Understanding International Market Environment Coca-Cola

Question: Discuss about the Understanding International Market Environmentfor Coca-Cola. Answer: Introduction One of the most noteworthy global trends is the rapid and continuous growth of international businesses(Cateora, 2008). Intercontinental integration of trade, investment, technology, and communication is bringing economies together. New technologies have increased the rate at which companies are becoming multinational. The understanding international market environment is the fine line that determines the success or failure of a global company(Mhlbacher, 2006). It involves acknowledging that people around the globe have different needs. Companies like Coca-Cola, Nike and Dominos are some of the organizations that have successfully adapted to the international market niche. Examples of SuccessfulUnderstanding of InternationalMarket Environment Coca-Cola is a global company that has adapted well to the global market environment. Good pricing, effective distribution network and promotion are some of the factors that have led to the success of the company. Coca Cola has a wide portfolio of beverages thus the pricing is done according to the market and geographic segment. Coca Cola is available all over the world since it has an effective distribution strategy that captures even the rural markets. Coca cola uses various promotional and advertising approaches to increase demand in the market by relating lifestyle with behavior and mainly focusing on value- based marketing. The organization appeals to the consumers emotions by using CSR as its marketing tool. It employs the both push and pulls strategies: promotions drive sales while advertising and campaigns pull customers (Czinkota, 2013) Nike marketing mix is one of the strongest and it mainly depends on the pull strategy. The company has established its hold as a market leader in shoes, apparel, and equipment (Fullerton, 2008).It focuses on producing high quality and a great variety of products including customizing shoes for every category of sports. For example, it designs cricket shoes to be 30% lighter than its competitors. It has adapted to new technology by making and selling products that have the capability to connect to iPod Nano and can evaluate the sportsperson performance. Nikeid an innovative sub-brand attracts a greater audience by allowing customers to design features of a product as per their desire and needs. Dominos is a widely known pizza chain because of its commitment to provide quality products and good service. Dominos localizes flavors to seize the market. It offers both vegan and non-vegan products. The company offers an option of whole-wheat crust which no other company is utilizing. It also uses specially designed boxes to keep food products fresh and hot and has an efficient delivery system. Dominos is famous for its quick delivery services; it is associated with fast delivery with excellent taste(Shah, 2013) Examples of UnsuccessfulMarketing Solutions The greater the empire the, the larger its capacity taking risks(Saxena, 2005). Investing in market research, advertising and campaigns can result in tremendous successes, but may as well lead to miserable failure(Alam, 2014). Microsofts Zune, Nestle and PepsiCo subsidiary Frito-Lay are examples of failed marketing as a result of having one bad aspect of marketing mix. Companies usually introduce new commodities in response to a rivals fruitful idea. However, such merchandises fail if they do not capture the customers attention or they cannot equipoise to the competition. Microsoft developed Zune in reaction to Apples successful products. Customer reviews of the product were harsh due to technical problems such as lack of an easy to use music store. Many froze as a result of software hitches making it difficult to contend with Apples reputable iPod. Microsoft invested millions in advertising without success. The company was forced to abandon the brand due to dismal results. Theme message plays a fundamental role in the success of a brand. Culture is one of the aspects to consider when formulating a theme message: it should be culture sensitive. Nestle was hit by a scandal in 1977 and still continues today when it decided to target poor mothers in developing countries. The company employed aggressive marketing and advertising tactics in Africa, South America, and Asia, advocating the view that its milk was more tasty and healthy than breastfeeding. The formula needed to be mixed with water, however fresh clean water was not readily available to their target demographic. The issue is not going away for Nestle because when infant diseases and death in underprivileged societies is discussed, a contributing factor is the elevation of formula milk and the dissuasion of breastfeeding. The product did not reflect on the message it was sending, the target demographic and power of international pressure groups (De Mooij, 2013) Brands emerge as solutions to problems by offering better products. To offer healthier and less fattening food, PepsiCos subsidiary Frito-Lay launched WOW! chips. WOW! Chips had a significantly small amount of fat since it was made using a fat substitute, olestra. However, olestra had a harsh effect on the body such as dysentery, abdominal pain, and incontinence. PepsiCo invested $35 million publicizing budget to counteract damaging views, nonetheless the sales failed miserably. The company faced lawsuits prompted by the absence of warning label. Conclusion By considering the various needs of people around the world and using the various aspects of the marketing mix, Coca Cola, Nike and Dominos are some of the organizations that have successfully adapted to the international market environment. Failure to consider factors influencing the market niche can lead to failure of a brand as illustrated in the examples of Microsoft Zune, Nestle, and Frito-Lays. References Alam, M. R. (2014). Product pisitioning strategy causing success or failure. International journal of research in commeerce and management. Cateora, P. (2008). International marketing. Tata McGraw-Hill Education. Czinkota, M. R. (2013). International Marketing. Cengage learning. De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications. Fullerton, S. . (2008). The four domains of sports marketing: A conceptual framework. Sport Marketing Quarterly. Sports Marketing Quarterly, 17(2). Mhlbacher, H. L. (2006). International Marketing: A global perspective. Cengage Learning EMEA. Saxena, R. (2005). Marketing Management. Tata McGraw-Hill Education. Shah, R. (2013). Impact of marketing mix elements on customer loyalty: A study of fast food industry. Prestige international journal of management and research, 6(2/1),54.