Marketing Strategy by Coca-Cola to Emerging Markets
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- Date Submitted: 10/17/2015 10:06 AM
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Introduction
Emerging markets (EMs) constitute the major growth opportunity in the evolving world economic order. Advertising is one driving factor in the advance of globalization. This paper will look at the different advertising and pricing strategies utilized by Coca-Cola to gain entry into emerging markets such as Egypt, South Africa and Russia. Coca-Cola has shown success in its ability to penetrate these EMs by extension, adaptation or a combination of both in regards to product and promotion throughout the years. Gaining insight into successful advertising strategies within emerging markets can assist others in the adoption of an effective strategy when expanding into these countries.
Product and Communication Extension (Dual Extension)
The ability to bring a product into an international market without any significant changes to either the product or the theme of their advertising campaign is referred to as dual extension. This global standardization is considered the most profitable strategy due to the efficiencies gained on production and research and development. Brands that are well established have a distinct advantage over others in international markets because they are widely recognized by consumers without targeting specific cultural values (Pae, Samiee & Tai,
2001). Coca-Cola sells virtually the same Coke beverage worldwide and has been effective in utilizing a global marketing strategy as evidenced by their recent inspiring campaign inviting everyone to take part in the 2014 FIFA World Cup hosted by Brazil using short documentary-style videos. According to Bruno Guicardi, co-founder and President of CI&T, a technology outsource provider that assisted with the project “It needed to be innovative and engaging at a global level, but at the same time simple and flexible enough for marketing teams around the world to be able to roll out the campaign in their local markets.”
Product Extension – Communications Adaptation
Differences...
Emerging markets (EMs) constitute the major growth opportunity in the evolving world economic order. Advertising is one driving factor in the advance of globalization. This paper will look at the different advertising and pricing strategies utilized by Coca-Cola to gain entry into emerging markets such as Egypt, South Africa and Russia. Coca-Cola has shown success in its ability to penetrate these EMs by extension, adaptation or a combination of both in regards to product and promotion throughout the years. Gaining insight into successful advertising strategies within emerging markets can assist others in the adoption of an effective strategy when expanding into these countries.
Product and Communication Extension (Dual Extension)
The ability to bring a product into an international market without any significant changes to either the product or the theme of their advertising campaign is referred to as dual extension. This global standardization is considered the most profitable strategy due to the efficiencies gained on production and research and development. Brands that are well established have a distinct advantage over others in international markets because they are widely recognized by consumers without targeting specific cultural values (Pae, Samiee & Tai,
2001). Coca-Cola sells virtually the same Coke beverage worldwide and has been effective in utilizing a global marketing strategy as evidenced by their recent inspiring campaign inviting everyone to take part in the 2014 FIFA World Cup hosted by Brazil using short documentary-style videos. According to Bruno Guicardi, co-founder and President of CI&T, a technology outsource provider that assisted with the project “It needed to be innovative and engaging at a global level, but at the same time simple and flexible enough for marketing teams around the world to be able to roll out the campaign in their local markets.”
Product Extension – Communications Adaptation
Differences...