used American Santa Claus. In it operation in China it could have used a similar photo but with the Chinese costume. This would have attracted a large pool of customers especially children thus helping the company to segment the market. In it worldwide Olympic campaign that went by the name “move to the beat” coca cola advertising department decided to use the London national anthem beats in their campaign song. This didn’t go well with the Chinise. Many young Chinese didn’t associate London with music.

This costed coca cola a lot as many young potential customers opted to consume other products manufactured by their own local companies. Instead of this error of using Britain national anthem beat in to advertise its

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