No Marshmallows, Just Term Papers
Module 1 Case
Dr. David Marshall Hunt
The purpose of this paper is select three international marketing issues and apply them to
the Coca-Cola Company. During the next few paragraphs I will discuss entry modes, Indian
market characteristics and importance, and elements of the four “Ps”, as Coke expands to India.
Let me start the next paragraph by addressing the first international marketing issue of entry
Entry modes include exporting, licensing, franchising, wholly owned subsidiary,
acquisitions, and global strategic alliances. Coca-Cola adapted the tow most risky and costly
modes, which are acquisitions and wholly owned subsidiary. These two modes put all the risks
and costs on the company because they are the sole owner of that endeavor. In trying to promote
its brand, Coca-Cola acquired the local cola named Thums Up. This company was three times
larger than Coke and by not supporting it, the company lost revenues to its rival Pepsi. The
Indian government started to put pressure on the company due to its reluctance sell part of its
holdings to local investors. Coca-Cola did not want to let go of its position as a wholly owned
subsidiary. Now that I have covered entry modes, let us move to our second issue.
The Indian market has many particular characteristics and importance. One of the
biggest and most important characteristics is its population. There are a billion plus consumers,
their middle class is rapidly growing, and the climate is hot. The size of the population makes it
a very interesting and important market. Another characteristic of this market is the population’s
like for other drinks aside from soda. In this country it was not Pepsi their rival, instead it was
water, tea, coffee, and fruit juice. One more very important characteristic is the level of income
for the local consumer. India’s average consumer is in the low end of the income latter. In...