Category: Coca-Cola

Coca-Cola Company Discrimination Of Catalan Language

Introduction

In 1886, the company started manufacturing soda and begun selling in the Caribbean and Canadian market on 1920s. As, Coca-cola finally had their branches all over in Asia to Europe and South America even in Soviet Union. In the Year of 2005, Coca-cola began selling their products all over the world and it evolved by producing non-alcoholic beverages. People started getting conscious on what they would drink, so they came up with the idea of new beverages.

Catalonia people gathered in Barcelona Center Square and protest because Coca-Cola refused to put their label in Catalan, it is the Catalonia Language, that is the reason why the issue got controversial and has been an issue until the present. This was happened in the Year of 1993 and it has been a 20 years of battle and remains unresolved.

For this case study, the author is coming up with a different solution on how to solve the issue regarding discrimination of Catalan Language. The author is suggesting to accept the rules of Catalan to prevent the community from boycotting Coca-Cola products in their city but this may complicate things, as the issue of Spain-Catalonia Independence is happening that is why through negotiation, Coca-Cola company could use this approach to create a peaceful agreement that will benefit all.

Background

Dr. John S. Pemberton a pharmacist who invented a soda using flavored syrup, paired with carbonated water in 1886 and Frank M. Robinson who’s Pemberton’s partner and bookkeeper termed it after Coca-Cola. They sell it for 5 cents per glass and promoted through free samples. It grows and started being promoted through newspapers distributing it to some pharmacies. By 1888, Dr. Pemberton part of his business was sold to multiple businessman and died. A businessman in Atlanta namely Asa G. Candler, bought the product and with his lead, the Coca-Cola started expanding. Especially with the help of Joseph Bidden in 1894, by inventing Coca-cola sealed in bottles. Year of 1899, the three businessman in Chattanooga, Tennessee namely Joseph Whitehead, Benjamin Thomas and John Lupton, buy Coca-Cola bottling rights and give it to Asa for just $1 which make the Coca-Cola to be known in worldwide bottling system. During 1916, they agreed to have a unique contour bottle and advertised the product in 1970s.

Connecting with enjoyable, friends and great moments, the brand started creating jingles for the product in 1971-1979 and in 1980s, they created a strategy involving memorable slogans and used computer animation in 1993. In 2009, they added calorie information in the packaging for the consumers to be aware on what they are drinking and started the “Open Happiness”, it is a campaign to encourage the people and world to pause, have fun with CocaCola, and continue to enjoy effortless pleasures in life. As people prefer choosing low-calorie foods and beverages as culture evolves. So, Coca-Cola made Tab® in 1963 and Diet Coke® in 1982. Diet Coke was the world’s best-selling during the year of 1986. Diet Coke with Splenda, and Coca-Cola Zero was introduced in 2005 becoming successful in 140 countries.

They implemented the plant bottle which was created in 2009, from 30% renewable plant-based material and received Greener Package Award, DuPont Award for Packaging Innovation, and Design for Recycling Award from the Institute of Scrap Recycling Industries for it. According to a research, Coca-Cola can help in mild sickness like digestion, nausea and can help you focus, also increases your energy as sugar is one of its ingredient. Regardless of the medical benefits it gives, it is still a sparkling drink packed with sugar which is also diuretic (causing increased passing of urine) and it won’t help with rehydration. The bottom line is, Coca-Cola is really addictive but drink in moderation.

Evaluation of the Case

According to a study, consumers prefer to choose brands that compliments their personality, making brand personality important on attracting new consumers. The more distinct a brand is, the more it is easy to identify resulting to positive performance and Coca-Cola is the best example selling the brand with its iconic ‘Open Happines’ Campaign and other advertisements. Candler believed that creating a brand that delivers sincerity and excitement to every product they produce will stand out more. Despite becoming a leading soda beverages company, Coca-Cola also has its closest competitors in the market like Pepsi, Red Bull, Dr. Pepper Snapple, Nestle and Parle.

One of the Coca-Cola’s toughest competitor is Pepsi which earned 20$B brands in its product portfolio in 2017. With its competitiveness and consistent valuable products, it earned 63.5$B on its net revenue and 28.8$B on its Gross Profit. On the same year, Red Bull succeeded on the market, starting in the countries of Turkey, India, Netherlands, Northern Europe and United Kingdom. It sell across 171 countries gaining 6.282 Billion Euros of profit and become a booming brand on beverage market. With its 50 refreshing brands, introduced in the US Market, Dr. Pepper Snapple gained 6.4 Billion Dollars net revenue. Meanwhile, entering the Bottled Water Industry, Nestle is accelerating with its Nestle Pure Life and Poland Spring rivalry with Coca-Cola’s Dasani. And the Indian brand Parle, gained popularity with its juices and bottled water competition.

Through local channels of Coca-Cola, have the ability to produce products globally. The Company manufactures the products to sell its concentrates, beverage bases and syrups to bottling operators or the distributor which beverages are made, packed and distributed to the retailers like supermarkets and vending partners, who sells products to their consumers.

Iceland and Catalonia distributors, Coca-Cola Iberian Partners are working to distribute products of Coca-Cola to both parties. The labeling of the product in Iceland is printed in Icelandic but not in Catalonia. The Pro-Language Platform is an organization that promotes Catalan Language in Catalonia. It helps implementing the requirement for products being imported to be labeled in Catalan and yet large companies like Coca-Cola does not meet the law requirement. So, Bernat Gasull of the Pro-Language Platform created the Llei de l’Estatut del Consumidor (Consumer Statute) in which consumers have the right to receive information in Catalan relating to the consumption and utilize of goods, products and services to ensure their protection and wellbeing. Following with ‘A taula en català’ campaign that encourages the public administrations and large public and private bodies to consume only products labeled in Catalan. Another campaign was held in Plaça de Catalunya, Barcelona’s Central Square on December 12th, 1993. Gathering 15,000 unfilled Coca-Cola cans and building a huge banner says ‘Let’s label in Catalan’ adopting the motto ‘The Coca-Cola label in 135 languages around the world, but not in Catalan?’. The Catalan Parliament approved the Catalan Consumer Code in 2010 acknowledging the rights of the consumers to receive labels in Catalan. But this did not hinder Coca-Cola to refuse to follow the order. To commemorate, on May 31, 2014, the Plataforma per la Llengua gathered 40,000 empty Coca-Cola cans and build the ‘Etiqueteu en Català!’ (Label in Catalan!) mosaic at the same center square as a protest for Coca-Cola’s stubbornness even after 20 years of lawsuits.

Proposed Solution/Changes

There is still an issue between Spain and Catalonia as one is aiming for independence and the other is thriving to conquest a community. Since the brand is already printed in Spanish, it is understandable if it will follow Catalan Consumer Code, this will be interpreted as a support from ones language over another but the company should clearly explain that it is just a matter of business so that the lawsuit would be put on an end and the company would not suffer from any boycotts from the people of Catalonia considering it is Spain’s largest city. Showing support for both municipality and country will be an equal win-win method. This solution is chosen to be proposed because it may be very complicated but this will bring more buyers as well as expanding its range around the world. With this, consumers will gain trust. You can think of it as brand selling, gaining their trust by abiding and respecting a culture, as well as an act of promotion of both parties (Catalan and Spanish) which may not be intended to happen but that is the effect of the settlement. This also brings peace through diplomacy, prevention of boycotts and such.

What if this brings more damage than solution? Worse, Coca-Cola products will be banned in Spain. This relative solution has a 60-40 chance of being effective, it may be risky but solutions are meant to be tested. If the Coca-Cola is banned from the country, negotiating is the best way to solve it. This solution may or may not work out but I think the chance of this being applied is possible. With the use of negotiation, both sides will be heard and the settlement should be beneficial for the Company, Spain and Catalonia. Through this, an agreement can be achieved and the relationship of the country from the company will strengthen.

How would they apply the solution? First, the company must clarify in both parties that it is only a matter of business and also a help for the people in the country as a sign of gratitude as the very first Coca-Cola was created in Eastern Spain at the small town of Valencia. Using diplomacy is always the best way to end a war peacefully by preventing less damage. Creating a negotiation, hearing both sides regarding their principles and making a solution that will be agreed by both parties and at the same time, the company should benefit from it too. After the discussions, an agreement should be made and signatures should be signed. In that way, there is a solid evidence of the settlement happened. Then the application of the conditions will now follow.

To strengthen the solution, the author provided related examples of cases in the business industry that were solved or could have been solved through the process of negotiation. The examples of the case studies are from a blog of Harvard Law School – Program on Negotiation.

· The Cyprus Crisis

Cyprus is a small Mediterranean Island, its economy is collapsing due to its debt in Cyprus Bank Depositors. The International Monetary Fund (IMF), European Central Bank (ECB), and the European Commission offered 10-billion-euro as a financial assistance to a collapsing economy to use its considerable amount of provision to do a one-time tax payment (paying all at once instead of annually). But it was not appealing enough for the Cyprus community so the Nation’s President was alone, seeking for a backup plan for his people. Perhaps the best deal you can make is through better than no deal ever again.

· Apple’s Apology in China

Apple CEO, Timothy D. Cook ask forgiveness to Apple customers in China regarding the Apple’s warranty policy and promised to correct the dilemma. With this case, Professor William W. Maddux of INSEAD compared Japan & United States’ reaction regarding the apologies. He and his colleagues discovered that asking forgiveness can be helpful in rebuilding the broken trust even so who’s fault is it. Especially, in this cross-cultural business negotiation, countries like China and Japan being considered having a collectivist cultures (one that’s based on valuing the needs of a group or a community over the individual).

· Negotiation in Business: Apple and Samsung’s Dispute Resolution Case Study

April 2011, Apple CEO Tim Cook had present a lawsuit claiming Samsung copied the “look and feel” of the iPhone as the Korean corporation was developing the Galaxy phone line. Samsung CEO Gee-Sung Choi did not back down and accused Apple for refusing to pay royalties (payment to the one who invented the product) to use its technology for wireless transmission, Samsung is Apple’s biggest supplier. They tried compromising at the U.S. District Court of Northern California reaching a settlement in a high-profile U.S. patent case, and by cutting down the numbers of winning rights of owning (disputed patents) in half. Despite of reconciliation, Apple continued filing a motion and asked the presiding judge to prohibit its Samsung Galaxy Tab 10.1 sales from going somewhere as it was designed to copy Apple’s second generation iPad. The two CEO had a two-day talk in late May, 2012 but it didn’t create a progress as both sides refused to reject their arguments as a result of the trial and Apple winning $409 million. When a business dispute occurs, you will always do your best before bringing it to the courts to resolve the issue.

Recommendations

With the use of Entrepreneurial Competencies, application of negotiating skills and its vision to manage the issue and at the same time, benefit from it as a resource is a win-win method. Using the following Personal Entrepreneurial Competencies, the proposed solution was build: (1) Opportunity-seeking and initiative – in which the entrepreneurs explore opportunities and take the initiative to turn them become business situations (2) Taking calculated risks – which is one of the fudamental concepts in business growth (3) Goal setting – Entrepreneurs pursue significant and complex priorities (4) Persuasion and networking – Entrepreneurs influencing others to joim them or get something for them (5) Systematic planning and monitoring – Meaning deciding what to do and observing whether its worth trying.

As opportunity comes, goals will be set and as a business minded you will take the initiative to turn the situation were it favors you, with calculation of the risks and systematically planning, your goal can be achieved. All you have to do is persuade them to have a negotiation with you. That is what happening in the proposed solution. After calculating everything, to get rid of the obstacle, facing it as an entrepreneur is the solution by the use of negotiation. Having an agreement that favors both parties and at the same time, the business is what matters the most. The Coca-Cola Company can operate in the whole Spain without any issues, in which is appealing to customers as well as investors, as trust issues are being tested and will strengthen the brand as it is a crucial manner to have.

For further action to several issues left regarding the company, information seeking, and systematic planning and monitoring must be applied first. Studying the problem and having a more deeper understanding of it should be done to determine its instances on whether it will harm the business or not, before applying a solution. As an entrepreneur, taking a risk is one thing but every action should be carefully counted. One mistake can put the company in danger. First, you must seek opportunities from the situation before placing an action. And then, set a goal and vision to the mission, calculate its possibilities of becoming worth it before involving yourself in the identified issue.

Affect in Company’s Corporate Social Responsibility Policy

Corporate Social Responsibility Policy aims to ensure that companies operate ethically, with consideration of human rights, social, economic and environmental impacts of what they do as a business.

A company that has experienced conflicts regarding to different categories like environmental, social, ethical work, economic and human rights affects its Corporate Social Responsibility Policy. This conflicts damages the brand reputation of the company, as a result, they don’t have another choice but to take measures on it to control the situation. A high-value brand is essential to a company to execute business, including good performance relating to sustainability performance. According to a study, 86% of customers believe that a certain company has a positive image if the company is involving its business to make the world a better place. But the hurdle may produce a better result as the firm will be motivated even more to go global and take measures of different management to prevent it from happening again. This will improve its Corporate Social Responsibility Policy and will be maintained improving as the image of the enterprise influences largely on the consumers’ behaviour in which the economic benefits of it also differs. In which, Corporate Social Responsibility Policy is considered a section of long term growth strategies.

Source Links

1. https://www.worldofcoca-cola.com/about-us/coca-cola-beverages-products/
2. https://en.wikipedia.org/wiki/Criticism_of_Coca-Cola
3. https://www.wgoqatar.com/2019/11/4-surprising-health-benefits-of-coca-cola-you-might-not-know/
4. https://www.catalannews.com/society-science/item/study-shows-that-9-out-of-10-products-are-not-labeled-in-catalan
5. https://www.pon.harvard.edu/daily/international-negotiation-daily/top-negotiation-case-studies-in-international-negotiations-from-business-and-global-politics/
6. https://notesmatic.com/competitors-of-coca-cola-company/
7. https://www.uniassignment.com/essay-samples/business/the-corporate-social-responsibility-initiatives-on-coca-cola-business-essay.php

Determining The Glucose Concentration In Coca-Cola And Gatorade

Abstract

One of the key contributors to the exponentially growing obesity pandemic is the increased consumption of sugar-sweetened beverages such as soft drinks, energy drinks and fruit juices (Malik et al., 2010). In this experiment, a spectrophotometer was used to determine the glucose concentrations of both Coke and Gatorade. The results determined that both drinks contained less glucose than those indicated in the nutrition label. This was due to the fact that the majority of the sugar content in both drinks is in the form of sucrose, which unless hydrolysed can’t be measured by a spectrophotometer.

Introduction

Obesity is a major public health issue in Australia with statistics showing that in 2017-2018, just under one third (31.7%) of Australian’s 18 years or older were classified as obese and another 35.6% were classified as overweight (Australian Bureau of Statistics, 2019). One of the main factors linked to the rise of obesity worldwide is the consumption of sugar-sweetened drinks such as Gatorade and Coke. This is said as from 1965-2002 caloric intake from sugar-sweetened beverages increased by 4 times going from 50 calories to 200 calories per capita (Duffey & Popkin, 2012), following that of the upward trend in obesity levels. Although an increase in consumption of sugar-sweetened beverages (SSB) doesn’t only increase an individual’s chances of obesity, with increased consumption of SSBs being linked to chronic health issues such as diabetes, cardiovascular disease, and fatty liver disease.

Therefore, with not only sugar-sweetened beverage consumption rising but obesity levels too, it is becoming more important to educate consumers as to what they are in fact consuming. The recommended treatment for patients who suffer from obesity is to increase physical activity and lower caloric intake. Research indicates people often don’t compensate for the extra energy they consume from sugary drinks, resulting in an increased total energy intake, this has the possibility of health issues like diabetes mellitus with sugar-sweetened drinks being proven to stimulate appetite and in turn suppress satiety (Imamura et al., 2016). Therefore, by determining the glucose concentration in these two drinks, the consumer will know exactly what they are consuming, and in turn, will be able to use this information to improve not only their health but the health of others around them.

Methods

The spectrophotometer was set to a 340nm wavelength in order to measure the glucose concentration. A stock 20mM glucose was then used to prepare 1mL glucose standards at the following concentrations: 1-4 and 6mM in microcentrifuge tubes, which were then labelled appropriately. 35​µL of each prepared solution was then​ transferred to 9 cuvettes and 665​µL of H​2​O was added. These were then tested at 0 and 18 minutes in order to determine absorbance. Refer to the lab manual for more detail (Pearson, 2019, 44-49).

Although the hydrolysis of sucrose occurs at varied rates in different pHs and temperatures. This was shown by the sucrose absorption data from the lab, with sucrose hydrolysing best at a lower pH and a higher temperature. These results were able to show that the sample treated at a pH of 2.5 and a temperature of 90​°​C had the highest concentration with 1.95 g/100ml. Therefore Coke would have a higher measured concentration of glucose thanGatorade as Coke has a pH of 2.5 whilst Gatorade has a pH of around 3 (​Seow & Thong, 2005)​. Although the concentrations measured in the lab for both drinks were still lower than that of the label values, this is most likely because the glucose concentration would have been determined by the amount present after the drink has been fully broken down, which would take longer than 18 minutes.

When the sugar content of Gatorade is analysed deeper it can be seen that out of the 6 grams 5.5g are in the form of sucrose, while 0.5g is in the form of maltodextrin (Gatorade Australia, 2019). Maltodextrin is a polysaccharide that’s used as a food additive. It is formed by several D-glucose units that are connected by alpha(1,4) linkages in chains of varied lengths. Maltodextrin is easily digestible and is absorbed as quickly as that of glucose. This explains the glucose present in the Gatorade sample despite the fact that it not only has an unfavourable pH for sucrose hydrolysis but also no glucose content stated on the label. Therefore the glucose measured by the spectrophotometer in the lab was mostly from the hydrolysis of maltodextrin as well as 0.454g of glucose resulting from sucrose hydrolysis.

The results may also have been varied from the labeled glucose content due to human error. Although this is unlikely as the results were more than 6 times less than the concentrations reported on the label, with Coke said to have 10.6g/100mL (Coca-Cola Australia, 2019) and Gatorade having 6g/100mL (Gatorade Australia, 2019). If human error were to be the reason for these differences, there are a few possibilities for this error, the first being the improper taring of the spectrophotometer with the water cuvette. This would have caused all the results to be off as the spectrophotometer would not have been set at 0. The second possibility is that the sample solution concentrations may have been incorrectly prepared. This would occur if the pipette provided is faulty in any way. ​The last way human error could have caused faulty results is through the incorrect use/reading of the spectrophotometer. This can occur due to the cuvette being put in the wrong way or the lid not being closed properly. The absorbance could also be read wrong if the person taking the results doesnt understand the measurement, or records it incorrectly.

Although the results differed from what was expected, they were able to provide insight into that of the contents of the drinks. It is suggested that further study should be completed in this area, with obesity levels continuing to rise exponentially each year. Future research should be completed using an array of different techniques and approaches, in order to understand the full scope of the epidemic. This being said spectrophotometry should continue to be used, both in universities and professional labs as it gives insight into what exactly is contained in our food.

REFERENCES

1. Australian Bureau of Statistics. (2019). ​National Health Survey, Overweight and Obesity​. Retrieved September 20, 2019, from https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4364.0.55.001~2017-18~Main%20Features~Overweight%20and%20obesity~90
2. Coca-Cola Australia. (2019). Retrieved October 4th ,2019, from, https://www.coca-colacompany.com/au/faqs/how-much-glucose-is-in-a-can-of-coke.html?gclid=Cj0KCQjwuNbsBRC-ARIsAAzITufAPL9D56wThwXFSYv-6EpavR5tCzZ_nEuB0rkTUnq3yXaq_EUqRxkaAit3EALw_wcB
3. Duffey K, Popkin B. (2012). Shifts in Patterns and Consumption of Beverages Between 1965 and 2002. Obesity. 15(11), doi: ​10.1038/oby.2007.326
4. Gatorade Australia. (2019). Retrieved October 4th, 2019, from https://www.gatorade.com.au/product-range/electrolyte-sports-drink/
5. Held, P. (2007). ​Determination of NADH Concentrations with the Synergy 2 Multi Detection Microplate Reader using fluorescence or absorbance. ​Retrieved September 20, 2019, from https://www.biotek.com/resources/docs/NADH_App_Note.pdf
6. Imamura F, O’Connor L, Ye Z, Mursu J, Hayashino Y, Bhupathiraju SN, Forouhi NG. (2016).
7. Consumption of sugar sweetened beverages, artificially sweetened beverages, and fruit juice and incidence of type 2 diabetes: a systematic review, meta-analysis, and estimation of population attributable fractio​n. Retrieved September 21, 2019, from https://bjsm.bmj.com/content/bjsports/50/8/496.full.pdf
8. Malik V, Popkin B, Bray G, Despres J, Willett W, Hu F. (2010). ​Sugar-Sweetened Beverages and Risk of Metabolic Syndrome and Type 2 Diabetes. ​Retrieved September 20, 2019, from https://care.diabetesjournals.org/content/diacare/33/11/2477.full.pdf
9. Moliski K, Wallace K, Fenger A, Schneider E, Bendiskas K. (2008). Comparison of Biochemical and Chemical Digestion and detection Methods for Carbohydrates. ​American Journal of Undergraduate Research, 7(2), ​7.
10. Erin Hendrex (s5143319) Chemistry of Biological Systems II https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4364.0.55.001~2017-18~Main%20Features~Overweight%20and%20obesity~90
11. https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4364.0.55.001~2017-18~Main%20Features~Overweight%20and%20obesity~90
12. https://www.coca-colacompany.com/au/faqs/how-much-glucose-is-in-a-can-of-coke.html?gclid=Cj0KCQjwuNbsBRC-ARIsAAzITufAPL9D56wThwXFSYv-6EpavR5tCzZ_nEuB0rkTUnq3yXaq_EUqRxkaAit3EALw_wcB
13. https://www.coca-colacompany.com/au/faqs/how-much-glucose-is-in-a-can-of-coke.html?gclid=Cj0KCQjwuNbsBRC-ARIsAAzITufAPL9D56wThwXFSYv-6EpavR5tCzZ_nEuB0rkTUnq3yXaq_EUqRxkaAit3EALw_wcB
14. https://www.coca-colacompany.com/au/faqs/how-much-glucose-is-in-a-can-of-coke.html?gclid=Cj0KCQjwuNbsBRC-ARIsAAzITufAPL9D56wThwXFSYv-6EpavR5tCzZ_nEuB0rkTUnq3yXaq_EUqRxkaAit3EALw_wcB
15. https://doi.org/10.1038/oby.2007.326
16. https://www.gatorade.com.au/product-range/electrolyte-sports-drink/
17. https://www.biotek.com/resources/docs/NADH_App_Note.pdf
18. https://bjsm.bmj.com/content/bjsports/50/8/496.full.pdf
19. https://care.diabetesjournals.org/content/diacare/33/11/2477.full.pdf
20. Pearson, A. (2019) ​Chemistry of Biological Systems II: Lab Manual. ​Queensland, Australia: Griffith University.
21. Seow W, Thong K. (2005). Erosive effects of Common Beverages on Extracted Premolar Teeth.
22. Australian Dental Journal, 50(3), ​173-178. doi: ​10.1111/j.1834-7819.2005.tb00357.x
23. Erin Hendrex (s5143319) Chemistry of Biological Systems II https://doi.org/10.1111/j.1834-7819.2005.tb00357.x

IKEA, Coca-Cola And Starbucks Vision And Mission Statement

IKEA

It was recorded that IKEA came to existence through a 17 year Swedish young man called Ingvar Kamprad in the year 1943. This business process starting at the beginning was known to be selling pens, Christmas festive cards as well as seeds growth harvested from the farm of Kamprad’s family. As this business continues, it expanded into retailing of home furnishings and also global cultural dimensions. The year 2009 IKEA grew business in 38 countries over the world where they emphasized in conducting their business initiatives.

The vision statement of IKEA company is ‘To make a better everyday life to the satisfaction of all people’. The mission statement of the company as stated by Kamprad ideology says that ‘People have a very small wallets and that is the duty of the company to take care of their respective interests’. Scotland is the known headquarter where IKEA company is situated as it relates their business dealings. The company achieved a greater percentage in their business growth by the means of offering a unique and adequate value proposition to their customers; taking an instance from Scandinavian on their ‘Leading-edge design at a very low price that will be affordable to their customers within the location. IKEA company focuses on local interests as most of their products are uniformly sold across the world. I understood from the given case study that the problem is by designing the products based on local interests of their customers as it was created from the external factors. To be specific, external factors are known as those things a company can’t control at the cause of their business dealings.

In reality it was very difficult for IKEA company to control all the taste and cultures of their customers because they are discharging their business duties across 38 other countries throughout the world; and meeting the exact demand of every customers will definitely be very difficult to attain, but putting into consideration for a rightful marketing strategies then it can be achieved as the problems could minimize accordingly to the satisfaction of all customers. In most cases a polite and systematic approach in handling every problems of your customers create trust and reliability towards customers on how the business or products of their choices are being projected to their own interest which serves their taste to what they believed is suitable as regards the products of their interest in one’s business as a known company with a credible vision and mission statement.

In solving the business problems IKEA company may go for social media marketing plan thereby providing a platform to their customers where the feedbacks could be reached and a channel by which their suggestions towards a given product of the company can equally be examined for easier business communication and understanding. This method of online marketing has been proved to be more cheaper and very easy to operate than in physical marketing that needs a lot of factors to be accomplished. I strongly believe that if IKEA company can employ an online marketing expert then they would have a total control on the market; each of their market product can make a greater success in their dealings if a particular group of experts are employed to serve this purpose.

THE VISION AND MISSION STATEMENT OF IKEA COMPANY

We can recalled as stated above that IKEA’s vision is to make a better everyday life to the satisfaction of all people while the company mission in their business marketing is for people that have a very small wallets or low income to have an affordable product of their interest in the market as they remain in business thereby making it cheaper for them.

SWOT ANALYSIS OF IKEA

Strengths of IKEA

IKEA company have an incredible number of customers which serves as a very key strength in every business. They are increasing or developing their marketing strategies on an international spree including in Africa, which has been identified as the next emerging frontier in the world. Their adequate use of online marketing strategies and the use of mobile services helps them to stay ahead of the global competition with a higher margin.

Weaknesses of IKEA

The naive attitude from the use of media networks or mobile networks towards the understanding of their customers across the countries either in the developed or developing countries for the easy manner of the business to grow will definitely be a hindrance to the success of such business because if accurate information or business initiatives failed to achieved then is a huge weakness as customers needs won’t be served. IKEA failed to make the transition of 3G network in a seamless approach that will serve all.

Opportunities of IKEA

IKEA can use the opportunity of not been able to transit 3G network into a greater opportunity by tapping into the rural areas or developing countries and get their market explored.

Threats of IKEA

As the company operates in many countries with a continuous rivalry with other neighborhood in the same global brands like Wal-Mart that is a well known competitive model, business initiative plan and an expert analysis should be viewed in order to stay above other competitors. IKEA recognizes the presence of Pepperfry which is another furniture retail company located in India and these threats will definitely give them a tune to strategies without relenting.

IKEA PESTEL ANALYSIS

We are going to elaborate IKEA PESTEL analysis in form of; Political, Economic, Social, Technology, Environment and Legal factors.

In the Political view, the disruption of supply chain serves as an issue affecting IKEA in business, for instance India and China tighten entry of foreign brands which will hinder IKEA to operate effectively in such market so as to dominate the market with their products. Again if the political instability increases in Europe where IKEA has a greater influence then it will also affect their business.

In the Economic view, this method predicts the exact condition of a given business in the global market because the economic stand of the world determine the rate of one’s benefits or profits a company will get. Few brands were fit as a swindle during the downturn, and this generate to a decrease in the buying power of an individual. These attitude creates a large portion in financial differences or changes, and indeed is a hindrance to the strength of the huge brands. For instance, USA based brands must lose their benefits if a better grounded dollar exist in another locality that operates same brands. In reality a financial view of a market in a particular country influences the value benefit of such company brands.

IKEA MARKETING STRATEGY

IKEA company approach through their advertising techniques were achieved from an analyzed customers examinations as well as their statistical surveys. The company are known of reaching to customers doorsteps with the help of their well structured experts to obtain their respective needs and give room for criticism which they can improve on. All these feedbacks will help them to make provisions for customers satisfaction according to perspective encounters. IKEA company being the biggest furniture retailer in 2018 moved their showcasing center in form to rooms to a more broader developed pattern. The delight in the blue pack has been put at the center of advertising IKEA’s products and this method has been known on how it portrays the expansion of this creativity and the change it brings the home in accordance to improvement.

COCA COLA

It is a fact statement by referring Coca-Cola company as the largest soft drink manufacturing company in the entire world. Coca-Cola drink will be difficult not to be seen in any part of the world. The company first started operation or invented in the year 1886 by Dr John S Pemberton. The initiative of inventing Coca-Cola was to cure headaches and this mixture comprises of syrup with a carbonated water at the first stage before it was later transformed into a pop cultured substance or situation by presenting it to laboratory pharmacist at the reach of customers across the world and it start to undergo the process of coca-cola logo, posters, clocks, and other apparatus that makes the present process exceptional. Coca-Cola recorded an annual marketing budget of about $3 billion and sales annually which surpasses $30 billion, It has constantly be topping the interbrand ranking without limiting its product. In this present time, it has equally remain on top with a brand value of $68 billion as it touches the doorstep of every consumers ranging over 200 countries. Atlanta Georgia USA is where coca-cola company’s headquarter is located.

A very strong bond between Coca-Cola company and their customers could be achieved through their marketing strategic approach by delivering message in a unique social manner which creates family bonding. It was understood that in most cases some message codes may not be appropriate for every country or a particular targeted market of interest. Coca-Cola company identified the essence in adopting external factor for the organization due to the fact they can’t control a global recognition on a particular strategy undergone by the company. In considering the records of Coca-Cola company in the year 2010, it indicated that over 200 countries acknowledged the activeness of their business presence which makes it a difficult in handling this task appropriately; although I’m of the opinion to adopt the right marketing strategy for the problem to be tackled effectively.

Coca-Cola company is a major sponsor in many sporting events for a very long period of time and they are still active on this approach which improves more on their market structure campaign. I am of the opinion that the creation of online platform will be very suitable to draw customers closer to Coca-Cola company by a way of giving them the opportunity to sample their individual thoughts or ideas which will be used in readjustment within the company. This approach will be achievable because sourcing for information individually from each customers will be difficult as the company’s market structure is very big across the countries. Coca-Cola company need to adopt the system of social believes in actualizing their strategic advertisements Novel selling brands as a product of refreshment and attain their customers urge or believe in their products sampling which improves all dealings.

THE VISION AND MISSION STATEMENT OF COCA-COLA

The Coca-Cola vision statement is ‘inspiring each other to be the best we can attend by providing a better place at work’ This shows that the company is indeed an agent of transformation or change in the development of the industry and across the globe.

The Coca-Cola mission statement is ‘to refresh the world in mind, body as well as spirit, to inspire a stage of higher influence and happiness through this desirable brands and actions as well as creating values that will make a greater difference’ This shows that coca-cola always want to build a legacy at every location of their operation all across the country.

SWOT ANALYSIS OF COCA-COLA

Strength of Coca-Cola

Coca-Cola presence in a vast global and unique identity has earned them the most expensive brands that occupied a stronger and optimal brand equity through the interbrand that was awarded to them which stand as the highest.

Weaknesses of Coca-Cola

The continuous competition from Pepsi always gives Coca-Cola a rethink on an added strategic market structure in order to tackle what befall the company to maintain their height as a market leader. For the fact that Pepsi company is not ready to relent then is generate a tense competitive market among the two companies.

Opportunities of Coca-cola

The increase of health and food business diversification will definitely improve the market delivering of Coca-Cola to their respective customers. A reasonable profit is achieved by cross selling their products to those of their customers satisfaction.

Threats of Coca-Cola

The threat of water scarcity always put off Coca-Cola because is on the rise. The capacity of coca-cola distribution and their revenue can face a major downfall if water is rationed or limited.

COCA-COLA PESTEL ANALYSIS

In the political factor view point, governmental policies on sugar and caffeine consumption which coca-cola as a brand depend on will drastically be altered as a result of the emerging health conditions it poised because the lawmakers are getting it strict to be controlled.

In the economic factor view point, Coca-Cola company faces the challenges of spending huge amount of money to solve water issues when crisis of shortage emerges in order to maintain the steady need of water consumption.

COCA-COLA MARKETING STRATEGY

The marketing strategy of Coca-Cola uniqueness in design has indeed increased their global brand recognition worldwide. They base their strategy in marketing mix of the known 4P’s i.e. Product, Promotion, Price and Place. The brands sells various sparkling and beverages which generates over 60% of its revenue and about 80% of its operating profit across the USA. The red & white logo of Coca-Cola is generally known by up-to 94% world population.

STARBUCKS

Starbucks company was opened originally in the year 1971 in Seattle Washington USA during the declining period in the consumption rate of coffee as the rival brand then uses a quality coffee brand to compete in respect of price. Starbucks can be seen as the representation of USA second chain of coffee culture in the environment. The general idea or concept of Starbucks was to create an environment for the best quality in coffee. It was recorded that the initial store house didn’t sell coffee by cup rather it was beans. Howard Schultz changed the market in 1982 as he visited Starbucks while in Milan for business, he have a taste on the coffee and met a different feeling which can’t be compared with the usual selling coffee in USA. At this point, Starbucks ambition to spread their business across the world was hinted while the objective is to maintain the best quality of their products. Starbucks record number of stores in 2010 is 16850 and over 31250 in 2019. The number of employees in 2010 is 137000 while that of 2019 is 346000 employees fort the company. The increase in size of the Starbucks daily makes them face market challenge in the control of this coffee quality in respect to keep maintaining this ambition in relation to social and environmental obligations.

From the beginning, Starbucks company background plan is highly on optimal standard as a company. The company is not only known as a celebrated powerhouse of quality coffee brand with a rich cultural background, but equally impacted a positive feeling of connection among within their customers to satisfaction.

THE VISION AND MISSION STATEMENT OF STARBUCKS

The vision statement of Starbucks company is ‘to make Starbucks as the premier purveyor of the best coffee across the globe while retaining their uncompromising quality principles while they attain a greater height’

The mission statement of Starbucks company is ‘to inspire and energize the human spirit of one individual to a cup as it relate to one neighborhood at a given time’

SWOT ANALYSIS OF STARBUCKS

Strength of Starbucks

The focus strength of Starbucks that made them to remain above other competitors are the strong brand image of the company, the extensive presence in global supply chain and their moderate diversification through the channel of subsidiaries which boost the market plan of the company.

Weaknesses of Starbucks

The internal factors weakness components were identified here which limit or reduces Starbucks business capabilities in terms of price high points, generalized standards for most products and the high rate of product imitations.

Opportunities of Starbucks

The external factors creates a wide range of opportunities in Starbucks business development through the expansion in developing market, the readiness in business diversification and the alliances with reputable firms in business.

Threats of Starbucks

The threats from external factors in respect of limitation of business performance because of wide range of competition involving low-cost coffee sellers, high rate of imitations and increase in the independent coffeehouse movements.

STARBUCKS PESTEL ANALYSIS

Pestle analysis in Starbucks represent, Political, Economic, Social, Technology, Environment and Legal factors. In Political view the impacts of external factors in the business through their industry specific rules and regulations, the flow of relationships existing among USA and other numerous countries that produces coffee beans. The emerging crisis that exist within a country will equally contribute.

In the economic view, the buying power of consumers on coffee will also showcase how the economic factor reacts. The social views on Starbucks emerges from consumers preferences of certain brands, the changes in family patterns in Europe and that of USA, the continuous changes in work patterns as well as lifestyles of population.

STARBUCKS MARKETING STRATEGY

Starbucks device so many ways to market their products ranging from social media outlet, Television spot channels and the use of ads. They equally operate on the known market mix of the 4P’s to market their brands which are widely recognized across the globe of their qualities and ensured that their standard remain optimal or stand out.

CONCLUSION

The case studies of these companies; IKEA, Coca-Cola and Starbucks increases my mindset towards the general definition of marketing management putting these three company brands in practical view which made me to enclose here that is truly; the process of planning and executing the right concepts, pricing & promotion as well as the delivering of goods, services and initiatives to ensure exchanges with a desirable target structure that satisfy customer requirements and that of company objectives.

In our study the three companies function positively towards improvement in the management of their resources in order to maximize profit as well as maintaining the desirable urge of their numerous customers with their respective services accordingly as expected.

REFERENCE

1. https://en.wikipedia.org/wiki/IKEA
2. Pestel Analysis of IKEA by Kiesha Frue September 19, 2018
3. https://en.wikipedia.org/wiki/The_Coca-Cola_Company
4. https://en.wikipedia.org/wiki/Starbucks

Coca-Cola Company: the Importance of Business Communication

The similarities that these methods have is sharing information to the Coca Cola stakeholders. They are all similar however all the methods are applied to different stakeholders. Verbal communication method most of the time is for internal stakeholders for example, this method is applied in the Annual meeting between Coca Cola shareholders where they use verbal communication to have a face to face conversation, but they could also do it like one of there competitors who do annual meeting through Multimedia Method called skype where the shareholders can communicate face to face no matter how far they are.

So, the similar thing is that verbal communication is also used in Multimedia method for example when they are advertising through advert they do speak to the customers through the adverts. Written communication also has the same purpose which is to share information to the shareholders just like web-based method. They both have the same purpose and written method is applied in the Coca Cola website to communicate their details or product information. Similarities can be the one which interact each other such as when used externally together in advertising through multimedia but written communication as a poster or when use verbal communication internally through telephone when is multi media method. Other similarity could the same purpose for example using the written a letter sent from Coca Cola externally to the suppliers could have the same purpose of using multimedia method using emails to send sent by Coca Cola to suppliers.

Differences could be that letter could cost a lot money and instead using email could be cheaper and faster communication than letters. Advertisement through posters or advert could cost but if Coca Cola uses social media it would be free cost for them and it would be faster to encage more customers because majority of the world is active daily on social media. Verbal communication doesn’t have a permanent record and instead written is a permanent record and this is always used in their sales records. Website communication can be free of cost other than managing it and it could attract more customers to buy their product and poster method ahs the same purpose to engage the customer however one is electrical method and one is non-electrical method.

The importance of business communication cannot be overlooking. As you can see, no company can be successful without effective in-house or external communication. Effective communication can create opportunities, as its open countless doors that you might never have otherwise known existed.

Coca Cola uses all these types of communications methods, so they can share their information through their business internally or externally in an effective and best way. All these methods are used to make strategic decisions and from my prospective way Coca Cola is doing well in their strategic decisions because Coca Cola is the world’s largest beverage company and with the most widespread distribution. It owns more than 400 brands in the world which includes diet, light beverages, water, juices, energy and sports drinks. The company operates in more than200 countries. From doing these researches I came with the conclusion that the way Coca Cola encourage their customer to buy their products it’s the most any effective way of doing it and they are doing it better than any of their customers.

However, they must improve on their publicity because some of the country such as in India Coca-Cola must face the bad effect of the negative publicity. Coca Cola advertising has historically been among the most prolific in marketing history. The various ad campaigns throughout the company’s one hundred twenty-nine-year history have often had a major impact on culture and society, including a hit song which received airplay on popular radio stations in 1971. The logo and bottle designs are immediately recognizable throughout the world and are integral to the brand’s image and recognition in the marketplace (Wikipedia, 2015). In the southern U.S. the beverage is so pervasive that all soft drinks, typically referred to variously as soda, pop, or soda pop, are called Coke (McConachie, 2015).

Coca Cola has repeatedly been ranked as the number one soft drink in the world as a direct result of their aggressive advertising campaigns and was even the first soft drink consumed by astronauts in space. For example, Coca Cola web-based methods has very effective way of sharing information to their more 200 hundred stakeholders such as publishing the annual report in written method through their web site is working well. Verbal meeting is also working very well for decision making for the future of the Coca-Cola company. What could they improve from their website as that competitors also sell their product through website which is an advantage for the competitors and disadvantage for coca cola and it should try to improve it do be a head in competition.

How do Cultural Factors Influence Consumer Behavior? (on Example of Coca-Cola Company)

The aim of this study is to investigate in what way factors of culture (such as values, beliefs, laws (rules of behavior) and social status) influence consumer behavior using the example of Coca-Cola Company. Additional questions were: is it still important today to take them into account in the times of globalization Or marketers do not have to pay attention to it advertising a product of mass culture. Mentioned factors were studied on already existing literature. Used materials were taken from scientific sources. Work include analysis of consumer behavior influenced by personal values, family, social status and impact of globalization on culture.

Now the consumer and his desires come to the fore and become the main subjects of study of producers. Researching the factors that influence consumer motivation and behavior allows firms to use the right marketing incentives. One of the main factors is culture. Therefore, when a company enters the international market, it must first determine the characteristics of the culture of its target market. (M. Salomon, 2006)

Their increasing role makes it important to analyze consumer behavior and identify the factors that influence this behavior in order to further predict the level of spending.

Culture currently plays a huge role in shaping consumer behavior. (Money, Gilley, and Graham, 1998) For example, women living in West Bengal would prefer buying traditional sarees as compared to Westerns. It is one of the most important part of the world around us. Culture includes everything that distinguishes man from animals, pointing to his social essence: ideas, relationships, religions, rituals, habits, art and much more. Culture is clearly seen in stable models of behavior, especially in forms of consumption. For example, in mainstream American culture, turkey is a traditional food for Thanksgiving. This culturally specific behavior allows companies that produce poultry, along with the retailers who sell it, to prepare for increases in demand near the Thanksgiving holiday, but only in the United States. (Money, Gilley, and Graham, 1998)

Culture is a determining factor in the needs and behavior of a person who learns from childhood in the family and through other social institutions a certain set of values, stereotypes of perception and behavior , social status.

There is a progressive movement of culture, its transition from one state to another. Innovation is the invention of new images, symbols, norms and rules of behavior, new forms of activity aimed at changing the living conditions of people, the formation of a new type of thinking or perception of the world. Therefore, it is fundamental to understand the nature and importance of culture, special attention should be paid to the impact of ethnic factors on consumer behavior. No less important is the influence of individual personality, family and situation.

Culture is dynamic. It is always changing. For example, technological change has a broad impact on culture. The internet allows people to connect to social groups and media that represents a particular worldview. That is why consumption patterns, as part of culture are constantly changing. Culture is transforming with the changing elements of a particular surrounding. However, there are some elements of culture, which are unaffected by the influence of place and trends of time. It is these basic things that producers should pay attention to trying to bring any product to the market, advertising companies conducting incentive campaigns in support of this product and other structural units engaged in the production and promotion of goods. Given today’s globalized world, this problem is more urgent than ever.

Consumer behavior

Consumer behavior is formed under the influence of five main situational factors: the physical environment (geographical location, design, sounds, smells, lighting, appearance), social environment (the presence or absence of other people in the moment of purchase , time (time characteristics associated with the time of purchase), the task of the consumer (what person wants to achieve in this situation),state (mood or conditions under which the consumer enters the situation for example anxiety, pleasant mood, amount of money ) (Chang, P. L., and M. H. Chieng. , 2006 )

Consumer behavior is a core motivation in the selection, purchase and use of products. This activity is directed on satisfaction of needs. It is subject to various influence from the environment and individual differences of consumers.

Consumer behavior is defined as the process of decisions and actions taken by people in purchasing and disposing of goods and services. In other words, consumer behavior is considered the science of’ why people buy”. In the sense that it is easier for a seller to develop strategies to influence consumers when he knows why people buy certain products or brands (Aaker, J. L., V. Benet-Martinez, and J. Garolera,2001. )

Types of influence on consumer behavior

Thus, all factors affecting consumer behavior can be divided into two groups: internal and external. External influences on consumer behavior include culture, demography, values and norms, social status, reference groups, family and household, climate, economic and political factors. In most cases, marketers cannot manage these factors. However, they need to know and consider those factors. Internal factors include a person’s self-image, personal values, cognitive processes, etc. (M. SALOMON , 2006)

Influence on consumer behavior

Every day consumers make decisions about what to buy and where. To understand what is guiding the buyers, marketers need to determine what factors affect their behavior. ( McCort, D. J., & Malhotra, N. K. , 1993). On the one hand, the consumer acts in a certain environment. On the other hand, the consumer is greatly influenced by his personal values, knowledge, emotions, lifestyle, hobbies. (McCort, D. J., & Malhotra, N. K. , 1993)

Each person has a unique set of personal characteristics that affect his purchasing behavior. There is a close connection between personal characteristics and types of consumer behavior. C. Jung suggested (1921) a person as a system of perception and processing of information, with the help of mental functions of sensation, intuition, thinking and feelings. Jung identified two main types of information perception – extroversive (there is an accumulation of undigested material from the outside) and introversive (controls the choice of information). Within these groups, individuals differ in the processes of perception and processing of information. In addition to extroversion and introversion, Jung identified the following types: thinking – feeling, touch – intuitive. Depending on belonging to a particular psychological type, buyers behave differently when they are making a decision to buy. In addition to the type of personality, marketers use such a concept as self-perception (the idea of a person about himself) ( McCort, D. J., & Malhotra, N. K. , 1993)

Social classes, roles, and status of the buyer

According to Oxford dictionary social class is a division of a society based on social and economic status. Very often marketers focus on differences in consumer behavior based on social status. Social status refers to the comparative respect that society gives to persons who hold certain social positions. Social comparisons shape our identity in terms of labeling ourselves and especially others in a category, such as “wealthy” or “poor”, “smart” or “stupid”. People compare ourselves to others and thus realize how different they are.

Differences between people in each particular society leads to a variety of relationships, roles, positions. In the study of the nature of consumer, behavior there is a problem of ordering differences in relations between people.

Absolutely in any society, there is a class division, structure. It may look different, but the essence is the same. Social classes are groups of society characterized by their stability and order, whose members occupy an approximately equal position in society. They have similar interests and behaviors. Consumer behavior is highly dependent on the social class to which the consumer belongs. This is the choice of the place of shopping, the choice of the brand, the process of buying. Social classes have a direct impact on the awareness of the need, on how the individual will evaluate it and try to satisfy it. Man is a member of a large number of social groups (family, school, work place). Its position in each of them can be characterized in terms of role and status. A role is a set of actions expected of an individual by people around him. Each role corresponds to a status that reflects the assessment given to the role of society. People often make choice to buy goods, which will prove their status in society. Market players are aware that goods turning into status symbols (De Mooij, M. , 2004)

The influence of the family

The family is the primary informal group. This is a basic social institution, the main purpose of which is the socialization of the individual in society. It has a direct impact on the formation of a person’s views, beliefs, and preferences. The family also influences consumer behavior. From an early age, a person, being under the influence of their parents tryes to copy their behavior in different situations, including in the process of buying goods. Even after growing up and not interacting closely with parents, their impact on consumer behavior can still be quite big. In countries where living with parents up to 30-35 years is considered norm like Italy or Spain, this situation is even more significant. The family is the most important unit in society involved in the process of consuming. It is subjected to constant study, trying to catch all the important points that affect the decision to purchase in such institution as family. Producers, marketers, economists are interested in how the process of consumption of goods takes place in the family. They are also interested in the roles of spouses, children and the impact that each of them has on the purchase and on variety of purchases. Culture has a major influence on human needs and behavior. Human behavior in society, as consumer behavior for the most part depends on the environment of education and upbringing. Being in this environment, the child perceives the values, behaviors, stereotypes that are common for the environment. Culture influences the self-awareness of a person, helping him understand what behavioral norms are perceived by society as acceptable. Also, to learn which will be completely rejected if they appear in a particular cultural environment

Cultural factor

Culture compromise the set of beliefs, moral values, traditions, language, and laws (or rules of behavior) held in common by a nation, a community, or other defined group of people.

These characteristics can be used to determine the culture, the differentiation of cultures and the establishment of cultural similarities. Marketing specialists use cultural characteristics for segmenting market in a global perspective or when developing advertising and strategies for selling products in different markets. .( Lındrıdge, A., Dibb, S. , 2003).

Culture (subculture) and its elements influencing consumer behavior

According to Oxford dictionary Subculture is a cultural group within a larger culture, often having beliefs or interests at variance with those of the larger culture.

Features characterizes culture of consumption as an external factor of influence on consumer behavior:

• Consumption of goods is largely conditioned by learning and affects the satisfaction of the biological manifestations of individuals through the establishment of norms of behavior.
• Culture sets the framework of behavior in which most people think and act without going into a detailed description of what is happening.
• The Influence of culture is often not realized. A person behaves, thinks and feels in a manner consistent with others, because it seems natural and right to others.
• The evolution of consumption happens together with the change of society, so it is necessary to identify and use the existing and projected opportunities

For production and sales, the culture of consumption becomes an identification mark of social status, speaking to others in a special language, to whom someone belongs or wants to be like. It can be assumed that the most important quality that unites people in the culture of consumption is the ability to learn and adapt. The range of practices is wide. If you were an Orthodox Muslim, you would cover your whole body and even your face under your clothes, otherwise you would consider it indecent. If you were a woman from one of the tribes in the Philippines, you would go naked all day and think it would be indecent to be dressed.

Each culture has its own ideas about the generally accepted behavior in the form of ‘norms’, as a kind of negative force that forces us to blindly follow traditions. Norms limit and control people so imperceptibly that it is difficult to realize their existence. People are so immersed in their own culture that they need to part with it in order to realize the very fact of its existence.

People are fully aware of the norms of their culture. As a tradition, when they find themselves in a different environment, where they act differently than they do in specific situations of behavior. In order not to stand out, they try to observe the behavior of others and adjust their own behavior to it, whereas in usual situations people act automatically.

The influence of culture can be traced in the difference of social norms and values, affects the roles played by people. .( Lındrıdge, A., Dibb, S. , 2003).

Culture has a strong influence on purchasing decisions. It affects both the choice of the individual consumer and the structure of consumption in society as a whole. Culture influences the stages of awareness of needs, search and evaluation of options only, because the decision-making process is purely individual. Marketing professionals can try to influence consumer decisions through advertising and retail strategies, but some cultural factors they cannot overcome.

Culture also influences the process of consumers search for information. In some cultures, for example, in post-Soviet countries, verbal feedback and advice from family members is more valuable than advertising. In other cultures, like Western countries, consumers are likely to seek unbiased advice from third parties on the social media. When evaluating options, a consumer values certain attributes of a product more than others do. This often depends on the culture to which the consumer belongs.

Culture also influences how consumers use or consume goods. When buying a product, the consumer thinks about its functions, form and content. The consumer expects that the purchased product will perform a certain function. However, in different cultures, consumers have different expectations. (Choi, I., R. E. Nisbett, E. E. Smith, 1997)

The definition of belonging to a particular subculture is the process of identifying oneself and others through ethnic labels. People make up a separate ethnic group or market segment, depending on how common to the members of the ethnic group are the features of worldview and worldview, different from the views of other ethnic groups. The choice of goods purchased by members of ethnic groups is more influenced by their purchasing power

Globalization

According to Oxford dictionary, Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale.

Globalization is a universal and multilateral process of cultural and economic integration of Western culture, national and ethnic unity, and characteristic of modern civilization. Countries and peoples around the world exist in an environment of growing mutual influence. Today, no country or community is perceived as closed and self-sufficient. The development of civilization raised the question of the inevitability of global relations, their deepening, strengthening and erasing of borders between countries and peoples.

The fact is that representatives of original cultures, consciously or not, feel that economic, political, legal and technological unity. It will be followed by side effects that cause changes in their traditions, culture and way of life. One of the essential needs of man is his own belonging to something. Among forms of identity, cultural identity is essential. It largely determines the human mentality, psychology and behavior.

One of the reasons for the destruction of national culture is the rapid spread of ‘mass culture’, or globalization. It acts as a universal cultural standard for all. Currently, mass culture is becoming a kind of mechanism to promote Americanization in all spheres of society. The culture of consumption devalues national characteristics and creates a universal and accessible unit, which is recognized by the culture of globalization. During this period, the ideological values and traditions of the West, focused not on the spiritual content of the individual, but on its interests and needs, are spread. Western culture is presented as the world’s most developed because of active advertising of Western values, lifestyle and morality, based on the principles of individualism. In addition, thanks to the countries of the West, the era of consumption is actively spreading, in which young people are not able to appreciate, preserve and increase the already accumulated experience, they can only spend and use material benefits. (Beck, U., 2000)

Coca-Cola has long been a common name in many languages. Millions of people around the world associate the word Coca-Cola with a refreshing drink, the taste of which is familiar to them since childhood. The history of Coca-Cola has more than 120 years. Its far-sighted actions and innovative solutions that have brought the drink worldwide fame.

The Coca-Cola Company is the world’s largest producer of non-alcoholic products, which offers consumers 450 brands of carbonated and non-carbonated beverages. Along with the Coca-Cola brand, which is recognized as the most expensive in the world, the company’s portfolio includes 12 other brands. E.g. Fanta, Coca-Cola Zero, Vitaminwater, Sprite, Powerade, Diet Coke, Minute Maid and Georgia Coffee. Worldwide, Coca-Cola is the No. 1 supplier of carbonated and non-carbonated beverages, juices, drinking water. To the largest distribution system in the world, consumers in more than 200 countries buy Coca-Cola drinks. Every day more than 1.5 billion portions of the company’s drinks are sold in the world.

Coca-Cola employees support their particular corporate culture and values. The company’s values serve as a guide to action and describe how it behaves in the world:

• To act responsibly and to perform its obligations;
• achieve excellence in everything the company does;
• act as one team and win the competition;
• train employees and develop their potential;

Cultural characteristics on the example of Coca-Cola

Faced with local culture, brands use a product localization strategy that takes into account not only regional culture , but also social, as well as gastronomic features. Traveling around the world you can find on the shelves of many familiar brands, but with an unusual taste. Well-known brands adapt their product to the preferences of people in different countries.

In those markets where tradition, culture and geography play an important role, there are special technical standards for the Corporation’s products. Their goal is to increase the profitability, and in some cases, the attractiveness of the parent brand. Therefore, along with the use of global brands, corporations still retain local brands, established strong ties with customers. For example, after the purchase by Coca-Cola of the Indian brand thumb’up (brand number 1 among soft drinks in India), it was decided to keep the brand name thumb’up, mentioning only that now it belongs to Coca-Cola. Buying in Ukraine water ‘fruktaym’ consumers may not realize that the brand belongs to Coca-Cola.

When forming an international brand strategy, it is very important to decide which similar, similar properties of different countries can contribute to the globalization of the brand, and which differences can prevent this. The big mistake is the illusion that success in one’s own country will be repeated in another. The Coca-Cola company makes a universal attractive offer for all people in the world – to freshen up and feel better, but at the same time both the offered goods, and packing the company develops under the specific region. In accordance with the preferences and culture of the inhabitants of the country, a formula for drinks is being developed. In neighboring Mexico, it is no longer the same – there is used cane sugar, not corn syrup. Many Mexicans living in the United States, believe that this recipe is ‘correct’ and boxes carry ‘real’ Cola from Mexico the Impact of American values on the example of Coca-Cola.

The strategy of minimum use of elements of culture-recipient (local culture) can be implemented in several ways, which depends on the objectives of the advertising campaign. If the main objective of the entire advertising campaign is to promote the values of any one culture, as well as the way of life of its representatives. the creators of the original advertising use powerful symbols of donor culture (in this case, American culture). These symbols remain unchanged during adaptation, as their change would lead to the failure of the entire advertising campaign. However, the lack of cultural elements, the recipient has significantly affected the perception and understanding of the advertising, so the elements of a culture of the recipient used to transmit the least important information to ensure understanding and preferred interpretation of adapted advertising. An example in this case is the advertising campaign of Coca-Cola products, which is based on the promotion of American culture and the American way of life, an integral part of which is the consumption of this product.

The impact of the company and its product on the global community is almost indeterminate. However, it is safe to say that the products with the brand Coca-Cola embodies the spirit and essence of American culture to the extent that it does not make any other product of American production. The company’s products overcome language, cultural, racial, sexual and age barriers. The most important, however, is the fact that Coca-Cola advertising reflects and imposes on other cultures exclusively American values and promotes the American way of life, despite the fact that the manufacturing company itself has long been multinational.

The advertisements themselves remain unchanged regardless of the cultural community in which they are used. Brand Coca-Cola is so clearly identified. it is impossible to confuse it with any other. Elements of local culture never divert attention from the advertised product. they are either not used at all, or enhance the value of the message through an implicit comparison of the culture of the recipient with American culture. This comparison never works in favor of the culture of the recipient, as the elements of this culture are used to represent secondary information. the most important information is presented with the help of elements of American culture.

The Coca-Cola company sells a way of life, a way of seeing the world, to which people can join, using the advertised products. The main approach in this case is the introduction of the advertised product into the community with the aim of its further transformation in accordance with the values of American culture, the benefits of which are not even questioned. This can be achieved by making an element of American culture, the advertised drink, an integral part of the daily life of the recipient of the message. The result is a blending of American culture with the culture of the advertising community, with the continued dominance of American culture. .( Hofstede, G., 2001.)

Conclusion

Including all the above , it becomes clear that consumer behavior is influenced by culture significantly . Since the culture most influences consumer behavior , marketers, carrying out the promotion of goods to the consumer market, must know the cultural norms and preferences of consumers of the target group, audience, as the cultural environment in which the consumer lives, generates goods with a certain symbolic meaning. The transfer of the symbolism of the goods characteristic of a certain culture, in most cases, is carried out using the communication means of marketing through traditions, customs, norms.

Currently, in order to be competitive in the domestic market, an enterprise must offer a product that is competitive in the global market. When entering the foreign market, the company should evaluate the prospects of using the same marketing programs in different markets. If possible, the firm will receive significant savings from marketing standardization. Such a firm can work with the market using inter-market segmentation – identifying consumer groups that are not limited to traditional market or geographical boundaries. Thus, the Marketing activity of the company is focused on the similarity of representatives of different cultures. However, in any case, there will be differences in the markets of different cultures (primarily, of course, language). Cultural differences can affect consumers ‘ response to changes in the external environment, that is, affect the dynamics of market indicators.

To penetrate deeply into the foreign market, sometimes it is necessary to localize marketing based on different cultures. The effectiveness of localization can be based on the differences of such elements of culture as laws, customs, religion, values and others. Thus, the analysis of cultural, structural and ethnic similarities and differences of individual countries acquires an important role in modern marketing.

Buyer Behavior Regarding Coca-Cola Products

Introduction

Consumer behavior is a branch of organizational study where the concentration is given on the preference of individuals, groups, or firms about goods and services. The mental, behavioral, and emotional state of a consumer or buyer gets the maximum priority for justifying the behavior. The buyer behavior study is becoming popular because of its relatable success with the competitive advantage. If a firm or an organization can investigate the key to drive a consumer toward purchasing their products or using services, the overall organizational profitability will increased. This report is going to discuss and showcase of buyer behavior in case of availing products from Coca-Cola. The organization has been influencing customers’ preferences for a long time.

Organizational Overview

Coca-Cola was founded 133 years ago and still one of the largest beverage companies in the world. The company has a long tradition of producing carbonated beverages. It has a strong customer pool with an enormous amount of loyalty. Coca-Cola has been implicating several and most established buyer behavior theories to attract customers. Because of successful implication, the company has successively earned a massive amount of profit. Also, people have created a mental and emotional attachment with the brand. Since 1886, Coca Cola has managed to bring the perfect taste in beverage making for their respected customers.

Defining Buyer Behavior

Buyer behavior refers to the response of consumers during purchasing a product. In management study, buyer behavior is the key mental, emotional, and behavioral state of individuals, organizations, communities, or groups during making a purchase (Peter and Olson, 2010). For example, consumers have grown a natural habit of looking for Coca Cola while eating snacks. A loyal customer of the company will ask for the beverage whenever he or she orders for snacks. Considering this attitude or behavior, Coca-Cola has to increase their participation as a vendor in food chains and restaurants. It will ensure the buyer can get whatever he or she wants and the company can provide the necessary product through the investigation of consumer’s behavior.

To define the perspective, the responsive reaction of individual consumers or group consumers for purchasing a good or service is known as the buyer behavior.

Types of Buyer Behavior

Consumer behavior or consumer buying behavior has four different types. Coca-Cola finds out which type is more influential for customers. Based on the result, the change is brought (Peter and Olson, 2010). The typology of buyer behavior is the first step of Coca Cola to supply their products in particular areas.

• i) Routine Response: The most justifiable and reasonable buyer behavior is the routine response. The task related to the service or product of an organization can be a part of the routine. The prior example of snacks can be a good reference of routine response. Normal or natural state of customers during the purchase is known as the routine response. If the buyer is a high school student and the time is summer, the natural buying behavior is purchasing a bottle of Coke. This becomes a part of life and it is the major source of sales for an organization.
• ii) Limited Decision Making: When the consumer is in the market and there are not a lot of alternatives for making a decision, it will lead to limited decision making scenario. For example, Coke and Pepsi can be only two options for purchasing in an outlet. The odd is to purchase coke over Pepsi is 50-50. The limited decision making buyer behavior will provoke the customer to go for a bottle of coke and eliminate the option of Pepsi. The previous priority and taste are the major driving forces for advancing with the limited decision making type.
• iii) Extensive Decision Making: At a Pub or a bar, the availability of beverages is numerous. To select Coke from Coca Cola, it requires eliminating the other options. Such type of buyer behavior is known as the extensive decision making type (Hidalgo, 2015). The extensive number of decision making options is the distinctive factor of this buyer behavior.
• iv) Impulsive Buying Behavior: Unplanned buying behavior is the most common among consumer products. More importantly, food items and beverages are bought without any preplan. The impulsive buying behavior implies a consumer decision making through the continuous change in the plan. For example, a consumer can purchase a Coke while shopping groceries. This was not included in the plan. But the organization has to consider such type of buyer behavior to reach a particular type of customers.

Coca Cola on Implicating the Typology of Buyer Behavior

Coca Cola has effectively used the typology of buyer behavior in over the few years. To reach customers with every type of behavior, the company has appointed their sales funnel. Also, for dragging customers toward the selling point, all justified types have been considered. The positive or advantageous sides of applying buyer behavior is getting as much customer’s attraction as possible (Runyon, 2002). The negative side of using typology is the odds of competitors’ strategic confliction. If competitors apply the same technique, the field will shrink. As a result, Coca Cola will lose some competitive advantage in the field.

Major Buyer Behavior Theories

Richard Thaler is an American economist who has explored the mental and emotional selection of utility maximization among consumers. He is a speaker for the behavioral economics. He gave idea of economical behavior of consumers. Apart from this, there are four major pillars for buyer behavior. Coca-Cola successful implements these according to the situation or contingent. The major four theories are as follow:

Reasoned Action Theory

Fishbein and Ajzen developed this theory. This theory is based on outcome or expectation. The aftermath of consuming a product or service is the first part of applying the model. Coca-Cola has implemented the reasoned action theory while developing their Diet Coke for people who want to avoid sugar or sweet. Diet Coke is free from cholesterol and other health dangers. Whenever a diabetes patient or a patient of cardiovascular disease goes to purchase a beverage, the outcome from a Diet Coke is less severe than the other beverages. This will provoke the consumer to purchase the Diet Coke.

EKB Model of Buyer Behavior

EKB model is a model with the concept of external influence in buyer’s decision making. Reasoned action theory provides rationale for purchasing. EKB is an extension of it. Rather than processing the information, the consumer is influenced from advertisements and offers (Blackwell, Miniard and Engel, 2007). Each company including Coca-Cola uses the external influence for increasing buyer’s attachment with the product. For example, Coca Cola spend a plenty of money in sponsoring sports and other global events. This increases their brand appearance among consumers. The continuous flow of information regarding the product becomes influential for consumers. Buyer is deeply concerned of the product feature after experiencing it visually through advertisements.

Maslow’s Motivation-Need Theory

Maslow came up with the idea of psychological influence among buyers in 1943 through his hierarchy of needs model. The priority of customers justifies the preference while buying a product. Five main elements determine the priority; such as psychological instincts, safety issues, affection, esteem, and self-actualization. Consumers can be tailored to purchase a product by bringing changes in these elements. For example, Coca Cola recently opened a campaign to help African Children suffering from malnutrition. Buyers find it affectionate and purchase not only for reasoned action but also for advancing with the element; affection.

Hawkins Stern’s Consumer Behavior from Impulses

Impulsive buying behavior is also common among buyers. Previous plans or information may not be the actual requisites for taking decision on purchasing a product or availing a service. Rather, instant or impulsive buying can be a useful decision-making process. Impulse buying has previously discussed in the typology of consumer behavior. The sudden purchase is also a motivated and influenced approach. The only reason is its indirect approach for purchasing. For example, Coca Cola knows people will get thirsty during a journey. So, they supply products to filling stations. Though there was no plan of purchasing, the impulse action is provoked from the execution of Hawkins Stern’s model.

Evaluation of Different Buyer Behavior Theories from Coca Cola Perspectives

Coca Cola has influenced its customers using different theories. To provoke and create a reason for purchasing, theoretical framework is necessary. Buyer behavior depends on executing the theory practically with an enormous creation of supplies.

Reasoned action theory is a common way for getting into the grocery list of a household person. Coca-Cola has created a trustworthy position among buyers to advance with this consent. The advantageous side of reasoned action implication is creating a loyal customer pool. The only disadvantageous side is not having enough option of creating a mental or emotional attachment with consumers. No particular psychological trait is usable for applying this model.

However, the EKB model supports the current global perspective of consumer behavior. Information generation or getting an appropriate influential position for consumers is the most suitable option of selling Coca Cola. The buyer gets idea through television, social media, and other sources. These sources generate a pile of information. As a result, the consumer is getting a chance to decide on buying the item for household. The positive side of the process is updating the customer about the appearance in the market (Kruger, Ramphal and Maritz, 2013). The negative side of the theory is potential risk of losing customers for lack of information generation. For example, if Coca Cola loses the thread of information to its competitor, this will create consequence in losing a group of consumers.

Third, Maslow stated his theory on the basis of psychological influence over consumers rather than provoking through information. When the buyer feels the happiness of consumption, the model becomes applicable. Maslow stated that buyers’ behavior can be changed through continuous change in the need generation. Whenever value is added, the consumer will be convinced about the purchasing scenario. The positive side of Maslow’s theory is creating a chain to influence buyers for making a purchase. The negative side is not being able to convince the whole consumer’s pool about the product or service. A large part may remain in the dark because of this need-motivation context.

Fourthly, impulsive action is used only to psychologically influence a certain group. Rather than considering the aftermath, the organization chooses to imply an odd of the decision. It can or cannot be purchased depending on the condition or situation. The positive side is spending less on applying this theory. The negative part of the model is a lack of confidence in applying the model. There might not be enough space for Coca Cola to make the sell in a filling station as discussed before.

In a nutshell, theories of consumer behavior or buyer behavior are specifically applied by Coca Cola and other organizations depending on the uses and usefulness of products and services.

Reasons People Buy Beverages from Coca Cola

Consumer behavior or buyer behavior study is dependable on the interaction between buyers and seller. When the organization manages to provide reasonable condition to avail the product or service, the customer will consume. The major reasons consumers are attracted to Coca Cola are as follow:

Utility

Each customer requires knowing whether the product is going to give utility or not. As for customer’s perspective, the utility refers to the happiness or fulfillment or the advantages gained from a product. For a long period of time, Coca Cola is providing required utility through their products (Moskowitz, Beckley and Resurreccion, 2012).

Trustworthiness

The loyalty is a dependable variable. Both consumer and seller requires being loyal to each other. Over the years, Coca Cola increased its trustworthiness among people. Also, it has enhanced the psychological attachment with buyers. Consumers are now automatically attached to Coca Cola’s business process. This has been a major impactful reason for consumer behavior towards the company.

Consumer Preference

Coca Cola is recognized for ensuring the maximum consumer preference of its target market. Consumers are highly encouraged to provide feedback about a newly introduced product. Whenever a typical group of customer can avail the particular taste from a certain product category, the buyer behavior gets changed.

Coca Cola has a preplanned strategy of occupying their customers through continuous market study and analyzing the situation. However, the consequence of consumer preference continues until receiving a viable standpoint (Spiegler, 2014).

Innovation of Products

Coca Cola uses the maximum R&D possible as a beverage company. Product development and researching customer requirements are the key effective areas for the company. To increase the brand appearance in the market, the company has successfully revamped its appearance continuously. From the beginning of the business, the product has gone through changes and customers enjoyed the innovation.

Advertisements

One of major reasons for attracting customers toward Coca Cola product is its way of advertising. The organization has managed to advertise with the maximum appearance on media. In case of advertisement, the company follows a certain guideline. Celebrity-sponsorship for becoming a brand ambassador has been a great tool for advertising. Consumers get influenced through these techniques easily.

In short, reasons that are influential for bringing change in the consumer preferences are the driving forces for applying the buyer behavior theory for Coca Cola.

Competitors of Coca Cola

Consumers of carbonated beverage are attracted towards a variety of brands. Though Coca Cola has a certain group of consumers, the competition in the industry is very high. Its major five competitors are as follow:

• i) PepsiCo: For a long period of time, PepsiCo is producing similar product in the market. Coca Cola has to face the actual competition in the market against PepsiCo. There was a merge in ‘60s and it resulted in PepsiCola.
• ii) Nestle: As a food product, Coca Cola has to initiate a competition with Nestle. The advantageous side for Coca Cola is their specialization on carbonated beverage. On the other hand, Nestle handles a range of products. This gives Coca Cola a better competitive advantage.
• iii) Red Bull: Another strong competitor of Coca Cola is Red Bull. The brand produces beverages targeting the young market. However, brand recognition and consumer’s perspective have given competitive advantage to Coca Cola

Recommendations for Coca Cola on Buyer Behavior

• i) The company has to perform more in the consumer preference study.
• ii) The advertisement should be in the form of campaigns.
• iii) An extensive product line generation can be profitable for the company.
• iv) Rather than market penetration, Coca Cola has to introduce strategy on product segmentation.
• v) New product development and innovation should be placed more dynamically to avoid losing competitive advantage for the company.

Conclusion

To conclude the assignment report, we can understand the effectiveness of creating a different branding strategy for influencing buyers. Also, winning the trust of buyers depend on the actual making of product. During any period of product development and distribution, the buyer behavior theory is highly applicable. The more it can create and influence the emotional and mental state of a buyer, the more the firm will be able to earn profit and recognition. The betterment in branding and product creation will bring success for Coca Cola. Its competitors have to identify strengths and add value for acquiring the competitive advantage. The appropriate execution of buyer behavior theory can be the key to create a sustainable position in the beverage industry.

The Bad Impact of Coca-Cola on Lifestyle and the Environment

Coca-Cola Company is one of the top American multinational corporations known for its soft drink franchise. It is renowned for its highly marketed product, Coke which can be easily found in any grocery store, fast-food chain, or online website. As consumers, the accessibility and affordability of this product are taken for granted hence the commercialization process is overlooked. To retain and profit from its vast global market, Coca-Cola Company has established multiple factory locations worldwide to exploit the natural resources of these areas while engendering adverse effects on the local communities. Although some of these local communities have made efforts to combat the corporation, the ramifications of producing such a popular soft drink have created a long-standing impact on the environment, people, and culture of these once prosperous areas.

A can of Coke is composed of various natural resources throughout the world. The fizziness of the drink requires high volumes of carbonated water while its sweet taste comes from sucrose or high fructose corn syrup. There are also natural flavorings incorporated such as vanilla which originates from a Mexican orchid fruit, cinnamon that is derived from the inner bark of a Sri Lankan tree, and kola nut, a red nut found on a tree in the African rain forest. The kola nut is used to produce the stimulant caffeine which further can be found in coffee beans and other resources. Finally, there is the substance phosphoric acid v. caramel that adds acidity to the drink. The complexity of engineering this product demonstrates the diverse ingredients required to create this high demand beverage that amounts to an on average market price of $1.19 for a 12 oz can. As the consumer population reek the benefits of this well-marketed cheap product, further exploration of the manufacturing process reveals the uncanny truth behind the company’s global bottling plants.

Plachimada is a rural area in southern India formerly known for its vast underground aquifer. Over the years, the terrain has drastically changed after the opening of a bottling plant in March 2000 by Coca-Cola Company. Each day 1.2 million bottles of soda are produced using an extravagant amount of freshwater from the village’s aquifer. On average nine liters of water are required to generate one liter of Coke thus within the four years of factory operation the well plant levels drastically dropped from 45 meters above the surface to 150 meters. Water scarcity became prevalent throughout the village and chemical waste from the plant seeped into the groundwater. As a result, there was a decrease in the region’s agricultural harvest. These devasting events led to protests by local women that eventually caught the attention of international human rights activists that assisted in the closure of the plant in 2004. According to an article written in 2019 by K.A. Shaji, the people of Plachimada are still recovering from the plight inflicted by Coca-Cola Company’s bottling plant. The surrounding areas have not recovered from the company’s water exploitation thus hindering the region’s farming industry. This is an unfortunate circumstance as most of the villager’s occupation consists of agriculture and farm labor.

The presence of this company has not only affected Plachimada, but other cities such as San Cristobal de las Casa, Mexico where the manufacturing plant has influenced the people’s way of life, health, and cultural traditions. Like Plachimada, the citizens of San Cristobal de las Casa face water shortages even though it is well known for being one of Mexico’s rainiest regions. This limits the town’s access to heavily chlorinated running water to ever two days. As a result, residents are forced to buy water from tanker trucks or less expensive bottles of Coca-Cola. The easy accessibility of coke than water has led to an increase in diabetes and obesity to a point where diabetes is the second leading cause of death in the state. Lack of wastewater treatment to counteract the sewage runoff from the bottling plant has been another prevailing health issue for residents as the waterways have become a breeding ground for E. Coli and other infectious pathogens. Coca Cola has further integrated into the cultural traditions of San Cristobal de las Casa where cans of Coke are used in prayer rituals and people believe the drink has healing powers. This highlights how instrumental and deeply rooted the company is in shaping the conditions and culture of the community. Although the people of San Cristobal de las Casa suffer from this factory’s presence, it has been an essential source of income for the town as it contributes two million to the state’s economy and employs about 400 people. This compensation pales in comparison to the corporation’s profit of receiving 260 gallons of water per 10 cents. Such government exploitation, as well as inconsideration of the local people and environment, reflect the foundation of the Coca Cola industry.

The cost of producing a 12 oz can of Coke is more complex than what is perceived by the modern consumer. It is a product that intersects with the lives of people in each stage of the manufacturing process. For the residents of Plachimada and San Cristobal de las Casa, the globalization of Coca-Cola Company has brought devastating effects on the terrain, health, culture, and livelihood of these people. With the growing consumer population and lack of global awareness of these situations, Coca-Cola Company will continue benefiting from these unfortunate circumstances.

Essay on Coca Cola Globalization Strategy

Globalization and the Coca-Cola Company

Coca-Cola has globalized its business and has quickly become a household name through its innovative marketing campaigns. “Coca-Cola now operates in over 200 countries with over 84,000 suppliers. Presently, 70% of their business income is generated from non-US sources” (Globalization and the Coca-Cola Company, n.d). By using common advertisement slogans, product differentiation, and diversity, along with technology, by advancing their transport quality, they have reshaped the beverage industry.

I believe that one of the Top 5 Challenge Trends that would be most applicable to Coca-Cola’s current situation would be a Faster Pace of Innovation; with the threshold lowered for companies to join the beverage market, there is a need to remain ahead of competitors. With the global search for healthy choices, it’s best to be on the front line of the product being sold. This attracts new consumers who are searching for a healthy choice of sugary beverages. A wise decision will concentrate on this trend in health and flavor products.

I think that the best way for Coca-Cola to reach a Faster Pace of Innovation is to use the Rise of the Class, which is one of the Top 5 Solution Trends (carpenter, et al., 2010). Using people’s connections through forums, blogs, YouTube, and other media avenues where people post new ideas in a group environment, research and development can recognize what their customers want. The rewards of the creative class will contribute to innovative innovations that will propel the business to become the leading health beverage of choice on the market. With a new viewpoint and mindset, the research and development department will have a variety of choices to pursue and explore. To make this a success, Coca-Cola needs to learn from its past mistakes.

I think that one of the five building blocks of learning organization that Coca-Cola must focus on to capitalize on the trends I selected is that they should concentrate on learning from past experiences. Failures such as the new Coke, Coca-Cola with lime, the diet of raspberry Coke, and Coca-Cola Black Cherry have contributed to previous mistakes. New Coke was created to defeat Pepsi after the Pepsi challenge demonstrated the differences in the taste preferences of the two brands. Coca-Cola has updated its Coke product and launched a new Coke into the market to replace the old Coca-Cola. However, because of their earlier success with brand recognition, customers responded negatively to a product that they felt substituted by their original product. “Sales of New Coke were low and public outrage was high at the fact that the original was no longer available” (Bhasin, H., 2017). So, Coca-Cola needs to learn from its past mistakes to achieve more success.

References

1. Bhasin, H., (2017). Coca-Cola Brand Failure – New Coke -Brand failure of new Coke. Retrieved: February 17, 2022, from http://www.marketing91.com/coca-cola-brand-failure/
2. Carpenter, M., Bauer, T., &Erdogan, B. (2010). Management principles, 1,1. https://2012books.lardbucket.org/books/management-principles-v1.1/s07-04-global-trends.html
3. Case Study: The Saylor Foundation. (n.d.). Globalization and the Coca-Cola Company. https://my.uopeople.edu/pluginfile.php/1543078/mod_book/chapter/318174/Unit%203%20Case%20Study%20-%20Globalization%20and%20Coca%20Cola.pdf?time=1581708994062

Essay on Coca Cola Corporate Social Responsibility

Coca-Cola is deemed one of the leading soda brands worldwide. In the 2005 Annual Report of Coca-Cola, the company served approximately 1.5 billion drinks every day, and this number increased to 1.6 billion in 2010. The company sells beverage servings in more than 200 countries. But as with any successful business victory can sometimes bring a turning point that will change the direction of the company. One particular point for Coca-Cola was on August 5, 2003.

On this date, the Center for Science and Environment (CSE), an activist group in India, issued a news media release stating that Coca-Cola in India had” Twelve major cold drink brands sold in and around Delhi containing a deadly cocktail of pesticide residue that surpasses global standards by 30-36 times” (Kaye,2007). The pesticides found were known to cause diseases such as cancer, birth defects, and other health conditions. The Center for Science and Environment report had done its job of striking fear in the residents of India.

This accusation of pesticides posed a great concern for the Coca-Cola Company and where they stood in India. These allegations were not only threatening to the customers who consume Coca-Cola often but also to the company’s outstanding reputation. The effects could be distressing to the company’s customer base. The company has also marketed its product to be the number one soda in the market and these pesticide claims began diminishing the validity of that claim and the customer base which would shrink revenue for the company. After the reports came out, Coca-Cola stocks dropped on the New York Stock Exchange. According to (Gentleman, 2006) In India,

The consumers lost their trust in the company after the Center for Science and Environment report declared the pesticides in Coca-Cola were dangerous.

Coca-Cola responded to the accusations by denying the validity of the Center for Science and Environment report (Cedillo Torres et al., 2012). Coca-Cola Indian President and CEO Sanjiv Gupta argued that the report was flawed and questioned the testing methods used. The Center for Science and Environment disputed this claim and followed proper procedure with the environmental protection agency which supported the finding of the Center for Science and Environment.

Scientists have argued that pesticides had seeped into the groundwater that Coca-Cola used. Though most of the products in India are required to meet guidelines on an acceptable level, there was no legal legislation regulating the soft drink industry at the time the Center for Science and Environment report was issued. (Vedwan, 2007). The Indian government responded by adopting the European Union standard for bottled water. A survey conducted in Delhi was conducted after the pesticide announcement about pesticides being used in soft drinks found a majority of consumers believed the findings.

Coca-Cola’s strategy was to argue the scientific pesticide claims which backfired on the company and they began losing the customer base. Coca-Cola’s main priority now is to restore the company’s reputation as a strong business that values a strong business program as well as being socially responsible. Restoring the company’s reputation will allow the investors to be confident as well as show responsibility as a business to its customer base.

The company now must be able to win back former customers who were turned away from the company’s lack of social responsiveness as well as be a champion to the environment. Communication with the employees is a must as well to ensure the company will address this problem. Since the employees will most likely talk to their families, and others, there has to be a consistent message from the organization within the consumer base.

Instead of denying the claim of pesticide usage, Coca-Cola should have solicited the assistance of the Center for Science and Environment. That way the Center for Science and Environment, would have nowhere else to go but to agree to assist Coca-Cola with this environmental problem. By joining forces with the Center for Science and Environment, it creates a transparent discussion with Coca-Cola and the customer base. They would admit to a mistake and are willing to correct this mistake. By collaborating with The Center for Science and Environment they could come up with a public image campaign to help win back the customers while keeping their best interests in mind. The issue with any big consumer business is to get the truth out to the customer base. This should be done as quickly as possible to ensure credibility and truthfulness. Coca-Cola India should have responded immediately, not remained silent until they were losing money.

Coca-Cola India must come up with strategies to bring back the customer’s trust. Coke India should be completely transparent regarding this allegation and reveal the complete problem to the public so that they can assure the consumers to believe Coke again. Building a better relationship with the Center for Science and Environment and the government is a must as well as these two parties were involved with the start of this allegation. By maintaining a better relationship with the government, or influential parties, Coca-Cola will have an opportunity to resume its position as

The leading soft drink company and regain creditability from their investors which will lead to improving their economic loss.

To help correct the issue of trust with consumers, Coca-Cola India could have adopted a public relations campaign to provide giveaways to show the public that Coca-Cola is not just another greedy conglomerate but would show the company in a more socially responsible view. This campaign needed to be done quickly so they could follow the campaign with a customer retention program which would have included promotional events, charity work, and giveaways. This public relations plan will take time and should regain customer loyalty to rebuild the brand name.

According to the article by Raman (2007), Coca-Cola plans to help establish improved, cleaner communities in both rural and urban areas of India. By working for a cleaner India, Coca-Cola India can rebuild faith in Coca-Cola as a brand that cares about its customers’ value of life. By initiating the “Coke Cares” program this will help rebrand the company as an environmentally responsible corporation that responds to the needs of its customers. Coca-Cola has also stated ” Our new environmental management system, ecosystem, is being implemented across our business enterprise to address and reduce local impacts on the environment” (Dudovskiy,2015) This change in corporate social responsibility is just one sign that a business can change. As suggested by (Cedillo Torres et al., 2012) It appears that the controversy in India was a learning experience for the company, and it motivated the company to adopt a more proactive CSR policy on a global scale.

Before the incident regarding Coca-Cola India and pesticides, the company was not responsible to their consumers or their employees. Responsible leaders make sure that the products and services meet the needs of their customers and clients that they are safe and not harmful and that real and potential risks are openly and transparently communicated (Maak & Pless,2006). Although Coca-Cola was not responsible, Coca-Cola did become more active in resolving the issue.

There is no way for certain that the ideas and plans suggested for Coca-Cola India to follow are 100% failure-proof. However, these ideas will prove Coca-Cola India to be a socially and environmentally responsible company that places the safety of the public in delivering a safe and delicious soft drink which will eventually lead to the sustainability of Coca-Cola India Co. and its profits. The crisis highlighted the factors and goods like clean drinking water, which cannot be taken lightly and is a serious matter which needs to be made a priority and the quality of the product should continually be examined and updated.

The analysis of the crisis regarding socio-ecological and political changes are all covered here as in the government taking a stand, environmental measures, and public safety (Vedwan, 2007). Coca-Cola India learned many things from this predicament as making public safety their priority and not neglecting the main issues that concern the safety of the consumers and also the environment.

References

1. Cedillo Torres, C., Garcia-French, M., Hordijk, R., Nguyen, K., & Olup, L. (2012). Four Case Studies on Corporate Social Responsibility: Do Conflicts Affect a Company’s Corporate Social Responsibility Policy? UtrechtLawReview, 8(3), 51-73–77.
2. Dudovskiy, J. (2015, August 25). Coco Cola Corporate Social Responsibility. Retrieved October 7, 2019, from https://www.coca-colacompany.com
3. Gentleman, A. G. (2006, Summer 8). Pesticide allegations trip up Coke and Pepsi-Business- International Herald Tribune. Retrieved October 8, 2019, from www.newyorktimes.com
4. Hard truths about soft drinks. Retrieved from www.cseindia.org/hard-truths- about-soft-drinks-7581
5. Maak, T., & Pless, N. M. (2006). Responsible Leadership in a Stakeholder Society – A Relational Perspective. Journal of Business Ethics, 66(1), 99–115. https://doi.org/10.1007/s10551- 006-9047-z
6. Raman, R. (2007). Community- Coco Cola Interface, Political Anthropological Concerns on Corporate Social Responsibility, 51 Soc. Analysis 103-120
7. Vedwan, N (2007) Pesticides in Coca-Cola and Pepsi: Consumerism, Brand Image, and Public Interest. in a Globalizing India, Cultural Anthropology 22, no. 4, pp. 659-684.