Advertising and Marketing of Coca-Cola Brand - Essay Example

WRITING SUCCESFUL ESSAYS Part Discuss the extent to which a large corporation might influence the economic health of a developing country by using a point-based outline. Select at least one famous corporation from your country or area to stand as an example Coca-Cola is the largest soft drink selling industry in the world with an overall markets share of around 43%. With such a large share of the market and the expansion in the industry, Coca-Cola’s success story is worthwhile. The ‘syrup’ was a result of a mix created by Dr. John Stith Pemberton in 1886 in Georgia and after that the brand took off(Coca-cola, , The Chronicles of Coca-cola). Coca-Cola became an international sensation and with the use of celebrities and now further trough their mobile units to connect more with people (dbase media, Coca-Cola Takes New Marketing Strategy) the brand has made good use of advertising. It also cosponsored major sports events such as the super bowl to its advantage. Through the expansion the company has made in setting up factories in developing countries Coca-Cola is able to cut down their cost of production due to cheap labor. However, the do manage to help the economy by creating new jobs as in Africa where 12000 jobs plus have been created (Coca-Cola, Supporting Small Business Development) and they donate a large amount to charity as well. Thus Coca-Cola not only manages to target their consumers through savvy use of advertising and marketing all the while increasing their sales but also helps the local economy of the countries they sell in making it an overwhelming brand. Bibliography: The Coca-Cola Company. 2009. The Chronicle Of Coca-Cola . [ONLINE] Available at: http://www.thecoca-colacompany.com/heritage/chronicle_birth_refreshing_idea.html. [Accessed 17 April 10]. Dbase media. 2010. Coca-Cola Takes New Marketing Strategy. [ONLINE] Available at:http://dbasemedia.com/blog/index.php/seo/coca-cola-takes-new-marketing-strategy-1237.html. [Accessed 17 April 10]. The Coca-Cola Company. 2009. Economic Impact. [ONLINE] Available at: http://www.thecoca-colacompany.com/citizenship/economic_impact.html. [Accessed 17 April 10]. Part 2 Following the three major concepts provided below as headings, create a model of argument structure by filling in more concepts related to the ones given here, then write down an argument about the structure you have created. Concepts: Developing countries Economic health Households Government, firms, banks (developing country) Economy, stability of employment, price stability (economic health) Living standard (households) Large corporations such as Coca-Cola have invested a large amount in taking the company from its small town business to a multi national corporation that it is today. With the expansion of the business the company has sought to set up factories in areas where it benefits them most in terms of costs and consumption. On the other hand, how exactly do companies such as these effect the economic health of the nation in which they build factories or decide to sell in. These effects could both be positive or negative. Coca-Cola has, from the time of its humble birth in 1886, till now has managed to take up a large amount of the global market for soft-drinks. It was concocted by Dr. John Stith Pemberton who sold the mixture at the local pharmacy at a meager 5 cent a glass. The brew became popular among the people yet it was not Pemberton who managed to kick off Coca-Cola’s eventual growth. The credit for that goes to Asa G. Candler who had business sense and saw what the name was worth (The Coca-Cola Company, 2010). Now With nearly a 43% share of the market internationally Coca-Cola has managed to keep up sales through its tough and dynamic advertising strategies. Marketing has also factored in as coke is now available to people of every walk of life which is independent of living standards. The use of local and international celebrities to endorse their products is a tactic used for a long time by the company as it made their products more appealing. The company used actresses such as Penelope Cruz to endorse their beverages and make it appeal to the youth. Side by side it has managed to become a sponsor for major sporting events such as the Olympics which leads a advertising on its own. Though due to the current monetary restriction as a result of inflation in the country, items such as cold drinks have become a luxury article of sorts though this has not led to the reduction in demand for it overall. It was reported in Beverage daily that the sales of Coca-Cola increased 4% during the year 2009 in which the larger chunk of increases were with respect to certain markets in Asia (Montague-Jones, 2009). In a country such as Pakistan, Coke has become a large contender in the battle of the soft drinks as it goes head to head with rival Pepsi yet the construction of factories in the nation has led to changes in the market. Coca-Cola brings in a large amount of foreign investment to the country as it spends on the setting up of factories in developing countries where they are able to procure cheap labor. The company has invested more than $130 million in Pakistan already with intentions to pump in even more funds (Marketing Association of Pakistan, 2005). However, even as it may pay the laborers a lesser wage with respect to their companions in other well off countries, Coca-Cola does manage to create employment for those who are jobless and takes a load off the economy which would otherwise be catering to these people. It has managed to lessen the unemployment numbers by a near 6000. Nevertheless there have been cases of an anti-union behavior on part of the company and allegations of harassment towards employees have also emerged. The Times of India put out news in 2008 of a case against the corporate giant of harassment against a woman who was ultimately forced to leave her job at the firm (Times of India, 2008). As beneficial as these factors might be for the government and the people of Pakistan as well as the economy itself there are certain negative factors that need considering when a firm such as Coca-Cola gears up for corporate growth in a country. A blow on the local industry has been dealt due to the aggressive marketing tactics of the company. The survival of local soft drinks has been limited due to the monopolizing tactics of Coca-Cola as well as Pepsi. The emergence of Amrat cola in the Pakistani market was brief and the reason for the dragged out demise of the particular brand was due to the background of hostilities in which it was introduced. Coca-Cola maintains that it does do justice to the local community as the company is stringent in paying taxes to the government and does not import materials for the drink from outside the country. They have claimed to invest and help with the establishment of local projects for the people (The Coca-Cola Company, Economic Impact). In 2008 the Coca-Cola Company made a contribution of around $82 million for charitable causes alone (Sustainability Review, 08-09). It can be observed from the information provided on the dealings of Coca-Cola in an economy of a developing nation that many factors affect the conditions of the influencing power of the company. Corporate growth in case of a multinational company such as this may not always be in the best interest of the host country yet it can be beneficial in many ways. Coca-Cola may not provide a chance for the local industry of soft drinks to benefit yet it does bring in a reasonably large amount of foreign investment which is needed. Bibliography: Guy Montague-Jones. 2009. Beveragedaily.com. [ONLINE] Available at:http://www.beveragedaily.com/Financial/Coca-Cola-and-PepsiCo-reveal-fizz-in-flat-sales. [Accessed 17 April 10]. Marketing Association of Pakistan. 2005. Marketing News. [ONLINE] Available at:http://www.map.org.pk/news/coke05051104.htm. [Accessed 17 April 10]. The Coca-Cola Company. 2010. Economic Impact. [ONLINE] Available at: http://www.thecoca-colacompany.com/citizenship/economic_impact.html. [Accessed 17 April 10]. The Coca-Cola Company. 2009. Sustainability Review. [ONLINE] Available at:http://www.thecoca-colacompany.com/citizenship/pdf/2008-2009_sustainability_review.pdf. [Accessed 17 April 10]. The Coca-Cola Company. 2009. The Chronicle Of Coca-Cola . [ONLINE] Available at: http://www.thecoca-colacompany.com/heritage/chronicle_birth_refreshing_idea.html. [Accessed 17 April 10]. The Times of India. 2008. SC issues notice to Coca-Cola on harassment charges. [ONLINE] Available at: http://timesofindia.indiatimes.com/india/SC-issues-notice-to-Coca-Cola-on-harassment-charges/articleshow/2959454.cms. [Accessed 17 April 10]. Read More