Coca-Cola was founded in 1886. But the brand name Coca-Cola was not used at the time. The use of the Coca-Cola brand name began in 1893. The company currently sells its products in over 200 countries. Coca-Cola is also the world's largest non-tech company. The company has earned 41 billion United States dollars each year. Coca-Cola grew because of the international marketing strategies it used. Let us now identify what those international marketing strategies are.
Using Market Segmentation Strategies
Coca-Cola always uses
market segmentation in the right way. It identifies the target market under
different categories and carries out marketing activities accordingly. If
you look at Coca-Cola's ads, the company targets its audience based on age,
family, income, happiness, friendliness and taste. Many of Coca-Cola's
commercials revolve around the general cash-strapped new generation. However,
you will also see family dinners, events, and parties in some of the ads.
Ex:
- https://youtu.be/vUMQeNw2QDA
Coca-Cola Company used “one product, one message, worldwide strategy” and “straight extension or dual extension strategies”
Coca-Cola
sells its products in different markets and different countries based on the
same message and same theme. Like, "taste the feeling”
messages. Also, Coca-Cola uses the same product, and the same type of promotion
advertising, without any changes to the product. Examples are below,
USA / Europe: - https://youtu.be/jLqv4BEshds
India: - https://youtu.be/6Mip2i22Csw
Korea: - https://youtu.be/wmSPKN392Dw
Africa: - https://youtu.be/2l8dNRfZit0
The
above advertisement was published in different regional countries that speak
different languages but these advertisements' themes and messages same. That’s
the way the use of these strategies, the Coca-Cola brand is well-positioned and
re-position in the minds of consumers.
Marketing Mix Strategies of Cola-Cola
The concept of
“marketing mix” refers to a business’s foundation model, which has
traditionally focused on product, pricing, place or distribution and promotion.
The marketing mix is described as a collection of marketing techniques that a
company uses to achieve its marketing objectives in a target market. Cola-Cola has used marketing mix
strategies very uniquely for its business.
- Product Strategy - Coca-Cola sells more than 500 different types of beverages under different brands in its portfolio (Ex- Sprite, Fanta). This made it easier for Coca-Cola to expand its market reach. When some people do not like to drink Coca-Cola for various health reasons, they are accustomed to drinking other beverages owned by Coca-Cola. Coca-Cola has also benefited from the introduction of sugar-free Coca-Cola drinks for health-conscious individuals and the elderly.
- Price Strategy - Coca-Cola company main competitor is Pepsi Company. That is why Coca-Cola always pays attention to the price of Pepsi drinks. Consumers in developed countries such as Europe and the USA do not pay attention to prices and buy goods. For these reasons, Coca-Cola always maintains the prices of its products at the same or small range difference from Pepsi. (Ex: - Coca-Cola 2 Liter Bottle price in the USA $ 2.14 and Pepsi 2 Liter Bottle price in the USA $ 1.98 Sources in Walmart). Consumers in developing nations like India and Pakistan and Sri Lanka are price sensitive and Sales may be low if Coca-Cola prices its goods too high in comparison to Pepsi in a certain segment. That's why Coca-Cola always tries to keep prices lower than Pepsi. Otherwise may be tempted to offer various discounts or give extra ml in a Coca-Cola bottle.
- Distribution Strategy - Coca-Cola has been distributing its products continuously for over 129 years in over 200 countries around the world. During these 129 years, there has never been a shortage of Coca-Cola products in these 200 countries. This is because of the distribution strategy they use. The Coca-Cola Company manufactures the original concentrations using its patented formula and distributes it to bottlers across the world. They distribute these patented original concentrations only to these 200 countries. Factories in that country add water to this original concentrate and process Coca-Cola beverage. As a result, Coca-Cola's distribution costs are lower. The original concentration of Coca-Cola can be distributed simultaneously for several months to the desired Coca-Cola beverage product.
- Promotional Strategy - Coca Cola's promotion strategy focuses on aggressive marketing through advertising using media channels such as television, online advertising, print media, and sponsorship. Coca-Cola sponsors important events such as American Idol, BET Network, NASCAR, NBA, NCAA, Olympic Games, and FIFA World Cup. Coca-Cola also broadcasts television commercials in various national languages around the world. Coca-Cola always tries to keep the customer to "happiness, with relaxation, friendship, love, celebration and sharing" in their ads under the message "Taste the Feeling". For this reason, the Coca-Cola brand is known to nearly 85% of the world's population. Coca-Cola has spent $4 billion on the promotion over the past few years.
Research and Development Strategies
Coca-Cola always pays more
attention to its research and development areas. As a result, the
'Share a Coke' campaign was launched in Australia in 2011. Later the 'Share a
Coke' campaign became very popular all over the world. In Australia, the top
150 most popular names were printed onto millions of bottles and the campaign
was so well-received that other countries around the world adopted it.
Accordingly, 17,000 special names were printed on these Coca Cola bottles.
Another
important point here is that this printing has been adapted to suit the
languages and cultures of each country.
Example 'Share a Coke’ campaign: - https://youtu.be/4JmKVXgAFNA
Brand Repositioning and Re-reminding Strategies
Coca-Cola works
with companies such as Pizza Hut and Taco Bell. Companies like Pizza Hut and
Taco Bell only sell Coca-Cola as a beverage. This will allow consumers to keep
in mind the Coca-Cola brand over and over again (Brand repositioning). Large
Coca-Cola nameplates have also been erected in front of stores in Asian
countries. As a result, Coca-Cola tries to succeed in brand repositioning and
re-reminding strategies.
Global Marketing Campaigns Coca-Cola
Here Coca-Cola conducts
Global Marketing Campaigns through a variety of innovative methods. Like
Coke Hug Machine and Coca-Cola sharing can concepts. Through these global
marketing initiatives, Coca-Cola was able to gain more brand loyalty globally. Consumers
are more likely to be generous and happy and they also like different
experiences.
Coke
Hug Machine:- https://youtu.be/A45sjUX7mp0
Coca-Cola sharing can:- https://youtu.be/SLLR9VR2-7w
International Diversification Strategy
Product diversification strategy
entails any modification of a current product that serves to expand its
potential. Product diversification is different from product development such
that it involves creating a new customer base, which expands the market
potential of the original product. This is almost always done through brand
extensions or the implementation of new brands, but in some cases, the product
modification may create a new market by creating new uses for the product.
The
Coca-Cola Company was able to do this successfully. Because they are over
3,300 beverages available, 100% of food and regular sparkling drinks include
fruit juices and fruit drinks, water, sports and energy drinks, tea and coffee,
and milk and soy-based beverages introduced worldwide.
International Labor Relations and Management Strategy
Labor relation strategies and management strategies are two very important strategies firms must consider when operating in foreign countries. Companies need to evaluate the differences in each country’s culture, laws, norms, religious beliefs, and values to determine how to implement labor and management strategies that are effective and socially acceptable. This is why Coca-Cola is paying so much attention to this. Coca-Cola operates in countries by selecting country staff and management staff. This is because the employees of that country then have a good knowledge of the culture of that country and the behavior of the customers in that country. Furthermore, Coca-Cola companies always strive to increase staff satisfaction and employee efficiency.