Coca-Cola Should Reap the Benefits of Localization

Coca-Cola Should Reap the Benefits of Localization The Coca-Cola brand is globally recognized and consumed. Their famous beverages can be identified in every corner of the world. This has been largely attributed to the company’s early ability to adapt to local cultures. However, in the recent decades, Coca-Cola has adopted a global standardization approach, where their main products are pushed in the same manner on a worldwide scale. This strategy worked well early, but their growth rate fell short after ten years. Now, Coca-Cola has a mixed policy of localization and global standardization. If the company wants continual growth and expansion in the most optimal way, however, Coca-Cola needs to adopt localization standards in order to reap the benefits of unique products, on-target marketing, and lower trade barriers. The main benefit from producing locally exists in the fact that the company can create products that appeal to the taste of the local consumers. For example, many people in America view Coca-Cola soda as the main product of the company. In many parts of Asia, however, one of the highest selling drinks is a non-carbonated beverage called Qoo, which started in Japan. According to an article from AdvertisingAge, this drink rose to the number one selling drink in Singapore “within nine weeks of launching in that market (Osborne).” Qoo demonstrates the idea of unique production appealing to the tastes and preferences of a particular market. The producers saw two “big trends going through Singapore: health consciousness, and a fascination with anything Japan (Osborne).” Here, local managers were given more autonomy with regards to product creation. As a result, they created a unique, localized product that has really given the company huge growth. When a company is globalized, it also needs to make a decision about their marketing strategies. While some companies choose to approach marketing on a global standpoint, Coca-Cola should adopt a more

Cited: Osborne, Magz. "Advertising Age." Advertising Age. N.p., 08 Oct. 2001. Web. 04 Oct. 2013.