Business Marketing and Advertising

The key factors that determine the success of a business in both local and international market is the development of a sustainable competitive advantages in local markets. Moreover, advertisements and positioning in local market has as well been incredibly decisive in the success of multinational businesses in the contemporary competitive market. The prosperity of a business in global market is therefore primarily based on the level in which domestic market offers a business with additional advantages pertinent in international market. Positioning in local market is the entire process of designing business’s image essential in development of productive reputation in customers’ mind (Porter 2000). To understand the aspect of international marketing appropriately, it is vital to focus on one of the largest international companies like Coca-Cola Co.

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The Coca-Cola brand is a merchandise of Coca Cola Company. The company was instituted in 1886 and is currently the leading distributor, marketer, and manufacturer of non-alcoholic beverages (August 2008).  The Coca-Cola brand is currently sold in over 200 global countries. The Coca-Cola Company head quarter is situated in Atlanta Georgia.  The company has as well employed over 300, 000 employees around the world. Over 70% of the company’s products are sold in international market. Due to its accessibility and subsidised cost, the brand has turned out to be one of the most preferred soft drink in the world. The company’s success in global market is significantly brought about by its effective globalisation strategies and strong foothold in many countries. The company’s main competitors are: Cadbury-Schweppes and PepsiCo. Coca-cola however clams over 47% of the global market, with PepsiCo and Cadbury-Schweppes claiming 21% and 8% respectively. The essay below therefore seeks to unveil the Coca-Cola Company standardisation strategy and its impacts to global market.

A proper advertisement provides a description of the most common emotional appeals or wedges that are used by advertising agencies in reaching out to their target audience. Often, the consumers are faced with numerous fads of advertisement that have the objective of creating emotional and sub-rational appeals. The consumers develop resistance to the adverts of which the advertisement agencies try to use different appeals to reach out to the consumers. The level of penetration depends on the willingness of the consumer to listen or watch the advertisement appeals. Effective placing has enabled the company’s production plants to effective improve their products and services (Vrontis & Sharp, 2008). Moreover, the company’s huge profit is as well brought about by its minimised cost of operation. The direct link between the company and its distributors has to a great extent reduced the transportation cost thus minimising the operation cost. , in facilitating quick and cheap distribution of its products, the company has opened manufacturing plants in several regions in the world. This has as a result increased customers’ awareness on the availability and use of Coca-Cola Company’s products.

Through its standardisation and promotional strategy, the Cola-Cola Company has adopted several promotion strategies. For a starter, the company has embraced product extension strategy. In this plan, the company presents its products in global market without changing its design, size, and quality. This plan has resulted to increased sales of Coca-Cola brand especially to customers who are aware of its quality and price (Vrontis & Sharp, 2008). Secondly, the production and promotion adaption strategy has as well played an incredibly significant role in increasing the number of the Coca-Cola Company customers. This mechanism was intended at producing products that can meet customers’ demands and needs.  The company has as well used different promotion languages in different cultural backgrounds. Thirdly, the company has as well adopted the invention promotion strategy. In this strategy, the company has invented in new products to meet its customers’ needs. Considerate price of Coca-Cola brand has also adversely increased its sale.

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The global standardisation strategy is therefore incredibly effective in increasing the sale and demand of Coca-Cola brand. Due to its effective promotion mechanism, Coca-Cola is a competitive brand in global market. According to recent market analyses, Coca-Cola has an exceptional powers compared to other similar brands in global markets. The subsidised and harmonised price of the brand has as well played a remarkably essential role in increasing its global demand. The quality of the Coca-Cola brand has significantly improved the profitability of Coca-Cola Company the company. Despite its attractive flavour, the brand is also presumed to have a unique feeling to its consumers.

Through its effective standardisation strategy, the company has as well succeeded in keeping the freshness of the brand by maintaining a powerful sense of nostalgia that brings together the coke lovers. The quality of the brand is also essential in creating deep connection between the brand and its customers. The company’s systematic distribution channel can as well be associated with the brand increased sale. The establishment of numerous outlets and production plants has adversely deepened the relationship between the company’s product and the consumers (Barney, 2001). The Use of different promotion strategy can as well be associated with the company’s increased profitability. Employing different promotion mechanisms in different cultural settings has very encouraging outcomes to the company’s profitability.

The development of context-specific capabilities entails creation of effective relationship between the company’s products and its customers. Effective relationship between the company’s customers and products leads to the development of trust and royalty to the company’s brand. Contexts specific product should as well adapt to typical market condition.   For example, Smith, Klein & French has in the last five years invested in creating new and strong network between its products and customers in Japan. This has a result led to successful entry in Japanese market. The company has opened wholesales and outlets in many parts of the world market such as china. Opening of several outlets has led to the development of very strong linkage between the company’s products and its customers (August, 2008).

The most crucial advertisement appeals include, appeal to the subconscious mind, personality appeal, subliminal appeal and thwarting the doubtful mind of the consumers with regard to the negativity about an advert.  Most essentially, it is worth noting that the adverts are meant to provide the individuals with fundamental desires that can enhance their unswerving mind in regard to the aired adverts. The advertisers make efforts to arrest the mind of the consumers and getting to their psychological depth in trying to convince them to listen, watch or read the advert. This has been the driving force that has ensured that Coca-Cola sells their soft drinks.  

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In the light of the above analyses, illustrations and discussion, it is evident that several factors and forces are attributed to the success of Coca-Cola in the soft drink business as one of the leading multinational companies. More importantly, it is notable that the appropriate approaches to globalization such as the implementation of the stages and Uppsala models of internationalization has allowed the company to be very competitive in the market. It is also evident that the country of origin effect has enabled Coca-Coca to have an enhanced company and brand image for its soft drink brands.

The prosperity of an organization in global market is to a great extent necessitated by valuable positioning in local market and effective advertising strategies. Moreover, a good number of the most profitable businesses in global market has created strong network between its products and the company’s customers in their local market. Therefore, it is incredibly vital for new businesses with an intention of expanding into global market to be sufficiently positioned in local market in order to flourish in the contemporary intricate international market. 

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