Marketing in international markets and globalization

Generally, international marketing refers to marketing activities performed across national boundaries. In order to partake in this, companies with necessary resources and skills have to develop an interest in expanding their businesses beyond national boundaries. (Dibb, Ferrell, Simkin, & Pride, 2012)

Coca-Cola is one of the products that have been involved in international marketing. Right now, it is globally marketed with operational reach that encompasses more than 200 countries worldwide. (The Coca-Cola Company, 2016)

The table to the left displays the highest brand shares of Coca-Cola from the Coca-Cola Company in some of the countries it operates in, in 2015. (Euromonitor International, 2015) The differences in shares alone already indicates that there are different product positioning in countries. One of the market entry strategies of this company is licensing – a system in which a licensee pays commission or royalties on sales or supplies used in manufacturing. For instance, in Zimbabwe, United Bottlers have the license to make Coke. (Food and Agriculture Organization of the United Nations, 2016) The Coca-Cola Company also has a strategic partnership with Aujan Industries Company in the Middle East and a joint venture with Nestlé and Beverage Partners Worldwide. (The Coca-Cola Company, 2016)

International turmoil can also affect international marketing. Britain’s exit from the EU – also known as the Brexit – created panic in global stock markets. Consequently, stock prices of soda giants Coca-Cola and PepsiCo fell by 2.6% and 2.4%, respectively. (Bailey, 2016) Furthermore, Coca-Cola has significant international operations which exposes the company to currency fluctuations. The fall of the pound, therefore, may have a substantial impact to the value of the Coca-Cola product and its fiscal performance. (Bailey, 2016)

Moreover, the marketing position of Coca-Cola can be affected by government regulations. One example is the Federal Trade Commission Act in the United States which emphasizes fair methods of competition and consumer protection. (Federal Trade Commission, 2016) There is also a law in California – known as Proposition 65 – which requires companies to inform the citizens about exposures to chemicals that cause cancer, birth defects or reproduction harm by putting warnings on their products. (Government of California, 2016) In UK, there is a product liability ad safety law which states that it is the responsibility of the producer, manufacturers, and distributors to provide information on product risks, monitor safety, and take action if a safety problem is found. (Government of the United Kingdom, 2012)

International marketing is indeed a complex marketing activity. Companies willing to go beyond their domestic market must take into consideration many aspects (like government regulations) and further analyze the foreign environment they would like to enter.

References

Bailey, S. (2016, June 28). Why Soda Giants’ Stocks Fell on Brexit News. Retrieved October 12, 2016, from Market Realist website: http://marketrealist.com/2016/06/stocks-soda-giants-fell-brexit-news/

Bailey, S. (2016, June 28). Will Brexit Impact Soda Giants’ Fiscal 2016 Performance? Retrieved October 12, 2016, from Market Realist website: http://marketrealist.com/2016/06/will-brexit-impact-soda-giants-fiscal-2016-performance/

Dibb, S., Ferrell, O., Simkin, L., & Pride, M. (2012). Marketing Concepts & Strategies (6th ed.). Cengage Learning EMEA.

Euromonitor International. (2015). Brand Shares (Global - Historical Owner). Retrieved October 12, 2016, from Euromonitor International website: http://www.portal.euromonitor.com/portal/statistics/tab

Federal Trade Commission. (2016). Federal Trade Commission Act. Retrieved October 12, 2016, from Federal Trade Commission website: https://www.ftc.gov/enforcement/statutes/federal-trade-commission-act

Food and Agriculture Organization of the United Nations. (2016). Chapter 7: Market Entry Strategies. Retrieved October 12, 2016, from Food and Agriculture Organization of the United Nations website: http://www.fao.org/docrep/w5973e/w5973e0b.htm

Government of California. (2016). Proposition 65. Retrieved October 12, 2016, from Government of California website: http://oehha.ca.gov/proposition-65

Government of the United Kingdom. (2012, October 9). Product liability and safety law. Retrieved October 12, 2016, from Government of the United Kingdom website: https://www.gov.uk/guidance/product-liability-and-safety-law

The Coca-Cola Company. (2016). 2015 Annual Report on Form 10-K. Retrieved October 6, 2016, from The Coca-Cola Company website: http://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/investors/2015-annual-report-on-form-10-k.pdf

The Coca-Cola Company. (2016, September 20). Responsible Marketing. Retrieved October 6, 2016, from The Coca-Cola COmpany website: http://www.coca-colacompany.com/stories/responsible-marketing

The Coca-Cola Company. (2016). Who We Are. Retrieved October 12, 2016, from The Coca-Cola Company website: http://www.coca-colacompany.com/careers/who-we-are-infographic