Differences in Media Advertising of The Coca Cola Company across cultures

Category: Advertising, Company, Media

Last Updated: 04 Jul 2021

Pages: 24 Views: 570

Table of contents

Introduction

This Report has been carried out in order to assess the difference in media advertising of Coke, an exclusive product of The Coca Cola Company in Nepal and the UK. There are various approaches and marketing theories used in advertising through different Medias. In both of the countries, they follow entirely different theories in promoting the communication regarding the product. There are various factors such as cultural, social, geographical, demographical, political effect directly to the model of marketing communication.

Background

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The product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Dr. John Stith Pemberton, a local pharmacist, produced the syrup for Coca-Cola®, and carried a jug of the new product down the street to Jacobs’ Pharmacy, where it was sampled, pronounced “excellent” and placed on sale for five cents a glass as a soda fountain drink. Carbonated water was teamed with the new syrup to produce a drink that was at once “Delicious and refreshing,” a theme that continues to echo today wherever Coca-Cola is enjoyed. (Anon., 2011)

The above images show two completely diverse type of advertising, in two different countries. One in the left is from Nepal which shows the Coke is available at Rupees. 5 (?0.05), whereas in the right side, from the UK which represents Coca Cola as a romantic cold drink. The advertising plan has been allocated and implemented in such a way, so that the target audiences of each of the country get influence to use the product. This is how the consumers perceive the advertising in both of the countries, which are totally distinguished from each other.

Marketing communication process

Above is the marketing communication model which implies how the communication flows from a sender to a target audience (Receiver). It clarifies how the process works when the communication executes from another source to another. Initially, when a sender intends to send a message, the messages get encoded so that it can be presented through some media to the receiver. Then, as the media presents the message in encoded format through the media there emerges some noise which affects all the components of the communication process. As it passes by to the receiver then a receiver decodes the message as per his/her own perception. The receiver acts as how the messages have been perceive by him/her. The impact goes to the sender as upon the results being achieved or not, through the behaviour of consumers.

The coca cola companies in both of the countries follow the same process to undertake the marketing communication, just the matter fact is about the way the consumer perceive or ways of decoding the encoded messages. Like in UK mostly the messages focuses on attracting consumer through standardised messages, whereas in Nepal, still tries to centralise consumer through other beneficial issues. Below images show the differences in the adverts between UK and Nepal.

Pinpoint View of Marketing Communication model of both of the countries. Nepal vs. United Kingdom

Sender: – Source who intends to spread the message, the marketers of the Company BNL[1] (Nepal) vs. CCE[2]. (UK).

Encoding: – The effective way to create message to influence consumer. Marketing Department (Nepal) vs. MD[3] or Agencies (UK) do encoding.

Noise: – the elements that restrict to perceiving the message is noise. A distortion created by annoying or non-acceptable adverts.

Message/Media: – The real information about the product intended to be seen by the consumer. Like Newspaper, radio, TV, pamphlets, holding boards, shutter (Nepal) vs. Internet, moving billboard, TV, vehicles etc. (UK).

Encoding: – How the target audience perceive the message, influential or un-influentialLike Coke has gone (Financial) cheaper (Nepal) vs. Coke is (emotional) romantic to have (UK).

Receiver: – Final Consumer consuming or not consuming the product as per their perception towards the decoding. Laborious/hard worker to get refreshment (taking Coke just as a cheaper cold drink) in Nepal vs. consumer as to get relax from all stress and get into emotional part of life.

The response models for above advertisement

So far the theories of IMC is concerned the basic model which can be assess for these two different types of advertising, are “Hierarchy of Effects” model, AIDA[5] Model, Innovation Adoption Model and Information Processing. These entire four models pass through different stages i. e. Cognitive, Affective and Behavioral. The “Hierarchy of Effects” model is about how consumers change through a gradual procedure as they perceive marketing messages that lead them to forward an action to take decision, whereas AIDA concerns with attention, interest, desire and action towards it. There are three stages of every model, which shows how a consumer reacts or responses towards a particular marketing advertisement. Below the diagram show how the models pass through each stage.

While the above theme advertising of Nepal and UK are concerned, when a consumer sees the advertisement, he/she firstly it builds up the mind being rational to take the product as which in AIDA model can be attention, in hierarchy of effect it is awareness/knowledge about it, in innovation adoption it is awareness/adoption and where as in information processing it is presentation and attention. Every model has in first stage is to recognizing the product. Secondly, the stage which is called affective which starts affecting the mind of consumer like as per AIDA model it generates interest and desire to have or not to have it, in Hierarchy of effect model there emerges linking, preference and conviction towards the product. The last stage is the behavioral stage, consumer forward the action to buy or not to buy in all the models a consumer does the decision.

Coca-Cola marketing mix

Marketing mix is the mix of four elements that have been developed in order to market a particular product. As per marketing theory, there are basically four elements named as 4. These are four elements that contribute to assess the market situation to up market the product.

Mar. MixCountryNepalUnited Kingdom
Product (Design, Packaging, Eco-friendly, SafeNormal handy bottles, plastic bottles, can is rarely used.Cans, rarely use of bottles, Pet plastic bottles.
Price (Reasonable, Affordable, pricing strategies)Reasonable/Affordable for the bottled but extremely high for cans, price differs from region to region.Reasonable and affordable
Place (Channels, Media)Local shops, Distributors, retailers direct from bottling company.Super markets, off license, streets shops.
Promotion (Public Relation, Sales promotion, Advertising, Sponsoring sports, on the spot monetary valued prizesSocial service/sports events sponsorship, coupons, discounts, eco-friendly advertising.

Figure 6 Marketing Mix Snapshots

Coca-Cola SWOT analysis (Nepal)

Strengths:

The strengths of a business or organisation are positive elements, something they do well and is under their control. The strengths of a company or group and value to it, and can be what gives it the edge in some areas over the competitors. The following section will outline main strengths of Coca Cola

Being a market leader, as Coca Cola is a key to their success as it boosts reputation, profit and market share.
Competitive pricing is a vital element of Coca Cola’s overall success, as this keeps them in line with their rivals, if not above them.
Keeping costs lower than their competitors and keeping the cost advantages helps Coca Cola pass on some of the benefits to consumers.
Coca Cola’s marketing strategy has proved to be effective, helping to raise profiles and profits and standing out as a major strength.
Coca Cola’s innovation keeps it a front-runner in Beverages Manufacturing Company as it is regularly turning out new patents/proprietary technology.
Experienced employees are key to the success of Coca Cola helping to drive them forward with expertise and knowledge.
High quality machinery, staff, offices and equipment ensure the job is done to the utmost standard, and is strength of Coca Cola.
Coca Cola has an extensive customer base, which is a major strength regarding sales and profit.
Coca Cola’s reputation is strong and popular, meaning people view it with respect and believe in it.
Being financially strong helps Coca Cola deal with any problems, ride any dip in profits and out perform their rivals.
A strong brand is an essential strength of Coca Cola as it is recognised and respected.
Coca Cola has a high percentage of the market share, meaning it is ahead of many competitors.
Coca Cola’s distribution chain can be listed as one of their strengths and links to success.
High quality products/services are a vital strength, helping to ensure customers return to Coca Cola.
Coca Cola’s international operations mean a wider customer base, a stronger brand and a bigger chunk of the global market.
Coca Cola’s position in the market is high and strong – a major strength in this industry as they are ahead of many rivals.
Supplier relationships are strong at Coca Cola, which can only be seen as strength in their overall performance.

Weaknesses:

Weaknesses of a company or organisation are things that need to be improved or perform better, which are under their control. Weaknesses are also things that place you behind competitors, or stop you being able to meet objectives. This section will present main weaknesses of Coca Cola

Coca Cola’s R&D work is low and insignificant, which is a major weakness in Beverages Manufacturing Company as it is constantly creating new products.
Not having an effective marketing strategy seriously hampers the success of Coca Cola.
Over pricing, setting too high prices for Coca Cola products/services makes them uncompetitive, which is a major weakness.
The lack of business alliances is a major weakness for Coca Cola, as they will struggle to get deals, favours and partnerships.
Coca Cola’s lack of innovation limits its success, as there is no forward thinking.
Good companies need loyal employees, but Coca Cola has a poor relationship with staff which affects performance.
Online presence is vital for success these days, and lack of one is a limitation for Coca Cola.
Coca Cola’s underdeveloped distribution chain has a marked effect on performance as it affects the distribution of their products/services.
A limited customer base is a major weakness for Coca Cola as it means they have less people to sell or market to.
Coca Cola’s weak supplier relationships also have an adverse effect on success, as it cuts ability to negotiate.
Absence of Governmental support
Price Difference geographically.

Opportunities:

Opportunities are external changes, trends or needs that could enhance the business or organisation’s strategic position, or which could be of a benefit to them. This section will outline opportunities that Coca Cola is currently facing.

Coca Cola could benefit from expanding their online presence and making more money from online shoppers/internet users.
The changes in the way consumers spend and what they buy provides a big opportunity for Coca Cola to explore.
The growth of the Beverages Manufacturing Company industry is an opportunity for Coca Cola to grasp.
New market opportunities could be a way to push Coca Cola forward.
Coca Cola has the opportunity to enter a niche market, gain leading position and therefore boost financial performance.
Reaching out into other markets is a possibility for Coca Cola, and a big opportunity.
Grasping the opportunity to expand the customer base is something Coca Cola can aim for, either geographically or through new products.
Forming strategic alliances and joint ventures is an opportunity for Coca Cola to maximise profit and gain new business.
Coca Cola has a number of highly skilled staff, which is an opportunity for them to explore as expertise of their staff can help Coca Cola to bring the business forward.
Structural changes in the industry open other doors and opportunities for Coca Cola.

Threats:

Threats are factors which may restrict damage or put areas of the business or organisation at risk. They are factors which are outside of the company’s control. Being aware of the threats and being able to prepare for them makes this section valuable when considering contingency plans and strategies. This section will outline main threats Coca Cola is currently facing.
Consumer lifestyle changes could lead to less of a demand for Coca Cola products/services.
Tax increases placing additional financial burdens on Coca Cola could be a threat.
Change in demographics could threaten Coca Cola.
Regulations requiring money to be spent or measures to be taken could put financial or other pressure on Coca Cola.
Changes in the way consumers shop and spend and other changing consumer patterns could be a threat to Coca Cola’s performance.
Not keeping up with changes in technology could be detrimental to the future of Coca Cola as they could slip behind their rivals.
The actions of a competitor could be a major threat against Coca Cola, for instance, if they bring in new technology or increase their workforce to meet demand.
Price wars between competitors, price cuts and so on could damage profits for Coca Cola.
A slow economy or financial slowdown could have a major impact on Coca Cola business and profits.
Rising costs could be a major downfall for Coca Cola as it would eat into profit.
Coca Cola could be threatened by the growing power customers have to set the price of their products/services.
Structural changes in the industry could be a threat for Coca Cola.

Coca-Cola SWOT Analysis (UK)

The following SWOT analysis looks at Coca Cola UK which is operating in Beverages Manufacturing Company industry. The analysis shows Coca Cola UK’s Strengths, Weaknesses, Opportunities and Threats. The SWOT analysis will give you a clear picture of the business environment Coca Cola UK is operating in at the present time.

Strengths:

Being a market leader, as Coca Cola UK is, is key to their success as it boosts reputation, profit and market share.
Competitive pricing is a vital element of Coca Cola UK’s overall success, as this keeps them in line with their rivals, if not above them.
Keeping costs lower than their competitors and keeping the cost advantages helps Coca Cola UK pass on some of the benefits to consumers.
The services/products offered by Coca Cola UK are original, meaning many people will return to Coca Cola UK to obtain them.
Coca Cola UK’s marketing strategy has proved to be effective, helping to raise profiles and profits and standing out as a major strength.
Coca Cola UK’s innovation keeps it a front-runner in Beverages Manufacturing Company as it is regularly turning out new patents/proprietary technology.
Experienced employees are the key to the success of Coca Cola UK helping to drive them forward with expertise and knowledge.
High quality machinery, staff, offices and equipment ensure the job is done to the utmost standard, and is strength of Coca Cola UK.
Coca Cola UK has an extensive customer base, which is a major strength regarding sales and profit.
Coca Cola UK’s reputation is strong and popular, meaning people view it with respect and believe in it.
Being financially strong helps Coca Cola UK deal with any problems, ride any dip in profits and out perform their rivals.
A strong brand is an essential strength of Coca Cola UK as it is recognised and respected.
Coca Cola UK has a high percentage of the market share, meaning it is ahead of many competitors.
Coca Cola UK’s distribution chain can be listed as one of their strengths and links to success.
High quality products/services is a vital strength, helping to ensure customers return to Coca Cola UK.
Coca Cola UK’s international operations mean a wider customer base, a stronger brand and a bigger chunk of the global market.
Development and innovation are high at Coca Cola UK with regard to their products/services, which is a sure strength in its overall performance.
Coca Cola UK’s position in the market is high and strong – a major strength in this industry as they are ahead of many rivals.
The online presence of Coca Cola UK is strong, meaning it is ahead of many competitors.
Supplier relationships are strong at Coca Cola UK, which can only be seen as strength in their overall performance.
Socially Active participation

Weaknesses:

Online presence is vital for success these days, and lack of one is a limitation for Coca Cola UK.

Opportunities:

Looking at export opportunities is a way for Coca Cola UK to raise profits.
Grasping the opportunity to expand the customer base is something Coca Cola UK can aim for, either geographically or through new products.
Expanding into other markets could be a possibility for Coca Cola UK.
Health conscious production

Threats:

Regulations requiring money to be spent or measures to be taken could put financial or other pressure on Coca Cola UK.
Price wars between competitors, price cuts and so on could damage profits for Coca Cola UK.
A slow economy or financial slowdown could have a major impact on Coca Cola UK business and profits.
Rising costs could be a major downfall for Coca Cola UK as it would eat into profit.
Substitute products available on the market present a major threat to Coca Cola UK.
Health Issues like (Obesity, Diabetic)

Marketing segmentation, targeting and positioning

Market segmentation is the categorization of a market into various groups of customers with specifically same wants and product/service necessities. In another word, it is the categorization of a huge market into recognizable and specific groups or clusters, in which they all have the same wants and behavior and action as per the marketing initiatives.

The diagram above shows how the STP process acts. The market information lets STP process to grow and to analyse the real situation to go further, after which a marketing decision can be undertaken. In Segmentation the process market information leads to identifying similar groups of customers when if research is done then the group can be divided into different groups like male/female, aged group, regional group etc.

Market STP in Nepal

The Nepalese market for Coca Cola, in general, practice group marketing advance with product variations in the past. The socio-economic transformations and growth in Nepalese economy and political system have made Coca cola marketers conscious of market segmentation. The marketing strategies of Coca Cola have reinforced this awareness.

Market Segmentation:

The points below clarify the way of market segmentation of Coca Cola in Nepal.

Non- organized: – Market segmentation in Nepal, in general, is not backed up with organised research. Previous practice, premonition of organization and competitor’s strategy has manipulated segmentation.
Variables for Segmentation: The variables mainly used for consumer market segmentation are:
Geographic
Demographic
Psychographic
Behavioural
Be short of Information: Nepalese Coca Cola marketer lacks broad information about consumer characteristics. They have a tendency to look upon marketing research as a “improvident cost”. This has guarded the helpful assessment of market segments in terms of their magnetism and correctness. Risks are not correctly measured.
Government procedures: – Government policies in Nepal are not very sympathetic in marketing. They do not look upon any business as contributors for improvement. Boundaries of movement of goods and controls have downcast market segmentation.
Be short of moral concern: – Ecological and wellbeing concerns are, in general, unnoticed for market segmentation in Nepal.

The above points clearly point out that the notion of market segmentation is at first stage in Nepal. However, the importance of market segmentation is likely to enhance in the years to come.

Targeting:

Nepal

As per the segmentation of Coke in Nepal, the targeting has been done as per the variables as below,

Geographic: – Who lives in plain areas, where the temperature is likely to be high in all season. In central region where half of the year remains hot in temperature.
Demographic: – The people aged between 16 to 40 years, who have average level of income, who work hard, especially males and having less of family member.
Psychographic: – People who are literate and can understand the brand name of Coke are targeted.
Behavioural: – As per this segmentation the targeting goes on to the group of people who involve in the cultural and ritual who are likely to use the product in their ceremonial. In this segmentation, people who have habits drinking chilled soft drinks are targeted.

Positioning;

Market positioning is done in accordance to the brand recognition in the market. It’s the tendency of consumer of what and how they see the company, which can some under any high end, middle end or low end of position. While positioning has to be done in order to keep the company to a distinguish position to keep the corporate image. There are some variables that have to be considered in order to position in market. The variables are pricing, quality, service, distribution and packaging. The diagram below shows the market position of Coca Cola in Nepal, comparatively to its closest competitor PepsiCo Nepal.

Figure 8 Market Positioning in Nepal (Source: – PPT)

As per the diagram and the data available from the sources Coca Cola stands in the left hand side and in the middle, which means it has a good quality having reasonable price where as its closest competitor Pepsi Cola stays as in the middle of the crossed line, which means it has same price but having bit down in quality. This is assumption taken by the economic analyst of Nepal beverages market.

Market STP in UK

The United Kingdom has approximately, around per capita income of $ 36,298 in 2010, where people are in large numbers of buyers and sellers. In general, it can be said as the living standard of people is quite high in term of economic scale. Market segmentation is easily done in respect of geographic, demographic, behavioural and psychographic variables.

Market segmentation

By dividing a category into segments, businesses can identify different groups of consumer wants. It is then possible to design products to meet those requirements. Each segment within the overall range of Coca-Cola meets specific consumer wants. Coca-Cola GB carries out extensive market research to identify consumer wants in every segment of category in which it operates. For example, market research analysis of the demographics of consumers in Great Britain revealed a growth in smaller households. The appropriate product response was to produce 1.25 liters share-size bottles. A study of occasions when people drink sports drinks showed the importance of making it available in leisure centres. Other research showed that the famous original Coca-Cola glass bottle is best targeted at restaurants and special party occasions. Market research into where specific products are consumed influences the design of pack types e.g. a 2 litre bottle for family consumption at home and a smaller 500ml bottle for consumption ‘on the move’. (The Time 100, 2011)

Variables:

Geographical: – Geographical wise Coca cola has segmented almost all region, city, town centres, and counties.
Demographic: – Especially, in this variable, mostly the consumer divided as per their age, gender, race, religion, family size, nationality, income etc.
Psychographic: – This segmentation includes the factors like activities, interests, perception, values, attitude etc.
Behavioural: – This factor relates with the behaviour of consumer. So, the segmentation is done as per quality, economy, service, looks, Heavy user, and moderate user, light user, Regular, potential, first time user, irregular, occasional, Hard core loyal, split loyal, shifting, switches, readiness to buy, Holidays and occasion stimulate customer to purchase, Attitude toward offering.

Targeting

The market targets in the segmentation are

The entire region, town centres, where people are in crowd.
Male female both aged between 18 to 40 years.
People who are mostly involve in sports.
Heavy user, regular, ready to buy and consumes in occasion are targeted.

The figure above has been extracted from a researching website, which reveals the difference between two products. Here, the figure shows the difference attitudes relating to Coke and Pepsi and overall high rating goes to Coke, Which means in market consumers have keep Coke in top level more than its closest competitor Pepsi.

Figure 10 Coke vs. Pepsi War, Source : – (Free Web Space, 2011)

This figure also has been taken from a forum, which has a voting survey. The concluding report shows the Coca Cola brand has a good position in the market. So, the market positioning of Coca Cola in UK stands in a top position.

Marketing strategy

Philip Kotler discussed five issues of marketing strategy in his 9th edition of Marketing Management. They are as follows

Differentiating and Positioning the Market Offering
Developing New Products
Managing Life cycle Strategies
Designing marketing Strategies for Market Leaders, Challengers, Followers, and Niches
Designing and Managing Global Marketing Strategies

Marketing strategies Nepal

The marketing strategy for Coke is phrased “Refresh the market place” which includes : A robust consumer response system to address any consumer concerns, Ideas, suggestions – either on product and its quality or on stock supply – maintenance of equipment etc. All consumer concerns are dealt with in a fair timely and friendly manner, so as to satisfy them and resolve their concerns. Marketing and advertising communications are focused on (point-of-sale), radio, TV, hoardings, truck backs. Emphasis is also placed on consumer price to enforce compliance. Marketing communications and advertising are customised to suit to local sentiments – social, religious, ethnic. Innovative package and pack sizes are offered to give better value to consumers and ease of storage to retailers. Price and packs are introduced in a format that is affordable to all segments of society.

Marketing strategies UK

The CCGB is highly aware of health, environment and community and have a theme of responsible marketing. The responsible marketing means in the sense of how and to whom it targets it market. As taking into account its assumption following are the point wise theories of it.

Offering large choice of beverages
Ensuring marketing values remain focused around positivity and optimism.
Responsibly acting and highlighting traditional and non-traditional Medias.
Continuing being a part of broad coalition to promote healthy diet and physical activity.
Transparency in all activities that concern about the company.
Socially active in sponsoring under-privileged people and sports related issues.
Not targeting or inspiring children to consume the drinks that may leave impact in them through television.
Fulfilled local and community laws that prevent children to be impacted through television who are less than 16 years, following the restriction that has been set by OFCOM’s limiting advertisement.
Working with independent consultant to monitor the activity of all advertisements.
Don’t have any connection with early schools in terms of advertisement.
Always aware of advertising where there is large number of under aged children becomes the audiences.
Publicity and Offering low calorie or sugar in cinemas, leisure parks and any other dine in restaurants, which encourage consumers to have healthy drinking.
Not at any cost the company is ready to offer or accept offer where the audience becomes children under 16.
Continuing to listen to the parents’ concerns about impact of online marketing to children who are under 12.
Online rewards as promotion is execute with age verification.
Encouraging parents to use the parental controlling software to control their children.
Using own industry leading template to assess suitability of digital campaigns and web sites.
Advertising

Advertising medias in the United Kingdom

Active Marketing Media (Television,)
Semi Active Marketing medias (Offline)
Online Marketing
Sports and Physical activity Marketing

Targeting community to take part in sports related events and activities for healthy and fit life, e. g sponsoring any particular games, Olympics, world cup, European cup and community matches etc. Even in secondary school, the company is highly active in providing the resources to motivate the scholars to participate in physical and sports related activities.

Advertising medias in Nepal

As Nepal being a developing country, it can use the minimal benefit of technology. It uses radio, newspaper, television, billboards, shop’s shutter and pamphlets. The most famous advertising offline media in Nepal is painting in the doors, walls, shutters. As below is the image of it.

There is a trend in people of whom property is been targeted to have such advertising. The marketer/advertiser has to paint whole house instead of permitting to paint the advertising. Even if a marketer wants to put a billboard in anyone’s house, the house owner demands to top-up one storey in the building for him/her. It’s totally diverse kind of trend that Nepalese marketers are facing right now which the marketing communication is processing.

Product life cycle

The graph above shows the life cycle of product having different stages. These stages explain the various status of product marketed or sold. It is not just limited to the volume sold rather also includes the brand image, corporate image of the product. Below the graph there are service offered in the different stages of product life cycle.

While introducing a product there has to be a good product management, designing, development plans, testing and deployment.
Secondly when it comes to the growth level of a product life cycle, there the focus has to be initiated towards customization, enhancement, versioning, implementation and deployment and testing to penetrate the market of the product. In this stage, every company has to suffer a lot, because the success depends upon the labour and effort done in this stage. Like as going through the Nepalese market of Coca cola, we can find it is still in growth level because it has not reached in every household because of poor infrastructure and lack of marketing integration.
Thirdly, the maturity level, when the product gets sustained to up front the market. The market penetration has been fully achieved. Like in UK the data shows that Coca Cola market is in maturity stage as it has now focusing on research and development, product differentiation and still testing is going on for further expansion and diversification.
Lastly, when the product gets fully mature in terms of product life cycle it tends do decline because of lack of research and single taste. So, the appropriate measure to rectify is to re-engineering, maintaining and supporting technically.

Online strategies

Online marketing strategies

Coca Cola in UK is the top soft fizzy drink, which holds almost about the half of the market share of its kind. Though the trend can be seen like, there are some certain strategies, which is still avoiding it to reach its overall objectives like grow in sales, market share, brand value, corporate value. The world, as it is changing towards the technological tendency, likewise the business has to bend. There are lots of opportunities for the company to follow online strategies to upfront the market. Creating a strong Google ad-words, which is called search engine enhancement, can be a good example. Online advertising can promote and leave impact of the brand in the social community sites like Facebook, Twitter, and Skype etc.

Figure 14 Online Marketing Strategy

In Nepal, People mostly uses chatting sites like yahoo and MSN where BNL can promote Coke.

Customer relationship management: IDIC[1] model approach

Identify, Differentiate, Interact, Customize (marketing model)

The IDIC model of marketing suggests that business should take initiatives in order to build closer one-to-one relationships with customers, which are

Identify
Differentiate
Interact
Customize.

CRM[2]is engrossed upon the improvement of a customer-centered business behavior. This behavior is devoted to sustain customers by addressing and delivering brand image and value in compare to the competitors.

Salesforce, an online CRM portal does a good practice of CRM as an IDIC model.

The Gartner competency model

The vision of CRM: – Leadership, Social worth, Value Preposition
CRM strategy: – Objectives, Segments, Effective Interaction.
Customer Processes: -Customer life cycle, knowledge management.
Valued Customer Experience
Organizational collaboration
CRM information: – Data Analysis, One view across channel.
CRM Technology: – Application, Architecture, Infrastructure.
CRM Metrics: -Cost to serve, satisfaction, loyalty, social cost.

The figure above shows the CRM value chain, which implies the keeping of customers with highly interaction and align it with profitability.

The coca Cola company in Nepal has not yet applying such kind of strategy as customer relationship management whereas the Company in UK uses different strategies for customer relationship management.

The way to manage customer relationship is to use the portals such as sales-force to keep up with the latest changing behaviors of the customers. It assists to update the knowledge and field of existing and prospective customers to the company.

Conclusion

This report intends to find the difference in advertising media between two countries. The countries in this report have been chosen as Nepal and the United Kingdom. The report, so far, concerns and points out the totally diverse process of marketing communication. Moreover the factors like country’s economic status, matters in consuming the Coke in average in both of the countries. While going through the various marketing models of communication, response models, marketing mix analysis, STP process, product life cycle, advertising media, trends, SWOT analysis, IDIC model of customer relationship management. The reports conclude that these two countries have different approach in meeting its consumer and prospective consumer. Moreover, Nepalese market tends to be creating the market whereas UK market focuses on attracting and keeping the current customers. So far the PLC implies about these two countries Nepalese market are highly proactive within growth as it is in introduction phase of the product, whereas UK market is in maturity stage and developing towards the research and development. Advertising media used in Nepal if getting out-dated as UK’s advertising media are technologically advance. Nepalese market STP process are totally based upon its classical theory because the company doesn’t get the government and legal support, whereas UK’s STP is based upon recent research and marketing approach. The online strategies are passive in Nepal as its developing and the trend has not yet been developed. UK’s online strategies are implementing day by day to life up the brand image. Overall, the report exhales that Nepalese Coke marketing is predominated by the perception of the people of the country having the GDP (per capita income) is about app. $410 and on the other hand the UK consumer have the perception of consuming Coke as a top brand.

Recommendation

Some of the important recommendations are as follows:

There should be and correct feedback from the distributers on the actions of retailers, which will assist to develop their competency and reliability.
As already discussed about online absence of marketing strategies in Nepal, it has to overhaul the strategies that lead towards up fronting of market.
There should be extra attractive and fascinating and active participation towards social activities to strengthen the brand. As a part of public relations
Coke should step up serious initiatives towards health concerns of consumers in Nepal.
Online advertising in Nepal has to be started to penetrate in among young consumer.
Coke in UK has to be active in all the online promotional activities to attract the consumers.
CCGB and CCE should start more aggressive marketing of its Coke as they have very good growth and future prospects while there is not much growth in the carbonated beverages sector.
BNL should start a campaign to persuading government to provide it the support to penetrate the prospective market.

References

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