Coca Cola Entry Methods and Strategy Analysis

Coca low-d testify Entry Methods and Strategy AnalysisIntroductionSince the Coca-Cola was formulated by pharmacist Dr. John Stith Pemberton in Jacobs chemists shop in Atlanta, Georgia in the U.S., passing by 140 years it became the creative activitys largest soft drink caller in term of manufacturer, distri besidesor and groceryer in non-alcoholic ara, and operates in much than 200 countries servicing oer 16 million people different Coca-Cola fruits each day. The products in Coca-Cola companionship including sparking drinks and still drinkables such as waters, juices and juice drinks , teas , coffees , sports drinks, and null drinks. (Coca-Cola website 2010)stigma as the definition is A name, a sign, symbol or externalize or combination of them intended to identify the goods and service of either cardinal seller or sort 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 s how their own person-to-personities and life. A good stigmatize is non only a name and a promise is not only a memory in peoples mind besides it can influences peoples life.The brand Coca-Cola now is one of the most valuable brand ($66,667 million) including d soft drink brands in the telephoner. Beside the most valuable brand Coca-Cola, the club still pretend whatsoever other(prenominal) 12 brands which are every infinite $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 send off investment (FDI)FID which bureau investment in manufacturing and service facilities in a distant 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 contrasted commercialize is direct investment, as the fellowship investment the in the buff-fangled m anufacture in the foreign country to rise up their topical anaesthetic product and unprovoked to retain 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 said(prenominal) magazine improved their image in the target country because they create jobs. Also the foreign direct investment drive home the disadvantages comparable government changing , falling markets, frankly speaking the company have no chose but can build the effective operations to accept this.This first base Coca-Cola bottling manufacture milling machinery was launch in capital of Red China in 1981, to got the benefits from direct investment, until now there are 35 bottling company and 29 manufacture mill for Coca-Cola products in china, more than 30,0 00 people working in Coca-Cola,99% stuff are Chinese local .Ne 2rk models (alliances and joint ventures)AlliancesAn operate joint venture is an agreement for the partners to col rideate but does not involve any equity investment. (Kotabe Helsen)For the fiery 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 trade partnership go out be the first choice to enhance the value to customers. For instance two different company conk out to alliance their retailers has to be treat they are customer too, cause they may not in the very(prenominal) industry and market, therefore two different company to be alliances can support their sales logical argument ,design and implemented co-operative advertisement campaigns. (Keller, aperia, georgson2008)2000 in china , Coca-Cola and Lenovo (top technologies company in china) home computer together enough to the market partner, with Lenovos high-tech image to match the Internet Express, Coca-Cola with this alliances for the first step to connected with internet and too it is a required of the development of the technology. In Chinese technology merchandising, 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 venturesJoint 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 helping risk.(Hollensen 2004)Joint ventures as the important schema 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 merchandise, therefore the most of the local company have majority market share in their industry, so it is easily and fast to the forei gn company to introduce the product and build their function net work in the new merchandise. both top companies in the world Coca-Cola and nestle joined selling force called Coca-Cola and nestle refreshments(CCNR) as the drinkable 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 roots services consisted of property, aviation, beverage, marine services, industry industrial COFCO is the largest oil and foodstuffs import and export company in china, besides have food manufacture, hotel management and financial services, list by the 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 b ottling 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 phoneticallyDictionary View detailed mental lexiconChinese cultureCulture 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 bid history, religion, ethnicity, family, language, social class, politics, income, etc, are very important when the company doing the business in foreign counties, so check to the different culture in different country to make the company localization strategy is facilitatory to the company for the long-term business to entry the new global market.China is one of the worlds oldest history of more than 5,000 years, has the territory area of 9.6 million square km, with the sea area of nigh 4.73 million square km, morsel largest country in the world. (China culture 2010).Coca-Cola in chinaWhile 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 perk up the international profile of the brand further Coca-Cola entry the third biggest country in the world -china. and then Coca-Cola is one of the earliest US company entries Chinese marketing since 1927. The first bottling manufacture manufactory established in Shanghai and Tianjin, this is the first time that Chinese people drink the new typecasts, high-quali ty drinks. In 1930, in Qingdao the third bottling factory was established, till 1948 Shanghai become the first city outside Unites exceeded sales c 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 deportation from Hong Kong to main degrade 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 former(prenominal) 5 years of business in china the Coca-Cola company to be the main leaders in Chinese soft drink market, china become the worlds third largest market for Coca-Cola as well.(Coca-Cola website 2010) breakdown(Kotler and Armstrong) statistics the definition of market partitioning as involves individuating a market in to smaller groups of buyers with clear-cut needs, characteristics, or behaviours that might require separate marketing strategies or conflatees.Market constituentation 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 the Statesn, North American and Asia Pacific.(Annul report 2009)Coca-Cola company procure 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 consummate thei r customer services. once the people will think about Coca-Cola when they want to drink ,no matter where you are ,you can beautiful a Coca-Cola around you ,like grocery stores, restaurants, street vendors, convenience stores, movie theaters and amusement parks, the products cover among many others general squares. (Coca-Cola website 2010) (Annul report 2009)Therefore the fierce completion push the company must earmark more products to satisfy the customers choice, for the entry the variety beverage field Coca-Cola try to transform itself into a localise comprehensive. on the other hand Coca-Cola was alliances with one of the Chinese largest internet services website companyTencent 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, 195258 ,Tencent QQ announced that the number of the current users exceeded 100million .with this cooperation ,Coca-Colas iCoke website (www.icoke.cn ) introduced the use of 3D QQ Tencent game show , QZONE personal space, QQ ancestor packages ,to be the first comprehensive online community for young consumers with a new experience of communication.ListenRead phoneticallyTarget market and positioning strategyA target market is a chosen segment of market that a company has decided to serve. (David Jobber 2010 p 261)A clear target is reformative 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 word program me, that is why CNN has globally, concentrate to the distribution effort in to hotels room, for the business people they can overtake 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 affront 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 customers 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 alwaysBeen 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 amount give the world a coke, begin according to peoples teats in different countries to tailored drinks.Marketing mix Chinese marketing mixmarketing 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 strategyProduce 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 fair game should be according to the customers 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 substitute them to satisfying customers needs.As the developing of the society, more and more pay attention about their quality of life 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 extensio n of the market to make the coke without sugar and no calories but plenty of taste called diet coke in 1982, at bottom 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 batch lemon tea, and design a new product for Chinese people called Smart to enhance the marketing competitions.Pricing strategyPricing strategy is a key element and basic element of the marketing mix, for instance, theSpending 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 transaction s. (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 strategyPlace 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 Groups 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 strategyPromotion 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 years Day, they put the 12 zodiac in the cans (this is the first souvenir to use Chinese theme around the world, summa cum laude 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 work out satisfied the costumers 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 b etween 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)ConclusionAs the sum up of all factors and model during Coca-Colas global business strategy, for a past 140 years Coca-Cola use their product, brand, cultural to infiltrate into the propelss 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 methodthink global, act local,and still following the company work give to the world a Coca-Colais a worthy question need to considering in the next step.ListenRead phoneticallyDictionary View detailed dictionaryAppendix( figure 1. The list of Coca-Cola products)PRODUCTS SERVED AT THE WORLD OF Coca-Cola (except US)Product/Bra ndCountry of Sale / GroupStoney TangawiziTanzania / AfricaFanta Exotic Fruit PunchUganda / AfricaKrest Ginger AleMozambique / AfricaSparletta SparberryZimbabwe / AfricaBibo Candy Coco-PineSouth Africa / AfricaSunfill peckDjibouti / AfricaBibo Kiwi MangoSouth Africa / AfricaSunfill BlackcurrantMauritius / AfricaSmart orchard apple treeChina / AsiaSprite IceIndia / AsiaFanta Apple KiwiThailand / AsiaSmart WatermelonChina / AsiaCrushed pukeBahrain / AsiaNestea Ice Rush Lemon afternoon teaChina / AsiaAquarius CitrusTaiwan / AsiaVegitabetaJapan / AsiaHI-C UmeJapan / AsiaBeverlyItaly / EuropeFanta Magic (Blue Grape)Estonia / EuropeMezzo fluffGermany / EuropeKinley Bitter LemonEngland / EuropeFanta PineappleGreece / EuropeNestea Raspberry Iced TeaSpain / EuropeNestea LemonBulgaria / EuropeNestea PeachFrance / EuropeLift ManzanaChile / Latin AmericaFanta KolitaCosta Rica / Latin AmericaInca KolaPeru / Latin AmericaSimba GuaranaParaguay / Latin AmericaCiel Aquarius Jamaica SunMexico / L atin AmericaDelaware PunchHonduras / Latin AmericaNestea Light PeachBrazil / Latin AmericaNestea MangoMexico / Latin AmericaFinger 3. Some of the Coca-Cola product in china (some of localization)(Finger 4. Specific product designed for Chinese marketing)(Figure 5 Coca-Cola alliances with Lenovo to public the Coca-Cola /Lenovo laptop)(Figure 5 Coca-Cola to be the sponsor of Beijing Olympic Game 2008)(Figure 5 Coca-Cola alliances with Tencent)(Figure 6 the spread of the bottling factory in china)