Marketing Assignment - Coca cola company

Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
1. Evaluation on strategies of foreign market entry used by coca cola.......................................1
2.Marketing Segmentation of Radission Blu..............................................................................3
3. Prospective and improvement on micro-environment for Seven-Eleven(Japan)...................5
CONCLUSION................................................................................................................................8

INTRODUCTION
Marketing is that branch of management that deals with satisfying the customer need .It
includes advertising ,selling and distribution and delivering the product to the end user. It is an
activity of creating value and exchanging it to the customers and clients. The present study is
done on Coca cola , a US based cold drink company ,that provide variety of cokes includes diet
coke, caffeine free coca cola etc. In addition to this a brief study is done on foreign entry option
strategy of coco cola. The various approaches are used by the company to entre into foreign
market that is discussed in detail. Apart from this briefing is done on Radission blu , a UK based
budget hotel, which have luxury suits and rooms to stay and availability of continental food for
guests. The marketing segmentation of Radission is based mainly on demographics, psycho
graphics. Furthermore, present study is based on Seven Eleven ,a Japanese owned - American
company which offer beverages and other products like snacks, coffee, candy etc. In addition to
this a briefing is done on micro-environment of seven eleven which includes its competitors,
suppliers, customers, etc.
Main Body
1. Evaluation on strategies of foreign market entry used by coca cola
There are five approaches that Company can use to enter foreign market-
Licensing- it is the process by which Company can grant licence to the licensee to hold
right of making use of goods and services as made by the licence holder. It is the common
strategy that is used by various firms for carrying its business operation in other parts of the
World. It will help to enterprise in expanding its business within the corporate governance.
Pros-There are various advantages of Licensing to Company it needs very less amount of
expenditure because these companies are already established, that only needs small amount of
investment on machinery and tools. Apart from this it encourages new technologies in the
country that has not been experienced in the past, so government favour licensing rather than
foreign direct investment.
Cons- there are several disadvantages of licensing is that government can impose restriction on
paying and receiving royalties if it finds any misleading trade practices carried on by the
licensing of enterprise. Apart from this licensee have less control over the brand as it offers
product in the name Licensor.
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Franchising-It is another strategy of expansion of market. It is suitable for the Coca-
Cola because they have repeatable business model like food and beverage products. For
considering franchising model Coca- Cola needs to be unique and should have strong brand
value in the market. Apart from this a business should such that its product are demanded
internationally. Here the person provide rights of carrying business overseas is known as
franchisor and person getting rights is known as franchisee. Through using this strategy Coca-
Cola can effectively enter into the foreign market and expand their business globally.
Pros-The most important benefit of the franchising is that franchisee buy an established brand
that helps in increasing brand loyalty of Coca- Cola among its employees.
Cons- it is the loophole for the franchiser as it may be granting its right to wrong franchisee,
which can decrease the reputation of the brand owner by doing unethical practice. Apart from
this big ventures need research and development of the product , which may not be done by the
franchisee, which can result in decreasing the value of the product.
Joint ventures- This strategy of foreign market entry is a kind of partnership which aims
at creating a company that is independently managed. Here two ventures come into an agreement
to work in a market to offer the product and create another company to carry on its operation. In
this generally profit and risks are shared equally by both the ventures.
Pros - The main advantage of the joint venture is that it can increase the product line of the
companies as it aims at creating a new company that is independently managed.
Cons- it needs huge investment as it a lot of working arrangements and mistake of one partner
have to bear by all. Apart from this there are chances of disagreement in the parties because of
lack of government interference.
Direct exporting- In these companies directly export its product in the particular foreign
market. The whole process of selling and distributing the product is carried on by agents and
mediators. After sales , many companies become distributors for representing itself in the
market. The choosing of agents become the most important task for exporting companies , so
they have to chose their agents like they are recruiting key personnel in the organisation.
Pros- it helps in increasing customer loyalty in international market. Apart from this it increases
control on all the aspects of the transaction , because involvement of government is high in the
export business.
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