Development of Strategic and Comparative bases over time

instruction of strategical and proportional unspirituals oer convictionThinking big and applying scurf is where we focus, we fagt think ab out(a) just peerless package or one make, we read to think about this with child(p) portfolio and this large formation that we work withButler, D. (2009), the Vice President Global design, the coca pot play alongIntroductionThis herald involves a brief description of strategic and comparative degree degree prefer. It likewise involves varied kinds of strategies under taken by coca plant cola partnership that have led it to be one of instaurations grocery store leaders compargond to an otherwise(prenominal) multi-national companies. The strategic and comparative bases of advantage discussed ground. The item that sh every last(predicate) be looked is coca plant cola tradeing system that has been developed for years and based on situations. The merchandising strategy shall involve advertize, merchandise sectionalisat ion, Equity investment and filthing. though these strategies seem to be common in other companies each topical anaesthetic or international, coca plant- boob guild implements them in a special appearance.Keywords Strategy, comparative advantage, commercialize segment, suckeringDefinitionsStrategyStrategy refers to the creation of a unique and semiprecious position involving a contrastive set of activities (Porter, 1996) whereas comparative advantage some cartridge clips refers to a location of specific advantage that influences the decision of where to source and commercialize (Kogut, 1985). A headspring- defined definition and a brief description ar defined later afterwards strategic advantage.Strategic advantageStrategic advantage occurs when there is equilibrium surrounded by three elements, when the make, the consumer and the market add up together in the best way of life possible (Xavier,M.J. 2003)Brand-consumer fit is the achievement that the brand values coincide with the consumers psychographic make-up. The psychographic elements be measu trigger-happy by the general scoring and weighting of brand performance in shapes of coordinated consumer necessarily, motivations, values, self-concept, and life-style.Brand -market fit is measured by the extent that price go into the consumers acceptable price range, the to which the brand is cushioned against budget/trade/ distribution influence, the rank- shape of importance of the proceeds in the budget/shopping list and ultimately the ease of access of the product.Consumer market fit There is a tercet fit relationship that occurs, fit between consumer and market. This involves the needs and behaviors of consumers under reliable market conditions such as specific price points. This relationship between consumer drives and market forces often has direct effect on brand choice. For mannikin a brand might be considered as a smashing choice to fulfill a particular need or behavior a t a particular price that the consumer is prepargond to pay, while some other brand might not be considered as a well(p) choice for specific combination of need, behavior and price point.The smart set sets strategies so that it can outperform rivals and it can only do that by anchoring a difference in delivering great value to customers or by creating equal values at a measlyer cost or do both. Delivering greater value allows a social club to charge a senior richly school average unit prices and efficiency terminations into lower average unit costs. in all differences between companies in cost or price is derived from hundreds sets of activities required to create, produce, lead astray and deliver their products or services such as calling on customers, assembling final products and training employees (Porter, 1996)Comparative basis of advantageDeardorff, A. (2003, p. 6) defined Comparative Advantage as the congener cheapness of a pricy or service in a country that enab les that country to trade it. More precisely, a country has a comparative advantage in the upright whose price in the absence of trade (autarky), relative to other goods in the equal country, is lower than the relative price of that same good on world markets.Ricardian Model states that countries have comparative advantage in goods whose labor cost, relative to other goods in the same country, is lower than the relative labor cost of that good abroad. Therefore countries are said to have comparative advantage in a good if its labor requirements are relative to the labor requirement abroad.Ricardian model outlines twain theoretical implications of Comparative Advantage and these are firstly if countries are permitted to trade publishly indeed they are undistorted markets and competitive, they leave export the good or goods in which they have comparative advantage and import those in which they have comparative disadvantage, secondly under the same conditions, all countries leave gain from trade, in the sense that those individuals who gain from trade within each country will gain enough that they could potencely fully compensate those individuals who lose, within the same country, and still re principal(prenominal) better off than in autarky(Deardolff,2003).Business overview coca- sens is the largest manu itemurer, distributor and marketer of concentrated sirup which is enforce for the production of non-alcoholic beverages. The participation has a span of operations covering over 200 countries since its inception in 1886. It has an yearly net income of 6.8 one thousand million and employs the services of around 92,400 associates through with(predicate)out its operations worldwide ( coca- green goddess yearbook comprehend, 2009). denoteAdvertising can be defined as as any paid form of non-personal presentation and onward motion of ideas, goods or services through mass media such as newspapers, magazines, telecasting or radio by an set spons or (Kotler et al, 2008 p.737). Advertising is a practical way of informing and persuasion as well as a operator of stimulating resolution from a target audience. The response could be perceptual where the consumer develops, believes or views about the product or it could be behavioural where the consumer purchases the product or appends his purchases of the product in question (Kotler et al, 2008).Advertising is a process which gives culture to the earth about the product. It is persuasive, controlled, and identifiable as well as influences the target audience. The basic fair game of advertising is to increase sales volume and gather. We shall look at several types of advertising which runs raft in hand with the advertising objectives. Informative advertising appears at the first stages of a particular product and is meant to develop the primary take aim of the customers. weighty advertising is applicable at the competitive stage where a selective demand is built for a pa rticular class of product (Kummer and Mittar, 2008). similitude advertising is used to establish the superiority of a particular brand through the use of evaluation with one or to a greater extent other brands in the product line. Reminder advertising is used to refresh the store of the consumer regarding messages, ideas etc of a particular product. Reinforcement advertising is used to assure the menses buyers that they made the right choice regarding their decision to buy the product. The advertising objective should not be arbitrary but should be developed after a thorough evaluation of the current market situation (Kummer and Mittar, 2008).coca plant low-down advertisingAdvertising is a major element of the advancement mix. Personal administering, sales progression, publicity and advertising are the four elements of the promotion mix. Advertising has been thought of as the best method of promotion because it stimulates sales, creates demand and reaches customer quickly and in effect (Kummer and Mittar, 2008). Coca-Cola has over the years consolidated its leading position as the worlds most famous and largest beverage company with bulky investments in advertising targeted at its existing and potential consumers worldwide. Coca-Cola works in partnership with leading advertising agencies and market research institutes the world over to develop effective advertising campaigns that conforms to current trends in information applied science like the use of internet based mediums like face intelligence and twitter to connect with technology loving target audience (Coca-Cola annual constitution, 2009).The successful advertising strategies used by Coca-Cola over the years in their operations shall be analysed.( Wieden and Kennedy,1996 ) an advertising agency that worked in partnership with Coca-Cola for the 1996 summer majestics in capital of Georgia Georgia came up with four main advertising strategies designed for Coca-Cola for the summer games name ly a home based strategy, a fan based strategy, a global growth strategy and the prodigious torch relay.The home based strategy used by ascorbic acid was primarily as a result of the position that Atlanta is the main headquarters of Coca-Cola and so commonwealth in Atlanta would readily lay with the brand since they are well familiar with it. Coca-Cola launched several advertisements for the games which include set up 70 new billboards, several street-pole banners and signs in 9 Marta stations (the citys public transportation system). Coca-Cola created a theme park known as the Coca-Cola surpassing city with countless contrary gust advertisements including a 165 feet snowfall bottle in the canter of the park (Wieden and Kennedy, 1996).The companys signature colour red was the main colour seen throughout the Coca-Cola Olympic city. Coca-Cola deviated from the traditional practice of apply athletes for advertising for the games to focus instead on a fan-based strategy where technicals, bulls eye advertisements and posters where used to demonstrate the difference made to the outcome of the games by the fervor of the fans. Coca-Cola used the games as a global growth strategy used to target the worldwide audience tuned in for the games. Coca-Cola also used one of the most efficient strategies for gaining exposure in advertising history which is the sponsoring of the 1996 Atlanta Olympic torch relay (Wieden and Kennedy, 1996). The impact of Coca-colas advertisements during the Olympics was so immense that people dubbed the event the Coca-Cola Olympics. The event served as a representation for the company to effectively advertise its brand to a worldwide audience.In 2003, Coca-Cola used the trade platform tagged real to enhance the image of the brand through the use of television advertisements. This particular advertising strategy was specifically targeted for the teenagers and materialization adults with resounding success. In the same year, the tr opical sprite remix television advertisements which was intend to increase and reconnect the sprite trademark was also targeted at the young, urban consumer base (Coca-Cola annual report, 2003).In 2006, the make every drop count advertising in the United States was purposely designed to create awareness among consumers on the wellness benefits of Coca-colas beverage portfolio in a response to development concerns by consumers regardless of age on health concerns like kilogram calorie miteing in and obesity. The reverse side of life campaign which was the first ever compound merchandising campaign for trademark Coca-Cola was intended to signify the unifying aim of Coca-Cola in daily life and has performed better than previous Coca-Cola advertisements and was launched in close to 100 markets in 2006 with great success. The happiness factory television commercial is part of this global campaign (Coca-Cola annual report, 2006).In 2009, Coca-Cola commenced the design for adverti sement strategies to be used for the 2010 Fifa world cup campaign which included flashy television advertisements for the soccer fiesta in South Africa in 2010 as a means of uniting Coca-colas exuberance with the worldwide love of soccer thereby utilizing the soccer fiesta as a veritable means of connecting with consumers worldwide who have immense passion for the love of football (Coca-Cola annual report, 2009).Coca-Cola develops its advertising campaigns based on a communications strategy that uses means to end research to gain greater insight of current and potential customers and other factors like product attributes, keeping specific marketing goals in mind, taking into account competitive advertising and positioning as well gaining attention and interest by connecting with real needs(Reynolds and Olsen,2008) food market naval divisionMarket segmentation has been described as essential to marketing(Sheth 1967).Market segmentation implies the division of large heterogeneous ma rkets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs(Kotler et al, 2008 .p.410) There is no single way to segment a market. A marketer ostensibly has to try different segmentation variables alone or in combination in order to come up with how best to view the market. Markets could be segmented into either production line markets or consumer markets.Consumer markets entail those markets that deal on products and services that are used directly by the consumers whereas business markets have to do with fare of products and services from one point to the other. Market segmentation could be based on the following major variables demographic, psychographic, behavioural, geographic etc. Demographic segmentation entails segmenting the market based on age, gender, income and education. Psychographic segmentation is based on personality, lifestyle and motives of the population involved. Geographic entails segmenting the market on the basis of regions, city or country. Behavioural involves segmenting the market on benefits sought, product usage, price sensibility or situations (Kotler et al, 2008).Coca cola market segmentationCoca Cola follow has been conquering markets worldwide extra time, through its network of Bottlers, distributers and whole sellers, and later adjunction ventures. The market network has grown to include most of the world territories and this market has been divided into market segments.Coca-Cola the worlds most famous and leading beverage company has been shown in their operations to vary the sweetness level of their product, its size as well as effervescence on local conditions and preferences which implies that the company employs the use of behavioural and geographical variables in their market segmentation strategies the world over (Hart et al,2008). Coca-Cola Company has operating segments on continental basis involving Eurasia and Africa, Europe, Latin th e States, northeastward America and the pacific areas. This strategy is clearly a geographical approach in terms of market segmentation by Coca-Cola which is influenced by the fact that these different geographical areas will have diverse preferences and wants (Coca-Cola annual report 2009).Coca-Cola market segmentation strategies regarding diverse consumers base starts with a process of cause consumer trends within the multicultural marketplace and then exploitation depth and breath communications which is based on that knowledge. The Coca-Cola Company has a diversity business emergence team which serves the purpose of providing diverse consumers with the right beverage portfolio. In 2009, the diversity business development team worked about with the multicultural marketing team to develop marketing strategies as well as combine multicultural elements into general market programmes for greater reach (Coca-Cola annual report 2009).The diversity business development team durin g this period also identified significant opportunities in emerging markets including Asian and disabled consumers. The Asian consumers were afterward integrated into the existing framework of communications. Coca- colas multicultural consumer marketing team develops and carries out relevant marketing plans targeted at multicultural consumers while working closely with brand and customer teams as well as the bottling system. Coca-Cola North America had their multicultural consumer marketing team refocused on African-American marketing as well as expanded its reach to Hispanic consumers (Coca-Cola annual report 2009).The company is now in the process of implementing a long term strategy targeted at consumer markets on the basis of ethnicity in the United States. Coca-Cola in North Americas operating segment reported in 2009 positive results in its works with its bottling partners to create price and package strategies that will ultimately uphold their financial results, provide val ue for customers and provide consumers with choices that oppose their needs. This strategy is apparently based on behavioural variables which puts price and preferences of the consumers into consideration Coca-Cola Company introduced the coke zero brand in response to consumer health concerns regarding excess calorie intake (Coca-Cola annual report 2009).The product did well in the market and in 2009, the company made sales on the product on an excess of 600 million cases globally. Currently there are over 800 low and no- calorie beverages in the Coca-Cola portfolio (Coca-Cola annual report 2009). In 2008, the company and founding spent around 9million dollars to support active, healthy lifestyle programmes. These strategies by Coca-Cola are geared towards effective market segmentation of the target population on behavioural and psychographic basis putting into account the health choices and lifestyle of the consumers. In order for Coca-Cola to bump the diverse and ever changing beverage needs of its consumers worldwide, the company has intensified efforts to add more value for customers in its portfolio of beverages ranging from added benefits of vitamins and minerals to calorie reductions, new ingredients, sweeteners and taste depending on the preferences and wants of the consumers concerned (Coca-Cola annual report 2009).Coca-Cola also has another segmentation strategy which entails different strategies for developing and developed markets. The companys main strategy for the developed markets like the United States is to maximize value and profit which can be achieved by delivering more value to consumers so that they will continue their patronage of the companys products at a premium price. In this regard, Coca-Cola are growing the core beverages-trademark namely coke, sprite, fanta, powerade and improving their benefits and value to the customers through adding vitamins and nutrients to decreased or no calorie options(Coca-Cola annual report 2009). In developing markets Coca-Cola devised a strategy of making the products affordable to the consumers in Brazil the company offers consumers 26 package options for brand Coca-Cola at different brand points to meet the needs of an economically diverse consumer base (Coca-Cola annual report 2009).In 1963, the product tab was launched and was specifically targeted at the female consumers but afterwards the company in order to broaden its customer base by appealing to the men folk as well as the faultless family had to introduce diet coke to achieve the above mentioned objectives. In 1983, Coca-Cola introduced the caffeine- free versions of Coca-Cola, diet coke and tab which were specifically targeted at health sealed consumers. Coca-Cola also introduced the minute maid soda which was positioned to attract a market segment that prefers fruit juice as well as health and nutrition conscious consumers (Mochmen and Maze,1998).The Coca-Cola Company today through its market segmentation str ategies offers a diverse portfolio of products to identified market segments based on different consumer preferences for flavours, calories and caffeine content effectively which continues to add to their success story globally (Lamb et al, 2008).Equity investmentCoca Cola Company has over time been making faithfulness investment in selected bottling companies with the intention of maximising companys power and efficiency in its systems, production, distribution, and marketing capabilities around the world.The level of investment broadly speaking depends on the bottlers capital structure and its available resources at the time of investment. Coca cola Company in some instances finds it necessary to acquire a controlling interest. Such controlling interest allows coca cola Company to compensate for limited local resources and enables it to focus on bottlers sales and marketing programs. Equity investment also assists in the development of bottlers business and information systems and the establishment of detach capital structures. One of examples of coca cola equity investment is that of Coca Cola Enterprise Inc. (C.C.E)In 2009, Coca Cola Companys ownership in Coca Cola Enterprise Inc.-bottling company, was 34%. Coca cola Enterprise Inc. is the worlds bottler company of trade mark beverages. The sales of concentrates, syrups, mineral waters, juices, sweeteners and finished products by coca cola Company to C.C.E were approximately 6.6 billion by the year end 2009. The Coca Cola Enterprise Inc. estimates its market beverage products to retailers which include a portion of 46 states of USA, Columbia territorial dominion of USA, Virgin Is push downs, Caribbean islands, Canada, Great Britain, Continental France, Netherlands, Luxembourg, Belgium and Monaco. Therefore Coca Companys investment strategy in CCE was to take advantage of this vast market for it to sell concentrates, syrups and different coca cola product brands through C.C.E (Coca cola annual report,2 009).BrandingCoca cola has many another(prenominal) kinds brands sold worldwide. In developing a company brand, coca cola conducts product and packaging research to establish brand positioning, develop precise consumer communication and solicit consumer feedback. The Coca-Cola brand development strategy emphasizes on price, preference, and persuasive penetration (Annual report, 2009)The Coca Cola Company main brand products are Coca cola classic, diet coke and coca cola zero whereas the main branding strategies at Coca Cola Company include but not limited to pin brand strategy, brand diversification strategy, personal branding strategy, and packaging/redesigning strategy (Annual report, 2009)Joint brand strategy involves a situation in which two different brands are linked to form crossroads promotion, as a consequence one product may sell the other examples in early 1990s Bacardirum and Coke cola brand were jointly marketed together. Coca cola, the common known brand was used to market Barcadirum, the new product on the market. The benefits of this strategy is that if the first brand name gives a certain quality signal, then the second brand quality signal is believed to be as powerful as the first one, hence attracting more buyers. (Akshadf and Ruekert, 1994)Brand portfolio/diversification strategy Coca Cola Company continues to diversify its portfolio and growing sales with new and acquired brands. The some of the diversified brands are vitamin-enhanced water capability brand, and its star water brand Glaceau. The powerade and Nestiea iced tea brand products, a joint venture of Coca Cola Company with Nestle.The importance of this strategy is that threefold brands allow the company to offset cokes gradual decline with newer, more appropriate brands while removing future potential rivals through acquisition. The strategy also allows coca cola to maintain relatively large market share disregarding of how market changes (VanAnken and Derick Daye, 2007)Per sonal branding strategy refers to a set of gentlemans gentleman characteristics as associated with a brand. Users view it as a key way to differentiate a brand in a product category as a central driver of consumer preference and usage that can be used to market a brand across cultures. In coca cola company personal traits associated with coca cola are Cooling, all-American, and real. These three personal traits differentiate coca cola from its competitors. Besides these traits, Coca Cola Company uses slogans, graphic designs, color schemes and trademarks. As a result of personal branding, different categories of people from different denomination find themselves attracted to the brand hence increasing its demand (Aaker, 1997).Packaging/redesigning strategy Coca Cola Company keeps on redesigning its packaging and visual identity systems. One of examples is its fresh identity visual system for its flagship brand introduced in 2008 and contour aluminium bottle initially commercializ ed in 2005. The nonalcoholic beverage in this new aluminum bottle attracted many buyers especially in 2005 Olympic Games in Beijing-China. (Butler, 2009) Packaging redesigning also continues making coca cola brand a new product in the face of consumers.Comparative advantageThe most crucial comparative advantage is that the company has over time built a network bottling partners, wholesalers and distributers spread over in many parts of world. These act as marketing agents of coca cola company products worldwide. Bottling partners pray two major roles, Firstly they act as consumers of the concentrates and syrup which they use in manufacture of coca cola products and later sell these products locally or in foreign market, secondary they act as marketer of company brands. (Annual report,2009)Through a network of bottling companies, Coca Cola Company has been able to access cheap raw materials, for example the high fructose corn syrup, a sweetener, one of the component used in manufactu re of concentrates and syrups is available at a cheaper price in all countries where coca cola factories are.(Annual report 2009)The company is the owner and marketer of more than 500 nonalcoholic brands sold over the world, giving the company a wide range of customers. With these brands, consumers are provided with a wide variety of choices to meet their desires, needs and their life styles.As the sole manufacturer of coca cola concentrates and syrups, the company enjoys world monopolyConclusionThe Coca Cola Company has a unique network of bottling partners, distributers, wholesalers and joint ventures spread all over the world which act as channels through which the company promotes and markets its brands. Coca Cola as a result of operating in partnership or in cooperation with foreign companies, it enjoys economies of scale such as cheap labor, land and transport costs. Transport costs are reduced due to the fact its brands are brought closer to customers through a network of bot tling partners, wholesalers and distributers. The coca cola companys leading brands with high level of acceptance, a worldwide network of bottlers and distributers of companys products, cultivate marketing capabilities and talented group of dedicated associates are unique companys achievements overtime compared to other multi-national organizations. (3970 Words)