Preview

MARKETING STRATEGY FOR COCA COLA

Good Essays
Open Document
Open Document
7431 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
MARKETING STRATEGY FOR COCA COLA
The Marketing Review, 2003, 3, 289-309

www.themarketingreview.com

Demetris Vrontis1 and Iain Sharp2
Manchester Metropolitan University Business School and Legal and General

The Strategic Positioning of Coca-Cola in their
Global Marketing Operation
Examines how Coca-Cola has strategically positioned it self within the world’s soft drinks market. Given that they operate in over 200 countries, they are faced with a clear choice of whether to standardise their product offerings globally and reap the potential benefits of economies of scale, adapt their offerings to a particular market (which may facilitate increased market specific penetration), or adopt an integrated approach utilising both approaches simultaneously (Vrontis’ AdaptStand approach). There has been much literature written regarding the external and often uncontrollable factors which may impact upon a firms positioning strategy; this paper looks at these externalities and the internal controllables in order to derive a ‘best fit’ strategic and tactical approach. Moreover, this paper looks at the strategic international positioning of Coca-Cola by utilising a number of models.

Keywords: Coca-Cola, global, international, strategy, positioning, adaptation, standardisation, AdaptStand, AdaptStandation, international, marketing, Introduction
If we consider business to be akin to war, then perhaps there is no better starting point than the writings of Sun Tzu [circa 400-320 B.C.]. ‘The Art of
War’ is the oldest formalised writing focusing on the concepts and principles of warfare and military strategy. Written over two millennia ago, it is still valid in the modern world, not only in military terms, but also in business.
“Generally, he who occupies the field of battle first and awaits his enemy is at ease, and he who comes later to the scene and rushes into the fight is weary. And, therefore, those skilled in war bring the enemy to the field of battle and are not brought



References: Aaker, D.A. (1998), Strategic Market Management, John Wiley and Sons Inc Ansoff, I Quarterly, Vol. 4, 1-2, pp.9-15 The Coca-Cola Company, Annual Report, (1998) The Coca-Cola Company, Annual Report, (1999) Collins, D.J Cummings, S. (1993), “The First Strategists”, In: de Wit and Meyer (2001), Strategy: Process, Content, Context, Thomson Learning Dana, L.P. and Oldfield, B.M. (1999), “Lublin Coca-Cola Bottlers Ltd”, International Marketing Review, Vol Day, G.S., (1986), Analysis for Strategic Marketing Decisions, West Publishing Douglas, S. and Wind, Y. (1987), “The Myth of Globalisation”, Columbia Journal of World Business, Winter Doyle, P. (1983), “Marketing Management”, unpublished paper, Bradford University Management – Centre, In: Brooksbank, R Hamel, G. and Prahalad, C.K. (1985), “Do you Really have a Global Strategy”, Harvard Business Review, Vol Jeannet, J-P. and Hennessey, H.D. (1992), Global Marketing Strategies, Boston, Houghton Mifflin Company Kogut, B. (1985), “Designing Global Strategies: Profiting from Operational Flexibility”, Sloan Management Review, Vol Kotler, P. (1991), Marketing Management, Analysis, Planning, Implementation and Control, 7th Edition, Prentice Hall Inc Levitt, T. (1983), “The Globalization of Markets”, Harvard Business Review, Vol Ohmae, K. (1990), The Borderless World, London, Collins Markides, C Prahalad, C.K. and Hamel, G. (1990), “The Core Competence of the Corporation”, Harvard Business Review, May/June Porter, M.E. (1980), Competitive Strategy, Techniques for Analysing Industries and Competitors, New York: Free Press Porter, M.E. (1986), “The Strategic Role of International Marketing”, Journal of Consumer Marketing, Vol Porter, M.E. (1985), Competitive Advantage: Creating and Sustaining Superior Performance, New York: Free Press Rumelt, R. (1980), “The Evaluation of Business Strategy”, Business Policy and Strategic Management, Edited by W.F Sanchez, R., Heene, A. and Thomas, H. (1996), Dynamics of CompetenceBased Competition, London: Elsevier Stalk, G., Evans, P In The World, Translated from the Chinese By Lionel Giles, M.A. (1910) Svensson, G Vrontis, D. (2003), “Integrating Adaptation and Standardisation in International Marketing, The AdaptStand Modelling Process”, Journal of (Dana and Oldfield, 1999) Evidence of adaptation within regions of countries (i.e Is Coca-Cola guilty of imposing these ideals and adopting an ethnocentric viewpoint? (Thomas and Hill, 1999)

You May Also Find These Documents Helpful

  • Better Essays

    Typing Template for APA Papers: A Sample of Proper Formatting for the APA 6th Edition…

    • 895 Words
    • 4 Pages
    Better Essays
  • Good Essays

    First question: what are the management functions performed by Mr. Goizeta, Mr. Hunter, and Mr. Ivester? How their responsibilities differ?…

    • 1288 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Botha J, Bothma C, Brink A. (2005), Introduction to Marketing, 3rd edition, Cape Town: Juta and Co Ltd.…

    • 5346 Words
    • 22 Pages
    Powerful Essays
  • Better Essays

    A business will diversify by creating a brand new product and marketing it is already familiar market or in a completely new market altogether.…

    • 2828 Words
    • 12 Pages
    Better Essays
  • Powerful Essays

    The themes in “The Art of War” seem to run parallel to those in the business world, with the fight to be the leading company seen as the war and the competition seen as the enemy troops. There are several quotes used by Sun Tzu in his book that can be used to motivate managers and other businessmen in order to achieve ultimate success. While interpretations vary somewhat from author to author, the messages of the quotes remain similar.…

    • 1438 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Art of War Critique

    • 450 Words
    • 2 Pages

    The concepts presented in the treatise by Sun Tzu in order to win battles originally intended for ancient China is so encompassing that it can be used in business and even in life today. Last night, i had an discussion with my friend regarding the similarities of war and of business. She told me that one her favorite books is The Art of War, so i asked her if she agreed that business is like war. She told me, "yeah". She told me that according to Sun Tzu, engaging in war in order to win battles involves tremendous amount of strategies. It involves knowing yourself and knowing your enemy. This knowing involves identifying your not only your strengths and weakness but also your enemy's. You should always use your strengths and focus it on the enemy's weaknesses. Also important is that you take advantage on the opportunities and avoid threats.…

    • 450 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Ratmir Sardarov

    • 1644 Words
    • 5 Pages

    If you are going to try to go to war, or to prepare for war, in a capitalist country, you have got to let business make money out of the process or business won’t work…

    • 1644 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Yet pricing decisions can have important consequences for the marketing organization and the attention given by the marketer to pricing is just as important as the attention given to more recognizable marketing activities. Here, we will talk about how Coca Cola manage to set the price for their products using different strategies.…

    • 1031 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    In general, Coca-Cola beverages are for all consumers; however, there are some brands that target specific consumers. The target market has been defined as multi-cultural youth of age 13 - 24. The Coca-Cola Company 's people say "Coca-Cola Company will target multi cultural youth by identifying common youth struggles and positioning Coca-Cola as a unifying element in diverse youth culture" (ThePaperStore, 2010, pg.15). College kids drink plenty of soda. So perhaps it makes sense that Coca-Cola was the first company to collaborate with UPromise. UPromise is designed to help families save for college and, to assist companies in building brand loyalty. The emphasis on diversity is reflected in the company 's demographics, which is shown in the graph below (All Business, 2000).…

    • 653 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Examines the industry structure and competitive strategy of Coca-Cola and Pepsi over 100 years of rivalry. The most intense battles of the cola wars were fought over the $74 billion CSD industry in the United States, where the average American consumes 46 gallons of CSD per year. In a "carefully waged competitive struggle," from 1975 to the mid-1990s, both Coke and Pepsi had achieved average annual growth of around 10%, as both U.S. and worldwide CSD consumption consistently rose. However, starting in the late 1990s, U.S. CSD consumption started to decline and new non-sparkling beverages become popular, threatening to alter the companies' brand, bottling, and pricing strategies. The case considers what has to be done for Coke and Pepsi to ensure sustainable growth and profitability. A rewritten version of an earlier case.\…

    • 412 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Growth Strategy of Coca Cola

    • 2885 Words
    • 12 Pages

    Thank you, Alan, and good afternoon, everyone. What a great privilege it is to be in our nation's capital today to address the National Press Club.…

    • 2885 Words
    • 12 Pages
    Good Essays
  • Powerful Essays

    Marketing Coca Cola Drink

    • 6913 Words
    • 28 Pages

    Marketing for a New Coca Cola Drink The Coca Cola Company requires ideas on the development of a new fizzy Coca Cola Drink. It must utilise the flavours and styles of existing Coca Cola Fizzy Drinks, but capture a currently untapped or unfulfilled market segment. You need to consider the current market, find a suitable segment and develop a marketing strategy for your idea.…

    • 6913 Words
    • 28 Pages
    Powerful Essays
  • Powerful Essays

    Marketing Plan for Coca-Cola

    • 2691 Words
    • 11 Pages

    BOOMS COLA is one of the newcomer brands in Bangladesh. In this project we want to find out the scope of launching a new soft drink brand in Bangladesh by providing details of launching & promotion system of soft drinks. In this project we found out the existing product information of our brand BOOMS COLA, Its target market, competitive advantage, media plan, opportunity and the budgeting of this company and the other factor. Besides we want to find out the customer’s choice, preference and demand by conducting a survey on the target audience. In Bangladesh there are many beverage companies, which are owned by domestic companies such as AFBL, Partex Beverage Ltd, etc. also, there were other international companies, such as Coca-Cola & Pepsi Bd. Ltd. & PEPSI which are doing its business within Bangladesh. After all of that we try to introduce a plan for the BOOMS COLA to launch in the market and compete with the competitors. For this reason we evaluate market…

    • 2691 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    Coca Cola Strategy

    • 544 Words
    • 2 Pages

    The enterprise has core competencies => the competitors in the host country does not have or difficult to develop, catch up or imitate…

    • 544 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The company that I’m going to do my project on is Coca-Cola. They are the world’s largest retailer of non-alcoholic beverages. They produce a large variety of different beverages, such as juices, sport drinks, and teas. It is believed to be the most valuable brand selling products in over 200 countries all around the world and owning over 500 brands across the world. Coca-Cola is mainly operated in North America accounting for at least 25% of its capital expenditures. Coca-Cola was established in 1886 to refresh the world as it says as their mission statement.…

    • 256 Words
    • 2 Pages
    Satisfactory Essays