Coca Cola Global Marketing Environment Commerce Essay

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Coca-Cola which has currently operate in over 200 countries worldwide and market portfolio of 3000 beverage products including Carbonated Drinks, Sparkling Drinks and still beverages like mineral water, juices, coffee & Energy Drinks is most famous for the innovative soft drinks.

In the global soft drinks market which is dominated by 3 household: Coca-Cola claim 47% of the global market, compared with 21% and 8% for Pepsi Cola and Cadbury-Schweppes.

By putting focus into the market, Coca-Cola established widespread and diverse target customers all over the world. And the market is defined into two, the retailers and the consumers. For the retail market such as restaurants, convenience stores and hotels, even from largest fast food restaurant and supermarket, McDonald and Wal-Mart to a small market in a third world country, still can find the market of Coca Cola. For their consumers market the company observes society in four different traits, which are the target ages from youngsters to adult coke, the income group is general the suit from a teenager with no income to a rich successful business man, as well as acceptance with different ethnicity that many of them are popular in drinking coke while eaten.

Nowadays, people enjoy drinking different types of the drinks, as well as healthy drinks. In Coca cola, it has established many different beverages and zero coke to humor people in different taste and interests. On the other hand, the countries that Coca-Cola has been entered, like China, etc. had brought out a large number of support and turnovers.

2. SWOT Analyze


Coca-Cola has been a world leading brand which have more than 200 countries are selling the drinks of Coca Cola in hotel, restaurant or even in the convenience store, long history benefit its business since its brand name has been widely spread to the world and it has more than 70% of income comes from outside the USA.

On the other hand, the 47 % market share of Coca-Cola is higher than that of Pepsi Cola and Cadbury-Schweppes. This implies that it is the biggest the soft drinks in worldwide, customers prefer first priority in buying the products of the Coca-Cola Company rather than that of the Pepsi Company.


Coca-Cola has an issue for health care, which has been criticized for its aggressive marketing to children and suspected unfavorable health effects. In India, Coca-Cola due to water issues, gaining a negative publicity, it resulted in lower growth and pitiable brand image. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effect on your body after few years.

Coca-Cola has introduced 400 types of beverages into the global market, and most of are not as well-known as the brand is. Since the products are not popular enough, failure to get recognized and accepted by the loyal consumers of Coca-Cola. This is a major weakness for the company as acceptance follows marketing and drives sales and eventually.


Support Olympic Game utilize the chances to play advertisement of their own products in the big event to the whole world people, have created popularity from the audience as well as the taste expanding.

The Coca-Cola usually has contracts with the big fast food restaurant such as McDonald which has the food set is combined with the soft drinks of the company. Hence, the company profit can be maintained by the customers consume.

The significant factor of brand recognition is affecting Coke's competitive position the well know brand name of Coca-Cola is popular throughout 94% of the world today. Over the past few years, the primary concern is to increase the reputation. And the changing of packaging which are changed from cans to bottle, have also affected the sales and industry positioning. However, the public has tended not to be affected by new products.

Coca-Cola's bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse area.


Currently, the threat of new competitors in the soft drink industry is not very substantial. Nevertheless, because of substitutes are existed toward the market. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate.

Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness of the market could have a serious affect. Likewise, further significant market shares and offset any losses incurred due to fluctuations in the market, which Coke and Pepsi have already expanded into these markets. The buying power of the consumer also represents a key threat in the industry. The rivalry between Pepsi and Coke has produce a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competition. Furthermore, consumers can easily switch to other beverages with little cost.

3. Global Participation Strategy

Coca-Cola is a high degree of product adaptation and modification between each market such as U.S, Taiwan, and Hong Kong etc. For develop the Coca-Cola Company's product strategy, Coca-Cola execute product testing and development in various markets or countries. It is because products sold on other countries or markets are influenced by local costumer's tastes, attitudes, behavior and traditions. In order to embarked on product development and to expand its product line. With increase consumer interest in healthy drinks like juice, water, energy drink and tea drink, Coca-Cola has launched a set of new product to meet their favor. The popular products included Coke Zero, Coca-Cola Lime, Enviga, Dasani and Gold Peak. In some of the counties such as England and Hong Kong, they are pay more attention to the health and traditional tastes in their culture. Therefore, the Coke Zero and Coca-Cola Lime are very suitable for them to drink.

For the packaging adaptation, Coca-Cola has different bottle style and image pattern. Some of the countries have limited edition and package and other countries might have large size and volume such as U.S.

In the highly competitive beverage market in Taiwan, Swire Coca-Cola Company has the status of the leading brands in the carbonated drinks, and more than 50% market share.

In order to meet the advent of e-century, Coca-Cola in Taiwan was formally established the website in 2000. They are not only provided a platform to interact with online consumers, but also play an important role to convey the image and culture of Coca-Cola. In October 2001, the Coca-Cola Company introduced Qoo juice in Japan, South Korea, Singapore and other places. This is the first domestic juice drinks tailored for local children and loved by children. In 2003, Coca-Cola co-operate with Ten Ren Tea production company to introduce a new drink in order to cater the tastes of the Chinese consumer. Coca-Cola has always produced high quality production and provides the best tea experience to the consumer.

According to one of the Coca-Cola's senior executives stated that Coca-Cola and many international food companies, especially those working via franchise systems are more multi-local than multination. It means even the companies produce highly standardized products, they also need to consider the maxim "Plan global and act local".

Nowadays, Coca-Cola using the franchise model be their major distribution channel because using this model can distributes concentrate to bottlers in strategic geographic location. After then, the bottlers mix up with other ingredients such as water and sugar and then distribute to retailers and wholesalers. For example: supermarkets, clubs, bars, restaurant, hotels and vending machines. Virtually, many centuries like Hong Kong and Taiwan are using this distribution channel to delivery Coca-Cola to consumers. Swire Coca-Cola Hong Kong Limited owns the franchise of Coca-Cola and the Coca-Cola brand products. Besides that, Swire Coca-Cola Hong Kong Limited also the major soft drink manufacturer in Hong Kong. Likewise, the franchise of Taiwan is Hawnan Industrial Limited Company that selling different brand's drink products. The delivery channel is very similar with Hong Kong.

Coca-Cola sold around over 200 counties in worldwide. However, some of the small counties do not served Coca-Cola products and production facilities. Coca-Cola is only not selling in North Korea, Cuba and other independent countries. Many Muslim countries do not allow the sale of Coca-Cola, because Coca Cola is produced by United States because they have facing the ethnic conflict. In fact, Venezuela has threatened to stop selling Coca-Cola in 2011. The reason is their citizen does not want to drink Coke and the labor dispute problem between workers and their boss, therefore the Coca-Cola cannot enter to Venezuela.

In the past, Coca-Cola is not served in Myanmar because of the political problem and economic environment situation between U.S and Myanmar government. Nevertheless, according to a news report, Coca-Cola plan to enter its product to Myanmar market, as the U.s government wants to give permission for the company as soon as possible. On the other hand, the relations between Myanmar and the international community have been improved a lot.

Apart from the political and economic problems, local resource also a big concern of Coca-Cola why cannot enter to the countries. In India, they are always facing a water shortage problem in some region. Since the Coca-Cola company need to use a lot of water to produce the products. Therefore, the India government does not allow the sale of Coca-Cola in local market.

4. Global Marketing Programs

To be a successful organization, Coca-Cola have many different marketing strategies included Product, Distribution channel, Promotion and Pricing:


The brand is always being the most important asset of the Coca-Cola Company. It has been a long history and built up a positive image to global customer. Beside that, Coca-Cola mainly produces soft drink and provides the specific taste for the customers. As we know, the taste of Coke is never change and it is difficult to change.


Coca-Cola has different appearance for the drink products. It can attract the customer and give a new product feeling to customer. Moreover, Coca-Cola emphasize about product adaptation. For example, Coca-Cola would change the logo "Coca-Cola" in different country with different word. For example, in China, the word would change to Chinese word. Also, there are lots of the different shapes of the bottle for those Coca-Cola collectors.


Coca-Cola has different type of packages in order to attract the wide range of consumer. For example, bottles or cans package are easy to carry. Customer can drink any place. For 4, 6, 8 package, beside easy to carry, it also encourage customers to share with friend. For large package, such as the size in 1.2L, because of the large capacity, it is convience for people to drink in the party or share with a large number of people.

Product mix

To be the biggest drink company all over the world, Coca cola face a lot of competitor. Besides keeping the classics brand and taste, company has different type of drink as well. Coca cola contained other brands including water, juice, coffees and sport drinks etc. The reason to contain with other brand is the brand of Coca Cola and taste cannot have a big change. Because of the original taste entered the saturation process. Coca Cola extended its product line as well as create new products to increase the market share.

The main product so Coca Cola Company is Coca cola, Sprite and Fanta:


Product line

Coca cola

Coca Cola (original), Coca Cola (zero),

Coca Cola (light), Coca Cola (lemon)


Sprite (original), sprite (lemon)


Fanta (original), Fanta (strawberry) Fanta (grapes) Fanta (Green) ,

Fanta (Apple)

There are many different tastes of the main products. Customers are seems to have more choice. Beside, increase the market share which enable the company has less risk rather than the company force on only one product. Moreover, it can increase the company product sales and profit.


Coca-Cola use Penetration pricing strategy in order to set the price. The goal is to have a high market shares, sales amount or price of the unit to set, rather than just focus on profits. The advantage is it can fast diffusion and adoption, easy to have a large market share. After a period, when the market share is large enough and the price can set higher to enhance more profits. For example, Coca-Cola enter into the China market from 1979, nowadays the sell price is still be the same. Although the selling price had not been changed, nowadays Coca-Cola have built 42 factories in China. It shows the high profit. Moreover, people can easy to drink which the Coca-Cola has a large market share, is also meet the Coca cola ''Affordable'' and ''Acceptable' main mission.


Coca-Cola use many promotional mixes for its selling. To be a global company, Coca-Cola always considers the local environment and culture. For example, it finds the spokesmen. In Japan, it invited a famous singer Namie Amuro to be the Japanese spokesman in coca cola zero. In Hong Kong, people like to have Hot Pot with a coke to drink belong. So Coca cola designed TV advertisements about friends who have Hot Pot together and drink Coca cola.

Part of the Coca cola mission is ''Price to value'' and ''Preference''. In order to get the goal, a good brand image necessary and always being the most important asset of the Coca cola Company. Beside it has been a long history a positive image to customer is also what coca cola want to give to. Coca cola's promotions are always cooperating with public event. For example, in 1981 UK, Prince Charles married Lady Diana Spencer. Coca cola design a product memorial bottle for this event. The bottles have their wedding date and name. Coca cola also is Olympic sponsorship from 1928. It makes many souvenirs which related Olympic. Such as Olympic version bottle, cans, badges, etc. Both of these items are show the company is care about the society thus to build up a positive image. Also, the souvenir can satisfy the collector.

5. Recommendations

Coca-Cola has coverage lots of wider countries or cities, for example: Hong Kong, America. There have some suggestions for the Coca Cola. Firstly, the company can try to enter some small countries such as Cuba, North Korean in order to increase their profit, expend the sales volume and market shares.

Secondly, they can change some design of the product or offer more favor of the Coca Cola, such as they can cross-over with some Pizza Hut to attract the customers or maybe they can have some fruit favors to let customers felt freshness. If they still use the red color be their image color, they will feel bored.

Moreover, Coca Cola should be concentrated in certain popular products for selling, as their production line is too wide and the product recognition are not popular enough in some small countries.

Last point is the health problem, although Coca Cola had provided zero coke, as we know that the zero coke stills have a lot of sugar inside and it will affect our health if drunk too much. So, the company should produce some of tea products to fulfill the customers which is concerned about their health.

6. Conclusion

Coca-Cola is a very successful global international company in the beverages industrial market.  They have long history and their products are spread over the world. Coca-Cola has strong competitive advantages in the global market with fast development.

Since coca cola is the world's leading manufacturer and marketer¼Œone of the reason is they have the well globalization distribution channel all over the world in order to make the transaction more smoothly. Moreover, Coca-Cola wants to be a part of the culture in their daily life, so they will respect cultural differences and also to recognize the humanity. Therefore, they have a high product adaptation and good reputation in the world.