Coke Adds Life

TOURO UNIVERSITY INTERNATIONAL

ELSTON H. STEELE

INTERNATIONAL BUSINESS (BUS 401)

DR. ANASTASIA LUCA

DR. VAL SAMONIS

MODULE 1 CASE

COKE ADDS LIFE

The Coca-Cola Company's ability to conform to different regions of the world has contributed to much of its success in the global economy. Despite its success, Coca-Cola has its hands full as it battle PepsiCo Company and local producers for market dominance in India. I will identify three marketing issues as they apply to the Coca-Cola Company, pricing, advertising, and position.

Coca-Cola lost a lot of its market share after India's government threw it out. Gaining market share was indeed an issue for Coca-Cola. Their strategy for that is to sell nearly half of its Indian bottler, Hindustan Coca-Cola Beverages, in an effort to please the government, which wanted Indians to have a substantial ownership stake in Coca-Cola's local operation. The decision to sell significantly impacted Coca-Cola's position in the market. The company's overall sales in India jumped almost a quarter per cent. Coca-Cola had issues with advertising. Its marketing strategy just was not working. With competition tough and large advertising expenses yielding mediocre success, Coca-Cola decided to break tradition and hire a celebrity spokesman. Now with a movie star promoting Coca-Cola products, focus was turned to the pricing of their products. Coca-Cola introduced new bottles to the market that would allow lower income areas to afford its product and expand its market share. It also dropped prices of its 300-ml bottles, which prompted its competitors to follow suit. Coca-Cola recognized