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Bus 401 Case 1 Essay

995 words - 4 pages

Touro University

Richard Gonzalez

BUS 401

Module 1 Case

Dr. David Marshall Hunt

The purpose of this paper is select three international marketing issues and apply them to

the Coca-Cola Company. During the next few paragraphs I will discuss entry modes, Indian

market characteristics and importance, and elements of the four “Ps”, as Coke expands to India.

Let me start the next paragraph by addressing the first international marketing issue of entry

modes.

Entry modes include exporting, licensing, franchising, wholly owned subsidiary,

acquisitions, and global strategic alliances. Coca-Cola adapted the tow most risky and costly

modes, which are acquisitions and wholly owned ...view middle of the document...

India’s average consumer is in the low end of the income latter. In other

words, the average person is poor when measured by our standards of living. These three

Module 1 Case

characteristics played a big role in Coca-Cola’s international marketing strategy. So far, I have

covered two issues of the three international marketing issues applied to Coca-Cola. I will now

move to the last issue, elements of the four Ps.

The four Ps include product, place, promotion, and pricing. In this paragraph I will

discuss the first P, product. The product in this case is Coca-Cola. In the Indian market, the

characteristics of this product did not appeal to the consumers. The most important is the size of

the can. Consumers of cold beverages in hot countries like India, prefer smaller sizes of cans or

bottles. The reason behind this is the fact that a larger can or bottle takes longer to drink and

becomes hot or room temperature faster. This would go against Coca-Cola’s slogan, “Cold

means Coca-Cola”.

Place is the second of the four Ps we will discuss. Coke owns 70% of its bottlers, many

of whom it inherit from its acquisition of Thums Up. In order to revamp the placing of its

products Coca-Cola closed down eight of its bottlers due in part to outdated operations and

equipment. The costs savings from these closures is helping the company re-focus or shift

resources to other facilities. The use of local raw materials has saved the company on import

duties and distribution costs.

In India, the third P, promotion, turned out to be a hard nut to crack. Their first error was

to promote Coca-Cola against the local brand Thums Up (which Coke acquired) that had a big

share of the beverage market. As a result of this move Coke lost part of the market share to

Pepsi. Another mistake was in brand building. During the first years Coca-Cola focused on

using international advertising and used zero or little adaptations in Indian. ...

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