Literature Review
Present world is very different from past world or we can say it is a complete new version of the past. The main reason behind this drastic change is Glocalization which has opened the entire door for the business by removing the barriers which used to restrict a business to explore beyond its boundaries. It is the Globalization which has forced the business world to adopt the innovation in their technology and current operating process (Robertson, 1995). It is this Glocalization which has helped the domestic business to not only operate their operation in their area but also in worlds other countries and also the international business to operate in domestic areas. Globalization has not only helped in cross business culture but it has also promoted the cross working in which it has forced all the international organization to have a diverse working culture in which employees from different countries work together for the common objective of the organization while Glocalization has promoted the expansion of operations (Levitt, 1983). In addition Globalization has played a very significant role in the promotion of all the countries GDP while glocalization has worked upon the growth of the company on domestic and international platform. Glocalization also promotes the exchange of technologies with other countries which has benefited not only the organization but also the people who are using their services. Glocalization has also helped in transferring of knowledge from one country to other country and if a country has knowledge, the country can utilize this knowledge for the development of the people of that country (Svensson, 2001). In addition these exchanges have also invited great competition with in the organizations.
Trends in 2017 Impacting Global Marketing
This article is simply triggering towards the changing trend of the market on the international and domestic market. The entire previous concept has been changed into the new innovative trend which is totally focused on the use of all digital platforms for its work. It also focused on the new tool used for the international and domestic marketing leaving behind the old tools of marketing. Tools used in today’s growing trends are messaging apps, videos, chatbots, and adblockers. In present time the internet is one of the fastest methods of reaching to the people along with its wide reach range. Messaging apps demand in present time is increasing very fast. Most of the business is looking to embrace this trend as an opportunity. Chatbots is a setup program which interacts with the human and provides them with a solution without make them feel that they are not interacting with a program. As domestically the impatient level of the customer has dropped a lot related to the inquiry of the product. Hence, in this case, the chatbots act as one of the main sources to enhance the overall user and brand experience by interacting with the customer (Law, 2017).
As we know that in 2011, 4P`s was used as a marketing strategy for promoting products. In 2014, this marketing trend was changed due to the entry of marketing mix which used social media as a platform of communication and now in 2017 the strategy has shifted its trend towards digital platform as the main mode of communication or for the promotion of the product or service. Innovations of artificial intelligence have added the value of this digital platform by providing the support of gathering information in the form of data, calculating and develop prediction by analyzing the data and give this data a meaningful shape. Now, the marketing mix is using tools like videos as a mode of promotion (Berthon et al, 2012). According to YouTube, about 3.25 billion times of video is viewed on YouTube every month. This innovation in this area is quickly using the technology stage like Amazon and Netflix distributing addictive content in a new, exciting way. It has been seen that it is better to promote products on this digital platform instead of promoting it in the television advertisement. Even the cost of television is more as compared to this social marketing mix tool. Facebook live has become one of the key video streaming services that the international marketer is using (Dakar et al, 2012).
Two Glocalization of Companies and their Marketing Programs
The decision on whether to standardize an international corporation’s marketing mix about the world or familiarize it to local circumstances has been ongoing for further than five periods. Modest conditions, advancement in technology, and finally the current global economic disaster generated the requirement for a re-examination of this perpetual and significant topic. The main purpose of this aspect is to develop a framework which establishes the features connected to standardization or adaptation in a corporation’s marketing mix. The planned framework offers a wide-ranging understanding of the entangled relations between the exterior and interior atmospheres of the company that have an influence on the standardization/adaptation choice. It is recommended that this outline will enhance to the development of experimental investigation on this aspect which will, in chance, lead to the enhancement of worldwide business. The two zones never continuously fit simply composed. In any case, the choice on standardizing or adapting must be founded on the probable monetary revenues and risks elaborate for each substitute. The choice for international standardization will be suitable only up to the point when a constructive impact is present on the corporation’s. However, huge alterations between marketplaces do exist, even in developed nations. In order to notify these differences, variations in design, wrapping, value, or delivery of merchandises might be essential (Almodóvar, 2012). The main disadvantage of going glocalization is that the competition for the company present at local level is less as compared to international level which will force the company to invest huge amount to adopt updated technologies, strategies and touch fight with existing players. In short, complete standardization can direct the corporation to fail when it comes to up keeping of local customers’ wants, and might consequence in its estrangement from the domestic market In this case, the standardization advices fall separately – particularly when considering the strange alterations between customers, bureaucrats and countries – and adaptation develops an choice (Thompson and Chmura, 2015).
Market offers a significant to attain definite achievement only to those companies which cup tie best to the current business situation i.e.” imperious” which can be brought what are the persons needs and they are prepared to purchase at the exact time without any postponement. It is effortlessly true but this also is contingent on accessibility of worthy quality merchandises and outstanding taste and facilities which supplementary attract and add an excellent opportunity for massive sales (Sicilia and Palazón, 2008).
The circumstances are both Coca-Cola and Pepsi are exasperating to attain marketplace portion in this beverage business, which is esteemed at above $30 billion a year in both local and international level. The aspects are that each corporation is approaching up with novel products and thoughts in order to upsurge their marketplace share. The imagination and efficiency of each corporation’s promoting strategy eventually regulate the victor with admiration to trades, revenues, and client loyalty (Nair and Selover, 2012). Not these two corporations are only building novel means to trade Coca-Cola and Pepsi products, but they are also thoughtful of means to growth market segment in other beverage classifications.
Dot Plot Table
Dot plot table simply indicates the strategy which includes standards and adoption of both these companies on both local and international level. The table simply focus that both these companies follows almost thee same standards related to the ploduct policy which includes chemical functionals (TN, 2008). Also when it comes to packaging it seems that Coca cola and pepsi some how tries to matches the same packaging and aesthetics levels. But when it comes to price and distribution policies it happen to be that coca-cola is actually trying to make itself more adoptive than pepsi related to the respected countries and also it has been seen that physical presence of coca-cola is more as compared to pepsi in various countries in international level. As a result of this Coca-cola seem to be the worlds one of the famous brand in beverage business as compared to Pepsi because of its adoption strategy under which Coca-Cola reshapes it sales promotion, media selection and pricing policies according to the country in which they are doing their business (Lemley and McKenna, 2011).
Though the aim of both companies is precisely the same, both companies trust on slightly dissimilar marketing approaches. Pepsi has continuously taken the forward step in evolving novel merchandises, but Coca-Cola soon erudite their experience and underway to do the similar. Coca-Cola employed advertising managers with excellent track records. Coca-Cola also applied cross exercise of executives so it may be tougher for groups to develop within the company on both domestic and international level (Tanwar, 2013). On the other hand, Pepsi has always occupied more possibilities, acted quickly, and was continually evolving novel promotion thoughts. Both companies have also trusted on discovery novel marketplaces, particularly in imported countries. In the foreign marketplaces, Coca-Cola has been more positive than Pepsi. For sample, in Eastern Europe, Pepsi has trusted on an exchange arrangement that demonstrated to fail. However, in some countries that permit straight evaluation, Pepsi has left behind Coca-Cola. In foreign marketplaces, both companies have shadowed the promotion strategy by providing merchandises that meet buyer needs in order to improvement market position. For occurrence, in some countries, buyers required a soft drink that was sugar free, Pepsi retorted by evolving Pepsi Max (Hiatt, Sine and Tolbert, 2009). These companies in order to hold domestic marketplace position have depends on the generation of novel products and then moves for international level. In few cases the products seems to be fruitful. However, at different eras the novel products have abortive. For Coca-Cola, altering their unique formula and familiarizing it as “New Coca-Cola” was a main disappointment. The novel formula upset Coca-Cola as customers demanded Classic Coca-Colas’ reappearance. Pepsi has also has shared some failures. Some of their disappointments included: Pepsi Free, Pepsi AM Pepsi Light and Crystal Pepsi (Harris et al, 2011).
Product
Coca-Cola is having large product line which includes various types of cola drinks, energy drinks, juices and many more. Same thing is with Pepsi but in addition to it Pepsi has also included in food business. The market dominates of Coca-Cola classic in cola drinks which happen to be the most demanded soft drink on the international level. It has also adopted various flavors in its drink like lemon, cherry and vanilla (Mangold and Faulds, 2009). One of the most famous drinks of Coke is Coco-Cola zero and light. Although Pepsi is known for its innovation but still it is on second place as compared to Coca-Cola. To give competition to Coca-Cola the Pepsi has come up with diet coke to make its position strong on domestic level.
There is very strong competition between Pepsi and Coca-Cola on Cola market on Glocalization level. Both of them happen to be the market leader for these segments. It simply indicates that both these companies are powerful enough to set up the pricing for these products. As both these companies are fighting in a perfect marketplace for their products, if the Pepsi increases its price its customers will start buying Coca-Cola because both of them serve as substitutes. But still both adopt different pricing strategies (Montgomery and Chester, 2009). Coca-Cola prices its products accordingly to place, packaging and per liter while Pepsi is pricing its products according to Cross everyday value model. This valuing model is not to make clients buy Pepsi when it is only on sale but also in regular days. But there is always a fair of copying same strategy by both these companies.
Presence of Coca-Cola and Pepsi is almost every part of the world. Both these companies almost sell their products not only domestic levels but also around 200 countries of the world which includes supermarket, restaurants, and cafes and now also has included gas stations. There is not enough difference between the distribution channels of both these companies but still Coca-Cola is at its best in distribution pattern as compared to Pepsi (Uribarri, 2010). Coca-Cola has managed well in reaching the nearby side of that entire thing which happens to be the enjoying place for the customers.
The success behind the holding of Coca-Cola Company on the international market business is its promotional strategy. Promoting strategy has made Cola beverage giant in current time. Both these companies use every single platform to promote its product which includes advertisements on television, internet, stores, social Medias and through sponsorships. But the main difference between the Pepsi and Coca-Cola for promotional activities is that Coca-Cola actually tries to adopt the local environment of the country in which it has to promote its product while Pepsi uses standard format for promoting its product which has created boundaries among the country sales. But now Pepsi is also in the direction of reshaping its promotion strategy according to the local market (Grier and Kumanyika, 2008). Both these companies follow one single pattern that is they do not promote their products for the children which are below 12 years for the health reason which has created a unique image for both these companies in the eyes of people and they see these company a people health oriented company (Wan, Evers and Dresner, 2012). Social work is one of the promoting strategy used by both these companies to maintain their position in the market because it will not only help them to create customer loyalty but also helps them in creating employees loyalty because employees feel very proud about their association with these companies which are very community oriented focused.
We can say that there are peak and lean in income, net revenue for both the corporation in the current and the previous years, but still if we have to select the market front-runner on the foundation of popularity or rigidly on the monetary outcome base, it clearly indicated that COCA-COLA is leading due to its adopting policies related to the respected place where it has to promote its product as compared to Pepsi company.
Conclusion:
It is value noticing that from a corporation’s viewpoint it is strongly suggested to replicate on both approaches when decided to go on glocalization seeing the market appearances, the company’s physiognomies and the industry they function in. The industry plays a important part in the selection, as in the manufacturing industry nearly non-adaptation may be wanted, identical it is with the technological industry. As for the brewer age industry as per the foundation of this, the achievement of the company strategy is energetic to reflect the values of the international markets. Suffice to say, in order to be recognized and to prosper in the international markets, a significant amount of adaptation must be unavoidably joined with a international strategy with standardization as the key concept.
References:
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