Saturday, April 28, 2012

How Coca-Cola Manages 90 Emerging Markets

During a 2011 interview with the president of Coca Cola's Eurasia and Africa group, Ahmet Bozer discussed how the company maintains their global brand strategy while individualizing itself to emerging markets. Demonstrated by deriving 80% of their sales outside of the US, Coke is one of the most experienced companies in emerging markets.

In order to "think global, act local"as their company's strategy, Bozer focuses on how Coke must be locally relevant such as having local bottlers. In addition, becoming locally relevant includes investing in the psyche of the local consumer.  In politically chaotic countries such as Egypt, Coke recognizes the country's uncertainty they are going through, but focuses on creating a bright future.

Bozer also states that countries that are going through political and social upheaval do not impact their sales.  For example, Coke has been in Pakistan for over 50 years and have not experienced any problems in running their business and is currently thriving.

As previously discussed, Coke has local bottlers in the markets they are in.  Therefore, there is a variation in degree of sophistication and process within each bottling company and the relationship they have with Coke. In order to be effective with these partnerships, Coke creates a shared vision.  This vision is displayed on a one page road map that identifies a clear long term destination, such as for 2020, that outlines a framework of strategic metrics. This map guides all business planning between each bottling company and Coke.  

Bozer says that without strong leadership, Coke would not have the success it does have in all of its markets. According to Bozer, without their effective leadership as their strongest competency, Coke would not be able to explain the environment of the market, establish a vision for the market, and succeed.

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