Global Marketing And Communications Through Coca Cola - Essay Example

GLOBAL MARKETING AND COMMUNICATIONS Table of Contents Introduction 3 Marketing Communication 3 Company Overview 5 Global Marketing of Coca Cola 5 Challenges 7 Conclusion 9 References 10 Bibliography 12 Introduction Global marketing is one of the most used terms in the international business frame work of today. The concept of global marketing comprises of the framework that a company uses while operating in different countries. Global marketing is correlated with globalisation. Globalization can be referred as the process of making products locally and having business globally. Globalisation is of enormous benefit to the organization because it gives them information about the positioning and market trends, understanding of their competitors and the needs of the end users and also helps them to devise the actionable roadmap which causes the organizational success (Emerson College, n.d.). Marketing Communication Don E. Schultz is referred as the father of the integrated marketing communication. His research and teaching focus upon financial measure and branding along with the communication integration (Leopold, 2010). There are six steps to develop effective global communication. Firstly, one has to identify the target audience and then determine the communication objectives. After that, message should be designed and communication channel has to be selected. Next, the source of the message should be selected and finally the result of the communication is analysed. These six factors are very much helpful to create the global marketing communication (Volkmer, n.d.). Global marketing communication is a kind of marketing technique that facilitates global business. A firm operates in more than one country in order to have financial advantages which they might not get in their domestic environment. In order to have global business, the company should have due emphasis upon marketing and production facilities. When a company decides to go global, it should get hold of the following basic attributes: The marketing process and its main function. Identification of the apt marketing mix. Fundamentals of market orientation The relationship of marketing resources with the performance of the company. Use the SWOT chart to analyze the external and internal marketing environments. Identify the main marketing resources that can create the value and identification of the various kinds of customer. Difference between end - result metrics and in - process metrics. An action plan about the organization’s future. Development of the new product and description of its process. Planning of the value proposition. Analyze the purchasing process of customer. Select certain global marketing communication program and relation of those with the customers. Evaluation of the pros and cons of global management which is mainly deals with account. Company Overview John Pemberton, who was an Atlanta based pharmacist, founded Coca Cola in the year of 1886. The name of the company was decided by Frank Robinson, the bookkeeper of John Pemberton. Coca Cola entered into the global markets of Canada and Mexico in the year of 1898. In this year a law was passed in the Congress in wake of Spanish-American war for which Coca Cola was sold only as beverage and not as drug as decided earlier. Ben Thomas and Joseph Whitehead received the bottling rights in the year 1898. Later the company started their bottling operations in Philippines, Panama, Puerto Rico and Cuba among other countries (Ohio University, n.d.). Global Marketing of Coca Cola Coke is tasted worldwide as bottling operation was available in 28 countries in 1929. Coke started to sell in a can in 1960. In 1982, company introduced the diet Coke. Coca Cola Classic was introduced with strong public demand. Nowadays, Coca Cola is one of the eminent companies that have created tremendous brand value worldwide. It is said that the global marketing process of the company has tremendous effort for the purpose. In 1998, per day selling of Coca Cola exceed 1 billion. The Coca Cola has entered in to the global market and also made a massive influence in the minds of the customers of different countries. Robert Goizueta had important role to play to make the company a global brand. He was responsible for checking the financial performance of the company. It was he, who pushed the Coca Cola break from the mode of national business and expands globally. The company president, Douglas Ivestor is now set to develop new message for the client and he is also responsible to develop the marketing strategy of the company too. Coca Cola controls 46% of the market share of the international soft drinks market. The change in taste of the individuals leads to development of new products. This is truer when the competitors already have such products into the market. Being a global brand, the company also has expansions always in the cards. This is good for company to capture the fast developing dynamic environment. The company is also concerned with the health issues of the people and has initiated numerous measures that also depict the human face of the company which ultimately contributes to the corporate social responsibilities of the company. Coca Cola is now trying to make big by lowering the margin in the non-carbonated sector (University of Massachusetts, n.d.). Challenges Coca- cola is facing several problems for their business across the world. The main challenges for Coca Cola are as follows: Coke’s relationship is too much crucial with the bottling partners because they need to take sub-par returns on the capital basis. The negative effect created for the slowdown of global economy for the growth prospect and sales of Coke in international business. The non-carbonated markets expansion strategy follows the growth trends of industry. Although, this is typically a lower margin scheme and to take the profits which is away from core business of Coke. Beside the above factors, Coca Cola has been facing tough challenges from the competitors. Although, it is a very strong product but customers might not be willing to take it because of “Cola Wars”. The buying power of the customer has also affected the market of this reputed cola company. The Coke and Pepsi rivalry has created a slow moving industry that is faced with losing the market share. The global market fluctuation is also major a challenge to the Coca Cola to maintain their international business (Virginia University, n.d.). There is various kinds of rules and regulations that can apply in 200 nations where Coca Cola is having their business. The company has been blamed by various persons in different parts of the world at different point of time. However, an important issue of concern for the company has been that of public relations. From the perspective of global marketing and communication, the production cost of the company has increased considerably in some of the aspects. Even the expenditures for the purpose of employees’ training, meeting of the regulations and adjusting with the new environment are few of the additions in the cost of the company. Large companies like Coca Cola need to generate both new competitive forces and also the new markets for the purpose of globalization. Shortened lead time, focus point on core competencies and cost cutting measures has driven the company to change its supply chain management. Pressure of cost and presence in the developing countries create challenges for the Coca Cola. There are eight important factors that throw light to the challenges faced by Coca Cola (Jenkins, n.d.). These are as follows: Transfer of modern technology: In this dynamic world, every company should do their business according to customer’s taste and preferences; and should also abide by their changing needs and wants. So, companies always try to introduce certain new products that fulfill the criteria of customer’s needs. Product transportation: When a company starts their business globally, first they think of the ways of reaching to the customers with their products in a short span of time. Coca Cola have their business in 200 countries across the world. So, it is quite hard for them to maintain product transportation. Cultural diversity: Every company should follow the culture of the place where they plan to start their business. So, it is very tough for Coca Cola to keep going with the cultures of 200 countries. Reputation: When a company reaches a valuable position then their main work is that to retain their position all the time. But it is always hard to maintain their reputation and when the company can’t maintain its reputation that creates a negative impression to the customers and stakeholders. Communication: It is not easy to maintain good communication channel when company do their business in more than 200 countries. But without good communication, it is hard to increase sales. For this reason it is one of the toughest challenges faced by Cocacola. Decision making: In this dynamic world, every company tries to change their business strategies for long time and sustainable survival. But, in order to do so at the outset, they have to decide which strategy they can follow and when can they implement such strategy. So, it is a big challenge for global companies like Coca-cola. Conclusion Coca Cola has been one of the most successful global brands of the present world. The company that was established in the United States, is one of the most globalised brands if the world. Being a global brand is not an easy thing. The company has to maintain strike balance in many of the aspects e.g. from every day operations to the strategy formulations. In order to ensure long term relationship among the company and the stakeholders, the path of sustainable growth is the most trusted one. Being a brand of the stature of Coca Cola, the management of the company should utilize every opportunity to market the products of to all of the available sections of the society. It is the international marketing that help a company to gain the desired market share. References Emerson College, No Date. Master of Arts in Global Marketing Communication & Advertising. Communicating With The World. [Online] Available at: http://www.emerson.edu/admission/graduate/academics/gmca.cfm [Accessed May 06, 2010]. Ohio University, No Date. Coca-Cola: In need of a performance boost. History of Coca Cola. [Online] Available at: http://oak.cats.ohiou.edu/~jb986896/esp/strategycase.htm [Accessed May 06, 2010]. Jenkins, B & Et Al, NO Date. Business Linkages. Harvard University. [Online] Available at: http://people.umass.edu/bmat352/lectures_and_readings/KA_19.pdf [Accessed May 06, 2010]. Leopold, W., 2010. Honoring the Father of Integrated Marketing Communications. News Center. [Online] Available at: http://www.northwestern.edu/newscenter/stories/2010/04/schultz.html [Accessed May 06, 2010]. University of Massachusetts, No Date. The Global Market Place, Chapter 19. [Online] Available at: http://people.umass.edu/bmat352/lectures_and_readings/KA_19.pdf [Accessed May 06, 2010]. Volkmer, I., No Date. International Communication Theory in Transition: Parameters of the New Global Public Sphere. MIT. [Online] Available at: http://web.mit.edu/comm-forum/papers/volkmer.html [Accessed May 06, 2010]. Virginia University, N Date. Coca-Cola at Home. Coke. [Online] Available at: http://xroads.virginia.edu/~class/coke/coke1.html [Accessed May 06, 2010]. Bibliography Barber, Benjamin R.. Zwischen Dschihad und McWorld, Die Zeit, Nr, 1994. Featherstone, Mike Global Culture: An Introduction, in: Featherstone, Mike (ed.) Global Culture. Nationalism, Globalization and Modernity, London, Newbury Park, New Delhi: Sage, 1990. Habermas, Jürgen. The Structural Transformation of the Public Sphere, Cambridge, Ma, London, England: MIT Press, 1992. Kennesaw State University, No Date. The Coca –Cola Company. Case 1. [Online] Available at: http://atlas.kennesaw.edu/~ptracy/CASE1.htm [Accessed May 06, 2010]. McKay & Wingfield, Coca-Cola, AOL enter alliance to explore internet marketing, The Wall Street Journal, 2000. Stephens, Mitchell. History of News. From the Drum to the Satellite. Viking, 1988. Thunderbird School of Global Management, No Date. Global Marketing Essentials. Home. [Online] Available at: http://www.thunderbird.edu/executive_education/certificate_programs/independent_study_programs/global_marketing_essentials.htm [Accessed May 06, 2010]. Virilio, Paul Der negative Horzizont: Bewegung-Geschwindigkeit-Beschleunigung,1989. Read More