3.2. Globalisation and Global Marketing Flashcards
(16 cards)
What is marketing?
The process of promoting and selling goods or services.
Why does marketing need to be adapted to regional markets?
Different populations still have different laws and cultural attitudes
What is global marketing?
Involves treating the world as one single market -> using one marketing strategy to advertise a product to customers all over the world
How has marketing become more global?
- Many products are sold all over the world, rather than just in the production company.
- Global marketing can create global brand awareness -> logo/ slogan
- Global marketing gives economies of scale ->cheaper to have 1 marketing campaign for the whole world, rather than having a different campaign for every country.
How much revenue does coca cola generate per year?
$45 bn
How many countries do coca cola sell in?
200
How has coca cola achieved successful brand awareness?
- Instantly recognisable branding/ logo that translates to suit local language
- Close links to festive celebrations across Europe and USA
- ‘Taste the feeling’ campaign -> linking product to positivity
- Innovate marketing campaigns which connect to buyers
- Considered a brand, not just a product -> people associate it with many things beside a drink
- A hugely successful core product with a large number of variations to suit individual markets
- Hugely successful global advertising campaigns costing $41 bn per year
- Adverts focus on happiness, friendship and relaxation associated with drinking the product.
What are the positive economic impacts of coca cola?
- Massive employment opps directly and indirectly in related industries
- Franchise operation means that many local bottlers profit from sale which supports the local economy directly and indirectly
- Investment in new plats and expanding markets such as Asia and North Africa e.g. US $90 million R&D centre in Shanghai
- Majority of profits are returned to shareholders in USA
- The coca cola foundation awards grants to companies around the world to support social development and environmental sustainability.
What are the negative economic impacts of coca cola?
- Long hours for little pay (in poor working conditions in some bottling plants)
What are the positive social impacts of coca cola?
- Training and education programmes e.g. a global commitment to enable empowerment of 5 million female entrepreneurs by 2020 -> the 5 by 20 programme
- Uses marketing network to increase awareness of recycling and distribution network for disaster relief
- Millions have been spent countering the links to obesity -> coca cola spent $4.86 million setting up the European Hydration institute that recommends people consume sport and soft drinks
What are the negative social impacts of coca cola?
- Workers are encouraged to abandon union membership in some LICs
- Vulnerability of bottling plants to the effects of top-down decisions making in ‘remote’ Atlanta (the HQ of coca cola)
- Pesticide residue identified in some coca cola products - 30x the amount of pesticide residue considered acceptable by the EU
- Harsh working conditions in some bottling plants
What are the positive environmental impacts of coca cola?
- Initiates sustainable agricultural schemes e.g constructing rainwater harvesting system at tea suppliers in China
- Replenishes the water it uses by funding local projects to protect watersheds
What are the negative environmental impacts of coca cola?
- Water pollution
- Exhaustion of local water supplies (in 2012 coca cola used more water than around 25% of the world’s population)
Spatial organisation of Coca Cola
- 900 bottling plants and 950 production facilities worldwide
- HQs in Atlanta
- Factories in Indonesia
Production and linkages of coca cola
- Makes concentrates and sells to authorised bottling partners, who mix concentrates with still/ sparkling water and sweeteners if required and prepare, package and distribute finished drinks
- Also has ‘finished product’ operations where the company owns or controls bottling, sales and distribution.
- In 2006, company owned bottling plants joined together to form Bottling Investments Groups
- Bottling plants are near to markets as transport costs increase once water is added to the concentrate
- Coca cola has bought existing bottling plants rather than building new ones to rapidly expand into new markets
Trading and marketing patterns of coca cola
- World’s largest drinks distribution system
- One of world’s most recognisable and profitable brands
- 2.2. bn servings per day
- Diversified products
