To: Dr. Mike Greenwood
From: Uuganbaatar Ganbaatar ( Uuganaa)
Subject: Coca-Cola's global strategies
Date: May 10, 2017
Class: 2017SU MBA-705-HF1A
Coca-Cola's global strategies
Coca-Cola is one of the most well-known brands in the world, operating in over 200 countries. However, the road to success has not always been easy for Coca-Cola, and there will still be challenges in the future.
Foreign countries have different laws, economies, business strategies and currency. Entering into a foreign market could also require changing a product to suit the new market's tastes and preferences. Coca-Cola’s marketing strategies played a significant role in successfully globalizing the business. Coca-Cola’s marketing campaigns revolve around attaching the brand to things that are dear to consumers, touching their hearts and finding a place for the brand at the core of who they are.
Another key factor that has supported Coca Cola’s globalization vision is the company’s ability to customize the product to meet the needs and wants of individual markets. For example, Coca-Cola has been able to tailor its product line to meet the needs of the younger consumer by offering Powerade and flavored Coke products, such as Cherry Coke and Vanilla Coke. Additionally, the company is addressing the needs of the health conscious, an older consumer with Diet Coke, Vitamin Water, and Odwalla products. CocaCola has invested significant time and money into researching and understanding different marketing segments based on lifestyle, age, and income to accurately develop and market its products.
As a result, currently, over 70% of Coca Cola’s business income is generated from non-US sources. In over a century, Coca-Cola has grown the company into a multi-million dollar business
It is not secret that there is growing concern among consumers, public health professionals, and government agencies about the health problems associated with obesity. Increasing public concern about obesity; other health-related public concerns surrounding consumption of sugar-sweetened which have already been affecting their profitability negatively based on the news around and the most recent financial statements. The below table of Coca cola’s P&L shows a steady decrease in the sales of products for the last three years.