International Marketing Coca Cola Cast Study

Introduction about the company and its products

The Coca-Cola company is an international beverage company based in the USA. It is a manufacturer for soft drinks and syrups and it has many branches and subsidiaries all over the world but its headquarter is found in Atlanta, Georgia. The main product of the company is its fizzy drink, Coca-Cola which was made by John Stith Pemberton who was a pharmacist in 1886. The company followed a franchised system of distribution that began in 1889 as the company used to distribute its concentrate to other worldwide bottlers. Coca –Cola company acquired lots of brand throughout time such as Minute Maid, Thums Upin and Barq's. Coca-Cola had made its first try to manufacture a diet soft drink which was Tab in 1963. There are many soft drinls produced by the company such as Fanta andSprite. In South Africa, there is Valpre which is a sparkling and Stillwater. The company also produces healthy products such as minute made juices, Dasani mineral water, Fruitopia fruit drink and Nestea which is a favored ice tea. Coca-Cola is considered a bestselling company for soft drinks internationally and it almost shares the market with Pepsi in addition to other minor competitors. There are other products for the Coca-Cola company such as its green tea called Enviga issued in  2006 and Glaceau which was bought by the company in 2007 and produced flavored water and burn energy drinks. The current research is discussing how Coca-Cola company used internationalization in all its business operations and an evaluation and analysis for its strategies and the impact of social and cultural factors on the target market. (Wirtz and Dominguez, 2013)       

Company's rational behind internationalization

Internationalization is a basic goal that the company worked to achieve since its beginning and to achieve it, it followed global diversification. Internationalization was a major goal for the company to achieve for various reasons such as building a strong background of customers and fans all over the world, raising its share in the global market and increase the profits of the company, stressing the importance of the brand and having different subsidiaries all over the world in order to affect national life and be a part of everyone's life and shares in the happiness of the whole world. Internationalization has been a major target for Coca-Cola so as it could enable the company to control the global market and business of beverage and drinking all over the world. Internationalization was to raise the chances of Coca-Cola to have a worldwide impression and prevail in all countries of the world as a formal drink for occasions and happy times. Internationalization was a way to connect the whole world via a drink that can express the feelings and desires of worldwide nations and cultures. Internationalization was meant to enhance the company's image among other companies and competitors. (Vrontis, 2003)         

Mode of entry

Some strategies the company uses to invade global markets in different areas and countries of the world such as:

1. Licensing

Franchising was a major strategy to be followed by the company as many countries around the world have subsidiaries for Coca-Cola with its brand, experience and concept. Turnkey contracts were also used by the company as large factories were built in different countries for Coca-Cola and their employees were prepared to represent the company internationally. 

2. International agents

Agents were used in the different countries where the company's products were used globally as there are agencies and individuals that the company made deals with in order to distribute its products locally. Distribution using agents is a good strategy the company follows because it is cheap and practical as those agents work hard in order to receive a omission for the distributed number of products and at the same time Coca-Cola still has the control over those agents.  

3. Joint Ventures

The company made very good joint ventures with other companies in order to produce new products that can find popularity among the customers such as that joint venture made with Nestle in order to produce the company's Nestea which is a tea with flavors and iced.

4. International Subsidiaries

Coca-Cola company has many factories in different countries all over the world as this policy was used since the beginning of the company's history in order to establish subsidiaries that work for the company's welfare and make more profits and increase the popularity of Coca-Cola around the world. 

5. Exporting

There are many subsidiaries related to Coca-Cola and there are other places where there aren't subsidiaries for the company so exporting strategy is followed there as the main company sends them readymade drinks and juices and water in order to keep its nationalization there where the people should be well acquainted with Coca-Cola brands and products.  (Mok et al, 2002)

Evaluation for the marketing mix strategies adopted by the company 

Coca-Cola has a distinguished marketing mix strategy that depends on many factors related to demographics and geographic elements related to the company and the areas where it manufactures, produces and distributes its products such as the following evaluated ones:

 Product

The company concentrates on its main products in a way that can produce a diversity of outputs that can be easily marketed and can suit all types of consumers as the company has about 3500 types of products such as 1000 types of juices that come in different brands such as Hi, C, Odwalla, Fuze, Simply, MinuteMaid  and Fruitopia. There are a variety in fizzy drinks such as Cock Zero and Fanta and Sprite. Mineral water is also produced such as Dasani and flavored water. The company also produces ice teas with fruit flavors and power drinks. The great variety made by the company lead to its success as an international beloved company. 

Price

Coca-Cola is a leading company in providing suitable prices and sales and offers that attract its customers to more purchasing processes and raises the brand's name among consumers of different nationalities all over the world. Prices are set according a pricing strategy depends on matching prices with products and keeping a competitive advantage over other market rivals.

Place

Coca-Cola tends to keep its existence in most countries of the world and trying to be the best and participate in worldwide actions and events such as the World Cup for football and others. Distribution depends on targeting the most crowded areas in the world and assigning agents there who are able to reach as many places as possible and distribute as many products as possible and get commissions for this.

Promotion

The company is following a policy of advertising which is very successful as it chooses the beloved local land international actors and singers in order to make them provide its products professionally and bring in more customers through the commercials and other advertisement ways.  (coca-colacompany, 2015)

Coca-Cola Brand positioning and advertising strategy

Coca-Cola has been originating its brand in the global society by being an international company that depends on producing the best drinks all over the world and it insisted on raising a value of the product in order to position its brands at top of all soft drinks all over the world. It has been even used as a mix with wines to make different tasty cocktails. The brand was strengthening through advertising which was effectively used by the company. Since its beginning the brand of Coca- Cola was the most common in American movies and cinemas all over the world. During time periods the company has evolved from simplicity to comprehension as a global brand.  Advertising in Coca -Cola has followed a smart strategy of advertising and promotion which depended on spreading everywhere, realizing people's needs, desires and ambitions. This strategy depends on studying each market and discussing its main components as a community and a society at first. There were worldwide commercials that depended on making the brand strongly affecting the global world and sharing its events and festivals. The company used to put big budgets to be spent on advertisements as, for example, in 2013, the company spent about 7% of its annual revenues estimated with 3,37 billion dollars on advertisements which included loyalty points programs, in store activation and point of sale marketing. (Bailey, 2014).

Competitor analysis

Coca-Cola has been always a major competitor to Pepsi as the market is almost divided between them with a little share to other companies such as Schweppes. Coca-Cola has many competitive advantages such as the delicious taste, original shape of the bottle, different tastes and different products. An example is the company's products in a country such as India where Pepsi and Coca-Cola are the most sold products of fizzy drinks and juices. The company was founded in India in 1886. The company has lots of products in India such as coke, diet coke, thumps up, sprite, limca, maaza, fanta, Georgia and Kinley. The two companies can be compared as follows:

Feature	coke	Pepsi
Parent company	Coca-Cola company	Pepsi company
Sales	450 globally	324 million globally
Distribution	Retailers, stores	Retailers, stores
Market share	57,8%	35,6%
Number of bottles plants	26 owned by the company and 16 franchised	15 owned by the company and 28 franchised

Table 1 Coca Cola Pepsi Competitor Analysis

It is clear that the company has a competitive advantage over its main competitor Pepsi and this makes it having very good chances there to increase its sales and profits. (Shinde, 2013)

Social and cultural factors impact on the target market in an international environment

The market is usually affected by social and cultural factors that international companies target in order to market their products in these markets and reach internationalization easily. Different markets in different places affect the process of products marketing as there are different in each market which could be social or cultural such as religion, traditions, norms, economies and languages. Competitiveness is based on realizing such differences and considering methods to deal with them in order to understand the nature of customers and the way they think of products and what the best ways to reach them as a brand through recognizing the local nature of the people. Coca-Cola was successful in doing this as the company understood the nature of each people it deals with and this is clear in the commercials and advertisements which differ from a country to another. (Writers, 2012) An example on this is avoiding using wines and alcoholic substances to be produced in any country that rejects them such as Islamic countries and avoiding commercials that may be rejected there. Another thing is that the company considers differences in languages so each product is advertised in the language where it is distributed. Religion is also considered in the way the products are served and distributed and marketed as the company for example presents special offers for the customers in Islamic countries in Eids and shares the happiness of people in their Eids with new promotions and offers.  Language is considered highly in Coca Cola's innovation ideas for bringing more customers such as the idea of writing names of people on the cans as the names are written both in English and in the language of the area where the cans are produced and distributed and the nature of names are also regarded as names found on cans in the Gulf area differ from names on cans in Egypt or Tunisia for example. This shows how Coca-Cola was intelligent and still is in its methods of distribution and marketing for its products to apply internationalization effectively.(Umar, 2015)             

The factors that influence the decision in developing distribution channels internationally

1. Factors related to the products' features

Features of any product can decide the market that needs development by the company to work as an international distributor so the product should be well analyzed and studied by the company in order to recognize its main merits and demerits. This can help for choosing the channels of distribution, the types of advertisements, the suitable services that should be chosen to be presented for the customers and if the product fits those customers or not. For example a product such as Coke zero which is made for those who suffer obesity should be presented in the areas that have high obesity numbers of people such as the Gulf area where this product is well welcomed and preferred by most people. (Dent, 2012)

2. Factors related to the company's features

The company has certain main features such as production size, reputation, policy and strategy and these factors affect the decisions took about the channels used for distribution internationally. The strong reputation and good name of the company helps it reach any area that it seeks. Although Coca-Cola is common in more than 200 countries around the world, the company can use its name and strong brands to market them in other areas around the world. 

3. Factors depending on the characteristics of the customers

The successful business should study the features off consumers who are the customers in order to choose international channels easily and correctly. Location of the market and amount of purchasing can decide the channel where the products can be served.

4. Middlemen considerations

Middlemen characteristics should be well studied by the company as they should be recognized and the company should set a policy for dealing with them in each channel and each channel should have a different plan with middlemen.

5. Factors depending on characteristics of the environment.    

The environment can decide what the best channels are and what strategy should be used in each environment as each channel can be included under environment's circumstances such as laws, government taxations and legislations that should decide the easiest and most convenient circumstances to decide the channel. (Scribd, 2015) 

Conclusion and findings of framework analysis

Coca-Cola is a company that sells its products of beverages and soft drinks products all over the world for many countries all over the world as it is among the best sellers in the world in many areas. Internationalization is a major concept that the company considers a great interest in order to vast its prevailing around the world. There are many factors decide the process of internationalization. The company’s mode of entry depends on many major points such as licensing, pricing and others. These main points decide the mode of entry the company follows. The company is competing with other companies such as Pepsi in many points. There are factors that decide the channels the company choose for distribution and these factors should be carefully chosen in order to raise the company's profits through internationalization.