The Coca-cola company is today the world’s largest beverage company. it makes, distributes and markets its beverages which are widely used in the whole world because of their non alcoholi nature. The company started business operations in the year 1886 and from that time up to today, the number of products that are being produced have reached about four hundred. The coca cola company has spread its business operations all over the world and currently, it is operational in more than three hundred countries.
Statistical estimates from the company’s marketing department shows that the coca cola company makes about one and half billion servings every day. The marketing strategy of this company has been one of the most admirable locally and internationally. This paper is going to analyse the marketing environment in the context of the coca cola company. It will look in to both the local and global factors that influence the marketing efforts of this company, the impacts of technological development on its marketing decisions, the corporate’s social responsibility as well as the general challenge the company is currently facing.
Domestic factors that influence the marketing of coca cola company.
One of the major factors that have directed the marketing efforts in the US is the high coca cola products prices. In this nation, the marketing system is very complex and necessitate the use of modern technology and expertise which end up making the whole advertisement exercise of coca cola very expensive. This cost is met by the consumers through rising of the products prices.
The distribution process involve middlemen who mostly duplicate services, but technically speaking, each of them is in business. It is argued that the whole distribution exercise should be done by the coca cola company, but instead the middle men are coming in as contractors. Coca cola should intervene to those challenge by licensing as many middle men as possible to induce competition among themselves and therefore lower their prices to the benefit of the consumers. One of the major expenses to the coca cola company is the promotion and advertising costs. It covers a wide range of media use such as the internet, local and international TV programs, Radios, Displays and sweepstakes. However, this has led to increased sales and therefore higher margins (Lionne, 2005, p. 102).
The Coca cola has continually used deception for its own market benefits. First, its drinks are never filled to the top although they indicate the bottle capacity as 300ml or 500ml or 1 litre. This is actually the capacity of the bottles but the amount of liquid is always lower than this. The current ‘Coke side of life ‘ advert implies the use of the Fanta brand can be a boost to a relationship. This is a deception because starting a relationship has got nothing to do with a drink offer made from the company.
On the issue of unsafe products, coca cola company got a big blow immediately after the introduction of the Dasani mineral water. The release of the damaging information that warned people against using the product for it contained unsafe minerals to humans led to very low sales (Norman, 2004, p.92). In response, coca cola took a legal action against the institution that released such information and then embarked on an expensive advertising program to bring the product back to market. Today, the consumption has now picked pretty well and people have been convinced that the water is safe. During major conferences, the mineral water is served to the chief guests in full view of cameras and media. It has gained incredible publicity.
Global considerations by the coca cola company
Some of the factors that have been considered include the marketing environment, the social considerations and political climate among others.
Marketing environment: On the global scope, it is difficult to exercise control over the prevailing marketing trends. Instead of attempting to control the impossible, the company has tried to identify the possible opportunities and challenges in such environments. It has formulated a way of optimizing on the opportunities while minimizing the threats.
Coca cola has made use of market opportunities through use of its sponsorship to major global sports and games . This way, the company has gained global recognition. During championships, adverts are made at a time when millions of people are likely to be watching their TVs. Another opportunity is brought by weather when temperatures are high and people need cool refreshments.
In the tropical regions during summer, the demand for these soft drinks raises very much. During the religious season of Christmas and Easter holidays, consumption is very high and prices are raise at this period. The marketing environment is also affected when a new opportunity, through the introduction of new products is seen viable. Recently, the Dasani mineral water was introduced. Through effective advertising strategy, the market for Dasani led to a big boost to coca cola’s investment.
Social environment: Coca cola has been monitoring social trends with regard to demographic distribution, size and growth rate. This has been translated to market implications. Population growth is on the rise in the third world economies. Consumption has population size are positively related, as has been observed in India and African nations. However, markets can not be predicted based on population size alone because the economic status of consumers is very low in these developing countries.
Given that most consumers in western countries can afford, but their populations have been stagnant or diminishing, the future of coca cola and many other international companies will depend on market from developing countries (Morgan, 2004, p. 24). Cultural values, attitudes and activities of various communities in the world determine their consumption of the products. For example, the SDA church discourages its faithful from consuming these carbonated drinks because they view them as unhealthy. Coca cola should rise to this challenge.
Political factors: The political climate in various countries dictate how people consume. For example in Africa, the rampant insecurity in some areas leads to very low sales because people are more concerned of their security. The government taxation rate dictates the consumer prices of goods, and the demand in turn. In regions where America is hated, for example in Iraq, any product that has any American connection may face serious marketing challenge.
Technology and Coca cola
Through new technology, new products from coca cola have been marketed in all parts of the world. On line marketing has been possible through technology. Satellite transmission technology use by DSTV and GTV sports channels through which coca cola makes most of its advertisements has played a major role. For effective business transactions new technology in communications has made making deals easier. The use of email, mobile phones and fax have made major contribution.
Corporate social responsibility
The future of any company relies on the vitality of the consumers of its products. Coca cola has developed deep relations with most world communities. Many people have got employment, governments have obtained taxes, markets for the supplies of raw materials to coca cola bottling plants have been created, and the company has partnered with NGOs in developing water facilities for communities.
The marketing environment for the coca cola company at both the local and global scope has greatly influenced the marketing efforts of this company. These impacts of technological development on its marketing decisions, the corporate’s social responsibility as well as the general challenge the company is currently facing have led to increased sales which is the ultimate aim for the company, now and in the future. Coca cola understood both the local and global factors affecting their marketing strategy very well and has capitalised on this. Through new marketing ventures and introduction of new products, the company is simply bound better future.
Lionne, B. (2005). Coca cola story. New York: Black Rabbit Bks.
Morgan, J. (2004). Value Addition: Coca cola. New York: Routledge.
Norman, W. (2004). Coca Cola Abroad. New York: Routledge.
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