20-09-2012, 10:47 AM
Marketing Strategies Analysis of Hindustan Coca-Cola Beveragws Private Limited, Patn
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The Mission Statement of the Coca Cola Company
Our mission statement is to maximize shareowner value over time.
In order to achieve this mission, we must create value for all the constraints we
serve, including our consumers, our customers, our bottlers, and our
communities. The Coca Cola Company creates value by executing
comprehensive business strategy guided by six key beliefs:
1. Consumer demand drives everything we do.
2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We will lead as a model corporate citizen.
COCA COLA INTERNATIONAL
HISTORY:
Coca-Cola Enterprises, established in 1886, is a young company by the
standards of the Coca-Cola system. Yet each of its franchises has a strong
heritage in the traditions of Coca-Cola that is the foundation for this Company.
The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta
pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in
fountain drinks. However the bottling business began in 1899 when two
Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead,
secured the exclusive rights to bottle and sell Coca-Cola for most of the United
States from The Coca-Cola Company.
The Coca-Cola bottling system continued to operate as independent, local
businesses until the early 1980s when bottling franchises began to consolidate.
In 1986, The Coca-Cola Company merged some of its company-owned
operations with two large ownership groups that were for sale, the John T.
Lupton franchises and BCI Holding Corporation's bottling holdings, to form
Coca-Cola Enterprises Inc. The Company offered its stock to the public on
November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual
basis, total unit case sales were 880,000 in 1986.
In December 1991, a merger between Coca-Cola Enterprises and the Johnston
Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company,
again helping accelerate bottler consolidation. As part of the merger, the senior
management team of Johnston assumed responsibility for managing the
Company, and began a dramatic, successful restructuring in 1992.Unit case
sales had climbed to 1.4 billion, and total revenues were $5 billion
Economical Analysis
Being flexible and willing to change to satisfy consumers’ needs, has enabled
Coca-Cola to exploit the economies of scale that was gained by its global
marketing and at the same time making its products appeal to local taste,
which these have earned the company an enormous profits quarterly.
As Coca-Cola has expanded over the decades or even nearly a century, the
company has benefited from the various cultural insights and perspectives of
the societies in which business is done. No doubt of the remarkable experience
it has, it is still very committed to local markets, to paying attention to what
people from different cultures and backgrounds like to drink, and where and
how they like to drink it, to remain competitive and to develop more new drinks
to satisfy its markets.
Now, the estimated brand equity of Coca-Cola is $84billion, market share of
more than 50 percent in beverage industry globally and about 70 percent of its
income comes from countries outside United States. Every 10 seconds, 126,000
people in the whole world, choose to reach out for one of The Coca-Cola
Company brands, and it is the company’s mission to make that choice exciting
and satisfying, every single time.
Social Analysis for Coca-Cola
Foreign environment factors have influenced the Coca-Cola’s strategies in
international marketing. Culture has a tremendous effect on people’s
preferences and perception. Language is one of the aspects of culture that
marketers must take care of, in term of translating product name, slogans and
promotional messages so as not to convey the wrong meaning. Coca-Cola did
not look much into this aspect when entering into the markets of countries like
China and Taiwan as the literal translation of Coca-Cola in Chinese characters
mean, “bite the wax tadpole”.
Changes are necessary in international marketing for consumer’s products, as it
is important that the products suit one’s taste, preferences and fulfill one’s
needs. Coca-Cola has continued changing, improving and developing new
drinks to appeal to local tastes.
After discovering that Coke did not appeal as much to Japanese consumers,
Coca-Cola developed over 30 new drinks for the Japanese market, which
inclusive of Asian tea, English tea, coffee and fermented-milk drink.
In China, Coca-Cola has also begun the similar strategy of introducing
beverages developed for the taste buds of local market. It launched a fruit juice
drink called Tian Yu Di (Heaven and Earth) specifically for the Chinese market
with planning of introducing the market with a Chinese iced tea and soy milk
drink.