Coke is one of the most recognizable brands in the world. The goal of the company's international marketing team is to help expand global sales. The company sold its first Coke in 1886 at Jacobs' Pharmacy, but the company's mission hasn't changed; the goal is to sell the highest number of beverages to the most people.

Based in Atlanta, Georgia, the company focuses on making non-alcoholic beverages accessible. With hundreds of brands, some of the more popular examples are Diet Coke, Sprite, Dasani, Nestea, and Fanta. Worldwide, nearly 10,000 Coke beverages are consumed every second. The more Cokes the international marketing team sells, the more revenue the company makes.

Much of the company's 40 billion dollars in revenue growth now comes from globalization, not just growth within the borders of the United States.Globalizationis the expansion and development of international markets outside of the company's home country. Let's look at how Coke has gradually globalized into the international market.

The Globalization of Coca-Cola

Coke, like many successful global companies, focuses on those regions with the greatest potential for growth. Coke started branching out internationally in the 1920s but really began its global expansion in the 1980s. This is when Coke implemented its strategic plan to gain entry into untapped, previously hostile, or undeveloped environments. Let's look at Coke's gradual geographical expansion, then we will address what strategies Coke implements when it wants to capitalize on a new market.

Coke started with widening its production, primarily bottling facilities, in friendly areas like Guam and Europe. As people became more familiar with Coke's products, the company decided to expand to Australia, Austria, Italy, Norway, and South Africa. These were the areas that had good relationships with the United States, which meant implementing trade, transportation, and communications networks went a lot smoother.

Surprisingly, even World War II brought an increase in demand for Coke products. The federal government worked out a deal with Coke to supply the troops with its products for no more than a nickel a beverage. In preparation for widening its base, Coke focused on creating relationships with global stakeholders, like the Olympics and United Nations. The Olympics, for example, took Coke's name wherever the Games went.

By the 1970s, Coke also entered into partnerships with the Special Olympics, Tour de France, NASCAR, and FIFA. As these sporting events broadened their fan base worldwide, Coke followed. Enlarging its consumer base in the 1980s and 90s demanded more planning from Coke. The company brought production operations to previously less stable areas like Russia, Germany, India, and Vietnam. This is when Coke began looking to expand into China.

The 2000s brought about Coke's involvement in social issues. This is a different type of marketing effort for the international team. The company provided relief related to the UN AIDS initiatives, September 11th terrorist attacks, and earthquake relief in Haiti. Since this time, the company has entered into additional philanthropic ventures, as well as sponsorships with the NBA and co-marketing with popular television shows like American Idol.

To market to an international audience, Coke has adapted its marketing strategy. Coke's international marketing team continues to look for ways that Coke can diversify its production, marketing, and outreach methods. Let's take a look at these strategies in more detail.

Coke's International Business Strategy

It's clear that Coke'sinternational business strategy, the process Coke uses to sell products in foreign lands, is working. For example, in 2015, Latin America and South America sales totaled 29% of Coke's volume, while North America had 22%. The international division accounted for nearly 75% of Coke's growth. It's also important to note that Coke has consciously run its international division differently than its domestic.

Domestically, beverages are fully prepared and then distributed. Whereas for Coke's international sales, a concentrate is prepared and sold to local bottlers. A local contractor then creates the final beverage, choosing to add ingredients suitable to that particular region, and finally it is distributed. The beverage can taste different, depending on the likes and dislikes of the specific market.

Coke keeps a consistent marketing theme across all their sales and distribution outlets. However, it may be modified slightly so that it doesn't conflict with a market's customs, politics, or current events. One important difference in its international agreements is that Coke can terminate them at any time. For example, signs of conflict between a certain country and the United States could lead to immediate termination within that country.

In 2016, Coke took the leap of marketing all of its top beverages under one tagline, 'Taste the Feeling.' The goal is for Coca-Cola Light / Diet Coca-Cola Classic, Coca-Cola Zero Sugar, and Coca-Cola Life to be tied to Coca-Cola in a way that shows the company's evolution. Coke wants consumers to know that all the options have a great taste, just like a traditional Coke, but the company can also meet individual preferences. Because Coke is an international company, consumers demand lower or no calorie drinks, with or without caffeine. Having them co-branded only helps Coke build from its tradition.

An excellent example of how Coke implemented its international business strategy can be found in China. Coke tackled a country that once forbid American companies from entering its borders. Coke's infiltration into the Chinese market started over 35 years ago. The strategies used by Coke are the same ones it uses today.

To summarize, Coke's international business strategy includes:

• Pacing its integration into foreign markets based on current events and political climate
• Working with governments and other stakeholders who control access
• Diversifying marketing themes enough to compensate for regional norms
• Investing in global sponsorships that are recognized worldwide
• Donating during times of disaster response
• Investing in local communities by contributing to community events
• Marketing with universally understood taglines and internationally known spokespersons
• Using social media outlets and other electronic avenues to reach untapped consumers
• Implementing innovative packaging and bottling to meet the needs of a mobile workforce
• Adapting tastes of beverages based on preference testing in regional markets

Coke used these strategies to tap China's market. By working with the government and starting small, Coke gained trust surely and steadily. Coke started by only targeting visitors in hotels. Then, Coke worked with the government to create production facilities that would provide products to Chinese customers. Just as it has done throughout the world, Coke's new products, investment in local communities, and popular sponsorships won the hearts of Chinese citizens.

Address the following:

Discuss the history of Coca-Cola's globalization efforts.

2. How did globalization make Coca-Cola a successful company?

3. What is, in your opinion, the best strategy Coca-Cola used to become a powerhouse AND the worse one? Why? Validate your arguments.

4. Coke'sinternational business strategy, the plan it follows to generate revenue from selling its products in other countries, has been used to enter friendly as well as previously threatening areas. By sponsoring events, assisting with disaster relief, meeting the needs of diverse consumers, and use of universal marketing such as their 2016 tagline 'Taste the Feeling,' Coke can consider itself an international success. We also know that marketing mix plays a vital role in both national and international marketing. When companies develop new products for overseas markets, they usually employ a number of steps. Once products are introduced to foreign markets, the PLC (product life cycle) can be used to help marketers decide how to modify the product's marketing mix over time. Where do you think is the PLC stage for Coca-Cola? Research what were the steps made by Coca-Cola when developing their products to enter new markets. What do you think were the best AND worse products that Coca-Cola ever introduced in a new market?

5. What would you suggest Coca-cola should keep doing AND should change to keep on being successful as a global business? How can you validate your arguments?