Posted: July 8th, 2015

Globalization and the Coca-Cola Company

Globalization and the Coca-Cola Company

Coca cola is the largest soft drink and beverage producer because it embraced globalization that enabled it to expand to the international market.

The management of Coca Cola has made several marketing strategies and techniques decisions regarding globalization to beat the stiff competition from Pepsi Co. Inc., Simplot Australia, Nestlé Waters as well as the Dr. Pepper Snapple Group, Inc. among others in the international soft drink market share and beverages industry. More so, Coca Cola invests heavily in advertisements such as the T.V, web site, billboards, journals and magazines as a communication strategy to promote its products. The advertising campaigns are so intense using the   musicians and models. It can be said that the company spends an enormous amount of money in advertising to attune the mindset of the customers (Foster, p.56).

Also, Coca Cola made the decision of segmenting the business operations into services segment and the beverage segment and food segment in the global arena. According to the financial statement analysis of Coca Cola, the company is doing well in the global soft drink sector, industry and economy despite the profit and price fluctuations because it embraced globalization.

The global soft drink industry is highly competitive and expanding via product innovation. Also, the rivalry among competing firms is intense as exhibited by the duopoly between Pepsi and Coke leading to positive economic profits.

In order to survive in the competitive environment, Coca Cola earns competitive advantage in the global arena via market leadership, business partnerships, strong brand portfolio, collaborative customer relationships, channel marketing, client value management, multi-segmentation, go-to-market strategies, flexible distribution models and sales, full operating potential, managerial expertise and sustainable development (La,p.78).

Also, the company makes price adjustments in response to their rivals and the ever changing market conditions. Actually, it decided to avoid price wars and high price-cuttings since it was affecting profitability and sales. Furthermore, the company offers discounts to customers during public holidays and events in their respective countries.

In terms of the non-price competitive strategies, Coca Cola uses product differentiation and built the company on the high quality of the product to beat rivals.

Most significantly, the company has developed an effective competitive strategy to stay ahead of the competitors and to prevent losses by making decisions that maximizes the efficient use of the segmentation, targeting and good positioning marketing techniques, strategies, and concepts both in the U.S and overseas.

Moreover, the company via globalization has created new markets over time in various countries leading to increased sales volume. Actually, the aim of creating new markets is to improve productivity and profits. For example, the new market in Asian countries has increased the financial performance of Coca Cola because the business revenue grew.

EBay’s e-marketing

Earlier, the shoppers spent a considerable amount of time window shopping and purchasing commodities using hard currency and ATMs. However, eBay has changed that because it enables the customers to browse for items via several sites, choose the product they want and place an order while sited at home within few minutes and pay through PayPal without visiting the stores as earlier. EBay has changed the way customers went to the stores to purchase for commodities and pay in cash by embracing e-marketing mix. For example, they offer products online via e-product strategies, make pricing very competitive via e-price strategies, deliver commodities to clients on time using online location and promote the products via e-promotional strategies (Elms, Phil and Amy, p.67).

The current generation has embraced the online shopping due to the advent of the internet. The commodities play an important role in the lives of consumers. Actually, the consumers use the commodities such as the electronics in every aspect of their lives to communicate as well as entertain among others. However, people are nowadays very busy with their daily lives that they cannot find time to go shopping for goods in the shops.

Therefore, they have embraced online shopping via mobile apps provided by eBay where they can purchase the commodities without necessarily visiting the shops. EBay introduced online shopping via the use of mobile app to help the customers to reduce the time wasted going to the shops to purchase the goods since purchasing of commodities is just one click away, hence save their precious time (Mühlbacher, Lee and Helmuth, p.108).

Actually, eBay will incorporate perceived enjoyment, perceived security, perceived privacy, perceived usefulness and ease of use to enable the customers to use the mobile apps to search for commodities they wish to purchase and pay online via PayPal in the future.

Michael Jackson Pepsi Generation

In real sense, Pepsi paid attention to the target consumer. The target consumers are the people that will buy the advertised Pepsi’s products or influence others to purchase the products such as the spouse, children and friends Pepsi developed an advertising strategy in a manner that the above message envelopes the target consumer and allow them to be acquainted (Parente,p.19).

The advertising strategy provides Pepsi with a framework to measure and review their advertising agencies so as to check if they are in line with marketing and advertising objectives. In other words, the advertising strategy provides the means in which its advertisement meets the objectives (Strausbaugh, p.99). By using the music artistes, Pepsi pays attention to the elements of advertisement strategy and make sure that they fit into the overall communications strategy. Just like any other marketing mix, Pepsi adapted a promotional marketing strategy using appropriate messages to target young generation using star musicians.

It is significant to note that the advertising message used by Pepsi suited the local customers and markets (Smith, p.134). Also, Pepsi took into account the development and availability of media such as the musicians to promote its products.

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Work cited

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Elms, Janelle, Phil Dunn, and Amy Balsbaugh. The 7 Essential Steps to Successful Ebay Marketing: Creative Strategies to Boost Profits Now. New York: McGraw-Hill, 2010.

Foster, Robert J. Coca-globalization: Following Soft Drinks from New York to New Guinea. New York: Palgrave Macmillan, 2008.

La, Bella L. How Globalization Works. New York: Rosen Pub, 2010.

Mühlbacher, Hans, Lee Dahringer, and Helmuth Leihs. International Marketing: A Global Perspective. London: Thomson Learning, 2009.

Parente, Donald. Advertising Campaign Strategy: A Guide to Marketing Communication Plans. Mason, Ohio: Thomson/South-Western, 2009.

Smith, Allen. Advertising Campaign Strategy: Fundamentals of Planning, Designing, Implementing, and Evaluating Advertising Campaigns. Dubuque, IA: Kendall/Hunt Pub. Co, 2012.

Strausbaugh, Kirsten. Advertising Campaign Strategy: A Guide to Marketing Communication Plans. , 2014.

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