Analysis of the Coca-Cola International marketing in China and UK - Essay Example

Analysis of the Coca-Cola International marketing in China and UK Table of Contents Table of Contents 2 Background 3 Preliminary review of Literature3 Comparison of the marketing strategy used by Coca-Cola in China as well as UK 5 Challenges and opportunities faced by the organization of Coca-Cola, on entering China 7 Research questions and objectives 8 Methodology and Research Methods 9 Ethical Considerations 10 Planning and any specific resources required 10 References 12 Background In this age of globalization and economic downturn, maximum extent of the organizations, irrespective of sizes desire to retain its portfolio for longer period of time.

This might be possible only if the organizational management desires to expand in various foreign markets, offering wide range of opportunities. Only then, the brand image and profitability of the organization might get enhanced thereby amplifying the demand of the products. Along with this, the level of sustainability and competitive advantage of the organization might also get enhanced among others. Similarly the multinational organization of Coca-Cola also decided to expand its operations and functions into the international markets of China and United Kingdom (Rajagopal., 2000). By doing so, the organization of Coca-Cola might enhance its value and productivity thereby amplifying its customer base to a significant extent among others.

Along with this, such type of expansion is also performed in order to enhance the profitability and total revenue of the organization among many other rival players. This essay is divided into six phrases mainly highlighting the business environment of China and United Kingdom for Coca-Cola. Along with this, it also describes the marketing strategy used by the organization of Coca-Cola in order to retain its portfolio in the foreign markets of China and United Kingdom. It also highlights the advantages and disadvantages faced by the organization of Coca-Cola at the time of entering the market of China.

And varied types of recommendations are also proposed in this essay so as to enhance the reputation of the organization of Coca-Cola in the market of China. Preliminary review of Literature Marketing theories and strategy Generally, there are three facets of strategies used by different firms irrespective of the level of strategy i.e. the content, process of formulation and the implementation. The content of a strategy refers to those specific relationships, timings, offering and the patterns in which resource deployment is planned so as to achieve competitive advantage.

The process of formulating a strategy refers to those activities that organizations engage so as to determine the content of a strategy. On the other hand, implementation of a strategy deals with actions to be used within and outside an organization so as to realize a strategy (Rajagopal., 2000). Strategic marketing planning therefore focuses mainly on the content of a strategy and the process of formulating a strategy at a unit and corporate level of the business, and the role played by marketing in these scopes of organizational activity (Xu, 2005).

Organizations come up with strategic activities so as to be competitive both in local and foreign markets. Nevertheless, these actions are affected and influenced by both internal and external business environment. According to institutional theory, actions of a firm and its outcome are influenced by beliefs, knowledge systems and the rules that characterizes the organization (Bradley, 2007). Business strategy, corporate strategy and other functional strategies like marketing strategy interacts together to curve the competitive advantage of a business in the portfolio of a firm.

It is therefore the convergence of these strategies that shapes the far in which an organization can go in achieving and sustaining the competitive advantage. The competitive advantage therefore affects the market and financial performance of most of the businesses. Marketing theory Marketing planning Since marketing involves a plan to anticipate to identify customer needs and meeting their needs for a profit, it requires a market planning and research so as to meet the customer needs. According to Bradley 2007, market research involves getting relevant information about the customers and analysing them to make informed choices.

Some of the ways to gather information include: Use of internal information existing within an organization e.g. data of existing customers and their purchasing behaviour i. External primary information like first-hand collected information through interviews ii. External secondary information obtained using published information produced by marketing firms concerning products, brands and markets For every organization that intends to enter into international markets, it has to carry out the market planning which involves the following steps 1.

Assess the current market performance of an organization 2. Identify the strengths and weaknesses of the current market 3. Create the objectives that are to be achieved in the market 4. Establish marketing mix for the intended markets so as to attain the objectives of the organization Comparison of the marketing strategy used by Coca-Cola in China as well as UK In this age of extreme rivalry and cut-throat competition, maximum extent of the organization desires to retain its portfolio and position within the minds of the customers.

This is because; customer is the prime strength of an organization in this age of economic downturn. And this might be possible only if an organization tries to act according to the likings or preferences of the customers (Pride & Ferrell, 2004, pp. 546-567). Only then, the range of customers might get enhanced thereby amplifying the brand image and profitability of the organization. Similarly, the organization of Coca-Cola decided to position itself as a brand that offers value-added products at a lowest price.

In order to make this strategy successful, the Coca-Cola Company reduced the prices of the products to a certain amount. As a result of which, the demand of the products of the Company has been enhanced thereby amplifying its portfolio and image in the market of China. Not only this, by implementing the strategy of cost leadership, the equity and market share of the products of Coca-Cola enhanced to a significant extent thereby amplifying its brand value and position. This proved extremely effective for the organization thereby amplifying its market size and dominance in the market of China among others (Gupta, 2004, pp. 567-578). Other than this, in order to reposition the brand, Coca-Cola Company decided to introduce varied types of inventive products so as to fulfil the taste and preference of the customers of China.

Some of these product lines are Coca-Cola –Lemon, Coca-Cola- Vanilla in order to enhance its rate of returns as well as market share to a significant extent among other rival players. Not only this, the strategy ‘to observe and then act’ proved extremely effective for the organization for Coca-Cola thereby amplifying its sales and position to a great extent. As a result, the brand image and portfolio of the organization of Coca-Cola enhanced thereby amplifying the identity and distinctiveness among other rival players.

And so the organization of Coca-Cola decided to introduce bottling plants for its various products in the market of China that enhanced its rate of sustainability and competitiveness (Gupta, 2004, pp. 156-178). However, on the other hand, the organization of Coca-Cola decided to enhance the volume of sales and profit margin in the market of United Kingdom. Keeping this vision in mind, it implementing its marketing strategy, ‘think local and act-local’ the management of the organization of Coca-Cola implemented such a strategy after undergoing vivid marketing research so as to analyse the preference of the customers and demands of the markets.

Therefore, the conclusion of the marketing research is that the customers of United Kingdom are extremely conscious about their diets and health’s. And so the organization of Coca-Cola introduced various juices such as Fanta, Minute maid in order to attract the customers towards their brands as compared to other rival players. Apart from this, the organization of Coca-Cola also introduced various new product lines such as Coca-Cola Lime so as to enhance the demand of the brand. This strategy proved extremely effective for the brand thereby amplifying the profitability and market size in the market of United Kingdom among many other rival players (Grant, 2005, pp. 234-245). Challenges and opportunities faced by the organization of Coca-Cola, on entering China In order to enhance the brand image and position, the organization of Coca-Cola penetrated the market of China.

This desire proved extremely effective for the organization of Coca-Cola thereby amplifying boosting its reliability and equity among many other rival players. Moreover, it also experienced various advantages, on entering the market of china. These are presented below: • Wide range of trained and skilled workforces – as per Davenport (2005), due to the presence of wide range of workforces, the organization of Coca-Cola became extremely beneficial. As a result of which, the profit margin and demand of the product lines of the organization of Coca-Cola enhanced thereby amplifying its prosperity in the market of China among other rival players.

So, the market of China proved extremely effective for the organization of Coca-Cola (Davenport, 2005, pp. 456-478). • Preference for juices as compared to carbonated drinks- as a result of which, the demand of the products line such as Fanta, Minute Maid increased resulting in amplification of its brand image and reliability to a certain extent. Along with this, the equity and distinctiveness of the organization of Coca-Cola amplified thereby boosting the total sales as well as brand value.

As a result of which, the rate of competitiveness and dominance of the organization enhanced that proved extremely effective for it in long run (Pride & Ferrell, 2004, pp. 290-314). Apart from advantages, the organization of Coca-Cola also faced varied types of disadvantages in the market of China. Some of them are also stated below: • Economic Crisis- it is recognised as one of the most essential causes that faded the efficiency and reputation of the organization of Coca-Cola in the market of China.

As a result of which, the buying behaviour of the customers reduced due to the reduction of their per-capita income. And as a result, the demand and profit margin of the organization of Coca-Cola reduced that faded its portfolio and prosperity in the market of China (ESOMAR, 2008, 123-134). • Tariffs and Quotas- due to the presence of varied types of tariffs and quotas, the operation and functions of the organization of Coca-Cola became quite hampered thereby reducing the portfolio in the market of China.

As a result of which, the market share and demand of the organization of Coca-Cola reduced that proved extremely difficult for it in long run (Drummond & Ensor, 2006, pp. 112-123). Thus, in-spite of varied disadvantages, the demand and popularity of the organization of Coca-Cola enhanced that paved the path of its success in the market of China. Research questions and objectives Marketing plays an important role in every organization. The proposed study intends to answer the following question.

What are some of the effective ways that Coca-Cola will use so as to improve its market performance in China and United Kingdom? The research proposal aslo intends to meet the following objectives 1. To ascertain the opportunities and challenges faced by Coca-cola in penetrating international markets 2. To determine the strategies to be used by Coca-Cola in penetrating China and UK markets Methodology and Research Methods Some of the research methods usually used include descriptive, exploratory and casual designs.

When it comes to exploratory design, it is commonly used when there is little knowledge on the topic under study. The design provides clarification on the studied problem and integrates data as to create theories that are created in relation to the subject under concern. Descriptive design on the other hand deals with description, explanation and interpretation of the current condition. The design therefore answers the question “what is”. Descriptive design method explores the prevailing condition in a specified place and time.

Casual design is used to establish cause-effect relationship amongst the variables under a study. This study will adopt the use of descriptive research design since it is appropriate in answering the question like how and what. Data collection and analysis In every research, there are two methods of collecting and analysing data namely primary and secondary methods. Primary data involves fast hand information collected directly from the field while secondary data is the use of already collected data.

This study will adopt the use of secondary method of collecting data so as to supplement the quantitative research approach. The collected data will be analysed and interpreted by use of narrative tools since it is an ideal method to be used in qualitative research study. Furthermore, this tool will provide a broader picture in relation to the subject under the research. Ethical Considerations Ethical issues will be factored in in this study. The data obtained will be accurate and reliable where it will be effectively arranged and interpreted.

So as to maintain and protect the image of the company, the collected data will be treated with a lot of secrecy and it will be only used for research purposes. Planning and any specific resources required In order to answer the research questions and research objectives, high-ended planning is surely required. Only then, the objectives might be answered effectively without any sort of confusions or dilemmas. However, in order to answer the objectives and question of the research, varied types of literatures, online sites and articles are used.

Apart from this, company sites, company annual reports and company balance sheets are also used to analyse the effectiveness of the organization in the market of China. Personal recommendations will be provided basing on the findings and analysis. The following chart shows research planning and methods. References Bradley, N. 2007. Marketing Research: Tools & Techniques. New York: McGraw-Hill. Christensen, C. 2003. The Innovator’s Solutíon, Creating and Sustaining Successful Growth. Boston: Harvard Business School Press.

Davenport, T, H. 2005. Thinking for a living: How to get better performance and results from knowledge workers. Boston: Harvard Business School Press. Drummond, G. & Ensor, J. 2006. Introduction to Marketing Concepts. New York: Cengage Learning. ESOMAR. 2008. Market Research Handbook. London: Sage. Grant, R, M. 2005. Contemporary Strategy Analysis. London: Sage. Gupta, S, L. 2004. Marketing Research. New York: McGraw-Hill. Porter, M, E. 1986. “Competition in Global Industries”. New York: Springer. Pride, W. M.

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