Coca Cola

Coca-Cola is the most popular and biggest-selling soft drink in history, as well as one of the most
recognizable brands in the world.

Created in 1886 in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a
fountain beverage at Jacob's Pharmacy by mixing Coca-Cola syrup with carbonated water.

Coca-Cola was patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold
in every state and territory in the United States.

In 1899, The Coca-Cola Company began franchised bottling operations in the United States and
in 1906 bottling operations for Coca-Cola began to expand internationally. We Are Global

 “The red and white Coca-Cola logo is recognized by 94% of the world’s population.”
(via: business insider)
 Coca-Cola is recognized as the world’s most valuable brand is often associated with
happiness. In fact, Coca-Cola means “Delicious Happiness” in Mandarin.

Diverse

 “The Coca-Cola Company is ranked on the list of top organizations for multicultural
business opportunities.”
 “Named again on Top Corporations for Women’s Business Enterprises”

Growth

 Established 1886 in Atlanta: In the first year Coca-Cola creator John Pemberton sold an
average of nine servings of Coca-Colaeach day. Today that number has increased to 1.9
billion servings of Company products.
 In 2017, we increased annual dividends for the 55th year in a row. Learn more about Our
Company.

Our People:

 As of December 31, 2016, the Company had 100,300 associates worldwide. Meet our
people.
 Together with our bottling partners, we rank among the world’s top 10 private employers
with more than 700,000 system employees.
Brands:

 We lead the beverage industry, with a portfolio featuring 21 billion-dollar brands.

 Globally we are the No. 1 provider of sparkling beverages, juices and juice drinks, and
ready-to-drink coffees.
 We currently offer nearly 1,200 no- and low-calorie products around the world, with
nearly 200 no- and low-calorie products launched in 2016.

Global Reach:

 The Coca-Cola Company is the world’s largest beverage company

 Our operational reach encompasses + 200 countries worldwide across 5 operating
regions: Asia Pacific; Europe, Middle East & Africa; Latin America; North America; and
Bottling Investments – in addition to Corporate. Get the overview.

Distribution System

Through these outlets and our direct focus to commitment and relationships, Coca-Cola is one of
the most highly respected companies in the world. We continue to expand upward in new and
exciting ways and are looking to grow with individuals who harbor a similar ambitionTable of
Contents

In conditions of transition to a market economy, one of the factors of effective functioning of

economic entities is the access of these entities to international markets. Marketing, as experts
emphasize, is not only a theoretical but also a predominantly practical discipline that arose and
developed as a result of economic activity in a market. Marketing in the course of its
development has widely used the advanced achievements of science, it is an arsenal of modern
techniques and methods of various scientific disciplines that are used to solve a wide range of
tasks. In the current conditions of development of the economic sphere of society, which are
characterized by the intensification of competition in world markets, increasingly complex
technological and organizational models of production, extreme information saturation and
efficiency of foreign economic activity, is closely linked with the goals and methodology of
using marketing tools. Moreover, its international aspects are significantly updated due to the
further internationalization of the world economy, expansion of international trade, more
dynamic and massive movement of capital and labor. In conditions of rapid market development,
the application of marketing strategies is one of the most important functions for organizations.
Every year the competitive situation grows and is increasingly complicated due to the expansion
of the borders of foreign markets, the presence in the domestic market of foreign firms with
significant experience of international business. In such conditions, the growth of
competitiveness in demonstrated by organizations that carry out their activities not only on the
domestic market, but also on foreign markets. Organizations can count on successful conduct of
business in foreign markets only if they have a good knowledge of the world situation and own
the economic situation in international markets, which is connected with the need to have not
only advanced achievements in the production of goods but also with effective marketing abroad.
Today, the study and application of international marketing by organizations in their activities
becomes a necessity. In addition, individual industries of countries with developed market
economies could not exist at all without foreign markets, since there is no necessary sales
volume within their country. The foregoing causes the relevance of the study on "International
Marketing". The subject of the study is marketing in international markets, the subject of
research is the essence and the system of it. The purpose of the paper work is to analyze the
principles of international marketing, to consider this kind of activities in The Coca Cola
Company. To achieve this goal, I solve a number of problems:

- To uncover the concept and essence of international marketing

- To justify the principles and methods
- Explore the concepts and features of international marketing
- Studying the history and giving a description of the activities of the company "The Coca-Cola
Company".
- Considering the principles of the international marketing strategy "The Coca-Cola Company".

The Essence and Objectives of International Marketing

The Concept and Essence of International Marketing

Marketing is the concept of managing the activities of the organization. It is a part of the overall
management process. As a type of management, it includes an analysis of the needs of customers
and the development of a set of measures designed to ensure that they are met with the maximum
profit for the organization. According to the definition, international marketing is the marketing
of goods and services in the markets of countries other than the producing country. [1]

The development of such a complex is a management process, covering stages of analysis,

planning, organization and control of marketing activities. Therefore, the center of marketing
activities of the organization is the preparation and adoption of managerial solutions that allow
solving international marketing tasks on the basis of relevant external (market) and internal
(technical, industrial and economic) information.

The essence of international marketing is the consideration of the whole world as its potential
market, its analysis and satisfaction of its needs. It also requires an important aspect of the
problem, such as the differences between categories: exports, export and international marketing.
Export consists in the fact that producers are limited to supplying their products to firms of other
countries (importers).

The suppliers are not interested in what is happening with their products, how satisfied the need
of customer are. Export marketing is understood as an attempt to sell products in another
country, which differs from sales on the domestic market: sales conditions, business practices,
national traditions, currency and peculiarities of the socio-cultural environment. As a rule, the
company at the same times translates its trading practices beyond the national borders, making
minimal changes to its components. It is with the establishment of export operations that many
firms start their international marketing activities.

The exporter deeply examines the market and uses for its processing the entire set of marketing
tools, as well as various forms of foreign economic relations: scientific and technological
exchange, contact manufacturing, joint ventures, the establishment of subsidiaries and others.

The conceptual basis for the formation of international marketing, the most intensive
development of which was noted in the 60-70s of the 20th century, was a serious change in the
development of productive forces and relations. Among them are the following:

- Internationalization of economic life and activity of the largest companies

- The impact of scientific and technological progress on economic processes, the consequence of
which was the restructuring of industrial production in developed countries
- Significant changes in the nature of goods supplied to foreign markets, the intensive movement
of new products, licenses, scientific developments
- Reduction of the life cycle of many goods, while increasing the demands customers for novelty,
quality, design, packaging
- The growing tendency to equalize the conditions of demand and style of consumption in
different countries
- Aggravation of competition in the world markets, which in some cases acquires the character of
a trade or price war.

International marketing activities do not involve the use of any fundamentally new marketing
functions. Setting marketing tasks, selecting target markets, positioning products, developing a
marketing mix and monitoring marketing activities – all these fundamental requirements remain
relevant in the firm’s work abroad. It is quite obvious that there cannot be effective international
marketing at an enterprise that does not comply with basic marketing principles in the domestic
area. [2]

However, it should be remembered that a certain specificity generated by the features of the
functioning of external markets and the conditions of activities on them, gives international
marketing the features that organizations are required to take into account.

Principles and Methods of International Marketing

For successful marketing activities in foreign markets, organizations must make greater and
more focused efforts, consistently follow the principles of marketing, use marketing techniques,
methods, procedures. As a rule, external markets place not only high, but also special
requirements for the goods offered on them, their services, advertising. This is due to both to the
specific demand of individual markets, and to the level of competition. International marketing is
based on the principles of national and has a similar structure.
At the same time, it is specific, because it deals with foreign trade and currency transactions,
foreign and international legislation. The incentives of international business are the comparative
advantages caused by division and specialization of the economies of states, the difference in
their economic and geographical conditions. International marketing is an objective process
dictated by the current state of the world community:

- Independence of the states of the international community

- International and national legislation
- Excess of demand over supply, saturation with gods and services
- Availability of national currency systems
- The developed competition of commodity producers
- Developed market infrastructure
- Growth in the living standards of a number of countries and, correspondingly, and increase in
demand for food, clothing, furniture, machinery, computers and other goods
- The desire of enterprises, organizations to expand external markets for the sale of products and
increase profits. [3]

An obligatory requirement in the conditions of international marketing is the formation of

production programs and product range based on careful study of consumer demand, and
marketing policy requires the restructuring of the entire production management system, as well
as improving the efficiency of all divisions. Proceeding from this, international marketing should
be viewed as a managerial activity in the world market, designed to provide a more complete
satisfaction with the specific needs and needs of consumers in necessary goods than competitors.
The main principle of international marketing is the orientation of the final results of production
on the real requirements and wishes of foreign consumers.

From this principle follows a number of requirements:

- It is necessary to know the international market, comprehensively study the state and dynamic
of consumer demand for a product or service, use the information obtained in the process of
developing and adopting scientific, technical, production and economic solutions
- To maximally adapt production to the requirements of the market to improve the efficiency of
the enterprise, to produce goods expected by the consumer
- To influence the market and consumer demand in order to form it in the directions necessary
for the organization
- Organize the delivery of goods in such quantities, at the time and place that would most suit the
end user
- To bring new products to the market
- To divide the international market into relatively homogeneous groups of consumers and focus
on those segments for which the company as the best potential
- To conquer the market with goods of the highest quality and reliability
- To achieve the advantages in the competitive struggle by increasing the technical level and the
quality of the product or service
- To assist trade intermediaries, providing them with assistance in solving technical problems and
training staff

All these principles are not new, but the differences between countries can be so deep that an
international market person needs to be able to understand foreign specifics and be ready to
revise the fundamental ideas about how people react to the incentives of marketing. Before
deciding to organize sales abroad, and organization needs to learn a lot. She needs to thoroughly
understand the features of the international marketing environment [4]. The main thing in
international marketing is target orientation and complexity, that is, the combination of
entrepreneurial economic, production and marketing activities in a consistent interrelated system.
This means merging all the components of marketing activities into one stream in order to
achieve sustainable profitability within given time limits in a market economy.

International Marketing Concepts and Features of Transition to International Marketing

Studying foreign markets, their capabilities and requirements, this starting point in international
marketing is usually much more complicated and time consuming than researching the domestic
market. If I take into account that the world market includes approximately 180 markets of other
countries and each of them has common features as well as certain features, it becomes obvious
that more research work is needed for each of the selected markets. In addition, when entering a
foreign market, we also have to analyze complex objects that the domestic market does not have:
for example, customs regulation, exchange rates, international balance sheets, and so on. [5]

In international marketing activities one cannot ignore the political risks associated with entering
markets chosen by the national company as the most attractive for export sales, or other forms of
international marketing. For effective operation in foreign markets, it is necessary to use very
flexible marketing procedures. There are no standard approaches here. To use various marketing
methods should be taking into account the fluctuations and the forecast of the development of
foreign markets, the established their commercial practice and trade customs, features of the
surrounding marketing environment.

It is especially important to take into account the specifics of the socio-cultural environment.
Differences in the environment orientation and approaches to international markets, on which
international business organizations operate, can fall under one of the three concepts of
international marketing:

- The concept of expanding the domestic market

- The concept of the multi-domestic market
- The concept of global marketing

The concept of expanding the domestic market, is the orientation of the enterprise to
international marketing, and occurs when an organization with the aim of increasing the share of
sales of its goods enters foreign markets. The concept of expanding the domestic market involves
considering its international operations as secondary, and the initial operation is to expand the set
of operations on the domestic market. The primary motive is the sale of surplus products.
Entrepreneurship in the domestic market, is the orientation of the enterprise to international
marketing, and occurs when an organization with the aim of increasing the share of sales of its
goods enters foreign markets. The concept of expanding the domestic market involves
considering its international operations as secondary, and the initial operation is to expand the set
of operations on the domestic market. The primary motive is the sale of surplus products.

Entrepreneurship in the domestic market is a priority, and activity abroad is a profitable increase
in the number of operations in the domestic market. Companies are looking for segments of the
international market, where demand for products is similar to demand in the domestic market.
Such a market expansion strategy is very profitable in practice, and many firms are involved in
international marketing due to this line of behavior.

The concept of the multi-domestic market companies use this concept in the case when work in
foreign markets is of great importance and it is necessary to modify foreign business in terms of
organization. They develop individual programs for each market.

The products of these firms are adapted to each individual market, regardless of the branches of
their organization in other foreign countries. Each branch develops its marketing program, strives
to adapt to the local market of a foreign country. The concept of global marketing, global
marketing, covering the whole world. An enterprise of this type develops standard high quality
products that will be sold at a reasonable price in the global market.

With such a campaign, the global market is equated with domestic market of the country, but it
works all over the world.

The main principle of the global marketing concept involves the orientation of the world market
to the people to the buyer to meet their needs and desires. Many companies try to standardize
most of their approaches.

The global organization views the world as a whole a single market and creates a global
marketing strategy. [6]

Groups of prospective consumers with identical needs form global market segments.
Consequently, the global marketing plan provides a standardized product for the global market,
but with differences in advertising that takes into account the characteristics of the country.
Identify the basic concepts of the organization of international marketing activities:

- The concept of production

- Concept of the goods
- Sales concept
- The concept of marketing
- The concept of public marketing
 Since the Coca-Cola was formulated by pharmacist Dr. John Stith Pemberton in Jacob's
Pharmacy in Atlanta, Georgia in the U.S., passing by 140 years it became the world's largest soft
drink company in term of manufacturer, distributor and marketer in non-alcoholic area, and
operates in more than 200 countries servicing over 16 million people different Coca-Cola
products every day. The products in Coca-Cola company including sparking drinks and still
beverages such as waters, juices and juice drinks , teas , coffees , sports drinks, and energy
drinks. (Coca-Cola website 2010)
Brand as the definition is "A name, a sign, symbol or design or combination of them intended to
identify the goods and services of either one seller or group of sellers and to differentiate the
from the competitors" (Kotler 1984, p442) .
Brand is a symbol, an attitude and a culture to the people which can show their own personalities
and life. A good brand is not only a name and a promise is not only a memory in people's mind
however it can influences people's life.
The brand Coca-Cola now is one of the most valuable brand ($66,667 million) including 500 soft
drink brands in the company. Beside the most valuable brand Coca-Cola, the company still have
another 12 brands which are over $10 hundred million consist of 'Diet coke', 'Sprite', 'Fanta',
'Coca-Cola zero', Glaceau, ' Powerade'' Minute Maid' , 'Georgia' etc...(Coca-Cola website 2010),
(annual report 2009)

Foreign direct investment (FDI)

FID which means investment in manufacturing and service facilities in a foreign country with an
intention to engage actively in managing them-is another facet of the increasing integration of
national economies. (Kotabe Helsen)
The biggest investment in foreign market is direct investment, as the company investment the
new manufacture in the foreign country to develop their local product and easy to control the
price come from the raw material details. Such as HP make the direct investment in some
majored market around the world, including India. (Kotler and Armstrong). Generally the
foreign direct investment can help the company developing deeper relationship with government,
customers and local supplier, at the same time improved their image in the target country
because they create jobs. Also the foreign direct investment have the disadvantages like
government changing , falling markets, frankly speaking the company have no chose but can
build the effective operations to accept this.
This first Coca-Cola bottling manufacture factory was established in Beijing in 1981, to got the
benefits from direct investment, until now there are 35 bottling company and 29 manufacture
factory for Coca-Cola products in china, more than 30,000 people working in Coca-Cola,99%
stuff are Chinese local .

Network models (alliances and joint ventures)

Alliances
An operate joint venture is an agreement for the partners to collaborate but does not involve any
equity investment. (Kotabe Helsen)
For the fierce of the business, more choose face to the customers in the market, however how can
the company satisfy the customers multi-choice of the produce is an impotent to the company
management. However the "marketing partnership" will be the first choice to enhance the value
to customers. For instance two different company become to alliance their retailers has to be treat
they are customer too, cause they may not in the same industry and market, therefore two
different company to be alliances can support their sales channel ,design and implemented co-
operative advertising campaigns. (Keller, aperia, georgson2008)
2000 in china , Coca-Cola and Lenovo (top technologies company in china) home computer
together becoming to the "marketing partner", with Lenovo's high-tech image to match the
Internet Express, Coca-Cola with this alliances for the first step to connected with internet and
also it is a required of the development of the technology. In Chinese technology marketing,
Lenovo has hundreds of stores and thousands of dealers spread all over the country, with the
lager channel system, Coca-Cola to be well -know brand in china .(Lenovo website 2010)

Joint ventures
Joint ventures is "the participation of two or more companies in an enterprise in which each party
contributes assets, owns the new entity to some degree, and share risk."(Hollensen 2004)
Joint ventures as the important strategy to the company developing their global business, before
the FDI (Kotabe Helsen) most of the company choose corporation with the local company to
help them entry the new marketing, therefore the most of the local company have majority
market share in their industry, so it is easily and fast to the foreign company to introduce the
product and build their services net work in the new marketing.
Two top companies in the world Coca-Cola and nestle joined marketing force called Coca-Cola
and nestle refreshments(CCNR) as the beverage partners worldwide (BPW)since 2001, the fifth-
fifty joint venture held by the two companies. The joint ventures concentrate on the reedy-to-
drink tea excluding the US and Japan, probably create the new values for all shareholders both of
two companies.
Before to cooperate with Coca-Cola, Swire Group's services consisted of property, aviation,
beverage, marine services, industry& industrial; COFCO is the largest oil and foodstuffs import
and export company in china, also have food manufacture, hotel management and financial
services, list by the< FORTUNE> magazine as one of the top 500 companies in the world; the
Kerry group also the top oil and foodstuffs company have the high market share in china. In
china Coca-Cola with the three partners in a joint venture bottling plants-Swire Group, Kerry
Group and COFCO (China Oil & Foodstuffs Corporation), responsible for the implementation of
the beverage production, sales and building the marketing channels. The responsibilities for
Coca-Cola are brand promotion, marketing development and control the liquid forms of
cooperation. (Annual report 2009) (COFCO website). Read phonetically
Dictionary - View detailed dictionary

Chinese culture
"Culture is the collective programming of the mind which distinguishes the members of one
human group from another Culture, in this sense, includes systems of values; and values are
among the building blocks of culture" (Hofstede 1980, p21).
To understand the different culture in different countries is a main principle for the global
company enters the foreign, unknown market. Some of the culture elements like history, religion,
ethnicity, family, language, social class, politics, income, etc, are very important when the
company doing the business in foreign counties, so according to the different culture in different
country to make the company localization strategy is helpful to the company for the long-term
business to entry the new global market.
China is one of the world's oldest history of more than 5,000 years, has the territory area of 9.6
million square km, with the sea area of about 4.73 million square km, second largest country in
the world. (China culture 2010).

Coca-Cola in china
While Coca-Cola was succeeded in penetrating nearly every country of the world, it has never
been able to separate itself from the image of overpowering US brand (Hollensen 2004). For help
to raise the international profile of the brand further Coca-Cola entry the third biggest country in
the world -china. Therefore Coca-Cola is one of the earliest US company entries Chinese
marketing since 1927. The first bottling manufacture factory established in Shanghai and Tianjin,
this is the first time that Chinese people drink the new types, high-quality drinks. In 1930, in
Qingdao the third bottling factory was established, till 1948 Shanghai become the first city
outside Unites exceeded sales 100 million boxes. (Coca-Cola website 2010)
After the restored diplomatic relations between china and the Unites States in 1979 , the first
28,000 boxes of bottled and canned Coca-Cola products were shipping from Hong Kong to
mainland china to sales, since the Chinese marketing opening to the global ,the first Coca-Cola
bottling manufacture factory was established in Beijing in 1981, until now there are 35 bottling
company and 29 manufacture factory for Coca-Cola products in china, more than 30,000 people
working in Coca-Cola,99% stuff are Chinese local . over the past 5 years of business in china the
Coca-Cola company to be the main leadership in Chinese soft drink market, china become the
world's third largest market for Coca-Cola as well.(Coca-Cola website 2010)

Segmentation
(Kotler and Armstrong) statistics the definition of market segmentation as "involves
individuating a market in to smaller groups of buyers with distinct needs, characteristics, or
behaviours that might require separate marketing strategies or mixes."
"Market segmentation is the subdividing of a market into distinct subsets of customers, where
any subset may conceivably be selected as a target market to be reached with a distinct
marketing mix". (Kotler 2010)
The major segmentation elements for consumer markets are: Geographic, Demographic,
psychographic and Behavioural. (Kotler and Armstrong2010)
Developing the global businesses for the geographic and operating segmentation Coca-Cola
divided the world into six parts: Eurasia, Africa, Europe, Latin American, North American and
Asia Pacific.(Annul report 2009)
Coca-Cola company purchase the vehicles for the factory to responsible for the drinks to retailers
and giving free refrigerators, umbrellas to retailers, the company trying to find the different ways
to perfect their customer services. once the people will think about Coca-Cola when they want to
drink ,no matter where you are ,you can fine a Coca-Cola around you ,like grocery stores,
restaurants, street vendors, convenience stores, movie theaters and amusement parks, the
products covered among many others public squares. (Coca-Cola website 2010) (Annul report
2009)
Therefore the fierce completion push the company must provide more products to satisfy the
customer's choice, for the entry the variety beverage field Coca-Cola try to transform itself into a
localized "comprehensive". on the other hand Coca-Cola was alliances with one of the Chinese
largest internet services website company--Tencent to developing their youth marketing in china,
the star product of Tencent company is QQ (similar with MSN , is a instant message software),
until march 5, 19:52:58 ,Tencent QQ announced that the number of the current users exceeded
100million .with this cooperation ,Coca-Cola's iCoke website (www.icoke.cn) introduced the use
of 3D QQ Tencent game show , QZONE personal space, QQ theme packages ,to be the first
comprehensive online community for young consumers with a new experience of
communication.Listen
Read phonetically

Target market and positioning strategy

"A target market is a chosen segment of market that a company has decided to serve." (David
Jobber 2010 p 261)
A clear target is helpful to the company to understand the costumers' demand and favorite, easier
to design the target product to the target customers. For instance CNN target its news program
me, that is why CNN has globally, concentrate to the distribution effort in to hotels room, for the
business people they can see the CNN news wherever they are.( David Jobber 2010)
There are 3 key points of the Coca-Cola company-quality, customers and consumers. As the
leader of beverage market, in the fierce international competition, Coca-Cola company does not
pre-localization strategy, as the first global company to annoy the new localization theory "think
local, act local "to the whole world, the main principle about this theory is relevant to the basic
conditions of the different countries to make different decisions and strategy. Since the Coca-
Cola has the 30% market share in US, the company theory is to satisfy every customer's demand,
the aim for the whole company to make the everywhere and easy to buy, so pervasiveness, price,
value, preference to be the sales goal for Coca-Cola Company .The Coca-Cola Company is
always
Been the one of the first enter to developing marketing and build their strong positioning. Coca-
Cola will no longer focus on formal product but it committed to expand its beverage varieties.
From the style of oolong tea to a new era of mixed fruit drinks, high-calorie energy drink, or
even to the most basic drink-water. Coca-Cola company follow "give the world a coke", begin
according to people's teats in different countries to "tailored" drinks.
Marketing mix & Chinese marketing mix
"marketing mix is the set of market tools the firm uses to implement its marketing strategy. The
major marketing mix tool is classified into four board four groups, called the four Ps of
marketing: product, price, place, promotion" (Kotler and Armstrong 2010 p 36)

Product strategy
"Produce decision involves deciding what goods or services should be offered to a group of
customers" (David Jobber 2010 p 17)
A good whatever the design, the brand, the price, the main objective should be according to the
customer's demand. The most important element is new product development. Because the
change of the technology and taste, product become out of fashion probably or defeated by the
competitors, so company should replace them to satisfying customer's needs.
As the developing of the society, more and more pay attention about their quality of living and
health, people in order to keep their weight to reduce to eat some high energy food and even
drinks.co ca-ca la at this time to be the extension of the market to made the coke without sugar
and no calories but plenty of taste called "diet coke" in 1982, within two years it had become to
the top diet soft drink in the world. In 2008 another successful product "Coca-Cola zero" was
published. (Coca-Cola website)
China has almost four or five thousand years history to drink tea, to the Chinese people tea is not
just drink it is a type of culture. For this especially culture Coca-Cola made the product strategy
for Chinese marketing to sale Nestea ice rush lemon tea, and design a new product for Chinese
people called "Smart" to enhance the marketing competitions.

Pricing strategy
Pricing strategy is a key element and basic element of the marketing mix, for instance, the
Spending on product design (product), advertising and salespeople (promotion),
Transportation and distribution (place). So the pricing strategy should be very clear about
objective, ethos, factor and influencing, and also the discount and allowance in some
transactions. (David jobber 2010)
The main principle in Chinese economic marketing are vast land and large numbers of
population, varieties raw materials, nevertheless the another issue of the marketing is the low
cost of the labor force. However compared the product price between china and other countries,
the price advantages is obviously appeared.

Place strategy
"Place involves decisions concerning the distribution channels to be used and their management,
the locations of outlets, methods of transportation and inventory levels to be held." The aim of
the place strategy is to choose the right time and place to do available produce and service.
(David Jobber 2010 p 19)
To build an effective distribution channel is a best way to cooperate to the retailers, and
wholesalers, because they will fine the good way to sale the product and also analyses the market
to help the marketer to change the marketing planning at the first time.
The Coca-Cola' s partner in china have the effective marketing occupation, the Swire group
occupied southern part and central part market ,Kerry Group's business including North ,
Southwest, and Beijing, COFCO control sites including the northwest, northeast, Hunan, Hainan,
and other areas, so for the share market area Coca-Cola 's sales market channel like a big net
hold the whole China.

Promotion strategy
"Promotion mix: advertising, personal selling, sales promotions, public relations, direct
marketing and online promotion."(David jobber 2010, p18)
With the globalization of trade, many best international companies gradually enter the Chinese
marketing, the best way to publicity is advertising, the effective advertising strategy for the
foreign company must be care the basic conditions of the target country and the domestic
customers demand.
For the long term Coca-Cola advertising in china is coupled with the US vision of the Chinese
commentary, the advertising was full of typical American style and American personality .Since
1999, Coca-Cola have been adjusted their advertising strategies in china , for the first time the
Chinese stars , the traditional mascot ,family relations and friendship appeared in the advertising
'stories'. The localization in china also appears on product packaging the most successful one
produced for Chinese traditional festival- New Year's Day, they put the 12 zodiac in the cans
(this is the first souvenir to use Chinese theme around the world, worthy to collected and
commemorative) for this new packaging Coca-Cola use Chinese culture to design the cans with
12 animals. Also as the New Year gift Coca-Cola change the normal size to family Value Pack,
for another point of view satisfied the costumer's demands.
Coca -cola is the longest-serving sponsor since 1928. 2008 was the fantastic year for Coca-Cola
when china held the Olympic game in Beijing; it is create a unique opportunity to the world to
understand a new china and new Coca-Cola china. another agreement was signed at the great
wall in Beijing between Coca-Cola company and 'IOC' about sponsor responsible ,from 2009 to
2020 during winter Olympics in Vancouver, summer games in London and Olympic games in
2014,2016, 2018 until 2020.(Coca-Cola website) (BBC news)

Conclusion
As the sum up of all factors and model during Coca-Cola's global business strategy, for a past
140 years Coca-Cola use their product, brand, cultural to infiltrate into the propels's life and
impression of the taste from generation to generation. For the fierce of the competition and
development of economic and technology ,Coca-Cola will meet more challenge and good
competitors in the future, how can they conquer everything and according to method"think
global, act local",and still following the company work "give to the world a Coca-Cola"is a
worthy question need to considering in the next step.

Coca cola's entry strategies into the African market.

The Coca-Cola Company is one of the largest manufacturers, distributors and marketers of
nonalcoholic beverage concentrates and syrups in the world. Coca-Cola's headquarters are in
Atlanta, Georgia, in America. It is best known for its flagship product, Coca-Cola, and is one of
the largest corporations in the United States.
Today, Coca-Cola is an internationally recognized soft drinks company with ambitious plans to
further grow the brand. The company owns the majority of the soft drinks available in coolers
and in vending machines in the western world. Some of these brands include, Coca-Cola and sub
brands1, Dr Pepper, Fanta, Sprite, Oasis and PowerAde. A full list of Coca-Colas affiliated
brands can be found on their corporate website2.
The 2005 Annual Report states the company sells beverage products in more than 312 countries
or territories.3 The international presence of Coca-Cola is phenomenal and its logo, advertising
and colours are among the most recognized in the world.
When an organization has made a decision to enter an overseas market, there are a variety of
options open to it.
An organization wishing to "go international" faces three major issues:
i) Marketing - which countries, which segments, how to manage and implement marketing effort,
how to enter - with intermediaries or directly, with what information?
ii) Sourcing - whether to obtain products, make or buy?
iii) Investment and control - joint venture, global partner, acquisition?
Decisions in the marketing area focus on the value chain . The strategy or entry alternatives must
ensure that the necessary value chain activities are performed and integrated.
. One of the critical questions to examine in establishing an international development strategy is
to select the entry mode in the target foreign country and the distribution channel. Several
alternative entry strategies can be considered,
Multinational enterprises (MNEs) are expanding their global reach, carrying their
products and brands to new and diverse markets in emerging economies. As they tailor
their strategies to the local context, they have to create product and brand portfolios that
match their competences with local needs.
A multi-tier strategy with local and/or global brands may provide MNEs with the
widest reach into the market and the potential for market leadership. However, it has to be
supported with an appropriate combination of global and local resources. Foreign entrants
thus have to develop operational capabilities for the specific context, which requires
complementary resources that are typically controlled by local firms.One of such an organization
is coca cola company. Coke has recently started to heavily invest in the African market. "Africa
was actually a low priority region for Coca-Cola until 1997 when citing rapid population growth
and
disproportionately low sales, the company developed a new market strategy aiming to double
sales in 5 years."
Indeed, per capita consumption in Africa has grown from 18 servings in 1986 to 37 servings in
2006. Unit case volume sales are up 4 percent from 2005 to 2006. This growth was
predominantly driven by 23 percent unit case volume growth in Egypt, after Coca-Cola opened a
new divisional office in Cairo.
Coke has clearly decided to focus its energies on emerging markets throughout the world and
Coke can honestly brag about increasing its sales volume on a global scale. However, as new
countries are aggressively targeted by Coke's marketing machine, dietary patterns change, and
the rate of western-style diet-related diseases increase.

Entry strategies into the African market.

Coca Cola Company entered into the global market using various modes of entry. The most
common modes are exporting, licensing and franchising. Besides exporting beverages and its
special syrups, Coca cola also exporting its merchandises to foreign distributors and companies.
The company has also started licensing with bottlers around the world and supplying its special
syrup necessary to produce the product. Coca cola works with more than 300 bottlers
internationally to produce, deliver, market and sell products around the world. In 1984 a candy
store owner Joseph A Biedenham began bottling coca cola to sell using common glass called
Hutchinson. Benjamin F. Thomas and Joseph B. Whitehead have made first bottling agreement
with Coca cola. During 1900-1909, three main bottlers divided the country into territories and
sold bottling rights to local entrepreneurs. In 1916, a distinctive bottle called contour bottle has
been designed to distinguish from imitator. The contour bottle became trademark status by U.S
patent office. During 1920s more than 1000 coca cola bottlers were operating in U.S. Between
1920s and 1930s, company leader Robert W. Woodruff began expand internationally through
establishing bottling operation outside U.S. In 1940, before World War II, 64 bottling plant were
setup around the world. During 1970s and 1980s many small and medium-sized bottlers
consolidated to better
serve huge amount of global customers. Strong licensing relationship with bottlers became the
base for Coca Cola's entire business growth. Franchising is a special type of licensing strategy.
There is various type of franchising. The type used by Coca Cola is manufactured-sponsored
wholesalers franchise system. In franchising the finished products and sold to the retailers in
local market. In case of Coca Cola Company licensing proved most suitable mode of market
entry. T he licensing strategy must ensure ongoing competitive advantages such as export market
opportunities, low-risk manufacturing relationships, and diffusion of new products.
Other market entry mode such as exporting also proved useful in expanding globally.
• Coca-Cola has massive world appeal. The product's image is loaded with over-
romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola
image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable
branding is one of Coca-Cola's greatest strengths.7
• Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to
conduct business on a global scale while at the same time maintaining a local approach. The
bottling companies are locally owned and operated by independent business people who are
authorised to sell products of the Coca-Cola Company. Because Coke does not have outright
ownership of its bottling network, its main source of revenue is the sale of concentrate to its
bottlers.
Other brands owned by the Coca Cola company that have a strong brand image.8
• Seasonal advertising awareness e.g. TV Christmas advert and summer advert.
• Coca-Cola's brand name is known well throughout 94% of the world today
• Coca-Cola's bottling system also allows the company to take advantage of infinite growth
opportunities around the world. This strategy gives Coke the opportunity to service a large
geographic, diverse area.
. Coca-Cola has successfully employed the hub-and-spoke model in multiple rural emerging
markets. In Africa, for instance, 9
Coca-Cola set up "Manual Distribution Centers" in which "an independent person was given the
rights to distribute Coca-Cola products within a defined radius"14. Similarly, in India local
entrepreneurs sell Coca-Cola using "all possible means of transport, ranging from trucks, auto-
rickshaws, cycle rickshaws and hand carts, to even camel carts in Rajasthan and mules in hilly
areas, to transport its product from the nearest hub."15 (See exhibit 3) As Colgate and Coca-Cola
have shown, the hub-and-spoke model for FMCG products works well because it addresses the
inventory cost and transportation infrastructure issues that are associated with distributing
products in rural emerging markets while also providing for good product availability at the
small-village level.
In the villages, farmers earn the bulk of their income during two to three peak harvest months,
earning nothing during troughs. Farm labors get a daily wage when there‟s work to do; at
other times they sit around idle, migrate to towns, or scratch a living from other sources.36
Equally important is the ability to execute on the ground and deliver consistently across this wide
variety of markets, even as they change and mature over the longer term.
Many of the early entrants to Africa have established successful, profitable businesses.
Companies have been able to generate competitive advantage by influencing consumer
preferences, building brand loyalty and shaping industry structure before competitors have a
chance to become established. The majority of emerging market nations continue to have largely
rural, agrarian-based economies.1 In Africa alone, of the seven hundred million residents ,
roughly five hundred million people lived in rural areas.2 Delivering products and services into
this market presents both unique challenges and enormous opportunities for companies.
The nature of rural emerging markets makes building a successful marketing channel
challenging. The population is widely dispersed, transportation infrastructure is poor or non-
existent, household incomes are low and sporadic, and traditional methods of creating brand trust
and awareness will not work.
I propose that an entering company needs to design marketing channels that both successfully
deliver products to customers in a capital-efficient way, and that unlock the latent desire that
customers have to purchase and receive those products. In this manner, not only are transporters
and warehouses part of a successful marketing channel, but so are entities that educate customers
about products and services they may not know they need, as are the financial programs that help
customers finance their purchases.
The key points coca cola company should focus on when designing their rural distribution
networks in emerging markets are as follows:
1. The company should choose the distribution network model that is appropriate for the product
or service it is selling.
2. While continuing to meet the customer's needs, the company should aggregate consumer
demand into central locations as much as possible in order to decrease inventory and
transportation costs.
3. The company should consider taking advantage of rural entrepreneurs (RE‟s) to facilitate
last-mile product delivery and sales. Such rural entrepreneurs include retailers and kiosk
operators.
Although consumers in rural emerging markets clearly have low and sporadic incomes, it would
be a mistake to assume that these consumers necessarily desire to purchase "cheap" products.
Instead, as Prahalad writes, the consumers are very brand-conscious and are motivated to buy
quality goods. However, at the same time, they are by necessity very value-conscious.37 The
challenge for companies entering this market is to offer consumers high-quality products and
brands while also offering .
When AIDS advocates in Africa noticed that Coca-Cola products were available in remote
African villages, it sparked the idea that perhaps the company's supply chain experts could assist
in delivering life-saving drugs to AIDS victims. The drugs are typically hard to come by,
especially in the outlying regions of poor countries. In some regions, it is not uncommon for the
drugs to take 30 days to get through a nonprofit's supply chain before arriving at their final
destination.
In 2009, the Global Fund to Fight AIDS, Tuberculosis and Malaria asked Coke for assistance
improving the organization's supply chain. The company agreed to help with a project in 2010,
and the corporation worked with the Global Fund, Tanzania's Medical Stores Department, the
Gates Foundation and Accenture Development Partnerships to get life-saving drugs to far-flung
villages in Africa.
"What we noticed was that Coca-Cola's products always seemed to get to every remote region,
and we thought that if they could get their products there, with their support, maybe we could,
too," said Gabriel Jaramillo, the Global Fund's general manager, according to the Daily Beast.
The drug supply chain hasn't been perfected, according to a study from the Yale School of Public
Health. However, it has greatly improved access to medication in rural regions. Ill patients now
have an 80 percent chance of receiving the correct medication, up dramatically from only a 50
percent chance two years ago. While the old delivery systems took a month to get drugs to the
correct area, supply chains have been optimized and delivery time is now estimated at merely
five days.
Coca-Cola isn't doing all the work for the project - they give expert advice and input, but
Tanzania's Medical Stores Department is chipping in and having its employees learn the basics
of supply chain management, logistics and distribution. However, the project doesn't only
involve learning about how supply chains operate. All the partners are working to develop
infrastructure in poorer developing areas, so Coke products and medications can more easily get
where they're needed most.
Due to the success of this program, it has expanded to Ghana and Mozambique, where supply
chains are still too underdeveloped to get rural residents the drugs they need. By working with
one of the world's largest distributors, groups looking to expand access to AIDS medication have
developed a new system to better serve ill patients in remote regions.