HND Business - International Marketing Report: Coca-Cola Strategies

This report delves into the realm of international marketing, focusing on Coca-Cola as a prominent case study. It begins by defining international marketing and its scope, differentiating it from domestic marketing, and outlining various market entry modes such as import, export, contractual agreements, and joint ventures. The report then explores the motivations behind companies' internationalization efforts, including market diversification and profit maximization. The report provides insights into the various routes of market entry, including online sales, physical stores, and pop-up shops. Furthermore, the report analyzes how companies make decisions in international markets, considering factors such as profit margins and GDP, while discussing key strategies like exporting, franchising, and joint ventures. The report also compares global versus local marketing approaches, examining the marketing mix elements of product, pricing, and promotion. The report references the Harvard referencing system throughout.

INTERNATIONAL
MARKETING

Table of Contents

INTRODUCTION
Internationalist merchandising refers to the presentation of enterprise acts which are
planned to encourage the flowing of products and services of an organisation. There is a
difference between the internal and global selling is that global marketing takes place in more
than one country but their objectives remains same for marketers (Kotler and et. al., 2018). For
this, the purpose of marketers is to sell products in different regions by considering the demand
of products. It is a multinational process which includes planning and execution of the concepts
of pricing, publicity and arrangement of products and services to meet the objectives of both
individual and organisational. In this report Coca-cola is taken which deals in soft drinks and
invented in 19th century by John Stith Pemberton and also a well recognised brand in over the
world. This report is going to cover the key conception of global selling and the principle for
company which depicts the various routes of market. It also describe the elements of marketing
plan.
TASK 1
P1.
International marketing is concerned with businesses such as manufacture, improvement
and selling which include people from the world to work in collective manner. It is an request of
marketing rules to more than one nation. Its scope is discussed as follows: Import: It is an easiest word of global selling in which a company import its products
from one country to another and exchange it in the home market (Vellas, 2016). It is
possible only when the demand arises in domestic market for the import of products and
services. Companies who are localise can import its products which is depends on the
need and requirements of market. Export: It is just opposite of the import as here, company export its last merchandise to
global marketplace or its other concession within the marketplace in which they can sell
their products to their localities with the purpose of generating huge profit and revenues. Contractual Agreements: It is useful when business moves from its boundaries and its
scope is exposes as there is great chances of earning more profit at international market.
When the market expand then its customer base and profit also expands and it is
beneficial for company to make contractual agreement with its other partners overseas.
1

 Joint Venturing: It is make when two brands come together in the market then profits
and losses are predetermined in relation with worth and time period and at that time it is
good for organisation to get into joint undertaking to rise their range in global
merchandising.
P2.
Companies go at international level because they want to expand themselves in order to
earn more profit and revenues. Internationalisation is a strategy which include many factors
which are typically to implement (Skarmeas, Zeriti and Baltas, 2016). There are many rationales
by which organisations are seeking to internationalise which are as follows:
 Seeking opportunities for growth with the help of market diversification by offering
various services which are not provided in home country and offering those products
which reached maturity in the home country. Earning high border and earnings by imitating with aggravated rivalry of international
companies and also operates in those countries in which high demand rate is offered.
Various routes of market Selling online: In current times, online shopping becomes trend as cyberspace
connectedness have become quicker and payment modes become more safe and secure.
Now, this method is more preferred for shopping because it is useful in saving time and
also very cheap (Mathews and et. al., 2016). This mode of selling provide flexibility to
customers and also open for 24 hours and location and distance hurdles disappears. Opening a shop: It is a traditional way of doing business and also offer useful products
which are required by customers and here, customers can easily see and touch the product
and can instantly buy. For instance, interaction and developing relations with customers
build up the ability to satisfy their request. In addition to this, good shopping environment
can motivate people to purchase more products and also retain them for longer period of
time.
 Pop-up shops: These are impermanent stores which are established at any bare space and
it is established for few days and weeks. There are two kinds of pop-up shops like first
one is held at empty retail premises and another one is at non-traditional venues such as
village hall (Morgan, Feng and Whitler, 2018).
2

Thus, it is determined that coca-cola currently uses all of these routes to sell out its
products to customers and also further use these routes in its expansion to sell more products and
earn suitable profitability.
TASK 2
P3.
Global selling is various from internal commercialism as there are many issues when in
international market and for this businesses need to deal with them (Eteokleous, Leonidou and
Katsikeas, 2016). Coca-cola is a well recognised brand who have presence at international
market and but not in Cuba in official terms and they want to provide their services in Cuba to
acquire their market. There are many factors which needs to be considered while making any
international marketing decisions such as cultural which include language, taste, regional values,
consumer habits and age. Meanwhile, economic factor includes per capita income, suitable class
structure, supply and demand and financial transactions. Here company use suitable selection
method to make entry in the international market which is discussed as under: Profit margin: It defines the profit criteria of company which can be earned by selling its
products in other country. For this, coca-cola will conduct market research before
expanding its business in Cuba and determine the profit earning criteria as if company
expand its business they its profitable or not and for this, income is determined.
 GDP: This factor is also analysed to decide the growth of company after expanding its
business. It is used in money terms and analyses the monetary value of all the finished
products and services which are made within the country at a specific time period
(Srinivasan, 2016). This factor is useful for coca-cola in providing the snapshot of
country which is helpful in estimating the size and growth of company. Company can
calculate it in many ways such as expenditures, production and incomes.
P4.
There are many ways by which organisation can go into into foreign market because not
any marketing schemes works for all global industry. As there are number of factors which
impacts the choice of strategy which include tariff rates, marketing and transportation costs.
Many marketing strategies can increase the expected cost and these strategies are discussed as
underneath:
3

Exporting: It is a process which is related with the operations and manufacturing of
products within the home country and ship them to other nation. It is helpful for coca-cola in
providing the easiest way which is useful for small businesses in order to take entry into an
international market (Souchon and et. al., 2016). Advantages: It develops the productivity and production for the suitable profit margin
which offer easy way to get into the global market. It is also helpful in providing
appropriate exposure to the fresh and innovative ideas which is useful in the increment of
competition. Disadvantages: This procedure increases the operating and production cost of small and
micro businesses which is the basic need to with export norms and policies. It is also
required to make changes in the products and services which is faced by the companies in
order to sell its products in international market.
Franchising and Licensing: It is a procedure in which companies permit other
organisations in relation with terms and conditions of country in context of coping or selling its
products and services a global level. Here, duties and fees are charged by other person because it
is the making of ideas and products (Amankwah-Amoah, Boso and Debrah, 2018). This method
can be used by coca-cola to sell its products and earn more profits in the international market. Advantages: It include risk and responsibilities of the growth of company which is
offered by business environment in order to share profit with other parties who belongs at
international market. For this, limited amount of capital is required which tends to
provide high return as it helpful in licensing and franchising method at global level. Disadvantages: It is concerned with the risk of being copied violation of trademark on
the intellectual property of company which is high in this method.
Joint Venture: In this business criteria two or more parties are involved in the formation
of an agreement with the objective of accomplishing the suitable target. In relation with coca-
cola, its development agreement belongs at global market and operates at international level to
get access in international level. Advantages: It helps in providing the new vision to company and the specialist which
helps in effective operations of an organisation at international level. Joint venture tends
to make agreement among two and more parties as it is helpful in providing access of
good resources like expertise, workforce and advanced technology.
4

 Disadvantages: Joint venture can be economic as it leads to develop conflicts which is
related with the corporate culture and other decisions about the operational activities. It
also describe the flexibility of companies which depicts the restrictions as it is quite tough
to maintain coordination and cooperation with other parties.
TASK 3
P5.
By considering the local and global marketing services in global level here companies
offer exact products and services which is offered by them in other countries and the prices
which coca-cola decide are standardised as they set one price of the products and services which
they offer and it is defined by considering the economies of scale in production, marketing and
R&D. On the other side, in local market company offer particular customised goods and services
which are demanded by customers (Perera and Hewege, 2016). In global market the adopted
budget is final and approved by corporate headquarters meanwhile, in local budget gets
segregated in subsidiary offices in which they formulate their own budget.
In addition to this, by considering the promotional tactics of coca-cola, they make it on
air by using TV, radio which is the mix of all the global events and besides this, at local level
they use many tools and techniques including newspapers, television and so on. Global market is
challenging as it is complex and require commitment owing to different uncertainties which is
concerned with the laws to operate its business at global level meanwhile, at local level its
market is not complex as companies conduct local marketing who have suitable knowledge
about culture, values, legal laws of home country.
P6.
Marketing approaches it the study of marketing which explains the concept of marketing
as its approaches defines the marketing mix of an organisation which are as follows: Product: Company has the wide portfolio in soft drinks and beverages industry
comprising of around 3300 products and company has its market presence in
approximately 200 countries. By analysing the product policy of company, it offer
standardised products in all countries where it provide its services. As coca-cola offer
unchanged products in marketplace and these actions makes sense when the product
utilised for customers in different markets.
5

 Pricing: This policy include management of prices at international level and for this,
company use separate pricing policies by considering the variants in its products in
foreign market (Bianchi and Mathews, 2016). In addition to this, evolution of
communicating makes far marketplace more familiar which make hard to lead the
separate pricing policy. Promotion: This policy include the transferring of message to new purchasers regarding
the company and its products to make them purchase its products. Selection and use of
suitable instruments are required by coca-cola to accomplish its objectives like financial
resources and education in abroad industry, cultural factors, competition and the nature
an quality of products.
 Distribution: By considering the global market statistical distribution actions which are
concerned with offering the suitable products to market in suitable form, time and place.
This activities include adaption of other tools of selling mix and also modified along with
them (Kotler and et. al., 2018). For this, they purpose of distribution is to overcome
attributes, various barriers of distribution in separating manufacture and final customer.
TASK 4
Covered in PowerPoint
CONCLUSION
Thus, it is concluded that international marketing focus on the available resources which
is useful is selecting the suitable market for their survival for longer period of time. This report
described the different routes which are considered by company to market its products and also
describe market entry strategies with its advantages and disadvantages. In addition to this,
marketing approaches are described which differs according to area.
6

REFERENCES
Books and Journals
Amankwah-Amoah, J., Boso, N. and Debrah, Y.A., 2018. Africa rising in an emerging world: an
international marketing perspective. International Marketing Review.
Bianchi, C. and Mathews, S., 2016. Internet marketing and export market growth in
Chile. Journal of Business Research. 69(2). pp.426-434.
Eteokleous, P.P., Leonidou, L.C. and Katsikeas, C.S., 2016. Corporate social responsibility in
international marketing: review, assessment, and future research. International
Marketing Review. 33(4). pp.580-624.
Kotler, P and et. al., 2018. Marketing management: an Asian perspective. Pearson.
Mathews, S and et. al., 2016. Internet marketing capabilities and international market
growth. International Business Review. 25(4). pp.820-830.
Morgan, N.A., Feng, H. and Whitler, K.A., 2018. Marketing capabilities in international
marketing. Journal of International Marketing. 26(1). pp.61-95.
Perera, C.R. and Hewege, C.R., 2016. Integrating sustainability education into international
marketing curricula. International Journal of Sustainability in Higher Education.
Skarmeas, D., Zeriti, A. and Baltas, G., 2016. Relationship value: Drivers and outcomes in
international marketing channels. Journal of international marketing. 24(1). pp.22-40.
Souchon, A.L and et. al., 2016. Spontaneity and international marketing
performance. International Marketing Review.
Srinivasan, R., 2016. International marketing. PHI Learning Pvt. Ltd..
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Online
overseas-marketing. 2019. [Online] Available through
<https://businesscasestudies.co.uk/overseas-marketing/>./
7