Adapting a Brand: Coca Cola, Essay Example

Introduction

Coca Cola is touted to be the most popular and favored brand of soft drink in the world. While it has become a global company, the company asserts that it remains local in nature. Indeed, Coca Cola adapts to local idiosyncrasies and particular tastes, which its 230 different products and variations of their drinks reflect. Advertisers and marketing strategists for the brand Coca-Cola has strategically situated to company within the global soft drink market. The company currently operates in over two hundred countries, which is why it is confronted with the decision over standardizing Coca-Cola products internationally to reap the possible benefits from economies of scale; cater to certain markets by adapting their products their offerings to a particular market, which may contribute to the enhanced penetration of specific markets;  or implement a syncretic approach by weaving both approaches together at the same time. There has been ample research conducted on externalities and uncontrollable factors that might affect a so-called firms positioning strategy. Both internal and external variables helped Coca-cola derive an appropriate tactical and strategic approach to adapt Coca Cola as a brand within a global market.  The tactics and strategy deployed by Coca Cola work in harmonious tandem by taking into consideration the contingencies and external forces so prevalent in the global marketing environment.

History, Brand Building, And Target Audience

Coca Cola as a company was founded in 1886 and remains the leading manufacturer, distributor, and marketer internationally of non-alcoholic drinks that contain high concentration of syrups. As mentioned previously, it operates in over two hundred nations and is renowned for its seminal beverage, Coca Cola. Currently, the company boasts about two hundred and thirty various brands, and more information on various products can be seen at www.coca-cola.com.  The company’s headquarters are located in Atlanta, Georgia, and its various subsidiaries employs over thirty thousand individuals worldwide. Not surprisingly, 80% of the company’s profits and 70% of the volume comes from countries outside of the United States. As such, Coca Cola remains one of the most conspicuous companies and brands across the globe. Coca Cola products can be purchased internationally, which has enabled the soft drink to remained the world’s favorite soda. The company should be lauded for sustaining its primary position in the soft drinks market through cogent strategy that has adapted the brand to be successful in the global market. Indeed, the world economy has become truly globalized, so adopted a global strategy to adapt the brand has been integral in its continued success. Coca Cola remains an affordable product that is popular and maintains a potent foothold in a plethora of countries. However, in order to think globally, marketing spokesmen for Coca Cola assert that they must think locally.

The efficacy and profitability of Coca Cola can be pinpointed to their primary position within the soft drink market, which means they dominate the market share. Studies show that there is a definite connection between profitability and the market share a firm enjoys. Scale economies in conjunction with more learning experiences translate into the use of production technologies and techniques that are efficient and effective. Because consumers within the current economic conditions take less risks, they remain loyal to the primary player in the market because doing so is safe and comforting. Because of Coca Cola’s position in the soft drink market, the company has been able to negotiate with suppliers about lowering the price while demanding elevated market prices for all of its products, Finally, as the leader in the soft drink market, Coca Cola is run by effective and dexterous teams of managers, so successful process and  procedures have been developed and implemented at every level of the organization.

Promotion of the Brand

The company employs both top-line and bottom-line promotion tactics to maintain a primary position in the soft drink market. A lot of the promotional activities target a mass audience rather than local ones at the behest of members of the company’s corporate office. Other top-line promotion techniques include television advertisements, banners, and other sponsorship initiatives. Below-the-line promotional tactics include Point of Sale display, promotion schemes, and publicity material. These activities are carried out by sales managers and production plant workers.Area sales managers are in charge for more local promotion efforts. Coca Cola also endorses famous celebrities and associated with other powerful and well-known brands such as McDonalds and other films and music organizations. These efforts all help build and enhance brand visibility and grants the company the latitude to reinvent itself according to evolving consumer tastes and cultural idiosyncrasies. By transforming Coca Cola a generic product, and packaging the product in an economical but aesthetic manner, the company ensures that the its brand is adaptable and always relevant.