Delivery in day(s): 3
Dissertation on Coca Cola - Conclusion
This Dissertation Coca Cola Conclusion is final part of dissertation. Coca cola, the most successful beverage producer in the world, to analyze the follawing mentioned theories, see all previous parts of this dissertation.
The overwhelming success of Coca Cola as a brand in the Indian subcontinent and China owes itself to several factors. It occupies more than 69% of the market shares in the category of carbonated soft drinks. It also sells packaged drinking water and has exact one third market coverage in this sector (Allen, 2004). The fruit drink products fare just a bit better than its packaged water counterpart. Their coverage in about 5000 towns and 175000 villages in India itself bear the testimony to the extent of Coca Cola’s reach in the Indian market (Prahald, 2008). Their profits have grown manifold over the years and have continued to shoot up. Their bottling plants have all been collaborated with local NGO’s which works towards the betterment of the standard of living in the surrounding areas. Their stand of non compromise with regard to the quality has earned them a place in the list of Future 500 companies in India (Bender, 2010).
The strategy undertaken for distribution of the products in the market lies at the heart of all successful business entries in the market and their further expansion to make it big. In the Indian subcontinent and the Chinese markets, Coca Cola’s success has been spearheaded by their extensive network of distributors and retailers. The channel, through which the product reaches the hands of the end user has been so strong for Coca Cola, that it serves as the backbone for the growth of the company in the emerging markets. This huge network of distributors and retailers has helped the company intrude into newer territories (Ustinova, 2006). In both the above mentioned markets, the company laid a foundation for their growth starting from the metro cities, where more percentage of people have higher and stable source of income. Since it has been figured out from extensive research studies that the soft drink intake of an average Indian and an average Chinese lays quite low, Coca Cola entered the market to lure the young customers, aged 25 years and below (Yu, 2005). This age is more susceptible to being allured and hence their choice of target audience has been spot on. Through the well laid grid of distributors and retailers, the company has reached the villages after they had laid their hands on the customers in the city (Krishna, 2012). The level of consumption in the villages has not matched that of the cities, so there is still a lot of room for improvement as far as the market in the Indian and Chinese villages is concerned. The company needs to set up its network more prudently and also needs to market their products differently in the villages than they have already done in the cities. In that way, the company should be able to grow bigger and leave its market competitors way behind (chan, Ireland, & Yu, 2006)
Another key factor to their success has been the successful understanding of the ever changing need of the consumers. To survive in the market, it is absolutely essential that the company understands the choice of the customers and tailor make the products fitting those needs (Tezeli, 2010). Coca Cola has obtained huge success in this regards. Having started as an out and out carbonated soft drinks manufacturer, they understood after sometime that in order to capture more and more audience, they need to diversify their products (Rubin 7 Haridakins, 2009). Thus it gave birth to a wide range of products which catered to the diversified needs of the customers. The parent carbonated soft drink product, Coke, was accompanied by its other versions like the Diet Coke for health conscious citizens. Then they brought variety in flavor as well by introducing Fanta, Maaza, Limca, Sprite and Thums Up as the various variants. They also introduced a vanilla flavoured coke which did not fare well and was not accepted by the market and was eventually pulled out. Coca Cola also treaded in the fruit juice sector with the introduction of its brand Minute Maid, the variants being Minute Maid Pulpy Orange (Orange Flavor), Minute Maid Nimbu Paani (Lemon flavor) and Minute Maid 100% which comes in grape, apple and other flavors (Krishna, 2012). They also launched their packaged drinking water label named Kinley and Georgia as the tea and coffee beverage brands. Thus Coca Cola ventured into all segments of the non alcoholic beverage industry. This wide range of products gives the consumers variety to choose from. The company must keep on producing products with the changed needs of the subcontinent and China in order to enjoy long term success (Noel, 2009).
After their advent in the markets of India and China, the primary focus of Coca Cola has been the consumers in the bigger cities in the two countries. But conquering the city markets alone would not have brought them huge profits and they needed to penetrate the markets in the villages and the rural areas. With the urban population already having their hands and eyes on their products, now Coca Cola felt the urge to concentrate on the rural markets which were comparatively less invaded by its market competitors. Thus they took time to set up a network that would allow them have a strong hold on the rural markets. The market in those lesser developed regions being still untapped, the people started welcoming them. Moreover, Coca Cola had policies that also looked to alleviate the standard of living in the villages in collaboration with the NGO’s. This humanitarian side of the concern paid rich dividends en route to their penetration in the rural markets.
Another aspect of their success accounts to the fact that the company over the years has been able to project itself as the largest non alcoholic carbonated soft drinks brand across the globe. The goodwill that the company has been able to develop over the years has created a sense of belief in the minds of its consumers (Liu, 2002). Coca Cola has maintained its production standards at such high level over the years that the belief has been firm in the minds of people. The soft drink industry is highly brand dependent and brand specific. Consumers dedicated to a particular product do not generally switch to another brand overnight. So the brand value and consumer base needs to be created so that a consumer remains dedicated to their brand of products (Pae, Saimee & Tai, 2002).
India and China has been the growth markets for the company for the last decade. The sales in these countries have experienced constant growth and the target of Coca Cola should be to continue its growth in the same way in the coming years. India and China has been at the top of the emerging markets for most of the company motivates across the world. In case of Coca Cola, India features in the list of top 10 countries in terms of their gross profit (Krishna, 2012). India’s diverse population, the demographic features attribute to India being one of the largest markets in the Eurasia group. Therefore, Coca Cola needs to steer their ship in a way in which they can remain the number one non alcoholic carbonated soft drink brand in India and China and be the first preference of its domestic consumers.
- Ahmed, N. (2000). Cross-cultural content analysis of advertising from the United States and India. (Unpublished doctoral dissertation). University of Southern Mississippi, Mississippi.
- Allen, F. L. (2004) Secret formula: How brilliant marketing and relentless salesmanship made Coca-Cola the best known product in the world. New York: HarperCollins.
- Andrews, J.C., Durvasula, S. & Netemeyer, R.G. (1994). Testing the cross-national applicability of U.S. and Russian advertising belief and attitude measures. Journal of Advertising, 23(1), 71-82.Harvard Business Review , Boston, MA.
- Albaum, G., &Tse, D. K. (2001, August). Adaptation of international marketing strategy components, competitive advantage, and firm performance: A study of hongkong exporters. Journal of international marketing, 9(4), 59-81., New york, Columbia Press University.
- AliRaqi, H. (2001). North African Journal of InternationalMarketing (11th. ed.). Volume 5 Number 6. P.110-117, South Carolina, Free Press.
- Alon, I., Littrell, R. F., & Chan, A. K. (n.d.).Branding in China: Global product strategy Alternatives.http://www.aabri.com/OC09manuscripts/OC09002.pdf, : 06.08.2013.
- Badal, E., Melewar, T.C. & Small, J. (2006). Danone branding strategy in China. The Journal of Brand Management. 13, 407-417. Doi: 10.1057/palgrave.bm.2540282, : 20.08.2013.
- Bakker, B. A. (1997), "Intemational Marketing Standardization," presentation to European Intemational Business Administration Annual Meeting (December), 1-21.
- Bender, R. & Vranica, S. (2010, October 22). Global ad agencies flocking to Africa. Wall Street Journal. Retrieved from http://online.wsj.com/article/SB1000142405270230474140457556419378395035, accessed on: 17.08.2013.
- (n.d.). Coca-cola marketing mix 75.Retrieved April 12, 2011, from HubPages: http://hubpages.com/hub/Coca-Cola-0, : 07.08.2013.
- Boggs, D. J., Magnusson, P. & Westjohn, S. A. (2009). Order-of-entry effects for service firms in developing markets: An examination of multinational advertising agencies. Journal of International Marketing, 17(2), 23-41., Harvard Business Review, Boston,MA.
- Bachfischer, N. (2011). Expedition 206: First Results of Coca Cola’s biggest Social Media Project. aquarius Digital Potential Blog. Retrieved April 11, 2011, from http://www.aquarius.biz/en/2011/01/10/expedition-206-first-results-of-cocacola%E2%80%99s-biggest-social-media-project/
- Bodden, V. (2008). The Story of Coca-Cola. Creative Co., MIT Press, California.
- Bielaszka-DuVernay, Christina. (2008). How Coca-Cola built strength on diversity. Harvard management update, p. 71-74. Retrieved from Business Source Premier database.
- Cateora, P.R. & Graham, J.L. 2007.International marketing.13th Edition. New York: Mcgraw-Hill.Van Mesdag, M. 2000. ‘Culture-sensitive adaptation or global standardisation – the duration-ofusage hypothesis’,International marketing review, 17(1):74-84.
- Chung, H.F.L. (2003), “International standardization strategies: the experiences of Australian and New Zealand firms operating in the Greater China markets”, Journal of internationalmarketing, Vol. 11 No. 3, pp. 48-82.
- Chan, C., Ireland, C. & Yu, L. (2006). China’s new culture of cool: Understanding the world’s fastest growing market. California: New Rider’s Publishing.
- Coca-Cola. (2011). Marketing. Retrieved April 18, 2011, from http://www.thecocacolacompany.com/dynamic/press_center/pressreleases/marketing/?localSearch=%2Fdynamic%2Fpress_center%2Fpressreleases%2Fmarketing&locationSearch=%2Fdynamic%2Fpress_center%2Flocation%2Fnorth-america%2Findex.html
- Coca-Cola, Corporate. (2011, March 1). One Band. 24 Hours. A Brand New Song Inspired By Fans Across The World. The Coca-Cola Company.
- Cook, D. (2011, April 4). Maroon 5?s “Is Anybody Out There” Released As Free Download In Partnership With Coca-Cola. M is for Music. Retrieved April 11, 2011, from http://www.misformusic.com/index.php/2011/04/maroon-5s-isanybody-out-there-released-as-free-download-in-partnership-with-coca-cola/, : 02.08.2013.