Global vs. Local Marketing: Coca-Cola, Nike, other?

January 9th, 2009
  • i'm writing a speech on global and local marketing. the executive wants to cite brands that DEFINITELY enforce global marketing standards (e.g., I =ASSUME= that Coca-Cola Red is the exact same color used around the world ... is this so? I =ASSUME=, to pick a different brand, that the NIKE swoosh is used virtually everywhere ... is this so?" the major thrust of my question is ... i'd like to be able to ILLUSTRATE/DOCUMENT ways that the brand I choose as an illustration (my first thought is Coca-Cola, Nike was a 2nd thought) ... 1) has a GLOBAL marketing approach (e.g., the Pantone color # of Coca-Cola red, if this is so) ... other global aspects of their marketing? 2) == ALSO == makes local differences ... different formulations/tastes depending on market, different bottles, etc. i truly recognize that it's unrealistic to expect access to the inner marketing strategies of coca cola, nike, or anyone ... but i'm hoping there's enough documentation in speeches/articles/interviews so that i'll have the material i'll need to be able to cite the Global and Local illustrations of both approaches to marketing being taken by the brand i use as a reference. hoping someone has access to enough marketing materials to be able to give me some Global and Local nuggets/illustrations (i don't need great detail) to make the point clearly and simply that a global brand today uses BOTH approaches to marketing. thanks! mike


  • very, very much so! (yes, this is the kind of thing i'm looking for!) i'm very happy to hear from you, again, bobbie7. fyi, i would have answered sooner, but the google software did NOT send me an email alert that your comment was here. i only came back -- forlonly -- to look at what i THOUGHT was my site, being ignored! anyway ... yes ... so please make it "official" and take my case! since you've given me some examples of how coke is DIFFERENT in other countries (i'll probably use ONLY the core coca-cola brand names; this needs to be simple) ... can you CONFIRMt what's IN COMMON around the world?? i.e., can you find validation that Coke uses RED everywhere. maybe that specific shade of red all over the world? do they use the same swirl everywhere? a friend first told me the bottle was the same everywhere, then he learned that's not so. the example will be fine if i can just say the red is the same everywhere, and HOPEFULLY some design element. (the typeface must vary, depending on chinese, arabic, etc. you may not be able to truly confirm this.) whatever you can do to further document elements of global COMMONALITY would great. we're trying to efficiently show a global philosophy and essence, but some local customization. you've already put me on the right track. whatever else you can add, gratefully accepted, but i can already tell you, i'll be happy with the result, and glad that it's you again! best, mike


  • Thank you very much for the five star rating and generous tip! --Bobbie7


  • another terrific job by this thorough and conscientious researcher. thanks and appreciation as always for this kind of work. mike


  • Dear Mike! Thank you for your clarification. I'll do some more research and post your answer as soon as possible. Sincerely, Bobbie7


  • Hello again Mike, Please take a look at my findings and let me know if this is the type of material you require. Thanks, Bobbie7 Diet Coke or Coca-Cola Light. ?Coca Cola uses Coke Lite as a brand name instead of Diet Coke in France since the term ?diet? is restricted due to medical connotations and suggests poor health. Coca Cola changed Diet Coke to Coke Light in Japan; Japanese women do not like to admit to dieting and in Japan, the idea of diet implies sickness or medicine.? http://www.geocities.com/Athens/Delphi/9158/kwuintlmktg5.html ?Other times, it is a matter of cultural context, such as the use of the word diet in the Diet Coke brand name, which has either no relevance or an undesirable connotation in several countries and so necessitated the use of Coca-Cola Light as an alternate name. The challenge was to create a compelling branding system that would be consistently recognizable in 146 world markets, whether named Diet Coke or Coca-Cola Light. Coca-Cola positioned its product as a soft drink that would help people look and feel their best rather than one solely centered around the notion of losing weight.? http://www.findarticles.com/p/articles/mi_qa4001/is_200110/ai_n8962463 Hybrid branding strategies ?A number of companies have hybrid brand structures with a combination of corporate and product brands. Coca-Cola, for example uses the Coca-Cola name on its cola brand worldwide, with product variants such as Cherry Coke, Coke Lite, Diet Coke or caffeine-free Coke, in some, but not all countries. In addition, Coca-Cola has a number of local or regional soft drink brands, such as Lilt in various fruit flavors in the U.K., TabXtra, a sugar-free cola drink in Scandinavia, and Cappy, a fruit drink in Eastern Europe and Turkey (Echikson and Foust, 2000).? DYNAMICS OF INTERNATIONAL BRAND ARCHITECTURE: OVERVIEW AND DIRECTIONS FOR FUTURE RESEARCH Susan P. Douglas and C. Samuel Craig Stern School of Business New York University http://pages.stern.nyu.edu/~sdouglas/rpubs/Dynamics.doc COMPETING IN THE NEXT MILLENIUM: CHALLENGES FACING INTERNATIONAL MARKETERS http://pages.stern.nyu.edu/~sdouglas/rpubs/compet12.html ?Coca-Cola's international thrust includes promoting the flagship brand Coke across markets and also developing local brands. It does the latter either by acquisition (Thumsup in India) or by creating a local brand (Cappy, a fruit drink for the markets of East Europe and Turkey).? The Manage Mentor http://www.themanagementor.com/kuniverse/kmailers_universe/mktg_kmailers/Blueprint2.htm ?Consider Coca-Cola, with its syrup as its enabling technology and a worldwide bottling network. To sustain its independent companies, Coca-Cola sells over 300 separate brands of products in addition to Coke. Why? They compete in local markets that require different product portfolios around the flagship brand. Keeping a watchful eye on how your export product fits in with new target markets as well as how it will work to advance corporate strategies and goals will keep your efforts on track ? Federation of International Trade Associations http://www.fita.org/ioma/branding.html Spain and the two liter bottle ?Coca-Cola introduced the two liter bottle in Spain without realizing that Spanish refrigerators are smaller than in other countries. The outcome was that the bottles did not fit in the refrigerators, and Coca-Cola had to design another bottle. Sales were lost over the period when the bottle was redesigned. Coca-Cola simply cannot be promoted the same way on a global basis since it is not perceived the same way by consumers across the globe: Spanish Coke enthusiasts see Coke as an excellent mixer; Italians replace wine with Coke as a dinner drink, the Chinese view Coke as a refined luxury drink for only the most fortunate.? http://www.geocities.com/Athens/Delphi/9158/paper49.html Localization ?In the past, brands were often global through a central strategy or they were very decentralized. The former was more efficient but insensitive to local conditions, the latter far more sensitive but less able to take advantage of economies of scale. In the 1990s, we can observe a greater degree of localization whereby a logo design conforms to a central strategy but one that can be adapted locally. This tends to be more efficient and responds to local market opportunities and needs. Brand consumption tends to be local. This strategy is particularly evident for Coca-Cola, MTV and McDonald's. In these cases, the principal offer remains the same but is more tailored to local tastes. McDonald's, for example, may offer different menu items, Coca-Cola's advertising will be more appropriate to the market or it will offer different ranges of soft drinks according to country. For example, Coca-Cola recently launched Smart, the first carbonated soft drink from an international company specifically designed for the Chinese market.? Best Practices for International Brands http://www.logobee.com/article7.htm Coca-Cola in Saudi Arabia Coca-Cola has reacted to changing demand across the globe through branding campaigns and product attributes appealing to unique local market tastes. See Exhibit #4 Coca-Cola Global Market Adaptations: at the following link: http://www.saudi-american-forum.org/Newsletters2004/SAF_Essay_33.htm International Marketing ?A classic example of a marketing flop was Coke's translation of their product in China. To the Chinese, "Coca Cola" sounded like "bite the wax tadpole". Later, a better translation was used meaning "happiness in the mouth" which was very successful with the Chinese. And how about the vacuum ad reading: "Nothing sucks like an Electrolux"? ?The above examples are obvious blunders (in hindsight)- but companies lose precious time, money, and reputation because of global differences in marketing approach. There are great differences in the way products are displayed, the way printed materials and labels are used to explain and sell a product, the way consumers react to information, etc. Companies cannot simply apply local marketing approaches to international customers because the result will be a flop. We offer assistance in the many aspects of the due diligence process required for entering new markets.? Across Cultures, Inc http://www.acrosscultures.net/programs.htm Coca-Cola's Marketing Challenges in Brazil: The Tuba nas War The Return of Returnable Bottles ?For nearly a decade, competition from inexpensive brands of sodas, tuba nas, deeply affected not only Coca-Cola?s sales in Brazil, but also its profitability. Coca-Cola tried a number of strategies to stop tuba nas? market growth in Brazil. Although some of the attempted strategies in the past produced good results, none really curtailed market share loss and profitability erosion. ?The new Coca-Cola weapon to confront tuba nas consisted of reintroducing Coca-Cola in returnable glass bottles, which had been discontinued about a decade earlier in favor of the more convenient disposable plastic bottles and aluminum cans.? Thunderbird: The Garvin School of International Management http://www.thunderbird.edu/pdf/about_us/case_series/a12040025.pdf COCA-COLA ?Coca-Cola enjoys a status achieved by no other products in commercial history: it truly is a global cultural icon. Over its 107-year history, Coca-Cola has become a part of the fabric of daily life for hundreds of millions of people in more than 195 countries that Coke calls home. Enjoyed more than 685 million times a day around the world, Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment. Coca-Cola is the most widely recognized and best-loved brand in the world, according to various research studies. What's more, only one expression in any language--"OK"-is more widely understood than "Coca-Cola." NY American Marketing Association http://www.nyama.org/mhf/mhf93.htm Coca-Cola brand visually ?It has a very clear sense of color. Quite simply, wherever there?s Coke, there?s red and white. ?Coca-Cola takes its colors extremely seriously. Santa Claus traditionally wore green until Coca-Cola began to promote him heavily in the 1950s. Now in every shopping mall across the western world, Santa wears the colors of Coke. The consistent use of the colors, the dynamic ribbon, the typography, and the logo have established a very clear and unambiguous image which has survived for decades and is memorable to anyone who has been exposed to the brand. It?s a brand that will, without a moment?s hesitation, earn full marks for its visuals.? Brand Sense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound By Martin Lindstrom http://www.wnyc.org/books/44391 COCA-COLA CONTOUR BOTTLE The bottle for Coca-Cola has become one of the most recognized trademarks on earth. http://www.pww.on.ca/lead.htm ?As I stated earlier, Branding is important. If I asked you, what company has a "Red and White" color scheme and a fancy, script presentation of its name across these colors, would you say "Coca-Cola?" http://www.dancaster.com/newleaves05.htm ?Messages also are communicated by consistent use of a company?s logo?meaning consistency in color, logo placement, and font, if applicable. Spencerian Script in bright red equals Coca-Cola. Think swoosh, and you think Nike. The brand message of these companies was created by consistent use of the logo and an overall consistent graphical look of their materials.? http://www.smps.org/marketer/marketerarch/1004.pdf Customization versus Standardization ?Even brands like Coca-Cola and McDonald?s that once crossed borders without adapting their branding today increasingly customize certain aspects of their marketing communication. Coke, for example, decided to use Coke Light in Europe with a different descriptor from that of Diet Coke that is used in the U.S. In India, the brand focuses on looking less like an all-American brand and places more emphasis on affordability and corporate responsibility." http://www.brandchannel.com/papers_review.asp?sp_id=186


  • Lippincott Mercer: Brand Management for The Next Millennium ?While English will still be the language of business and marketing, there will be a vast number of consumers of mass market products who don't read or comprehend English?or French, Cantonese, or Hindi, for that matter. These consumers will need a familiar graphic device to make the connection to a company, product, or service. The list of proven global brands?Coca-Cola, Disney, Shell, McDonalds, Mitsubishi?have at least one thing in common: a strong iconographic element, where any series of letters or characters can be inserted and the brand will still be recognized.? http://www.lippincottmercer.com/publications/a_bell01.shtml


  • Hi Mike! Coca-Cola?s dynamic ribbon is IN COMMON around the world. Below you will find some online references: ?The wave shape (known as the "dynamic ribbon device") present on all Coca-Cola cans throughout the world derives from the contour of the original Coca-Cola bottles.? Wikipedia http://en.wikipedia.org/wiki/Coca-Cola --------------------------------------------------------------------------- ?Coca-Cola markets an international T-shirt showing the various spellings of its name. Note that the trademark ribbon, part of Coke?s logo, is always present.? See an image on page 15 http://www.sagepub.com/Jandt%20Final%20Pages-%20Chapter%2012_5246.pdf --------------------------------------------------------------------------- The Dynamic Ribbon device is a registered trade mark of The Coca-Cola Company. http://www.cokepubandbar.co.uk/ --------------------------------------------------------------------------- ?Coca-Cola Co will debut new graphics for brand Coke globally;? ?New look will bring back to flagship brand the traditional Coke design element known as, "dynamic ribbon." ?Coke chief marketing officer Steve Jones says, "growth of the brand depends on contemporizing the brand, so it continues its strong relationship with consumers." Notes new look will employ "slightly cleaner" Spencerian script for logo and "contemporized dynamic ribbon." Adds "Coke red" will have "greater depth and texture." Plus, small water droplets or bubbles will be subtly arranged to "suggest contour bottle" shape. New graphics will not utilize word, "Enjoy" or other words. Jones says company "may" more broadly use dynamic ribbon as unifying element for trademark Coke products.? Beverage Digest: August 2002 http://www.beverage-digest.com/editorial/020816.php --------------------------------------------------------------------------- Emotional Shorthand: Capturing the Spirit of the Brand in a Single Iconic Character ?In the last century very few identities were truly emotionally driven, in my opinion. Powerful symbols with significance were the Nike swoosh, the Apple logo, the Ralph Lauren polo symbol, and the IBM logo, as defined originally by Paul Rand, and the Coca-Cola dynamic ribbon, which has been mistreated at times and yet remains a powerful symbol?the first ?swoosh? created as a way to communicate visually in a global world.? Source: Chapter 6: Evolve From Identity to Personality (page 13) Aiga Design Forum http://designforum.aiga.org/resources/file/5/8/2/CitizenBrand_chp6.pdf --------------------------------------------------------------------------- PMS 485 Red This is a bright red like you see on a Coca Cola can Brenton Custom Manufacturing http://www.brentoncustom.com/pms-color-chart.htm --------------------------------------------------------------------------- ?This ownership is generally construed as some highly specific combination of shape, colour and placement such as the typeface, angle and colour of the Coca Cola brand. The right to so brand a product is fiercely defended and anyone daring to use such a combination with only minor changes is asking for trademark trouble. ? http://keynet.blogs.com/networks/2004/01/branding_as_the.html --------------------------------------------------------------------------- ?Green may be more or less green on any of a dozen different displays, but Shrek was a very specific shade of green, and his creators want to see that green. Likewise, Coca-Cola red may be the world's most famous logo color, so if it isn't right, everybody knows.? http://videosystems.primediabusiness.com/ar/video_rgb/ --------------------------------------------------------------------------- Page 14 ?Beginning in 1992, Coke began its first global marketing campaign?six commercials broadcast at the same time all over the world. So it?s not all that surprising that Coca-Cola wanted Chinese characters that ?sounded like? its name in English. That?s what it was selling.? Page 13 ?A global brand carries the same brand name or logo worldwide. Its values and positioning are identical in all countries, and it has brand loyalty in all countries in which it is marketed. Marlboro is an example. It is positioned worldwide as an urban premium brand appealing to the desire for freedom and open physical space symbolized by the ?Marlboro man? and ?Marlboro Country.? ?Global brands may be modified to meet local consumer needs and competitive requirements. For example, both Coca-Cola and Pepsi-Cola increase the sweetness in the Middle East where consumers prefer a sweeter drink.? http://www.sagepub.com/Jandt%20Final%20Pages-%20Chapter%2012_5246.pdf --------------------------------------------------------------------------- Below you will find the previous information that I posted: Diet Coke or Coca-Cola Light. ?Coca Cola uses Coke Lite as a brand name instead of Diet Coke in France since the term ?diet? is restricted due to medical connotations and suggests poor health. Coca Cola changed Diet Coke to Coke Light in Japan; Japanese women do not like to admit to dieting and in Japan, the idea of diet implies sickness or medicine.? http://www.geocities.com/Athens/Delphi/9158/kwuintlmktg5.html ?Other times, it is a matter of cultural context, such as the use of the word diet in the Diet Coke brand name, which has either no relevance or an undesirable connotation in several countries and so necessitated the use of Coca-Cola Light as an alternate name. The challenge was to create a compelling branding system that would be consistently recognizable in 146 world markets, whether named Diet Coke or Coca-Cola Light. Coca-Cola positioned its product as a soft drink that would help people look and feel their best rather than one solely centered around the notion of losing weight.? http://www.findarticles.com/p/articles/mi_qa4001/is_200110/ai_n8962463 Hybrid branding strategies ?A number of companies have hybrid brand structures with a combination of corporate and product brands. Coca-Cola, for example uses the Coca-Cola name on its cola brand worldwide, with product variants such as Cherry Coke, Coke Lite, Diet Coke or caffeine-free Coke, in some, but not all countries. In addition, Coca-Cola has a number of local or regional soft drink brands, such as Lilt in various fruit flavors in the U.K., TabXtra, a sugar-free cola drink in Scandinavia, and Cappy, a fruit drink in Eastern Europe and Turkey (Echikson and Foust, 2000).? DYNAMICS OF INTERNATIONAL BRAND ARCHITECTURE: OVERVIEW AND DIRECTIONS FOR FUTURE RESEARCH Susan P. Douglas and C. Samuel Craig Stern School of Business New York University http://pages.stern.nyu.edu/~sdouglas/rpubs/Dynamics.doc COMPETING IN THE NEXT MILLENIUM: CHALLENGES FACING INTERNATIONAL MARKETERS http://pages.stern.nyu.edu/~sdouglas/rpubs/compet12.html ?Coca-Cola's international thrust includes promoting the flagship brand Coke across markets and also developing local brands. It does the latter either by acquisition (Thumsup in India) or by creating a local brand (Cappy, a fruit drink for the markets of East Europe and Turkey).? The Manage Mentor http://www.themanagementor.com/kuniverse/kmailers_universe/mktg_kmailers/Blueprint2.htm ?Consider Coca-Cola, with its syrup as its enabling technology and a worldwide bottling network. To sustain its independent companies, Coca-Cola sells over 300 separate brands of products in addition to Coke. Why? They compete in local markets that require different product portfolios around the flagship brand. Keeping a watchful eye on how your export product fits in with new target markets as well as how it will work to advance corporate strategies and goals will keep your efforts on track ? Federation of International Trade Associations http://www.fita.org/ioma/branding.html Spain and the two liter bottle ?Coca-Cola introduced the two liter bottle in Spain without realizing that Spanish refrigerators are smaller than in other countries. The outcome was that the bottles did not fit in the refrigerators, and Coca-Cola had to design another bottle. Sales were lost over the period when the bottle was redesigned. Coca-Cola simply cannot be promoted the same way on a global basis since it is not perceived the same way by consumers across the globe: Spanish Coke enthusiasts see Coke as an excellent mixer; Italians replace wine with Coke as a dinner drink, the Chinese view Coke as a refined luxury drink for only the most fortunate.? http://www.geocities.com/Athens/Delphi/9158/paper49.html Localization ?In the past, brands were often global through a central strategy or they were very decentralized. The former was more efficient but insensitive to local conditions, the latter far more sensitive but less able to take advantage of economies of scale. In the 1990s, we can observe a greater degree of localization whereby a logo design conforms to a central strategy but one that can be adapted locally. This tends to be more efficient and responds to local market opportunities and needs. Brand consumption tends to be local. This strategy is particularly evident for Coca-Cola, MTV and McDonald's. In these cases, the principal offer remains the same but is more tailored to local tastes. McDonald's, for example, may offer different menu items, Coca-Cola's advertising will be more appropriate to the market or it will offer different ranges of soft drinks according to country. For example, Coca-Cola recently launched Smart, the first carbonated soft drink from an international company specifically designed for the Chinese market.? Best Practices for International Brands http://www.logobee.com/article7.htm Coca-Cola in Saudi Arabia Coca-Cola has reacted to changing demand across the globe through branding campaigns and product attributes appealing to unique local market tastes. See Exhibit #4 Coca-Cola Global Market Adaptations: at the following link: http://www.saudi-american-forum.org/Newsletters2004/SAF_Essay_33.htm International Marketing ?A classic example of a marketing flop was Coke's translation of their product in China. To the Chinese, "Coca Cola" sounded like "bite the wax tadpole". Later, a better translation was used meaning "happiness in the mouth" which was very successful with the Chinese. And how about the vacuum ad reading: "Nothing sucks like an Electrolux"? ?The above examples are obvious blunders (in hindsight)- but companies lose precious time, money, and reputation because of global differences in marketing approach. There are great differences in the way products are displayed, the way printed materials and labels are used to explain and sell a product, the way consumers react to information, etc. Companies cannot simply apply local marketing approaches to international customers because the result will be a flop. We offer assistance in the many aspects of the due diligence process required for entering new markets.? Across Cultures, Inc http://www.acrosscultures.net/programs.htm Coca-Cola's Marketing Challenges in Brazil: The Tuba nas War The Return of Returnable Bottles ?For nearly a decade, competition from inexpensive brands of sodas, tuba nas, deeply affected not only Coca-Cola?s sales in Brazil, but also its profitability. Coca-Cola tried a number of strategies to stop tuba nas? market growth in Brazil. Although some of the attempted strategies in the past produced good results, none really curtailed market share loss and profitability erosion. ?The new Coca-Cola weapon to confront tuba nas consisted of reintroducing Coca-Cola in returnable glass bottles, which had been discontinued about a decade earlier in favor of the more convenient disposable plastic bottles and aluminum cans.? Thunderbird: The Garvin School of International Management http://www.thunderbird.edu/pdf/about_us/case_series/a12040025.pdf COCA-COLA ?Coca-Cola enjoys a status achieved by no other products in commercial history: it truly is a global cultural icon. Over its 107-year history, Coca-Cola has become a part of the fabric of daily life for hundreds of millions of people in more than 195 countries that Coke calls home. Enjoyed more than 685 million times a day around the world, Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment. Coca-Cola is the most widely recognized and best-loved brand in the world, according to various research studies. What's more, only one expression in any language--"OK"-is more widely understood than "Coca-Cola." NY American Marketing Association http://www.nyama.org/mhf/mhf93.htm Coca-Cola brand visually ?It has a very clear sense of color. Quite simply, wherever there?s Coke, there?s red and white. ?Coca-Cola takes its colors extremely seriously. Santa Claus traditionally wore green until Coca-Cola began to promote him heavily in the 1950s. Now in every shopping mall across the western world, Santa wears the colors of Coke. The consistent use of the colors, the dynamic ribbon, the typography, and the logo have established a very clear and unambiguous image which has survived for decades and is memorable to anyone who has been exposed to the brand. It?s a brand that will, without a moment?s hesitation, earn full marks for its visuals.? Brand Sense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound By Martin Lindstrom http://www.wnyc.org/books/44391 COCA-COLA CONTOUR BOTTLE The bottle for Coca-Cola has become one of the most recognized trademarks on earth. http://www.pww.on.ca/lead.htm ?As I stated earlier, Branding is important. If I asked you, what company has a "Red and White" color scheme and a fancy, script presentation of its name across these colors, would you say "Coca-Cola?" http://www.dancaster.com/newleaves05.htm ?Messages also are communicated by consistent use of a company?s logo?meaning consistency in color, logo placement, and font, if applicable. Spencerian Script in bright red equals Coca-Cola. Think swoosh, and you think Nike. The brand message of these companies was created by consistent use of the logo and an overall consistent graphical look of their materials.? http://www.smps.org/marketer/marketerarch/1004.pdf Customization versus Standardization ?Even brands like Coca-Cola and McDonald?s that once crossed borders without adapting their branding today increasingly customize certain aspects of their marketing communication. Coke, for example, decided to use Coke Light in Europe with a different descriptor from that of Diet Coke that is used in the U.S. In India, the brand focuses on looking less like an all-American brand and places more emphasis on affordability and corporate responsibility." http://www.brandchannel.com/papers_review.asp?sp_id=186 Mike, as always it has been a pleasure to work with you. Sincerely, Bobbie7







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