RMIT UNIVERSITY
School of Management
Semester 1, 2014
Course: International Business (BUSM1222)
Lecturer: Dr. Natt Pimpa
The Coca-Cola Company’s Internationalization in China
By Ivi Suryana Junior
Student ID no. 3464353
Bachelor of Business (International Business), First Semester
S3464353@student.rmit.edu.au
1. The Coca Cola Company Overview
The Coca-Cola Company is an American multinational beverage corporation that was established on September 5, 1919. The company owns up to 500 nonalcoholic beverage brands, consisting of sparkling beverages and a variety of still beverages, and markets it to all five segments namely North America, Latin
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In theory, the company’s “Glocal” strategy is actually the Transnational Strategy, in which the company adapting the strategy aims for the benefits of global efficiency while enjoying local responsiveness.
2.1. Coca-Cola’s Product Localization and Cost Reduction Efforts
As a company that applies a transnational strategy, Coca-Cola has put some effort to localize their products and to reduce the costs of all their manufacturing and business processes in order to maintain a competitive edge among local Chinese companies and even other Multinational Corporations. Having the products being bottled and manufactured within China, Coca-Cola takes advantage of a vast supply of low-cost workers and a foothold in a rapidly growing region with long-term growth potential (Fish 2010).
One of the many products owned by the Coca-Cola Company, the Minute Maid Pulpy, was the first product that was fully developed and launched in an emerging market; the Chinese market. On 2005, the product was launched nation wide in China and is now included in the title of top juice drink brands in 18 geographic regions, including Indonesia, Thailand, India, Taiwan, and the Philippines. The scalability of the Pulpy brand in developing markets is critical to the company’s global juice business. Joseph Tripodi, the Chief Marketing and Commercial Leadership Officer, says “The development in China of the Pulpy brand is a testament to the ability of our
The Coca Cola Company is an American beverage corporation, manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia.
When Coca cola bring refreshment, value, joy and fun to their stakeholders, then they successfully nurture and protect their brands, particularly Coca-Cola that is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business. Marketing positioning Local marketing strategy enables Coke to listen to all the voices around the world asking for beverage that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you’re a student in the United States enjoying are freshing Coca –Cola a woman in Italy taking a tea break , a child in Peru asking for a juices drink, or a couple in Korea buying bottled water after a run together, “Coca cola is there for you. Coca cola are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, well ness, and diversity. Coke Strives to be a good neighbor, consistently shaping business decisions to improve the quality of life in the communities in which coke does business. It’s a special thing to have billions of friends around the world, and coke never forgets it.
The Coca-Cola Company is the largest manufacturer and marketer of nonalcoholic beverage in the world. The company produces finished product in cans and bottles. The bottlers then sell, distribute and merchandise the resulting Coca-Cola product to retail stores, vending machines, restaurants and food service distributors. Coca-Cola is the most popular and biggest-selling soft drink in history as well as the best-known product in the world. The Coca-Cola Company offers nearly 400 brands in over 200 countries. Throughout this
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout the world. It is produced by The Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman As a Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.
Coca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia, United States of America. Coca-Cola is the world’s largest soft drink maker. It sells more than 3,500 products worldwide. Coca Cola offers markets more than 500 non-alcoholic beverage brands and also world class quality, starting from Coca Cola soft drinks, juices, teas, water and energy drinks. Coca-Cola owned a huge popularity across the world. The company ranked the third Interbrand’s 2014, the most valuable brands list in the world. Coca-Cola has its own efficiency in marketing strategies, innovation, and extensive global reach that makes reputation of the company rise in globalization.
Coca-Cola and PepsiCo compete at length with each other among an extensive list of other brands. A key concern for both of these companies in 2011 was their capability to market, produce, and distribute across national boundaries of a single nation. This concern has decreased as both companies were able to push though their limitations and were able to establish manufacturing plants in countries across the globe. (Coca Cola Company, 2011)
The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical
Coca Cola is an international organization which is operating in more than 400 countries. It deals in the beverage industry and is leading the industry for years. Coca Cola is a competing brand, which has made its place in the market competing against several brands. Coca Cola is considered as the leading brand and is ranked as number 1 international brand, according to the ranking of 2011. Coca Cola deal in the beverage industry and provides people with several products. It is a well-known name and people all around the world knows about it. Headquarters of Coca Cola is in Atlanta, and the company has been operating for more than 126 years (Wise and Baumgartner, 1999). In 1886, the company was formed and since then it has been serving millions of people around the globe. Coca Cola is the lead brand of Coca Cola Company, which is the greatest reason of its recognition. Despite many competitors like Pepsi Co, the company has been able to maintain its position in the
The Coca Cola company is perceived to be the most famous trademark on the globe, and it is equally so. The company claims more than 400 brands that appeal to a wide range of individuals throughout the world. They are in a position to fulfill needs of every one of their buyers making their experience with their beverages a better one. The entity’s drinks entice a lot of people across all races, age, and gender. Coca Cola is outstanding for its overall popularity as its items are sold in over four hundred countries in the world, while major contenders like Pepsi are just available in very few countries. Such a competitive advantage has placed
The Coca-Cola Company is a strong multinational company with a well-established trademark that has done well since 1886. The company has improved its marketing strategies to satisfy customers in a better way. Since its establishment, it has effectively differentiated itself by being considered as the largest manufacturer, marketer, and distributor of non-alcoholic syrups
Coco-Cola, a sugary soft drink, was developed by a pharmacist known as Dr. John S. Pemberton. The company has been was established in 1892, and has since then undergone expansions in terms of product packaging, product variety and location. Today, the Coca-Cola company is “the world’s largest manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups” (Coca-Cola Company (KO), n.d.), and “operates in over 200 countries and sells more than 400 different brands that produce over 3000 different products” (Coca-Cola Company (KO), n.d.). With the growing concerns for health today, consumers are more health-conscious
Coca Cola’s international achievement can be attributed to numerous of things, but in order to think globally one must first think locally. This is the main message that Coca Cola Company place huge emphasis on whenever they are entering a country. (Miller) Coca Cola has formatted its approach strategically using a tactical method, this is done to provide the appropriate marketing activities and beverage to its customers. As part of Coca Cola vision to taste the same around the world, they have chosen to standardize its product and manufacturing process. In Trinidad and Tobago the local name for Coca Cola is “Coke”. From the perspective of consumers the key conceptual categories are not the flavours and colas that marketer hold in high regard, but what we refer to locally as the ‘black’ sweet drink. (Miller) Trinbagonian’s are particularly fond of sugar and sweet products this is linked to the days of the sugar cane field. Coke came into Trinidad in 1939, while under the British Government. (Miller)
The Coca Cola Company is a multinational company with more than 140,000 employees, the company is in beverage business and its flagship product Coca Cola is considered one of the best soft drink. Coca Cola soft drink is the real revenue generator of the Coca Cola Company. The company was found in 1892 and by 2010 it was reported that the company has the serving of 1.7 billion per day so the company has only grown since its inception. The company is serving its product in more than 200 countries, and the Coca Cola Company owns more than 500 brands, this shows that the graphs of the company is moving upwards and the Coca Cola Company is growing at an immense rate.
Coca- Cola Company is US multinational beverage corporation, with 129 years of history. Coca Cola was recognized as 4th world’s most valuable brands and most valuable brand in beverage industry in 2014 according to Forbes magazine. Coca-Cola’s international market strategies are the classic example of successful Global Marketing Mix, which uses both standardization-adaptation strategic combinations to achieve bigger market shares all over the world. However in a big game there are always big players, and Coca Cola’s most fierce rivalry is Pepsi. Both of them control around 60% of global nonalcoholic beverages industry as well as they are present in more that 200 countries around the world. Coca Cola as long-term leader in the beverage market owns huge portfolio of 500 brands. So
Coca-Cola is a soft drink that is carbonate, which is produced by The Coca-Cola Company of Georgia and Atlanta, which is frequently simplified and referred to as “Coke”. The Coca-Cola Company has existed since 1944, March 27th. The Coca-Cola Company has introduced other soft drinks under the Coca-Cola Company such as Diet Coke, Coca-Cola Zero, Coca-Cola Cherry, Coca-Cola Vanilla and the company furthermore introduced unique versions containing lime, coffee and lemon. Coca-Cola is served and drank worldwide, it is reported that Coca-Cola products exist in more than 200 countries globally witch consumers who consume over 1.8 Billion Coco-Cola beverage servings daily. Coca-Cola or “Coke” Is renowned for its strong brand status, it is rumoured to be the world’s most valuable brand. Coca-Cola beverages come in different packages and can be conveniently found anywhere, In Restaurants , Office Buildings, Vending Machines, “Spaza Shops”, Street Vender’s, Markets and shops rather than its competitors.