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Written assignment

Unit 1: Developing a marketing strategy

BUS 5112: Marketing Management

Master in Business and Administration, University of the People

Instructor: Dr. Simon Sai Hau Ho

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Introduction

Pick a product or brand of your choice that is sold in your geographical location. From an
examination of any marketing medium (such as advertising, packaging, or website) and reflecting
on the 4P’s of marketing, construct a value proposition for the product or brand. Conduct
substantial research on the product or brand in order to get a good understanding of how the brand
has evolved and where it is heading.

Since I left home at the age of 19, and throughout my life, I've been attracted by the Coca-Cola brand.
Suriname, Brazil, Martinique, Paris, Belgium, Spain, Tunisia, India, Qatar, Abu Dhabi, UK,
Philippines, Seychelles, Thailand, Japan, South Korea, Singapore, Bangladesh, Vietnam, and China
are all represented by a worldwide brand. It's incredible to observe how a simple drink has crossed
numerous civilizations, mental frameworks, ecosystems, and regions. Whatever the political spectrum,
the drink has been accepted by a wide range of political systems; the brand itself is a gigantic emblem
of US hegemony, closely mimicking capitalism, harmful drink, and the mass market's vision.

Dr. John S. Pemberton, a pharmacist, initially created Coca-Cola on May 8, 1886. Pemberton's
formula included cocaine, which was in the form of a coca leaf extract, hence the "Coca" portion of
the drink's name. The original formula was first offered as a patent medication in soda fountains,
claiming to be a cure for maladies such as heartburn, nausea, and migraines. Frank M. Robinson, Dr.
Pemberton's bookkeeper, is credited with creating the trademarked logo and naming the beverage
"Coca-Cola." With a local and worldwide vision, the firm is motivated by passion, excellence, energy,
and innovation.

Their mission statement encapsulates the company's dynamism:

1- Our Vision: To Refresh the World, Make a difference.

2- Our Mission: To provide brands and beverage options that people like, allowing them to be
refreshed in both body and soul. And it must be done in ways that result in a more sustainable
business and a better-shared future that improves people's lives, communities, and the environment.

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The Coca-Cola purpose is summarized

here.

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Cola-Cola is a global brand that can be found in every corner of any metropolis, even in the most
distant locations. This remark is significant because it emphasizes the company's strong drive to never
settle for anything less than marketing the brand in the globe from the perspective of the community
and our planet.

Coca-Cola began selling in China in the 1920s, and Shanghai is one of the company's most important
sales markets. In Tianjin's Dayuecheng Shopping Mall, a Coca-Cola Happy Experience Store
celebrates the brand. Coca-Cola opened a plant in Shanghai in 1927.

Some simple fundamentals are at the heart of Coca-efforts Cola's to break into China:To begin with,
they were willing to invest in sectors with high development potential rather than chasing profits in
saturated marketplaces. Second, they figured out who their target market was and tailored their
product and business strategies to fit them. Coca-Cola is a shining example of "first-mover
advantage." It was the first foreign brand to enter China, and as a result, it is deeply embedded in the
collective Chinese memory and consumer market.

The circumstance eased the door for other well-known brands to enter China: PepsiCo, Coke's
primary competitor, did so in 1981. Coca-Cola initially debuted in China in 1927 and grew in
popularity; but, when communist leader Mao Zedong came to power in 1949, he banned numerous
foreign commodities, including beverages. Coke returned to China in 1979, and the country is
presently the company's third-largest market, trailing Mexico.

Coca-Cola shockingly becomes the fastest expanding FMCG brand in consumer reach point,
according to Kantar Worldpanel China's newest 2019 Brand Footprint Report. This ranking has
generally favored local Chinese brands: Back-to-back wins for Nongfu Spring, a Chinese drinking
water brand. Coca-success Cola's is due in large part to its focus on the brand rather than the product.
Coke doesn't sell drinks in bottles; it offers "happiness."

Let's look at their 4Ps to see what makes them successful.

- PRODUCT: The Coca-Cola Company offers a diverse selection of products. It has over 500
sparkling and still brands and sells over 1.9 billion servings per day throughout the world. In the
United Kingdom, it sells 80 beverages from 20 different brands. Coca-Cola Classic, Coca-Cola Zero
Sugar, Fanta, Fanta Zero, Sprite, Sprite Zero, Diet Coke, Dr. Pepper, Dr. Pepper Zero, Powerade,
Powerade Zero, Schweppes Water, Schweppes Mixers, Schweppes Lemonade, and Oasis are just a
few of the company's well-known beverages (The Coca-Cola Company, 2020).

Over time, the globe has become increasingly aware of the negative effects of certain beverages on
public health. The Coca-Cola Company has acted quickly in reaction to public outrage. Caffeine is no
longer included in several of the products. Almost all of the company's goods also come with a
reduced or sugar-free, calorie-free alternative.

The Coca-Cola Company is a globally valuable brand. Its goods come in a variety of sizes and shapes,
making it easier for clients to select the correct quantity of drink. Coca-Cola bottles and cans are
completely recyclable. In 2015, Coca-Cola had 48.6% of the global market for carbonated beverages.
The corporation made $31.9 billion in net revenue in 2018. (Statista, 2019).

Coca-cola created a variety of goods, including carbonated beverages such as Coke classics, Sprite,
and Fanta, as well as beers like as Barq's Root Beer and Dr. Pepper, by identifying the demands and

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requirements of customers. It also promotes the local brand names Qoo, Sensation, Tianyudi, and
SMART, as well as ready-to-drink (RTD) tea and juice beverages that cater to local tastes.

Its decision to diversify into the soft drinks business was inspired by rising demand for healthier
beverages. Glass bottles, plastic containers, and cans come in a variety of sizes and styles to meet the
varying needs and tastes of the public. Differentiation in products is a fundamental to Coke's success,
since it encourages customers to return for more.

- PRICE: Coke's pricing strategy is influenced by its competitors' processes. Pepsi is Coke's major
rival in China, and its price changes based on Pepsi's pricing. Coke, on the other hand, always had a
competitive advantage in the market due to a several-year head start, which caused Pepsi to
experience several setbacks.

Nonetheless, Coca-Cola remains the market norm, costing 15 to 20 cents more than Pepsi. This high
price is backed by the market brand equity of its numerous items. The competition must result in
greater product upgrades and more appealing consumer promotions. Consumers would buy the goods
with the lowest price if there was no strong brand image. Pepsi is Coca-most Cola's significant global
competitor. Both firms set competitive prices for their items. As a result, Coca-price Cola's
philosophy is competitive pricing.

- PLACE: Coca-place Cola's in the marketing mix relates to where and how the company's products
are available to customers. Coca-Cola has built an enormous distribution network. The distribution
strategy of the corporation is also highly aggressive. As a result, customers can find Coca-Cola
products at practically all retail stores and supermarkets across the world.

While the components in Coke are well-known, Coca-actual Cola's recipe is kept confidential. The
firm makes syrup concentrate that it sells to licensed bottlers all around the world. Bottlers then
combine the concentrate with filtered water and sweeteners to create the finished goods, which are
sold in cans and bottles. The final items are subsequently sold, distributed, and merchandised to retail
outlets, restaurants, gas stations, newsagents, corner stores, and so on. As a result, it's not difficult to
envision how Coca-Cola goods may be found even in distant corners of many nations. The Coca-Cola
Company, not the bottlers, determines the forms and sizes of the bottles.

Coke's marketing strategies are tailored to certain geographic areas since different geographic areas
have a broad range of individuals of varying ages with distinct attitudes and interests. This has aided
the corporation in establishing a conventional and steady company in China. Consumers in rural and
urban areas have vastly different per capital incomes, which influences purchasing power in every
location. Rural locations have a high consumer potential. As a result, China's market must be
classified according to economic variety. According to 2003 figures, the four most major cities in
China accounted for 4% of the population but only 15% of retail sales; on the other hand, small towns
accounted for 80% of the population but only 50% of retail sales.

The Coca-Cola strategy is a synthesis of numerous variables aimed at capturing the worldwide market.
The strategic combination of these criteria allowed it to establish a foothold in the target market.

- PROMOTION: Promotion in Coca-marketing Cola's mix often refers to how the corporation
engages with its consumers and stakeholders. Maintaining the position of worldwide leader in the
beverage business does not come cheap! The Coca-Cola Company spent $3.499 billion on advertising
internationally in 2014, $3.266 billion in 2013, and $3.342 billion in 2012. In 2018, overall
advertising spending was roughly $4.1 billion.

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The Coca-Cola Company employs a number of promotional tactics to convey its messages to
customers. The corporation has employed several forms of media, such as television, the Internet,
newspapers, and social media. The organization also employs several sales marketing strategies. It
provides specific incentives and bulk-buying discounts to distributors and retailers, for example.

The Coca-Cola Company has a long history of supporting big events and organizations. It is the
official sponsor of American Idol, Apple iTunes, BET Network, NASCAR, NBA, NCAA, and the
Olympic Games, as well as the Olympic Games' longest-running business partner. The company's
involvement with the Olympic Games began in 1928, with the Amsterdam Olympics (The Coca-Cola
Company, 2020). Since 1974, The Coca-Cola Company has been one of FIFA's longest-standing
business partners. The cooperation has been extended through 2030. (FIFA, 2017).

Conclusion

I've always noticed the brand's existence and how they've spread like spiders all over the world. Each
civilization has adopted its philosophy, mission statement, the ideal marketed behind television
commercials, and their appearance during the Olympic games for a drink that is unhealthy and based
on a narcotic..... Are we, as humans, losing our common sense or no longer caring about our health, or
are we solely motivated by rapid gratification while discarding our moral values? Only time will tell.

Reference

- https://www.coca-colacompany.com/company/purpose-and-vision

- Adam Zeidan, (2020, May 06), The Editors of Encyclopaedia Britannica,

https://www.britannica.com/topic/The-Coca-Cola-Company

- Nabil Yafai, (2016, March, 08), History of Coca-Cola,

https://www.interexchange.org/articles/career-training-usa/2016/03/08/history-coca-cola/

- China Briefing, (2015, August, 05), Understanding Brand Building in China: Lessons from the
Rise of Coca-Cola, https://www.china-briefing.com/news/understanding-brand-building-in-china-
lessons-from-the-rise-of-coca-cola/

- What Can We Learn from Coca-Cola’s Global Marketing Success?

https://www.smartling.com/resources/101/what-can-we-learn-from-coca-cola's-global-
marketing-success/

- CHINA DIGITAL MARKETING, CHINESE BUSINESS CULTURE, DOING BUSINESS IN

CHINA, (2014, August, 06), https://www.marketmechina.com/thinking-of-doing-business-
china-learn-coca-colas-success/

- LIU XIN, (2019, March,04), China and Coca-Cola: A Common Development Trajectory,
http://www.chinatoday.com.cn/ctenglish/2018/et/201903/t20190304_800158961.html

- Jason Yu, (2019, September, 30), what is driving Coca-Cola’s growth in China?
https://www.kantarworldpanel.com/cn-en/news/Whats-driving-coca-colas-growth-in-China

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