Case Study: Coca-Cola

Case Study: Coca-ColaAgnese Lubka matr. 20852 Yana Shelkovamatr. 21743Oleksandra Soroka matr. 20856

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3Brands

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The most recognized word on the planet after OKCoca-Cola spends more money on advertising than Microsoft and Apple combinedUntil 1905 contained extracts of cocaine as well as the caffeine-rich kola nut423rd of May Challenges of MNCsA.Lubka, Y.Shelkova, O.Soroka The red and white Coca-Cola logo is recognized by 94% of the world's populationOwned Columbia Pictures 1981 1987

HistoryInvented as a patented medicine in late 19th centuryInventor: John PembertonPharmacist Asa Candler bought the formula from inventor for $2,300since March 27, 1944 - registered trademark in the US

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International Marketing Concept

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TargetingTarget Market: 15 25 y.o. and 40+Lifestyle: BusyMobile generationSocial economic status: upper lower and lower 7

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SegmentationCoca Cola: everybody Caffeine free coke: interested particularsDiet coke: weight concerned people (mostly female product)Zero coke: Weight concerned people (male product)

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SegmentationFanta: teenagers 13-16 y.o. and their parents Sprite: 16 19 y.o. and their parentsMinute Made: kids and their parents Powerade: sport drink for 14 27 y.o. Oasis: 20 30 y.o.(Ireland and England)

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The key for international companies is finding the right mix of global and local in their operations. The Coca-Cola brand is global, but it must be locally relevant. We may be giving the same happiness message, the same brand architecture may be communicated, but it has to be done differently in each country.

Ahmet C. Bozer, president of the Coca-Cola Companys Eurasia and Africa Group

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Global ApproachFranchise system since 1899Personal approach to each country Market adaptationAdvertising differentiation

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Multinational modelProduce their products independently in different countriesEach country products are not sameUsing different strategies for different countries Analyzing the internal and external environment of each countryEach subsidiary has their own Research and Development activitiesLocal responsiveness1423rd of May Challenges of MNCsA.Lubka, Y.Shelkova, O.Soroka

Operating GroupsNorth America Latin AmericaEuropeEurasia AfricaPacific15

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Advertising Sport sponsorships: the Olympic Games since 1928Holidays campaigns: New Year "Holidays are coming!Sharing happinessPartnerships with other meal distributors: Together is testier

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SWOTStrengthsThe best global brand in the world in terms of value ($77,839 billion)Worlds largest market share in beverageStrong marketing and advertisingMost extensive beverage distribution channelCustomer loyaltyBargaining power over suppliersCorporate social responsibilityWeaknessesSignificant focus on carbonated drinksUndiversified product portfolioHigh debt level due to acquisitionsNegative publicityBrand failures or many brands with insignificant amount of revenues1923rd of May Challenges of MNCsA.Lubka, Y.Shelkova, O.Soroka

SWOTOpportunities Bottled water consumption growthIncreasing demand for healthy food and beverageGrowing beverages consumption in emerging markets (especially BRIC)Growth through acquisitionsThreatsChanges in consumer preferencesLegal requirements to disclose negative information on product labelsDecreasing gross profit and net profit marginsCompetition from PepsiCoSaturated carbonated drinks market2023rd of May Challenges of MNCsA.Lubka, Y.Shelkova, O.Soroka

Evaluation of strategy

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Focus on consumers Market adaptationStrong advertising campaigns (sponsorship)The largest market share > key to business success2223rd of May Challenges of MNCsA.Lubka, Y.Shelkova, O.Soroka

23Well Done!Keep going!

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Sources http://www.businessinsider.com/facts-about-coca-cola-2011-6?op=1#ixzz324rDi13Qhttp://www.strategicmanagementinsight.comhttp://www.adweek.com/news/advertising-branding/fanta-marketing-chief-we-can-grow-category-106105http://blog.lionbridge.com/marketing/2012/12/13/coca-cola-global-marketing-done-right/http://socialmediatoday.com/contentmoney/1512551/creative-international-marketing-same-company-different-approach

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