Coco Cola Malaysia Introduction
Coco Cola Malaysia Introduction
Coco Cola is a global brand and business which has operations in more than 200
countries and serving over 450 different variations of beverages including diet and light
beverages, water, fruit drinks and juice drinks, teas, coffees, and power and sports drinks.To
remain market leaders in the soft drink sector, it became crucial for Coco Cola to create and enter
all ranges of soft drinks to serve the largest amount of customers possible.The company is one of
the main bottlers of non alcoholic drink in Europe and operate in three different group of
countries which are grouped based on established ;developing ;and emerging countries.Coca
Cola mission statement is to “We exist to create value for our share owners on a long-term basis
by building a business that enhances The Coca-Cola Company’s trademarks”. The objectives of
the company include increasing shareholder value over a long period,maintaining a health long
term cash flow and ensuring the most comprehensive and efficient production, distribution, and
marketing systems possible.Coca-Cola goes the additional mile to make sure that it has a spirited
edge on its rivals (Steiner, 2002).Coca Cola has built a familiar logo and product name and has
been able to maximize all the elements in the promotion mix. According to (Hare, & O’Neill,
2000, P: 24-53) “Having recognized a most important product that fascinates customers all over
the globe, Coca-Cola is extensively looked upon as one of the most deafening associations
having attained huge product achievement” This has allowed Coco Cola to develop a distinct
product character and communicates values of that character effectively to the consumers
allowing to enjoy a competitive advantage of their competitors.Over the past few years,the
company has focused on growth.They have achieved that by focusing on innovations which has
seen the company offer new flavors and products; refining old products;entering new markets
etc. The company has a large product line with a medium line length and line depth
Brands tend to have a strong influence on customer attraction,a basis of differentiation
from competitors and it affects how the company is run A strong brand presence leads to better
brand loyalty and customer satisfaction.The Coco Cola company has maintained its brand image
by increasing brand awareness,managing the brand equity ,creating a clear and consistent brand
image,and constantly in search and introduces new brands into the market.The coca cola
company uses a strategy called “glocal.” According to Gay et.al. (2007,pp.339) define glocal as
globalization strategy of adapting global brands to local conditions.This strategy allows the
company to maintain a strong global brand while still showing consciousness to local marketing
needs enforced by their tagliine -think globally,act locally-.The brand uses local elements in their
marketing allwoing them to immerse themselves and produce a product that is consistent with
the country culture The company takes note of customer prefences and by using their asstes and
expertise to create a product that is suited to the consuemers.This is done by what is called the
The Coca-Cola System, a franchise partnership which allows it to scale new products, new
communications, new equipment faster.
Malaysia is a multicultural society which is more liberal in its rules so it can maintain
social and cultural harmony between the various ethnic groups: Malays, Chinese and Indian
(Waller, S.D., Fam, K.S.& Erdogan, B.Z., 2005).Coca-Cola brand has been established in
Malaysia since 1936 with it first corporate headquarters being set ip in in1970.Malaysia has a
Musilim proportion of around 60% which is arouind 16 million consumers.It is important to
undestand this segment as the purchase behaviour of muslim consumers will be different than
Non-Muslim consumers.These consumers are beginning to question and avoid products with no
Halal certification, especially foreign products (Aliman and Othman, 2007) and increasingly
sensitive to those issues (Sadek, 2001). They entered the market be setting up its bottling and
distribution agreement with F&N Coca- Cola (M) Sdn Bhd which a well known manufacturer
and distributors of local soft drinks which holds 64% share of the Malaysia soft drinks market
(Fraser & Neave Holdings Bhd, 2010). They ceased the partnership with F&N in 20011 to set up
their own factory located in Nilai’s Bandar Enstek Techpark which will produce and distribute
the brand products.The company has invested more than RM750 million in Malaysia since 2010
which has led to over 1000 job creationCoco Cola also implements a quality management
program named Coca-Cola Operating Requirements (KORE) which maints strict product
manufacturing and distribution policies, requirements and specifications.
The company has taken up strategic branding activities for the purpose of growing their
current market share and increasing sales volume of their products.These include various brand
related activities including TV, radio, endorsements, sponsorships, special events exposure and
contests.Some of the activites and events done By Coco Cola Malaysia include partnership with
the Olympic Council in Malaysia, to working with Raleigh International and Muslim Aid
Malaysia;SURI entrepreneurship programme which aims to empower woman in East Malaysia.;
celebrated Malaysia’s 50 years of nationhood with the introduction of limited edition cans;
launching Coca-Cola Zero Sugar to encourage more people to try and choose the zero sugar
option; creating a consumer contest which offered 11 weekly prizes of Proton Savvy and Proton
Neo cars, launched Coca-Cola Entrepreneur Community (Coca-Cola KU) in collaboration with
Domestic Trade, Cooperatives and Consumerism Ministry) ; introducing the One Brand design
on all their products etc.The company efforts has also won them several awards including the
Gold Award in Malaysian Media Awards 2007;Coca-Cola Bola Kampung advertisement short-
listed in the final line-up for the Cannes Media Lion Award at the 54th International Advertising
Festival; Gold AwardReader’s Digest Trusted Brands Annual Awards 2007(ninth year in a row)
among other awards.Coca-Cola has been consistent and place a great deal on emphasis in
providing quality, refreshing, and satisfying products to consumers regardless of purchase
location.
References
Banutu-Gomez, M. B. (2012). Coca-Cola: International business strategy for globalization. The Business
& Management Review, 3(1), 155.
(2015, March 31). Coca cola Brand Management. Retrieved July 28, 2019, from
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Essays, UK. (November 2018). Coca Cola Company Management Marketing. Retrieved from
https://www.ukessays.com/essays/marketing/coca-cola-company-management-marketing-
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Fleming, M. (2019, January 16). Why Coca-Cola is no longer tied to its old brand rules.
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