Marketing Positioning Strategy of Coca Cola in United Arab Emirates - Research Paper Example

Coca Cola in UAE Introduction Coca Cola has been one of the biggest brands in the world market. It has been the major seller of soft drinks in the world. It has a long and cherished history. It was started in Georgia in the latter half of the 19th century in Georgia and since then it has been the choice of millions over the world. The company, since the beginning of the 20th century, has tasted the waters of the foreign shores and has been growing. The company has been successful in the different parts of the world because of the unique marketing and the positioning strategies followed by the management. In this paper the positioning strategies of Coca Cola in the UAE will be addressed. (The Chronicle of Coca Cola, n.d.) Strategies of Coca Cola in UAE Positioning has been one of the most preferred tactics of the companies’ world over to gain acceptance in the market. The positioning is the act of putting the product into a certain category of the market. The companies try to pose themselves to attract the customers. It may depend on the quality, the price etc. However, the positioning of the company depends on the perception of the customers. The positioning also depends on the amount of competition in the market and the stature of the competitors. (Positioning, n.d.) In the case of Coca Cola, the positioning has always been based on the quality of the product. The company has placed its focus on the health of the people as the main concern. It has a variety of products at its repertoire to cater to all the customers in the market. The position statement of Coca Cola states, “As part of a healthy, varied and balanced diet and an active lifestyle, all our products can be enjoyed by the majority of people. We are committed to helping our customers select the product that is best suited to their needs through the provision of detailed product information supported by general advice on healthy eating, drinking and lifestyles.” By this we can form an idea of the strategies followed by the company. (Position Statement, n.d.) In the case of the Middle East and the UAE region, the climate supports the sales of the soft drinks. The climate in the region is hot and dry leaving a great potential in the market. The region has been dominated by Pepsi because of the boycott of the Coca Cola in the region. However, in the 1980s the company returned to the market of the Middle East. At that time, Pepsi was doing well and controlled almost 95% of the market. The weather and less consumption of the alcohol made it apt for the development of the soft drinks market. The market has a huge potential for growth. Though, Coca Cola was the dominant player in the market, Coca Cola has done well to make its presence felt. The company was dedicated to the “quality” principle and followed it in the case of UAE also. This is because of the innovations made by the company in marketing the product. The company was starting fresh in the region and that allowed the company to innovate. The company introduced bottles which were heat resistant. These bottles contained half liter of the drink. The bottles were made of nylon and had five layers. This was helpful in resisting the heat from entering the bottle. The shelf life of the drink increased to 15 weeks. In the small towns and the villages of UAE, these bottles were handy because the shops did not have refrigerators. Customers could get the drinks in better conditions. When the Coke entered the market, the company introduced cans which helped to keep the drinks fresh. This was another advantage for the Coke. The company introduced bottles of various sizes like the half liter, one liter and two liters. By this way, it catered to all range of customers – from individuals to families. (Coke and Pepsi battle it out, 8th April, 2004) Another important aspect of the region was customer loyalty. According to Daniyal Qureshi of Streamline, the Dubai based marketing firm, "Everyone has a preference. Pepsi drinkers would not be happy if they couldn't get their Pepsi [at restaurants]; they'd drink water before Coke." (Coke and Pepsi battle it out, 8th April, 2004). Therefore, the company concentrated its efforts in making the customers move from Pepsi to their brands. The company increased spending on the development of the retail outlets of the company in the various parts of the country. Unlike in the other regions of the world, the company did not do much in the case of sponsorship of events. The driver Hamed Al-Wahaibi and Saudi pop singer Abdul Majeed Abdullah endorse the company. Both of them are well known in the region. (Coke and Pepsi battle it out, 8th April, 2004) Coca Cola has been a major sponsor of sports events around the world. In the case of UAE, the trend has been the same. Football has been one of the major sports of the country. Coca Cola being connected to World Cup Football has attracted eyeballs in the country. Nancy Ajram, a famous Arab singer has endorsed Coca Cola. She has sung a song for the World Cup football. Coca Cola has been a sponsor for the Olympics from the start of the 20th century. The company has sponsored various sporting events like the basketball. (The Coca Cola brand and sponsorship, 2000) Coca Cola has been careful in maintaining a clean stance in the region and has maintained good relations with the vendors and the distributors. Another typical aspect of the Middle East as well as UAE has been the importance of the religious matters. The growth of Islam centric soft drinks like Mecca Cola has been hard for the Coke. The label of Mecca Cola reads "Don't Drink Stupid, Drink Committed," which places importance to the religion. In the UAE, Zam Zam has been a good performer. However, Coca Cola’s essence on quality might be enough for the company to win its share in the market. According to a resident in Dubai, "People will take a political stance for just so long but then they go back to something they know is good. It comes down to quality." (Coke and Pepsi battle it out, 8th April, 2004). However, taking cue from the birth of the local flavors, Coca Cola launched Quwat Jabal which can connect with the consumers more. It has a distinctive name for the region and has been successful in the other parts of the Middle East. (Michael, 24th March, 2004) Conclusions The company has been the leader in the global soft drink category. In the case of the Middle East and the UAE, the company has been able to reclaim a part of the market share from the Pepsi after a long hiatus. This has been due to the marketing and the positioning strategies of the company. Following the principles of the management, the company will be successful in the coming years. References: 1. Positioning. (n.d.). Marketing Teacher. Available at: http://www.marketingteacher.com/Lessons/lesson_positioning.htm (Accessed on 15th June, 2010) 2. Position statement. (n.d.). Coca Cola. Available at: http://www.coke.co.nz/default,741,position-statement.sm (Accessed on 15th June, 2010) 3. Coke and Pepsi battle it out. (8th April, 2004). AME Info.com. Available at: http://www.ameinfo.com/37492.html (Accessed on 15th June, 2010) 4. Michael, C. (24th March, 2004). Coca Cola launches new drink in UAE. Khaleej Times. Available at: http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/business/2004/March/business_March596.xml§ion=business (Accessed on 15th June, 2010) 5. The Chronicle of Coca Cola. (n.d.). The Coca Cola Company. Available at: http://www.thecoca-colacompany.com/heritage/chronicle_birth_refreshing_idea.html (Accessed on 15th June, 2010) 6. The Coca Cola brand and sponsorship. (2000). The Irish Times. Fifth Edition. Read More