Estrategias De Marketing
Global Marketing Strategy: Standardisation or Adaptation - Coca-Cola Case Study
Introduction
As domestic markets mature, it is becoming more and more fashionable for organisations to seek growth through opportunities in foreign countries. Faster communication, new technologies and improved transport links are making international markets more accessibleand businesses pursuing a global position can experience an upsurge in brand awareness and cost effectiveness. Global marketing is a relatively new concept linked to these developments.
In the main, it is concerned with decisions for integrating or standardising marketing actions across a number of geographic markets. This does not rule out any customisation of the marketing mix to individualcountries but suggests that organisations should capitalise on similarities between markets to build competitive advantage.
Compelling cases can be put forward for both a standardisation or adaptation approach to international marketing practice. These arguments are keenly explored, drawing from examples of Coca-Cola's international marketing programme to elucidate key points.
Background of Coca-ColaAs the world's largest manufacturer and distributor of non-alcoholic beverages, Coca-Cola is certainly no stranger to global marketing. Established in the US, Coca-Cola initiated its global expansion in 1919 and now markets to more than 200 countries worldwide. It is one of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands including Schweppes,Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and Powerade. Despite this, Coca-Cola often struggles to maintain its market share over its main rival PepsiCo in some overseas markets, particularly Asian countries.
Arguments for Standardisation
* Converging customer needs and preferences
It is proposed by Levitt that the forces of globalisation driven by technology and wider travelare leading to more homogenised customer needs and wants worldwide. This paves the way for the building of global brand identities where companies are able to export their domestic brands to mass markets abroad and consumers will react to them in similar ways.
In this sense, standardised marketing with a universal product and message can be an integrating force across national borders. To sendout different communication messages across countries could lead to customer confusion and even dilution of the brand. In keeping with this, Coca-Cola sells virtually the same Coke beverage worldwide.
The design of Coca-Cola soft drinks has changed little in its history, from the logo to the distinctive glass bottle. These unique and consistent characteristics evoke a strong brand image which hascross-cultural appeal.
* Economies of scale/experience
In many industries, companies can reap cost advantages by operating on a global scale and ultimately improve their all-round competitiveness. Using a centralised structure, a firm can draw economies from bulk purchase discounts or by sharing functions such as product development, marketing, production and managerial resources amongdifferent markets.
In Coca-Cola's example, economies are gained through the competent running of a large-scale franchising system for its bottling operations.
* Technological viability
In sectors where technological and production processes are homogeneous, extra weight is placed on standardisation of products as a prerequisite for success. As part of its vision that Coke should taste the samearound the world, Coca-Cola has chosen to standardise its product and manufacturing process.
The knock on effects of this are more streamlined procedures and greater cost efficiencies. It is worth noting Levitt's argument that companies' which opt to produce an assortment of products serving different customer segments would be unable to survive globalisation due to inefficiencies in their...
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