Assessment 1: Individual Coursework (40%)
Theme: Global Marketing Environment Analysis
Purpose:
The assignment is set out to examine student critical understanding of the factors within the global environment that drives or support multinational companies global marketing expansion alongside the presenting challenges that sometimes limits multinational global marketing operations. Note: this coursework should be written in a report format.
Task:
As a Global Marketing Strategic Student, you are keen to understand the factors within the global environment that drives or support multinational companies global marketing operations. You decided to use one of the selected companies in the Table below as your case study to critically analyse factors within the global marketing environment that seem to have positively driven or supported your selected global company marketing expansion.
Specific Instructions:
Identify a Global Company as a case study:
The following multinational companies below are generally considered as a global marketing firm. Your role is to SELECT ONE of these global firms as a case study to examine the macro and micro environmental factors that have significantly contributed to its global marketing success story.
List of companies:
| Tik Tok | |
| Coca-Cola | |
| Procter-Gamble.
You can focus a specific product brand or use the parent brand label P&G |
|
| McDonalds | |
| Starbucks |
Global Marketing Environment Positive Factors:
Student should IDENTIFY AND ANALYSE TWO CRITICAL FACTORS specifically within the MACRO and MICRO ENVIRONMENTS that have contributed to the success of your selected company global marketing operations.
You should go beyond an international marketing mind-set, but rather examine such factors with a global thinking perspective.
Note: your lectures and seminar will shed more insight of global market environment analysis that you should consult as a starting point/guide for a critical analysis.
SOLUTION
STARBUCKS
The coffeehouse and donut shop industry, where Starbucks falls, has experienced substantial growth over the years. Murthy and Naidu (2012) posit that the industry grew by 15% between the year 2007 and the year 2011. The industry attained sales of approximately 28 billion US dollars in the year 2012, and by the end of year 2017, the sales had shot up to 33.1 billion US dollars (Han et al., 2018). It is also notable that previous statistics reveal that as from the year 1999 to the year 2012 the coffee consumption rate ranged between 63% and 64% respectively. Another poll conducted in the year 2015 by the national Coffee Association showed that 59% of Americans consumed at least one cup of coffee a day (Han et al., 2018). This implies that the industry has a relatively vast market size, and hence the companies can achieve high sales volumes if they focus on enhancing brand loyalty. Moreover, according to the coffee statistics, an average person consumes at least 3 cups of coffee a day (Li et al., 2019). The study shows that actually there is no difference in the coffee consumption between the male and female gender. Therefore, from these statistics is can be assumed that an average individual consumes more than one cup of coffee in a day, and this if well utilised can win the brand loyalty for a company. The industry has to enhance its innovation as well as trend setting in order to keep the potential clients interests in the coffee brands. The innovation techniques can include introducing new preparation ways, providing healthier options for the consumers, and also offering premium or artisanal brews. Starbucks has focused on seeking to understand consumer needs so as to attain their loyalty. Starbucks has developed a brand that has been able to attain high levels of brand loyalty, for instance, the company is not only known for the drink it offers but also the great experience it gives to the consumers. This is achieved by providing an environment where customers feel like it is a place away from home and work place, with a relaxing environment. The location of stores is also strategic making the place accessible to potential consumers (Sasmita and Mohd, 2019). The occasional offerings and promotions have also played a significant role in enabling Starbucks attract and retain consumers over the years. Ensuring that the brand is always revitalized has enabled Starbucks to charge premium prices and still retain brand loyalty among its targeted clientele.
In addition, you are required to identify and discuss a real case of a potential challenge to your company global expansion. In this section, student should critically discuss ONLY ONE factor within the macro or micro environment that is currently either a problem or a challenge to your selected company global expansion.
TIKTOK
TikTok as an application remains a tool built with several compelling features that enable the users to integrate several elements such as songs and other effects in accompaniment of their videos, one of the fundamental aspects that appeal to the youths. The videos posted on the platforms are then ranked before getting recommendations through a process that analyzes the users’ interests. One of the fundamental algorithms widely used in this application lies in calculating the attention span in each of the video tags designed to reach out to the users within the shortest time possible. The phenomenon, therefore, plays a fundamental role in mapping out the users who have similar interests is an effort driven towards meeting the user’s need for instant gratification. This factor makes the application interactive and engaging. The algorithms are primarily based on big data, as provided by Enache (2021), who establishes that they are designed to meet the unending gratification needs of the users through vertical contents that are designed on the platform. Therefore, the uniqueness of this application typifies the fact that it primarily focuses on the attention span of the users and their need for gratification, hence revealing a connection between the constructs and how it influences the users interacting with brands.
COCA-COLA
The UK soft drinks market is a multi billion industry with sales revenue toping £15 billion in 2013. No other market participant has dominated this industry more than Coca Cola Company with its most noticeable brand being Coca-cola soda. Sales of Coca-cola soda in the UK stand at £542 million pounds with making it the best selling soft drink in the country. According to Coca-cola (2013) the fizzy drink was invented in 1886 by Dr. John Pemberton in Atlanta USA and was first sold in the UK on 31 august 1900 with regular retail sales commencing in the 1920s. The brand name and trademarked script was designed and named by Frank M. Robinsons and is still in use today. Maintaining a market leader position is difficult especially when other brands such as Pepsi are competing for a share of the market. This creates the need for innovative business strategies that enable the Coca-cola soft drink brand remain ahead of the pack (Bodden, 2008). This report therefore seeks to establish strategies coca-cola has employed in the UK market which enable it to remain a market leader. To achieve this the report makes use of analytical tools and theoretical frameworks to better aid in understanding the soft drinks manufacturers external and internal business environment as well as the competitive strategy for success, implemented by Coca-cola