Consumer and consumption - Essay Example

? Consumer and Consumption Presented 0 Introduction has been developed as an important aspect in production, marketing, and consumption of many consumer products. In most cases, products are manufactured with specific attributes that target specific class of people, in making them items more appealing to the targeted class. In this report Coke beverage by the Coca Cola Company will be investigated in establishing the various aspects leading to dominance of the product in the market today. The issue of targeting a specific class in marketing and production of the Coke brand will be investigated and how the market responds to such strategic marketing and consumption strategies to offer the product a leading edge in the market, amidst other competitive and similar products. In this investigation, the strategies employed by the manufacturer in ensuring the product attains dominance in the market will be investigated through reviewing various company and academic sources to evaluate these strategies and their degree of success in the market. In addition, theories that may explain the dominance of this product in the market will be extensively employed in evaluating the competitiveness of the product, and the reasons leading to Coke brand being the most common beverage in the market globally, despite there being thousands of other drinks that claim to offer competition to the product. Additionally, the article will in brief review both the masculinity and femininity themes as portrayed in promotion, advertisement, and consumption of Coke brand beverage, with a close look on how this has contributed in creating a global brand name in the world of beverages in the global market, despite rapidly increasing technologies that claim to offer companies improved and enhanced manufacturing technologies to compete effectively in the market today. The globalized world has resulted to new borderless markets with numerous corporations crossing geographical and political boundaries to market and initiate operations and investments on a global scale. International marketing leads to a new problem where organizations have to utilize ingenuity, creativity, and huge budgets to attain a competitive edge in the market. This has resulted in international marketing concept; leading organizations to utilize different perspective in attracting customers on a global scale through perceptions and brand images. While a consumer product is made in the factory, consumers in most cases do not buy the product, but the brand, which is perceived to add value to it. This was a statement by Charles Revlon, the founder of Revlon, who noted that in the factory, he made cosmetics, but customers bought hope from the stores. This trend will be strategically portrayed in Coca-Cola Company in manufacturing, marketing, and production of the coca cola beverage that has become one of the leading global brand names in refreshments. 2.0 History of the product The Coca Cola company history began in 1886, when the curiosity of one Atlanta pharmacist Dr. Pemeberton resulted to the creation of a tasty distinctive soft drink, which could be sold in many soda fountains. The strategy was creating flavored syrup, mixing with carbonated water, and giving to neighbors around his pharmacy. Those who tasted the drink exclaimed that it was excellent (Coca Cola, 2011). During the first year, the Coca Cola servings were at 5cents per glass, with the sales being an average of nine servings daily in Atlanta; compare this with the current estimated coca cola servings of about 1.6 billion daily current (Coca cola, 2011). The history that marked the current Coca Cola Company as it is known today dates back to 1894, after the death of the founder; when Biedenham installed the first bottling machinery at the Mississippi soda fountain, which was the first attempt to sell Coca Cola drink in bottles (Coca Cola, 2011). Joseph Whitehead and Lupton developed what is known as the Coca Cola worldwide bottling system, as it is known today. In addition, to extensive advertisement campaigns, the success of Coca Cola beverages in the market was as a result of strategic marketing and promotion procedures. These campaigns reflected Coca Cola brand as a drink related to fun, friends, and good times. Example is the commercial adverts in the seventies, “I’d like to buy the world a Coke,” or “Here a coke and a smile,” which reflected and connected the brand with fun, families and friends bonding, and entertainment, which made the beverage to become a global accepted image of Coca Cola brand as a reflection of fun and happiness. Eventually, any case where parties are held world over, a coke is one of the drinks that has to be there to make the event remarkable and fun. The competitiveness of the coke brand in the market as compared to other brands is evident of how the slogan of connecting Coke with fun has been successful in creating a global brand name in beverage market. For example, according to the beverage Digest Data, a trade publication of data on beverages, in 2009 Pepsi Cola a competing brand had a market share of less than ten percent. On the other hand, the Coke brand commanded a 17% market share in beverage market, not considering other brands by the same company (Esterl, 2011). Such high market volumes indicate the competitiveness of the drink, and the success of the branding campaign in creating a global beverage name. Coke is thus connected to fun in gatherings, parties, fun with friends, and is not just a mere drink, but a symbolism of both fun and enjoyment in any event. 3.0 Production of the Product The product is produced in many countries through franchising, where local companies buy rights to produce identical products to the original product though in different localities. This is usually employed in Vertical Foreign Direct investments (FDI). Vertical FDI is undertaken by firms with a view of having products closer to the consumers or to exploit local raw materials and labor. A brand name is the representation of the entire organization as viewed by the customer. The vertical FDI and the need to produce according to local tastes and conditions required by consumers led Coca Cola company to give freedom to local subsidiaries to develop advertisement campaigns for the local consumers, and make new local brands that are responsiveness to the market (Muhlbacher, Leihs & Dahringer, 2006). Therefore, the FDI is not political or ethnic in dimension but an economic move aimed at increasing sales though producing products that are according to local tastes and making advertisements that appeal to the local social, religious and political classes. Though in franchising he products are similar globally, there are slight variations in packaging of the product and the distribution channels of Coke, which are designed according to the specific country or market. 4.0 Marketing of the product In marketing of the Coke brand by Coca Cola Company, the advertisements and promotions target each and every social group; from the young to the old. From advertisements showing young people in parties, and massive advertisements of Coke in games and other social places, the product heavily targets the young people with a message of communicating fun and connecting the same fun with taking a glass of the drink. The advertisements and promotions also target old people; many advertisements portray family gatherings where men and women of different ages are involved, and create a perception of happiness and boding in such gatherings. These signify that with a coke in such family gatherings, family ties would be certainly enhanced through more fun and happiness. Other advertisements and promotions target the corporate world through portraying Coke as a good drink to revitalize and bring back life in board meetings, staff parties and other corporate organs. In general, the promotions target each and every social groups in the market. Targeting all social groups is aimed at portraying that coke as a beverage, is a drink for the whole family and for social and corporate events by friends and families; making the advert to have a purpose of uniting the targeted classes by incorporating all their demands, which are to have both fun and happiness. Creation of brand identities is a complex and expensive process. A brand name has to present the perceived values of the product to customers. Therefore, brand names have to be selected on a careful manner if they have to make an impact in any market. In promotion of Coke by the company, the brand is related to all events of fun and branding, which is an acceptable and universal social theme globally. Such promotion targets the class of people who are after having fun and experiencing the best gifts of life, which are related to bonding with others socially, and attaining personal happiness, making such strategies both appealing and attractive across all social groups. Monye (1997) elaborates there is a careful balance in extending local brands to the international market, or making a new international brand name in the market. While some brand names may not be acceptable in some markets, others might have awkward meanings to customers. This perception would greatly affect the marketing of the product in new markets (Monye, 1997). All adverts and promotional strategies of Coke beverage by the coca cola company are strategically weighed and suited to specific class of people to avoid such conflict. Monye further notes global branding promotes global product recognition, and is an effective way in designing international products and improving the corporate image of an organization. This makes customer perception and the cooperate image a necessity in creating a brand name and increasing sales in new markets. This perception is created through connecting Coke with the fun filled events or portraying it as the best way to attain bonding socially. Therefore, product branding in Coke cola is successful when based on customers’ demands and perception convergence in the international market, or when based on other national pertinent requirements that persist in the market (Chernatony, Halliburton & Bernath, 1995). The importance of international global branding is observed in Coca cola company use of large advertising budgets as well as research and development programs that improve the corporate image, and present a global brand name to customers on each specific market. Coca Cola was listed as the most valuable brand in 2010, with other major brands names as Microsoft, Nokia, Samsung, BMW, Toyota, McDonald’s and others appearing among the top global brands in 2010 (Ford, et al, 2011). These brand names reveal that currently, globalization in economic and cultural fronts has led to growth of consumer segments, which portray great similarities in consumption behaviors. This is further portrayed in the similar advertisement and promotional activities by Coca Coal Company, in portraying Coke as a brand name that guarantees both fun and happiness. These companies as Ford et al further elaborate portray an emergence of a global consumer; a culture that functions not only in creating similarities in consumption of particular products such as Coke, but due to its source of self expression and identity around the world. This is the idea behind branding and promotional activities behind Coke. As David Ogilvy an exceptional expert in advertising elaborates; image means personality. Therefore, products just as people must have a well defined personality that can be created or lost in the international market. Therefore, the personality of a product is related to the amalgamation of many elements, which include the name, the package, price, style advertising and the character of the product itself (Bednarz, 2007). Coke in meeting the above personality qualities is sold and packaged in various forms depending on the needs of the consumers. These include use of dispensing machines, disposable bottles, refilling bottles, and other packaging. Class in packaging is demonstrated by how different classes of people prefer the different packaging. The corporate people may prefer a dispensing machine in their boardrooms, while those in games may prefer the disposable packaging. In addition, the issue of femininity and masculinity is portrayed in the packaging. In most cases, females prefer to carry along drinks in their compact bags, and require containers that would fit in such bags, the disposable packaging that come in different sizes are just suited to this. Men on the other hand prefer to drink at the spot, and dispensing machines and refilling bottles are therefore more suited to men. In advertising and packaging, manufactures that make the brands to have fewer similarities make customers to have reduced mind roles in selecting among options. It follows that, a manufacturer who effectively devotes advertising to creation of the most distinctive personality related to their brands, will therefore acquire the largest share in the market, and this will bring to such a manufacturer the biggest profit share in the market (Bednarz, 2007). This approach in packaging and production as embraced by Coca Cola Company makes Coke a leading brand in the market. Many companies that top the list of the largest brand names in the international market largely utilize the above approach in the branding and advertising processes. Creating awareness of the product through massive advertisements, participating in funding and sponsoring sporting events, and other related activities makes Coke to have the widest publicity globally, as people of all ages and social groups are well informed regarding the product. 5.0 The Consumption of the product Customers portray particular trends in buying brands and how the brand creation campaigns by companies convince them. Companies utilize this perception by customers to create superior brand images in persuasion related approaches in the market. To ensure this is achieved, companies result to using celebrities, and other aspects that have a great influence on customer’s perception; affecting the behavior of brand image and purchasing. Customers in most cases will judge products focusing on the image of the organization in the market and not particularly the products they are buying or consuming. This implies that consumption by consumers is more psychological aspect, and is not particularly related to the actual product. The use of celebrities and other high profile personalities in product branding process makes customers to view products as being excellent; creating value in marketing of products. Coke has extensively used celebrities to create awareness of the product and creating perception images of how drinking a coke would affect the individual. Keith (2003) notes placing techniques of branding at the hands of those who are not associated with leading marketing practices epitomizes the perspective that customers have on such products. An example is the use of the Prime Minister of Mongolia in branding a text book by Simon Anholt. Coca Cola Company has taken up this model in using celebrities in creating superior global brand names of their Coke. The use of these celebrities and portraying them performing under the influence of Coke, creates a perception that the drink may lead an individual to act the same under the influence of coke. The fans of such personalities are thus appealed by coke and stick to it as a master drink those results in extemporary performance. Richeliu & Desbordes (2009) elaborates that sport personalities such as Tiger Woods, Beckham, Roger Federer and sports clubs such as Manchester United, Barcelona and others have taken over the advertising circles from advertisers, and are being used by leading organizations to create brand names. These sporting personalities have been extensively used to advertise coke in many sporting activities that are sponsored by Coca Cola Company. These clubs are perceived as symbols of superiority, and present a perception of value to customers. The use of such clubs on promoting coke in sports and sponsoring events results to the same effect, and this has made advertising of coke more exciting and effective. Though this branding has intangible benefits, such as the emotions of fans in these clubs, and the sense of belonging to the club, the emotion of the fans is important in the industry, and has led to improved marketing by large organizations such as Coca Cola (Richeliu & Desbordes 2009). Such campaigns result to increased consumers’ preferences and usage, increase trust and loyalty, and arouse emotions. These are the main ingredients in international branding that has been adopted in advertising coke. In other words, masculinity is brought out in consumption of coke by portraying sporting men as elaborated above taking a coke or relating these clubs and games to coke in advertisements. The sport fans will more likely try taking the same coke in emulating the sporting stars. In other cases, coke presents femininity by portraying iconic women with great achievements in their advertisements. Women to emulate such stars certainly embrace drinking coke to emulate these stars. This implies consumption of coke by many people is more psychological and related to perception, rather than as a result of the benefits from drinking the beverage. The American Marketing association (AMA) defines a brand as a name, term, sign, symbol, design, or a combination of the above elements, aimed at defining and indentifying services or goods of one seller, differentiating them from other competitors (Keller, 2007). Branding and creating a perceptual image of Coke is more than a product, and relates much on the perception of customers on the particular product. Generally, customers do not buy a product; they buy a brand. Aaker (1997) in his brand personality theory indentifies 5 dimensions to be met by a brand that captures the loyalty of customers. These are: sincerity meaning the product has to be wholesome and honest; competency meaning the product has to be reliable just as coke; excitement meaning the product has to be up to date and imaginative similar to the flavors in coke that attract people regardless of culture and religion; ruggedness, which defines the toughness in the product indicated by how coke has a competitive edge in the market, and sophistication which portrays the product as being in the ‘upper-class’ or charming as reflected by the use of celebrities and corporate in advertising coke. Bris, Smit & Sorell (2010) elaborate that billions of consumers buy and consume global brands. This is because; there is an emerging consumer culture as a result of interconnected world, and the global brand creates consumer perception of a product that commands superiority in the market. The tastes uniformity of Coke globally creates a perception that the company and the product are both superior in the market; superior brands are linked to quality and satisfaction of the intended needs. This leads many to drink coke as a superior global brand and not as a beverage with other benefits to them. There is a feeling of prestige in consuming global brand names; as such drinks offer the perception of high standards and quality being of international standard. Coke being sold in all markets worldwide offers a perception of belonging to a class of people with global tastes. Keller (2009) explains meaning of products related to the company’s name as a reflection of an identity presented in the perception of a customer. Coke as a beverage derives its superiority and class form being related to a leading company in the global corporate world. Sony and Samsung are some of the brands that portray brand personality dimensions similar to coke, while at the same time detailing an executive performance of the companies, in creating brand superiority through products with a leading edge in the market. Coke as a household name in beverages exhibit luxury, performance, ruggedness, reliability, up-to-date, wholesomeness, and other superiority attributes which are manifested in the psychological level of persons in brand personality. Keller (2009) argues that a product is anything that can be offered to the market for acquisition, attention and consumption to satisfy a want. This would be equal to buying any electronic product in household goods. However, in brand personality, a product does not market this definition, but goes beyond this to have an emotional attachment with the respective customers. Keller (2009) defines a brand as a product that adds other dimensions, which differentiate it in specific ways from other products that are designed to satisfy the same needs. The dimensions defined by Aaker (1997) lead to an emotional attachment between the product and the customer. In the case coke, this brand name fulfills the five dimensional aspects, and it is as a result of meeting these conditions that customers have remained loyal and attached to the coke brand. Comparing coke brand to other soft beverages in the market portrays great differences not in performance of the brands, but in the preferences by customers. In addition as Bris, Smit & Sorell (2010) further elaborate, the coke brand has been able to capture the global market in being marketed on a global scale, which offers a perception of “an aura of excellence” to consumers, and this makes international branding of coke an important marketing tool in defining the class of the beverage defining both masculinity aspects and femininity that are brought out in the advert of coke as a global brand in soft beverages.. This explains the importance of brand personalities related to coke in the market today. 6.0 Social and Cultural Context of Consumer Culture of Late Modernity The international public is familiar with products of a company, but is interested in going deeper to the story behind the product and its symbolic nature in the current market. This makes the rebranding exercise complex, and not just introduction of a brand product in the international market. Lasch (1991) explains narcissism as the literal love of oneself, or more profoundly, as a strong internal attachment to oneself. This is the normal and healthy pride that each and everyone has for themselves, and is related to the well being of psychological health in thinking of their attributes, behaviors, or plans that make part of their lives. This pride is taken further in choosing among several brands in the market, justifying the hypothesis that branding is a difficult exercise, which requires careful balancing of needs, perceptions, tastes, and preferences in a diversified market. In defining personal pride, people have different needs and preferences, and have to choose products based on their behaviors. People choose products that are fulfilling according to their psychological perception. As earlier elaborated, people do not buy a product, but the brand which is the perceived value of the product. Therefore, in buying a Coke, customers have to be sure the beverage satisfies their pride, and is in accordance with international accepted standards. An international brand is perceived as quality, with satisfaction that has been accepted globally, hence due to the personal pride, a customer in the current globalised market will most likely choose a drink which has assurance of these qualities. The society is therefore more informed and requires better and quality products to satisfy their needs; in accordance to international standards rather than on local standards, which explains existence of convergence of tastes and preferences globally. On the other hand, gendered subjectivities are not fixed but are subject to change and being contested; these are shaped in a complex relation of psychic and social forces, which plays at unconscious levels. As Gil et al (2001) elaborates, binary opposition to gender is continuously braking down in the current modernized market, and the identities that defined masculinity and femininity are continuously breaking down. For example, with continued involvement of women in sporting activities contrary to several years ago, more females look upon male sports stars as their role models, and the use of these role models in advertising or promoting Coke appeals not only to males today, but equally to both males and females. With the continued masculinity and related “jealousy” aimed at coveting the quality of masculinity, the use of products such Coke is not a preserve of a few males aimed at having fun and happiness in sporting, but is equally a preserve of females with equal important needs in the modern society. Moreover, more women are currently occupying positions that were before a preserve for men, and this is continuously dissolving the lines of social and cultural orientations as known several years back. Introducing a competitive product such as Coke, it has to stimulate both sides of the divide equally, and this explains why the brand utilizes both men and women in similar occupations in its advertising. The continued development of a new generation that is in accordance with the late modernity has therefore led advertising, promotion, and production of coke that will appeal in a similar way across the divide. 7.0 Conclusion Creation of brand names is a complex process that requires integration of several interlinked aspects related to a brand product. Coke, a brand product from Coca Cola Company is one of the products that portray the influence and effects of brand names in the market, and how such products dominate the market. Though the company started with very low sales, it took a few years before the company was able to initiate a bottling plant in mass production of coke beverages. The main success behind the product success has been massive promotional campaigns, and advertisements in creating awareness about the product. In creating a brand name, companies have to ensure their leadership in the market, as in most cases consumers judge the company and not the product being consumed. For example, many consumers buy and drink Coke; because Coca Cola is a multinational, which has claimed a leading edge in the market, to make a household name in fast beverages. In addition, consumers in embracing any product have to have unfailing royalty towards the mother company. Coca Cola being a multinational company presents the perception of superiority in its products and its operations, which implies quality and international standards to the consumer. Many people buy a coke because of the superiority of the company in the market, and not due to the benefits attached to such a product. The extensive involvement of Coca Cola Company in sporting activities through the Coke brand has created a mental perception of achievement, and developing similar characters amidst the young people. In most sporting events, the company is either a direct sponsor of the events, or sponsoring one of the sporting teams; the use of renown celebrities further creates an image of a superior brand in the minds of young people. This creates a strong emotional attachment between the brand and the sport lovers; this emotional attachment develops into loyalty to the Coke brand. In the current modernized market, tastes and preferences have changed, and the defined lines along genders have been dissolved. Therefore, Coke’s image in its brand name is presented in packaging, advertisements, and promotions to accord to the current cultures, and social dynamics, which lead current generations to indentify themselves with the brand name in all their fun events. In addition, the brand takes care of appealing towards the older people by presenting the brand as an ideal bonding agent in families, corporate world, and other social gatherings where all generations are involved. The convergence of global tastes and preferences in products such as Coke makes many cultural and social groups to embrace the beverage, making the beverage to have a competitive edge over other similar products in the market. Such convergence of tastes in addition, influences more people to drink Coke, making their loyalty to the brand to increase with time. This case study was carried out through reviewing company’s reports and other secondary sources that report on Coca Cola Company or Coke as a brand, and integrating these with theories and other frameworks that helped to analyze the company and the brand product. In future, it might be advisable to carry out research based on online questionnaires to ensure the sample covers the global market where the company has its products. These questionnaires will then be analyzed, and the hypothesis formulated from the data would be a more authoritative finding in explaining Coke’s market segment. List of References Bednarz, J., 2007. The Role of National Branding: Implications for Poland. Internationalization of Economy: New Perspectives. pp 75-79. Bris, A., Smit, W., Sorell, M., 2011. The value of a global brand: is perception reality? Yale International Center for Finance http://www.arturobris.com/brands.pdf [17 April 2012] Coca Cola. Coca Cola History. http://www.worldofcoca-cola.com/coca-colahistory.htm [17 April 2012] De Chernatony, Halliburton, L., & Bernath, R. (1995). International branding: Demand- or supply-driven opportunity? International Marketing Review, 12(2), 9. Esterl, M., 2011. Diet Coke Wins Battle in Cola Wars. The Wall Street Journal, March 17. http://finance.yahoo.com/news/pf_article_112372.html [17 April 2012] Gill B.P., 2001. Rhetoric versus Reality: What We Know and what we need to Know about Vouchers and Charter Schools. CA: The Rand Corporation. Keith,D., 2003. 'Brand new justice: The upside of global branding' Journal of Brand Management; 10 (4/5), pp380. Keller, L. K. (2007). Strategic brand management (3rd ed.). NY: Prentice Hall. Lasch, C., 1991. The Culture of Narcissism: American Life in an Age of Diminishing Expectations. NY: Norton. Monye,S.O.,1997. The international business blueprint. Oxford. Blackwell Publishers Muhlbacher,H., Leihs, H., & Dahringer, L., 2006. International marketing: a global perspective. London: Thompson Learning. Richelieu, A., & Desbordes, M., 2009. Football teams going international: The strategic leverage of branding Journal of Sponsorship 3(1) pp10–22 Read More