Environmental Factors Paper
June 10, 2014
Environmental Factors Paper
Invented in 1886 by Dr. John S. Pemberton, an Atlanta pharmacist, Coca-Cola went on to become the world’s #1 selling sparkling beverage. Frank Robinson, who was Dr. Pemberton’s partner and bookkeeper, named the new beverage and designed the distinctive lettering which is still in use ("Coca-Cola History", n.d.). In 1916, it was decided there was a need to develop a bottle to set Coca-Cola beverages apart from imitators, and so the unique contoured bottle was born ("Coca-Cola History", n.d.). The distinctive lettering and unique bottle combined to form a highly recognizable and ...view middle of the document...
With the Coca-Cola Company doing business in so many countries, it would be almost impossible to list all of the international practices and agreements involved. Major influences on international marketing and trade include tariffs and quotas on imported products. The Coca-Cola Company may actually be able to skirt some issues because they bottle their products in various countries as opposed to shipping them all from the United States.
* Demographics and Physical Infrastructure
* The Coca-Cola Company must consider the demographics and infrastructure of a new country or region before their marketing campaign begins. These are important considerations because the company need not only identify, but also understand their target market and region. Is the new country or market populated by older, rural farmers or urban youngsters? Since Coca-Cola products are convenience or snack items, consideration needs to be given to local’s disposable income budget. If people are starving, they would probably spend their money on food and water rather than sugary drinks. Are the roads and towns capable of accommodating large product delivery vehicles or bottling plants?
* Cultural Differences
* Cultural play a major role in marketing. The last thing the Coca-Cola Company wants to do is offend the population a foreign country. Much like understanding the demographics of a country, the company has to understand the cultural environment to understand what is normal and acceptable. If advertising in a largely Muslim country, should women be shown with or without a hijab? Coca-Cola advertisements worldwide are regularly limited to images of the trademarked logo or bottle to limit the probability of offending the population.
* Social Responsibility and Ethics versus Legal Obligations
* The Coca-Cola Company is not in the business of producing harmful or toxic chemicals, but they still have to abide by legal obligations. The Coca-Cola Company does not simply abide by the rules, they go above and beyond. The company makes information on their environmental and socially responsible efforts easily accessible.
* First, they mark their beverage products and print ads with the recycling logo to remind consumers to dispose of the containers responsibly. Second, the company is a founding partner of the Special Olympics International Partners ("All Special Olympics Partners", 2014). Last but not least, the company has initiated international programs dedicated to lower greenhouse gases, sustainable agricultural projects, community water partnerships and many more ("Coca-Cola At a Glance", 2014). Projects like these provide positive publicity and brand recognition.
* Foreign Corrupt Practices Act of 1977
* The Foreign Corrupt Practices Act (FCPA) of 1977 applies to publicly traded companies operating worldwide. Among other...