International Marketing: A Comprehensive Analysis of Coca-Cola's Global Strategy

International Marketing
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Contents
Introduction................................................................................................................................3
LO1............................................................................................................................................4
P1: Scope and Key Concepts of International Marketing......................................................4
P2: Using your chosen client organisation, explain the rationale for it to want to market
internationally and describe the various routes to market the organisation can adopt...........6
LO2: Evaluate entry to a selection of international markets and define the key success factors.
....................................................................................................................................................8
P3: Evaluate the key criteria and selection process to use when considering which
international market to enter..................................................................................................8
P4: Explain, using examples, the different market entry strategies, including the advantages
and disadvantages of each......................................................................................................9
D1: Organisational Adaption...............................................................................................10
LO3..........................................................................................................................................11
P5: Overview of the key arguments in the global versus local debate................................11
P6: How product, price, pricing and promotional distribution approach differs in a variety
of international contexts.......................................................................................................13
M3: Adopting a global or local approach............................................................................14
M4: Marketing mix..............................................................................................................15
D2: Critical evaluation of how the marketing mix is applied..............................................16
LO 4.........................................................................................................................................17
P7: Various international marketing approaches.................................................................17
P8: Home and international orientation and ways to assess competitors............................18
M5: Evaluate various marketing approaches.......................................................................19
D3 Recommendations on how organisations should be structured to maximize the
opportunity in an international context................................................................................20
Conclusion...............................................................................................................................21
Bibliography.............................................................................................................................22
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Introduction
International Marketing involves an organisation making marketing mix decisions in more
than one country. It involves establishment of manufacturing facilities overseas and
coordinating marketing strategies worldwide. Due to globalisation, present marketing
strategies aren’t restricted to remain confined within a country and instead, the world is an
open market. An association might need to market globally because of a potential
development and an expansion in sales, a little home market and more open doors abroad, to
dishearten nearby contenders, and exploit innovation and talented work force. The paper
looks at various techniques of marketing internationally as well as ways of improving global
market.
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LO1
P1: Scope and Key Concepts of International Marketing
International Marketing involves an organisation making marketing mix decisions in more
than one country. It involves establishment of manufacturing facilities overseas and
coordinating marketing strategies worldwide. Due to globalisation, present marketing
strategies aren’t restricted to remain confined within a country and instead, the world is an
open market.
The UK is generally self-sufficient, but still imports 2/3rd’s of its products/services from
outside, due to the increased power of purchase and ever-changing consumer behaviour
shapes the present use of marketing. For example, before the EU free-trade agreement with
other countries around the world, bananas weren’t available to consumers due to the UK’s
climate. Since the Council Regulation (EEC) No 404/93 the importation of bananas has been
freely available to consumers in the UK which provides them with more variety of fruit, since
before the Comparative Advantage, the only fruit that was available were ones that could be
produced nationally (Armstrong, et. al., 2015).
Market Entry Strategies
Market entry strategies and key concepts of international marketing include:
 Coca Cola import their ingredients, packaging and machinery from their suppliers
worldwide. Organisations such as Coca Cola must engage with commercial law and
the impacts to provide the best business strategy. This can sometimes limit the range
of ingredients and packaging, for example in the EU, certain imports of food and
drink must be labelled with best before and use by dates. However, this does set a
standardisation for the organisation. Another advantage of exporting is the reduction
of the potential risks of operating overseas.
 When Coca Cola first moved out to international level in 1930’s, being exposed to
greater chances of doing a lot more business, meaning a lot more contractual
agreements will be created, including licensing agreements such as patent, production,
trade secrets, technical and managerial. However, Coca Cola does not have a patent
contractual agreement, since being an international business, it would be very costly,
time consuming and a hassle to get a patent in each country, and they see trade secret
protection will have a more competitive edge, since it has immediate effect whereas
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patents can take several years. Coca Cola has an agreement in regards to the design of
its bottles, logos and advertising. This concept ensures that an organisation’s efforts to
market products/services on an international scale as original and creative as possible.
 Joint Venturing is the coordinated effort of two brands for a sensible time. A joint
venture such as with illy, an Italian company, can help a business grow faster,
increase productivity and generate greater profits due to a greater access to resources
which include specialised staff, finance and technology. However, if the partner sets
different objectives, this can lead to poor co-operation. In 2007, the net profit for
Coca Cola was $366.3million, whereas in 2008, the net profit was boosted to $711
million.
 Fully owned manufacturing facilities may be considered if there is a long-term
interest in the global market. Which is good due to providing the organisation with
full control; however there is a commitment since the facility is owned, it would take
a lot of time to disengage from the specific foreign market. A contracted
manufacturing facility and contracted management may be considered if there is
temporary interest in the wider market, which may be beneficial to an organisation
since it is cheaper and imposes fewer risks than owning the facility (Wilson, et. al.,
2012).
 Franchising is where an organisation grants another party the right to use its
trademark and system processes to produce and market products/services. Coca Cola
have a franchising system for over 250 bottlers, where Coca Cola produce the inside
product of the syrup concentrate, which is sold to franchisees who bottle and sell the
final product to vending partners, which has been a success for over 100 years and has
made the brand image more dominant. An advantage is that there is a risk of failure
due to the use of proven products and services. However, it’s believed to be
inflexible, as the restrictions may lead to not being able to make changes to suit the
local market.
 A license is a written contract which allows a party to use, make or sell copies of the
original. Coca Cola set up one of the largest corporate licensing programs which
oversees oversee over 300 different licensees who manufacture licensed products
including beach towels, baby clothing, jewellery, retro goods based on early
advertising campaigns and other fashion items. Licensing is a good due to capital not
being constrained to foreign operations; however it does lead to a limited form of
participation with the specific market.
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P2: Using your chosen client organisation, explain the rationale for it to want to market
internationally and describe the various routes to market the organisation can adopt
An association might need to showcase globally because of a potential for development and
an expansion in deals, a little home market and more open doors abroad, to dishearten nearby
contenders, and exploit innovation and talented work force. Cunningham (1986) recognized
five procedures utilized by associations for section into the universal market:
 Technical innovation strategy – where an organisation markets their brand image in a
way that they are perceived to have superior products/services. This can drive and
direct sales away from competitors but poses a risk in misrepresentation depending on
how it is advertised (Armstrong, et. al., 2015).
 Product adaption strategy – when an organisation modifies an existing product/service
to suit a different culture. This may be time consuming due to the high amount of
market research but this will boost sales and increase business performance.
 Availability and security strategy – when an organisation counter perceived risks to
overcome transport issues. By following regulations will avoid any legal proceedings
and ensure that products/services are widely available, although this may limit the
organisation’s freedom with certain products, for example Coca Cola is illegal to be
imported to both Cuba and North Korea due to health reasons, in which there has been
agreements on marketing in Cuba to introduce the product more recently in 2015.
 Low price strategy – when an organisation use low prices to penetrate the new
market, which is good as it will drive sales, but continuing this price will affect
overall profit.
 Total adaption and conformity strategy – when an organisation uses an international
producer to manufacture their products, which can be costly, but being able to use
specialists will make use of knowledge within the organisation.
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