¶ … marketing strategies of Coca-Cola and Pepsi in Thailand and UK
Coca-Cola and Pepsi, rated among the top companies in the world share a common fact - for several years, both these companies have been successfully selling a simple product made of water and sugar to almost all countries. This would have been impossible unless the companies were able to create sustained excitement over their products and brands among the people and its employees. (Davis and Dunn, 2002)
This study is of interest because both are extra-ordinary companies in terms of brand penetration in even the toughest markets such as China and the middle-eastern countries. Coca-Cola is the world's number brand and Pepsi is also among the top brand names in the world. In 2000, Coca-Cola's sales surpassed one billion units per day and it had 239 products, selling across 200 countries. Coca-Cola and Pepsi are seen as arch rivals by the people and markets and hence an evaluation of the strategies of these two companies always evokes interest. This paper evaluates the marketing strategies of Coca-Cola and Pepsi in Thailand and the United Kingdom and to recommend effective marketing strategies.
Methodology constitutes an important aspect of any study. Several scholars have followed many techniques of method to collect data, analyze it and come to its conclusions. There has not been any field study carried. In the present study which is supposed to be completed within a short span of time, has concentrated on books, newspaper articles, reports, internet websites which are easily available and relevant to the study.
Thailand:
Coca-Cola has a successful presence in Thailand for more than 55 years. In 1949, Coca-Cola (Thailand) was established and since then the company has come a long way and now has major operations with production, distribution and marketing networks. Brands in the market include Coca-cola, Fanta, Sprite, Schweppes, A&W and non-carbonated beverages such as Qoo fruit juice drink and Namthip bottled water. Coca-Cola has generally been bullish over its businesses in Thailand. The reason is not hard to seek- in 2000; an average citizen of Thailand consumed 12 servings of Coke in a whole year, while her counterpart in Rome guzzled 941 eight-ounce products in the same period. (Irwin, 2001)
Thailand seems to have shed off the 1997 recessionary effects as per capital consumption levels of soft drinks seems to be rising again after a sharp drop in the recession years. In 2001, per-capita consumption was pegged at 68.9 liters with signs of further growth. (World of information Report, 2004) In 1998, when Thailand was reeling under economic recession, the company increased its equity in Thai Pure Drinks from 44% to 49% at a cost of 1.9 billion baht. During the year, sales of soft drinks had dropped from 22 billion baht to 18 billion baht, with Coca-Cola the market leader with share of 60.6%. Despite the tough times when many companies laid off or eliminated employees, Coca-Cola went on some sort of hiring spree, increasing its staff strength by 9% in 1999. Its commitment is evident from the fact that Bangkok is the regional headquarters for as much 13 countries including Singapore, Malaysia, Vietnam, Pakistan and Sri Lanka.
The rationale is simple - Thailand accounts for 50% of the business from the 13 countries. Coca-Cola's marketing strategy in this region is more focused on customer satisfaction than fighting with competitors. In the words of Mike Bascle, the Chief Executive for Southeast and West Asia in 1999, "We don't focus on competitors. Beating the competitor is not our objective. Appealing to the consumers and making the retailer profitable is the objective and that's why we've been successful." The company's operating strategy for Thailand is quite similar to its practices elsewhere. For the flagship drink, Coca-Cola, the local bottling companies import the concentrate from the plant in Atlanta, Unites, blends with locally sourced water and bottle the liquid, before sending to the markets. In a major departure from the age-old strategy of sticking to product similarity in all markets, the company has allowed changes in content and taste of Fanta Orange, Fanta Strawberry and Fruit Punch, to ensure greater customer satisfaction. However, the only exception is Coca-Cola, which still has the same formula all over the world. (Siam Future Development Report, 1999)
Targeting the youth group is one of the main marketing strategies of Coca-Cola in this region. And it seems to be paying handsome dividends. Coke's major initiative in 2003, the 'Year of Coca-Cola' has enabled the company to reinforce the brand among the teenagers in Thailand. The Year...
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