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INTER NATIONAL MARKETING

Global marketing is marketing on a worldwide scale reconciling or taking
commercial advantage of global operational differences, similarities and opportunities
in order to meet global objectives".
According to the American Marketing Association, International marketing is the
multinational process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods, and services to create exchanges that satisfy
individual and organizational objectives.

INTERNATIONAL MARKETING ENTRY MODES:

Marketing Entry Modes is a Method of foreign operation whereby a firm in one
country agrees to permit a company in another country to use the manufacturing,
processing, trademark, knowhow or some other skill by the licensor. A mode of
entry into an international market is the channel which your organization employs to
gain entry to a new international market. This lesson considers a number of key
alternatives, but recognizes that alternatives are many and diverse. Here you will be
consider modes of entry into international markets such as the Internet, Exporting,
Licensing, International Agents, International Distributors, Strategic Alliances, Joint
Ventures, Overseas Manufacture and International Sales Subsidiaries. Finally we
consider the Stages of Internationalization.
Exporting
There are direct and indirect approaches to exporting to other nations. Direct
exporting is straightforward. Essentially the organization makes a commitment to
market overseas on its own behalf. This gives it greater control over its brand and
operations overseas, over an above indirect exporting. On the other hand, if you were
to employ a home country agency (i.e. an exporting company from your country
which handles exporting on your behalf) to get your product into an overseas market
then you would be exporting indirectly.

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International Agents and International Distributors
Agents are often an early step into international marketing. Put simply, agents are
individuals or organizations that are contracted to your business, and market on your
behalf in a particular country. They rarely take ownership of products, and more
commonly take a commission on goods sold. Agents usually represent more than one
organization. Agents are a low-cost, but low-control option. If you intend to globalize,
make sure that your contract allows you to regain direct control of product. Of course
you need to set targets since you never know the level of commitment of your agent.
Agents might also represent your competitors so beware conflicts of interest. They
tend to be expensive to recruit, retain and train. Distributors are similar to agents,
with the main difference that distributors take ownership of the goods. Therefore they
have an incentive to market products and to make a profit from them. Otherwise pros
and cons are similar to those of international agents.
Strategic Alliances (SA)
Strategic alliance is a term that describes a whole series of different relationships
between companies that market internationally. Sometimes the relationships are
between competitorsEssentially, Strategic Alliances are non-equity based agreements
i.e. companies remain independent and separate.
Overseas Manufacture or International Sales Subsidiary
A business may decide that none of the other options are as viable as actually owning
an overseas manufacturing plant i.e. the organization invests in plant, machinery and
labor in the overseas market. This is also known as Foreign Direct Investment (FDI).
This can be a new-build, or the company might acquire a current business that has
suitable plant etc. Of course you could assemble products in the new plant, and simply
export components from the home market (or another country). The key benefit is that
your business becomes localized you manufacture for customers in the market in
which you are trading. You also will gain local market knowledge and be able to
adapt products and services to the needs of local consumers. The downside is that you
take on the risk associated with the local domestic market.


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Internationalization Stages
So having considered the key modes of entry into international markets, we conclude
by considering the Stages of Internationalization. Some companies will never trade
overseas and so do not go through a single stage. Others will start at a later or even
final stage. Of course some will go through each stage as summarized now:
Indirect exporting or licensing
Direct exporting via a local distributor
Your own foreign presences
Home manufacture, and foreign assembly
Foreign manufacture
It is worth noting that not all authorities on international marketing agree as to which
mode of entry sits where. For example, some see franchising as a stand alone mode,
whilst others see franchising as part of licensing. In reality, the most important point
is that you consider all useful modes of entry into international markets over and
above which pigeon-hole it fits into. If in doubt, always clarify your tutors preferred
view.
The Internet
The Internet is a new channel for some organizations and the sole channel for a large
number of innovative new organizations. The eMarketing space consists of new
Internet companies that have emerged as the Internet has developed, as well as those
pre-existing companies that now employ eMarketing approaches as part of their
overall marketing plan. For some companies the Internet is an additional channel that
enhances or replaces their traditional channel(s). For others the Internet has provided
the opportunity for a new online company.
Joint ventures
Joint ventures can be defined as "an enterprise in which two or more investors share
ownership and control over property rights and operation".
Joint ventures are a more extensive form of participation than either exporting or
licensing. In Zimbabwe, Olivine industries have a joint venture agreement with HJ
Heinz in food processing.

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Export processing zones (EPZ)
Whilst not strictly speaking an entry-strategy, EPZs serve as an "entry" into a market.
They are primarily an investment incentive for would be investors but can also
provide employment for the host country and the transfer of skills as well as provide a
base for the flow of goods in and out of the country. One of the best examples is the
Mauritian EPZ
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, founded in the 1970s.

Licensing
Licensing is one of the international marketing modes of entry. It can be defined as
"the method of foreign operation whereby a firm in one country agrees to permit a
company in another country to use the manufacturing, processing, trademark, know-
how or some other skill provided by the licensor". Licensing involves little expense
and involvement. The only cost is signing the agreement and policing its
implementation.
Licensing includes franchising, Turnkey contracts and contract manufacturing.
Licensing is where your own organization charges a fee and/or royalty for the
use of its technology, brand and/or expertise.
Franchising involves the organization (franchiser) providing branding, concepts,
expertise, and infact most facets that are needed to operate in an overseas
market, to the franchisee. Management tends to be controlled by the franchiser.
Examples include Dominos Pizza, Coffee Republic and McDonalds
Restaurants.
Turnkey contracts are major strategies to build large plants. They often include
training and development of key employees where skills are sparse for
example, Toyotas car plant in Adapazari, Turkey. You would not own the plant
once it is handed over.
Coca Cola is an excellent example of licensing. In Zimbabwe, United Bottlers have
the license to make Coke. In Srilanka Coca-Cola Sabco have the license to make
Coke.

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Licensing gives the following advantages:
Good way to start in foreign operations and open the door to low risk
manufacturing relationships
Linkage of parent and receiving partner interests means both get most out of
marketing effort
Capital not tied up in foreign operation and Options to buy into partner exist or
provision to take royalties in stock.

The disadvantages are:
Limited form of participation- length of agreement, specific product, process or
trademark.
Potential returns from marketing and manufacturing may be lost.
Partner develops know-how and so license is short.
Licensees become competitors - overcome by having cross technology transfer
deals Requires considerable fact finding, planning, investigation and
interpretation.

I have select Coca-cola to study the entry modes and its competitive strategies
because Coca-cola is a leader in the Srilankan beverage market. Pepsi is the major
competitor of Coke in Srilankan market and as well as global market.

INTRODUCTION TO COCA-COLA AND ITS ENTRY MODE IN
SRILANKAN MARKET

Coca-Cola is a carbonated soft drink sold in stores,
restaurants, and vending machines throughout the world. It
is produced by The Coca-Cola Company of Atlanta,
Georgia, and is often referred to simply as Coke (a
registered trademark of The Coca-Cola Company in the
United States since March 27, 1944). Originally intended as
a patent medicine when it was invented in the late 19th

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century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs
Candler, whose marketing tactics led Coke to its dominance of the world soft-drink
market throughout the 20th century.
The company produces concentrate, which is then sold to licensed Coca-Cola
bottlers throughout the world. The bottlers, who hold territorially exclusive contracts
with the company, produce finished product in cans and bottles from the concentrate
in combination with filtered water and sweeteners. The bottlers then sell, distribute
and merchandise Coca-Cola to retail stores and vending machines. The Coca-Cola
Company also sells concentrate for soda fountains to major restaurants and food
service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the
Coke brand name. The most common of these is Diet Coke, with others including
Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola
Zero, Coca-Cola Vanilla, and special versions with lemon, lime or coffee. In 2013,
Coke products could be found in over 200 countries worldwide, with consumers
downing more than 1.8 billion company beverage servings each day. Based on
Interbrand's best global brand study of 2011, Coca-Cola was the world's most
valuable brand.
Coca-Cola Srilanka
In April 2004, Coca-Cola SABCO, a South African based bottler, acquired the Sri
Lanka operation, which is now known as Coca-Cola Beverages Sri Lanka. Coca-Cola
SABCO is an emerging market specialist with core competencies in efficient and low-

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cost distribution. This began a new
chapter for the local company, as the
brand gained a new impetus through a
highly focused strategy backed by
aggressive market initiatives. Coca-Cola
Beverages Sri Lanka Ltd (CCBSL),
located in Biyagama, is the only Coca-
Cola bottling plant in Sri Lanka. It has
443 employees. While it has been a partner in the Coca-Cola Sabco Group since 2004,
its origins go back to 1955, when it was formed under the name Pure Beverages Co
Ltd., through the acquisition of the Ceylon Fruit Drinks & Table Water Company. Its
journey with Coca-Cola started in 1960, when a franchise agreement was signed with
the Coca-Cola Export Corporation. In 1994, the operation was purchased by Freizer &
Nieve Coca-Cola (Pty) Ltd, the Singapore-based anchor bottler. The companys name
changed to CCBSL in 1999, when it was acquired by The Coca-Cola Company.
CCBSL produces and sells over 10-million unit cases of carbonated soft drinks (both
still and sparkling) per annum. It operates through a countrywide distributor network,
consisting of about 128 distributors. Sri Lankans enjoy Coca-Cola, Coke Light, Fanta,
Sprite, Lion, and Minute Maid.
Coca-Cola Sabco
During April and May of 2004, Coca-Cola Sabco acquired bottling rights from The
Coca-Cola Company for Vietnam, Sri Lanka and Nepal, and made its first move out
of Africa. These acquisitions were in line with the Groups growth strategy to expand
into emerging markets, in order to underpin the organisations position as an
Emerging Markets Specialist. In terms of the 2004 agreement, Coca-Cola Sabco owns
and operates three plants in Vietnam, two in Nepal and one in Sri Lanka. Together,
the three countries employ more than 1,600 people and services over 120 million
people. In June that year, Cambodia and Laos were added to the newly-formed Coca-
Cola Sabco Asia Division, servicing more than 150 million consumers in over 200
000 outlets in its five Asian operations.
Coke has many competitors in the market but its major competitor is Pepsi, so lets
see a brief introduction about Pepsi and its entry mode.

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INTRODUCTION TO PEPSI AND ITS ENTRY MODE IN GLOBAL MARKET

PepsiCo Inc. is an American multinational food and beverage corporation
headquartered in Purchase, New York, United States, with interests in the
manufacturing, marketing and distribution of grain-based snack foods, beverages, and
other products.

PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-
Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader
range of food and beverage brands, the largest of which includes an acquisition
of Tropicana in 1998 and a merger with Quaker Oats in 2001which added
the Gatorade brand to its portfolio.

As of January 22, 2012 PepsiCo's product lines generated retail sales of more than
$1 billion each, and the company's products were distributed across more than 200
countries, resulting in annual net revenues of $43.3 billion. Based on net revenue,
PepsiCo is the second largest food and beverage business in the world. Within North
America, PepsiCo is ranked (by net revenue) as the largest food and beverage
business.
Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and
the company employed approximately 274,000 people worldwide as of 2013. The
company's beverage distribution and bottling is conducted by PepsiCo as well as by
licensed bottlers in certain regions. PepsiCo is a SIC 2080 (beverage) company.

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As mentioned in the above sections, both coke and Pepsis choice of entry mode is
licensing. They sold through their licensed bottlers throughout the world. Licensing
mode have been discussed very clearly in the previous sessions.

COKE COMPETITION WITH PEPSI

For a company to be successful it must be competition oriented. A good competition
strategy should focus on the weaknesses of the competitor but avoiding the strengths.
The company then launches attacks against the weak points of the competitor. This
would enable one company to gain a competitive advantage against the other
companies. Differentiation, differentiation focus, cost focus and cost leadership are
some strategies put forward (Michael,2006). Such strategies can be adopted by a
company to gain favor in the market. For example Coca-Cola and Pepsi, two similar
companies entered into the Srilankan market by same mode, competing for the same
market can employ these strategies to outdo each other.


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MAJOR RESTURANTS WHERE COKE AND PEPSI IS SERVE










COKES COMPETITIVE STRATEGIES AGAINST PEPSI
Differentiation is a marketing strategy where a company produces goods that are
different from those offered by other companies. Coca-Cola for instance may decide
to produce products different from those of Pepsi by simple modification of the
ingredients. Coca-cola can increase the quality of its products and therefore can
charge slightly higher prices. This would make it stand a high chance of winning the
consumers confidence. The high premium charged covers the additional cost of
production (Porter, 2006).
In the differentiated focus, the company seeks to produce different products just
within a narrow market section. This strategy is best for competitors who offer
products targeting a broader group of customers with different tastes and preferences.
The company like PepsiCo would look for special needs of the consumers. Nice
packaging and different labeling for instance in a given part of the market would
allow PepsiCo to sell more than Coca-Cola in that section of the market.

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With cost leadership strategy, the main aim is for the company to produce its products
at the lowest cost. By PepsiCo trying to minimize the cost of production, it can sell at
low price in the market. As long as the achieved selling price can be equal or close to
the market price, PepsiCo would enjoy more profit due to economies of scale.
In cost focus, Coca-Cola may notice it wise to charge low price on the same product
some sections of the market. This strategy is usually associated with large scale
production companies with products accepted to the majority of consumers. The
company may decide to label differently the same product and low prices tagged for
the benefit of specific consumers. This would lead to more sale hence can outdo
PepsiCo in the same market environment (Jack, 2009).

PRODUCT STRATERGY

Coca-Cola
The Coca-Cola formula is The Coca -Cola Company's secret recipe for Coca -Cola.
As a public it y marketing strategy started by Robert W.Woodruff, the company
presents the formulas one of the most closely held trade secret sever and only a few
employees know or have access to. This Coca -Cola formula appears to be the
original formula to Coca -Cola. It is from the book For God , Country and Coca -
Cola. The company Coca - cola is a multinational and it is not limited to one product.
Through the years they have invented and introduced many products than their main
cola drinks.

Pepsi -Cola
The Pepsi -Cola drink contains basic ingredients found in most other similar drinks
including carbonated water, high fructose corn syrup, sugar, colorings, phosphoric
acid, caffeine, citric acid and natural flavors. The caffeine free Pepsi -Cola contains
the same ingredients but no caffeine.


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Coke v/s Pepsi-Product
As seen above both the companies Coke and Pepsi have a number of products. Many
of these products are innovations but there are also many products which are brought
out just as a competitive product for the other companies. Some o f these products that
are brought in the market by both the companies to compete against each other are as
follows:
Coke and Pepsi products in Srilankan market.
Coca-Cola Pepsi -Cola
The main dark
cola drink of the
company which
started the rivalry
between these
companies.

Pepsi version of dark cola which
is the major primary competitor
to Coke.
Coca-Cola
light is for
people who
want no
calories, but
plenty of
taste.

Lemon-flavored
Diet Pepsi having
low calories

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Minute Maid is
a product line
of beverages,
usually
associated with
orange juice,
but now
extends to soft
drinks of many kinds. The Minute
Maid company is now owned by
Coca -Cola, and is the world's largest
marketer of fruit juices and drinks.

Tropicana Products is an American company
based in Bradenton, Florida, USA, which is
one of the world's largest producers and
marketers of orange juice. It has been owned
by Pepsi Co, Inc. since 1998.
Fanta is a soft d r
in k brand owned
by The Coca-
Cola Company.
It is produced
and distributed
by The Coca-
Cola Company's bottlers.



Mirinda is a brand
of soft drink.
Mirinda is owned
by PepsiCo.
Sprite is a
clear,
lemon-lime
flavored,
non-
caffeinated
soft drink,
produced
by the
Coca Cola
company. It was introduced to
the United States in 1961




7 Up is a brand
of a lemon-lime
flavored soft
drink.

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Coke and Pepsi products in other global markets.
Vault is a
carbonated beverage
that was released by
The Coca -Cola
Company in June
2005.
Mountain Dew MDX is an
energy drink manufactured
and distributed by PepsiCo
under the Mountain Dew
brand. It was introduced in
2005 .


Kinley is a brand of
stillor carbonated
water owned by The
Coca -Cola Company.


Aquafina is a non-
carbonated bottled water
produced by PepsiCo.

Diet Coke or Diet Coca -
Cola is a sugar- free soft
drink produced and
distributed by The Coca
Cola Company. It was
introduced in the United
States in July 1982.

Diet Pepsi is a low-
calorie carbonated
cola. It was
introduced in 1964
as a variant of
Pepsi-Cola with no
sugar.


Sprite Ice was the first
flavor extension for The
Coca Cola Company's
Sprite brand soft drink.


Pepsi Blue is a soft drink
made by PepsiCo and
launched in mid-2002.

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Maaza is a Coca -Cola fruit
drink brand marketed in
India and Bangladesh.

Slice is a line of
fruit - flavored soft
drinks
manufactured by
PepsiCo and
introduced in
1984.
Limca is a lemon
and lime flavoured
carbonated soft
drink made in India
by Coca - cola .

Teem was a lemon
- lime flavored
soft drink
produced by The
Pepsi -Cola
Company.

PRICE STRATERGY

COCA-COLA
Coke was a company ruling the markets before Pepsi entered. Earlier the price of
coke was cost based; it was decided on the cost which was spent on making the
product plus the profit and other expenses. But after the emergence of other
companies especially the likes of Pepsi, Coca-cola started with a pricing strategy
based on the basis of competition.
Coca Cola determines following factors at determining price
Price should be set according to the product demand of public.
Price should be that which gives the company maximum revenue.
Price should not be too low or too high than the price competitor is charging
from their customers otherwise nobody will buy the product.
Price must be keeping the view of the target market.


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Competitor Approach
Coke was a company ruling the markets before Pepsi entered. Earlier the price of
coke was cost based; it was decided on the cost which was spent on making the
product plus the profit and other expenses. But after the emergence of other
companies especially the likes of Pepsi, Coca-cola started with a pricing strategy
based on the basis of competition.
Market Penetration Pricing
In some economies consumers tend to switch towards a low priced product. Coca
colas objective is to target every consumer of the country so Coco Cola has to set its
prices at such a level which no one can offer to its consumers. That is why Coca Cola
charges the same prices as are being charged by its competitors. Otherwise,
consumers may go for Pepsi Cola in case of availability of Coca Cola at relatively
high price.
PEPSI -COLA
Pepsi again decides it price on the basis of competition. The best think about the
company Pepsi is that it is very flexible and it can come down with the price very
quickly. The company is renowned to bring the price down even up to half if needed.
But this risk taking attitude has also earned Pepsi losses. Though lowering the price
would attract the customers but it would not help them cover up the cost incurred in
production hence causing them losses. This was the situation earlier but now Pepsi is
a full- fledged and growing company. It has covered all its losses and is now growing
at a rapid rate.
Pepsi pricing is based on consumers perception of Value. Cold drink prices are
market determined. But Pepsi never got involved in a price war with coke as it would
have eaten into the brand equity of Pepsi as consumers perceive that the basic price
they pay for brands like Pepsi is justified as its more about the refreshing cola
experience rather than a just a thirst quencher.
Pepsi is thus competitively priced to its major competitors, offering a better tasting
product than other brands at a competitive price.But this is due first to the pressure in

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the beverage industry regarding pricing due to constant rise of costs in transportation,
ingredients and work force.
Moreover, the partnership with Wal-Mart impacts on its pricing strategies because of
Wal-Mart urge to maintain low prices. So the company works hard on maintaining
current prices by reducing their operating costs and adapting its processes.

PLACE STRATERGY
COCA-COLA
Co ke is a multinational company and it has its market around the entire world . This
can be said just by the first page on its site which asks people to select the place of
their choice. The web site looks something like this:









All over the world they have:
250+ Bottling Partners
23 Million+ Retail Outlets
900+ Bottling Plants worldwide


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PEPSI -COLA
Pepsi again has spread worldwide. Pepsi when entering a new market
does not go in alone but it looks for partners and mergers. Till now
Pepsi has collaborated with companies like Quaker Oats, Frito - lays,
Lipton, Starbucks, etc. Pepsi like Coke has spread all over the world.
It is because of this worldwide spread that now it is coming up with
Advertisements which can be broad casted in the different nations in
the world. The recent example with would be the Pepsi
advertisements having David Beckhamas it brand ambassador.

PROMOTION STRATERGY

COCA-COLA
Getting shelves
They gets or purchase shelves in big departmental
stores and display their products in that shelves in
that style which show their product more clear and
more attractive for the consumers.

Eye Catching Position
Salesman of the coca cola company positions their freezers and their
products in eye-catching positions.

Sale Promotion
Company also do sponsorships with different college and schools cafes and sponsors
extra curriculum activities for getting market share.


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UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and they
offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes
etc.
Facilitating the product by infrastructure
For providing their product in good manner
company has provided infrastructure
Vizi cooler
Freezers
Display racks


Advertising
Coca cola company use different medias
Print media: They often use print media for advertisement. They have a
separate department for print media.
Pos material: Pos material mean point of sale material this includes: posters
and stickers display in the stores and in different areas.
Tv commercial: As everybody know that TV is a most common entertaining
medium so TV commercials is one of the most attractive way of doing
advertisement. So Coca Cola Company does regular TV commercials on
different channels.
Billboards and holdings: Coca cola is very much conscious about their
billboards and holdings. They have so many sites in different locations for
their billboards.

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PEPSI COLA
Nowadays both Coke and Pepsi are going in for Brand Ambassadors to promote their
product. These brand ambassadors are famous people who usually people idolize and
people can relate to them. The following pictures do not need any explanation as
people are familiar with the celebrities and can thus quickly identify with the product.





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STP STRATERGIES OF COKE AND PEPSI

SEGMENTATION STRATEGIES

COCA-COLA
According to Weinstein (2004, pp4) market segmentation is the process of portioning
market into groups of potential customers with similar needs and/or characteristics
who are likely to exhibit similar purchase behavior. Objective of such a process is to
analyze and understand market, identify opportunities and use or develop competitive
edge to capitalize on those opportunities.The Coca Cola Company segments the
customers based on the following criteria
Geographic segmentation: Coca Cola has segmented the worldwide market on the
basis of geographies. There are various divisions created for major regions of the
world and heads of each division report to the parent company. Lot of autonomy is
given to each division to run the operations
Place of consumption: Coca Cola segments the market on the basis of the place of
consumption of the beverage. Most of the consumption takes place on premise such as
cinemas, railway station, restaurants etc, while rest of it takes place in homes.
Product type: Coca Cola segments the market on the basis of the type of products
bought by customers. The market is divided into Cola products and non cola products.
Cola products currently provide majority of the revenues, but the proportion of non
cola products is increasing.
Demographics: Coca Cola segments the market on the basis of demographics. The
segmentation is on the basis of age as well as income.
PEPSI-COLA
Pepsi is also playing with consumes mind by using segmentation of same product for
different income level and different family size. Pepsi is packing syrup in cane for
high class professionals and for those who are status conscious. Pepsi also has a
disposable 250 ml bottle for students and other middle class people. Pepsi is also

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packing syrup in regular non disposable bottle for lower middle and for price
conscious people. Pepsi is also distributing syrup in jumbo pack 2.25 and 1.5 liter
packing which is suitable for big and medium size families and social groups.

TARGETING STRATEGIES

COCA-COLA
Coca Cola target different segments with different ads. Primary market of Coca Cola
is younger people in the age bracket 10-25 with people from 25-40 comprising of
secondary market. Cola products are targeted towards people who want strong flavor,
while diet cola and its variants are targeted towards the sub segment that is health
conscious. Coca Cola uses non cola beverages to target the health conscious segment
of the market. Some of the products such as Sprite specifically target teens and
college going youth while others such as Limca, minit maid target young working
population.


PEPSI-COLA
Pepsi targeted the youth. Pepsi targeted the every class of people whether it is a
Middle, Upper and lower class. Pepsi targeted the South Asia Region through Cricket
Sponsorship in that region

POSITIONING STRATEGIES

COCA-COLA
Coca Cola position its products as refreshing and thirst quenching. The products are
said to bring joy, as apparent from Coca Colas latest tagline Little drops of joy. The
products are associated with having a good time with friends and family and enjoying
everyday life. The products are also marketed as consistent and of high quality.



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PEPSI-COLA
The positioning of Pepsi in the consumer mind is done by the following ways
Physical positioning: Low quantity of cafein
Available in regular size
Perceptual Positioning : Refreshing drink
Youth Oriented
CURRENT AND FUTURE STRATEGIES



OBJECTIVES To refresh the world.
To inspire moments of optimism
and happiness.
To create value and make a
difference.
To be the worlds premier
consumer products
company focused on
convenient foods and
beverages.
CURRENT
STRATEGIES
Product innovation and huge
spending on advertisement, cross
training of mangers.
More risk taking ability,
rapid action with respect
to changing market
condition, finding new
opportunities for new
market.
FUTURE
STRATEGIES
Extensive spending on market
research in order to determine the
tastes and preferences of the
customers, CSR, product
innovation, adoption of green
revolution, product line extensions.
Product line extensions,
CSR, Brand extensions,
product innovations,
sound R&D department to
develop products as per
the tastes and preferences
of the customers.

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CONCLUTION

Purpose of this assignment is to find two multinational companies which are in same
mode of entry and compare the competitive strategy among them. For this purpose
Coke has been selected as the main company and Pepsi has been selected as the main
competitor. And both are in the entry mode of licensing. The company produces
concentrate, which is then sold to licensed bottlers throughout the world. The bottlers,
who hold territorially exclusive contracts with the company, produce finished product
then sell, distribute and merchandise to retail stores and vending machines.
The success of Coca Cola depends on their world premier marketing strategies. They
do their marketing in innovative methods. Coca cola maintains quality and core
features of their product over a 125 years. They have their own pricing system and
appropriately they behave according to competitors price levels. Promotions of Coca
Cola made it as a world most valuable and recognizable brand. Coca Cola has world
strongest distribution network in FMCG category. According to this report their
performances in 4ps are really strong and over the industry levels, and also Coca cola
is properly using the STP strategy against the Pepsi in order to compete and succeed
in the market.








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REFERENCE
http://www.scribd.com/doc/36301666/PEPSI-PPT
http://www.docstoc.com/docs/10545613/Segmentation-Position-And-Target-Market-
of-Pepsi
http://foodisgut.wordpress.com/2011/11/27/introducing-the-coca-cola-company/
http://en.wikipedia.org/wiki/Diet_Coke
http://www.coke-light.de/
http://www.scribd.com/doc/8659289/Market-Segmentation-Positioning-and-Target-
Market-of-Pepsi
http://www.pepsicobeveragefacts.com/
http://www.coca-colacompany.com/brands/all/
http://thembanotesforyou.blogspot.com/2011/06/definition-of-international-
marketing.html
http://www.emeraldinsight.com/journals.htm?issn=0265-1335