Marketing of Coca Cola in China and Pakistan

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MARKETING ACROSS CULTURES

Marketing of Coca Cola in China & Pakistan

Word Count - 1627
Contents
Introduction3
Culture and Customer Analysis comparison between China and Pakistan3
Hofstede cultural dimensions of china and Pakistan3
Marketing Mix5
Pakistan5
China7
Porters 5 forces: Pakistan8
Porters 5 Forces: China9
SWOT Pakistan:10
SWOT China:11
Competitor Analysis In Pakistan & China12
PESTLE Analysis for Pakistan13
PESTLE Analysis for China13
Conclusion15
References16

Introduction

This report will analyse the cultures of Pakistan and China and how does Coca Cola implements its marketing strategies in both countries. Coca Cola’s long term vision is to make China the largest market for its products. Due to the competitive nature of the soft drink industry the consumption and purchase of Coca-cola has increased in China (Chinadaily, 2007). It is high in urban areas with people falling in the age bracket of 45years or less making the maximum purchases. Likewise Pakistan, in China also the younger generation prefers consuming the beverage due to convenience, taste and its positioning. In China consumers have become more health conscious due to which the company has to face the challenge of providing the same taste with less sugar contents and healthier ingredients (McWilliams, 2010). In Pakistan Coca-Cola is purchased by all classes, it has a strong brand loyalty, it is popular among the young generation and sales are particularly high in urban as compared to rural areas. Despite the health concerns it is being consumed widely as people trust the ethics and corporate responsibility, quality and taste delivered by the brand (Sharma, 2011). Culture and Customer Analysis comparison between China and Pakistan

For any successful marketing campaign the first essential step is to understand your customer, because the study of consumer will guide your marketing strategy. Cultural differences among customers around the world can have implications for marketers (He, 1995). Hofstede cultural dimensions of china and Pakistan

* Power distance: There is relatively high power distance in China as compared to other Asian countries and there is disparity of wealth among individuals in the society. In Pakistan the one who holds more power takes the decision and likewise there is high inequality of power and wealth in the region (Evans et al, 1991) * Uncertainty avoidance: China has a low score on uncertainty avoidance and government still controls the individuals largely. Pakistan has a high score and people are willing to accept risks here. * Individualism: Chinese market is very loyal to their close families, friends, organization and the community on the whole. Pakistan is a collectivist society with high value and regard given to family and elders (Lloyd, 2004). * Masculinity: China has higher cultural index with a stronger desire for competition. Pakistan has a high muscularity score and women are still protected from outside influence. * Time Orientation: China has a higher score on time orientation; time is an ally for them. They have the ability to handle obstacles over the period of time with strength. Pakistan is a short term oriented society with more emphasis on image and social guidelines for decision making rather than planning (Hofstede, 1983).

Marketing Mix

Pakistan

Price:
Pepsi has always been the main competitor of Coke throughout the world. Their pricing is always similar. Standard price is used globally. Price fluctuations occur very rarely, they might change it once a year and that would be because of governmental and political laws and regulations. In case of Pakistan we can see that prices have increased in a short span of time due to an ever increasing rate of inflation. Promotion:

Promotion of Coke has always been aggressive in Pakistan. They use various media such as print, broad cast, speciality out of home and...
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