Coke Adds Life
TOURO UNIVERSITY INTERNATIONAL
ELSTON H. STEELE
INTERNATIONAL BUSINESS (BUS 401)
DR. ANASTASIA LUCA
DR. VAL SAMONIS
MODULE 1 CASE
COKE ADDS LIFE
The Coca-Cola Company's ability to conform to different regions of the world has contributed to much of its success in the global economy. Despite its success, Coca-Cola has its hands full as it battle PepsiCo Company and local producers for market dominance in India. I will identify three marketing issues as they apply to the Coca-Cola Company, pricing, advertising, and position.
Coca-Cola lost a lot of its market share after India's government threw it out. Gaining market share was indeed an issue for Coca-Cola. Their strategy for that is to sell nearly half of its Indian bottler, Hindustan Coca-Cola Beverages, in an effort to please the government, which wanted Indians to have a substantial ownership stake in Coca-Cola's local operation. The decision to sell significantly impacted Coca-Cola's position in the market. The company's overall sales in India jumped almost a quarter per cent. Coca-Cola had issues with advertising. Its marketing strategy just was not working. With competition tough and large advertising expenses yielding mediocre success, Coca-Cola decided to break tradition and hire a celebrity spokesman. Now with a movie star promoting Coca-Cola products, focus was turned to the pricing of their products. Coca-Cola introduced new bottles to the market that would allow lower income areas to afford its product and expand its market share. It also dropped prices of its 300-ml bottles, which prompted its competitors to follow suit. Coca-Cola recognized the need to consume beverages besides soda so it introduced its brand of bottled water. Different advertising campaigns must be used for different areas of the world and Coca-Cola is doing well in India.
In summary, I have identified three marketing...
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