Coca-cola: international business strategy for globalization ineffectively coca-cola has used each of the six strategies the paper focused on coca-cola's operations in the united states, china, belarus, peru, and morocco coca-cola in morocco is believed to be the first brand to offer advertising targeted at the smaller, rural. In global advertising, how does a company choose between standardization and localization which one is appropriate for the current times do they need to factor in the product life cycle stages. Coca cola company strategies 1 coca-cola companya case abstract coca cola (wwwcocacolacom) is a comprehensive business policy and strategic management case that includes the company’s fiscal year-end december 2006 financial statements, competitor information and more. Standardization of products and international marketing strategy facilitates the realization of economies of scale in production and marketing, levitt argued that firms must pursue a standardized product and international marketing strategy to be successful in the global market. Ten years ago, globalization seemed unstoppable today, the picture looks very different even coca-cola, widely seen as a standard-bearer of global business, has had its doubts about an idea it once took for granted it was a coke ceo, the late roberto goizueta, who declared in 1996: the labels.
The coca-cola company focus and meets those requests with a brand name coca-cola and a red and white attractive 20 package with a uniform taste of product across the country, this became some of the foundation strategy of the company. Coca-cola is a consistent major sponsor of the world cup buda mendes/getty coca-cola went from a cocaine-infused elixir in 1886 to a ubiquitous sugary drink by 1929. Standardizing or adapting the marketing mix across culture a case study: agatha thesis in marketing, 15 ects credits compare two strategies, standardization and adaptation, to show how companies manage cultural differences (armstrong & kotler, 2008) coca cola for example, which are globally standardized products sold everywhere and. Are us companies employing standardization or adaptation strategies in their international markets richard hise texas a&m university-college station young-tae choi university of north florida abstract whether to standardize or adapt marketing operations in international markets is the.
For a quarter century, the big winners in consumer markets have pursued strategies of standardization but success for retailers and product manufacturers now hinges on their ability to cater to. One company that is a well-known advocate of global standardization is coca-cola coca-cola is able to use standard packaging, distribution, and brands in international markets. Coca cola was a huge success in the us and by the 1900s it had expanded into 8 other countries and counting today, it is enjoyed in over 200 countries worldwide (coca-cola company, heritage timeline, 2011) there are two strategies that they could have used to help them do this, standardised and localised strategies standardised. They maintain that standardization has many barriers hence greater returns pertain to localization (adaptation) of products and marketing strategies to specific situations [ibid] the debates on standardization and localization have produced reasons why each side holds on to their views.
While the economic logic of globalization might impel global marketers to seek the economies of scale and other theoretical advantages of standardization, experience with the realities of linguistic and other cultural differences has obliged them to go some distance towards the ‘glocalization’ of their marketing campaigns by examining the marketing strategies of coca-cola, mcdonald's and. Reasons why coca-cola switched from localization to global standardization strategy under ceo roberto goizueta and the essential benefits in the 1980s, the coca-cola brand development strategy was primarily aiming at enhancing the product availability, affordability, and. Strategies for localization are considered better than standardization when companies want to go global and capture a share of the international market in the chinese market for example, coca-cola, in local phonetics is translated as ko-kä-kö-la however, the actual meaning of. Today, two-thirds of coca-cola’s sales in japan are from local beverage brands, and the company now owns more than 100 local beverage brands worldwide in some cases, the global-brand owners are financing totally separate companies.
Strategies for localization are considered better than standardization when companies want to go global and capture a share of the international market in the chinese market for example, coca-cola, in local phonetics is translated as ko-kä-kö-la however, the actual meaning of this in chinese is bite a. Standardization standardization: achieving maximum productivity through standardization of service product and service design and delivery achieving global economy of scale and lowest unit cost which is an import tenet of economics (product or production orientation) standardization means one. In the aftermath of the asian financial crisis, coca cola (nyse:ko) switched from a globalization to a localization strategy that localized the wrong product characteristics like branding. Coca-cola’s global rethink and engaged in an unprecedented amount of centralization and standardization and the emphasis on variety carries over from products to strategies: in china. The research paper discussed standardization and localization strategies, where standardization strategy refer to a common marketing program cutting across nations and marketing segments, while localization strategy seek to adapt products and marketing strategy to the specific characteristics of individual markets.
Coca cola in 1955, a coca -cola advertisement or documentary (almost 20 mins long) referred to as the “pearl of the orient” shows coca-cola’s popularity in philippines and how coke has merged itself into the philippines economy and culture. Coca-cola had to conform to the changing needs and demands of all their consumers at the time that robert goizueta implemented his global standardization strategy, it was a. Standardization or adaptation in international advertising strategies: the roles of brand personality and country-of- strategies, ie, standardization and adaptation this topic has attracted enormous attention while the brand of coca-cola may be personalized as a more traditional, family-oriented.
This paper is part of a larger study which examined the strategies of six global marketers with respect to standardization, localization, and regionalization: coca-cola, colgate-palmolive, mcdonald's, nestlé, procter & gamble, and toyota. As his strategies didn’t work as planned the next ceo in year 2004 was neville isdell, who found the way in between from goizueta and douglas daft strategies and now is leading coca cola towards new profitable markets and countries. A good example of a company that uses global standardization in marketing is coca-cola, according to university of south carolina professors saeed samiee and kendall roth.