Impacts of international marketing on the global competitiveness of a Business
Overview of the Marketing Plan
The Marketing Plan is based on your identified international business opportunity for a UAE
business (this could be an expansion of your chosen business for your Research Paper,
Assessment 1). The Marketing Plan will fully analyse the chosen international business
opportunity and the likely challenges in relation to the international marketing related
factors that you have studied in this course for a UAE business and offer reasoned
discussions to support the chosen strategies to deal with them. The opportunity, challenges
and the strategies should be discussed in relation to the Learning Outcomes 3, 4, & 5 of this
course.
You are required to include the following sections in your Plan in the given order with
the correct numbering. Note that the decimal numbering would begin with the Introduction
section of your report.
Title Page
Table of Contents
1. Introduction
2. Discussion
(Include sub-headings relevant to the Marketing Plan)
3. Conclusion
4. References
Appendices
The purpose and objectives of your Plan should be related to the following Learning
Outcomes:
3. Analyze the international marketing related factors that affect the global
competitiveness of a business.
4. Evaluate how international marketing impacts on the global competitiveness of a
business in specific situations.
5. Develop a marketing plan that supports a competitive global business strategy. what
is the strategy when you will enter new market? It’s better if you choose 1 trategy
and explain how you will use it
Therefore, the purpose and objectives should be evident in the Discussion and the
Conclusion.
Individual Work
This is an individual assessment.
Word count
The Plan should be 3000-3300 words (excludes Appendices, Reference list, and etc.)
The word count includes information presented in the main body of the Final project only
and does not include any information in the Appendices or the Reference list.
Referencing
You are required to use outside sources to support points you make in the body of your
report. Outside sources may be academic literature, research, or journal articles, or relevant
industry websites. All outside sources must be acknowledged using APA referencing style
Marks
This Project proposal is worth 30% and will be marked out of 100 marks. Please refer to the
Marking schedule for details on marks allocation.
Solution
1.2 Purpose of the plan
The main aim of this plan is to analyze the marketing strategies adopted by the coca cola
company and determine the factors that may influence its competitiveness in the global market in
the soft drink industry (Alon, Jaffe, & Vianelli, 2013). The provisions of the plan will provide a
roadmap for the marketing department of Coca-Cola Company to implement the steps necessary
with the stated marketing objectives and strategies.
1.3 Specific objectives
a) To gain a market share in the global market
b) To increase customer awareness about the company's products
c) To suggest strategies for increasing the customer base
1.4 Key findings
The study found that Coca Cola Company has a strong customer base implying that is a
substantial percentage of the market share. The company has the opportunity of increasing the
global market share through investing in many countries around the globe since already it is well
established and thus enhancing the customer awareness about the products. The research
suggested that, coca cola company can incorporate the new technology to improve the packaging
and the provide bottles of all the size to ensure all the groups of people are in a position to
purchase the product. Adoption of joint ventures strategy in marketing can significantly assist the
company in creating awareness about the company and thus increasing the customer base.
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2.0 Discussion
2.1 Background information
Coca-cola Company is a multi-national company involved in the production, packaging,
and distribution of the coca cola nonalcoholic beverage among other products. This coca cola
beverage is known worldwide for its unique taste. Many other beverage companies have tried
emulating the coca cola brand but have gone out of business since they lack the secret ingredient
found in coca cola that makes it taste as good as it does. The company and its subsidiaries
operate in a franchised system where they produce a syrup concentrate that is then sold to many
bottlers located in different parts of the world (Pendergrast, 2013). These bottlers operate solely
for bottling Coca-Cola beverages. Coca Cola Company's main beverage is Coke. Other soft drink
products include Fanta in different flavors, black currant, passion, pineapple, orange, and sprite.
The coca cola company is known for producing healthy beverages such as Minute Maid, Diet
Coke, and Dasani water among others.
2.1.1 Strengths
a) Leader in the soft drink industry market as it has a significant market share
b) Extensive global appeal in that the image of the products is full of over-romanticizing and
thus the majority of the people have taken with a passion especially due to its display in
many other items including clothes, hats, and umbrellas among many others.
c) The bottling system allows the company to carry out business in the global market while
considering the local approach because the bottling companies are owned locally and ran
privately. Since the company owns no bottling company, it benefits only from the sale of
the concentrate to the available bottlers.
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d) The company has a strong marketing and advertising capacities
e) Customer loyalty
f) Adequate finances
g) Branding obvious and easily recognized
2.1.2 Weaknesses
a) The company is dealing with a lot of pressure trying to compete with other emerging
companies in the same market. This is mainly because the majority of these upcoming
competitors are using price as an incentive to convince customers to consume their
products. On the other hand, the price model adopted by Coca Cola aims at ensuring that
the company maximizes on average profits and, therefore, cannot go below a certain
price level. The company has hundreds of products being produced while their
competitors major in a few products. It, therefore, becomes almost impossible for the
company to compete effectively when the pricing approach is considered.
b) Health problems: The product has an effect on teeth due to the presence of caffeine and
caramel hence this is an issue on health care. Besides, Coca-cola product has sugar thus
continuous intake of the product may result in health problems
c) Absence of strategic partner who they can merge and strengthen their force and
dominance over the market
d) Government oversight
e) Economic downturn may adversely affect the company performance
f) Rise in the price of inputs due to inflation has the potential of influencing the company
output
g) An increase in taxation may reduce its room for expansion in certain countries.
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h) Lack of popularity of many of the company's brands
2.2 Competitive analysis
Though the enterprise has a large percentage of the market share, it faces stiff
competition from the Pepsi Company, which is the world leader in convenient foods and
beverages. The company consists of snack businesses in various countries and the beverage
business as well as manufacturing and marketing of ready-to-eat cereals and other food products.
Its brands are found in about two hundred in the entire world market. It has a competitive edge
over the current competitors concerning operations, control over the costs, brand portfolio,
channel marketing, as well as the partnered customer relations.
Pepsi vision statement aims to deliver top financial performance while taking into
consideration the sustainability of the business on the environment and society. The mission of
the company aims at producing affordable and healthy beverages and foodstuffs distributed over
the world (PEPSICO, 2014). The aim of Pepsi company is to create a better tomorrow than
today.
Another competitor to this Coca Cola Company is the Nestle whose vision is the
commitment to enhance people's lives by offering tastier and healthier food and beverage choices
at all stages of life and at all times of the day. Its mission is to be the world's recognized leading
Nutrition health and Wellness Company, and the industry reference for financial performance,
trusted by all stakeholders.
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2.2.1 Market strategy
Product
Business must be concerned about its products on three perspectives, which include the
core product, actual product, and the augmented product. The core product, in this case, implies
to the product what the consumer is purchasing. Concerning coca cola Company, the customers
buy a range of soft drinks as the core product. On the other hand, actual product refers to the
features that are delivered by the core product. Consumers will purchase a bottle of coke because
of the quality and high standards the company offers. Augmented product is the extra benefits
and services that a consumer derives by taking a coca cola a product manufactured by the coca-
cola company.
Price
Coca Cola Company has a vast market share and at the same time, it has faced
competition pressure, which has forced the customer sensitivity to price to shoot up. Thus, the
sales volume is high and meanwhile, the profit margin is somehow small as the company goods
are fast moving consumer stuff. This points out to the penetration strategy, which implies that the
adoption of lower prices compared to high prices is better on the realization of being dominant
market share. This will be achievable only when the demand for the product is relatively flexible
knowing that price is much sensitive to the sensitivity of customer because it results in the
attraction of new clients while increasing the purchasing power of the existing group of
consumers.
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Penetration of the price is very crucial in some industries, which require standardization.
In this case, the product that achieves a high market penetration mostly is the one that becomes
the industry standard. Concerning the company in question, the company should try to
standardize how its customers use the public product.
Place or distribution
Coca Cola ventured in the foreign markets in several different ways with the most
common mode of entry being through direct exporting, licensing as well as franchising.
Currently, its product can be found in the entire international arena. Its distribution channel
follows the FMCG pattern and due to this, it has had an efficient network, which has enabled
erode the small and the middle players in the market. There exist different methodologies of
franchising and the one adopted by the company s the manufacturer-sponsored wholesaler
system. This system is comparable to licensing, but the two differ in that the finished product is
sold to the retailers' local market (Papadopoulos & Heslop, 2014).
Coca Cola should manage its marketing and sales strategies within channels, which
incorporates three essential delivery pathways including bulk delivery for the channels of huge
supermarkets, club stores, and mass merchandise. For the smaller channels, the company should
prepare to provide advanced sale delivery to enhance convenience stores together with the on-
premise fountain accounts.
Promotion
Over a period, coca cola has invested a lot of money in developing and promoting its
brand name, which has resulted in the international recognition of the enterprise. It is
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acknowledged by 94% of the world's population, and some studies suggest that the brand name
is one of the most familiar names to majority both educated and uneducated fellows.
Promotion strategies
Shelves: includes acquiring or in other words, buying shelves in a bigger departmental
store and displaying the product on them to display a clear and more attractive arrangement for
the clients. Thus, the company should adopt the most competitive shelving strategy that is in
pace with the increasing competition. Strategic positioning, on the other hand, involves the
positioning of the freezers and products should be displayed in an eye-catching position, for
instance, keeping the refrigerators at the entrance positions. The company also incorporates
numerous brand strategies in promoting its products as per the brand name.
2.3 Factors and their Impact on the International Business Operation
2.3.1 Globalization
In the modern era of globalization, competition has emerged being fiercer than before.
Development has resulted in a reduction in trade barriers, easy access to technology and reduced
costs for communication and travel hence sharpening the international competition more. The
economic changes in UAE and the emergence of new economic strengths in the international
market have insinuated the competitiveness of the national industries. The increase in the
intensity of competition globally implies that firms have to improve their competitiveness in
order to earn more and maintain their market share (Bertoli, 2013). This is essential, especially
for Coca Cola Company. The improvement affects both the specific firm and the economy of the
state altogether. In addition, globalization leads to increased levels and standards of knowledge
as the market is widened and incorporates many competitors which mean that the corporation
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entering the global industry must be prepared to go in pace with the fast developing technology
in order to emerge a competitor in the particular industry of interest.
2.3.2 Economy
Economy-wide conditions such as the friendliness of the economic policies, productivity,
and the level of know-how might have a profound influence on the level of competitiveness of an
enterprise. The ability of a company to produce goods and services of superb quality and
relatively lower costs than its domestic or international competitors, dictates its competitiveness
in the international arena (Bertoli, 2013). Competitiveness can be based on the company's
ultimate financial performance and thus, the persistence of a good financial performance is a
signatory of the firm's increasing competitiveness and converse is true.
2.3.3 Financial performance mechanisms
Numerous financial performance mechanisms are utilized in determining the firm's
competitiveness. For example, determination of return on sales exhibits how much a certain
enterprise earns in relation to own output. Return on assets is sufficient indicator that can be used
in determining the ability of the company to use its assets while return on equity on the other
side, shows the returns realized whenever investor take for their investments. The main
advantage of using the financial performance as a factor in determining the competitiveness is
that the easiness and definition are acceptable globally (Varadarajan, 2010).
Non-financial indicators are also widely used in the course of determining the competitiveness of
business in the market. Proxies such as the market share of an organization, the growth of the
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market share and the overall customer satisfaction are essential contributors to the
competitiveness of a company in the international market.
2.3.4 Export performance
Export performance refers to the relative success or failure of a firm's efforts to sell
domestically produced goods and services in foreign countries. Exporting is a major component
of the international commerce. There are two issues related to this trade that is, recognition of the
benefits accrued from the trade and concern on the possibility of some of the sectors in the
industry to be suppressed or benefited by the competition.
2.3.5 Culture
Culture is referred to as the totality of people's lifestyle and their specific personalities, or
it can be said that culture is what people are including the way people dress, speak, eat their
attitude, values, norms and many other aspects that influence the living style of a particular
group of individuals. Culture impacts significantly, on the international marketing and thus, a
marketer should have a sufficient study of the local culture before deciding to offer a product to
the particular people. For instance, to have effective communication, the message should be sent
and delivered in agreement with the receiver's culture. This is because, in most cases, it is natural
that humans have to judge everything according to the self-understanding mechanism and
cultural measurement. Therefore, a simple thing can have a different meaning in different
cultures. A marketer in the international market must have to shift one's thinking into the culture
of the targeted people since failure to consider this shift successfully may result in a failure in
having the local people attention and thus make a huge loss (Abdin, 2008).
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2.4 Coca Cola PESTLE analysis
2.4.1 Political factors
The company has faced by a handful of political factors both in Pakistan and outside in
other countries. These include though not limited to the level of political stability in the country
boundaries, the impact of the international pressure groups and the domestic lobbying groups as
well as the government attitude towards the soft drink industry and the company in particular.
For example, government intervention on what goods and services should the companies provide
and under which terms (Yüksel, 2012). The political decision can also influence many other
aspects of the business such as the access to workforce, health standard of the country among
many others.
2.4.2 Economic factors
The company sales are much influenced by several economic related factors that are even
beyond the company control. These factors include the level of economic growth and
development in the country of interest, level of taxation and currency exchange rates among
others. Fluctuations that occur in exchange are the most important factor that adversely
influences the operations of Coca Cola Company. Poor economy affects the pricing system of
coca cola Company since, in the course of such a period, the purchasing power of the customers
will be low.
2.4.3 Social factors
The issue of health and the rising level of concerns about the health by the customers,
especially towards obesity due to sugar levels, have significantly influenced the global
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performance of the company. Coca Cola has also substantially affected the demographic
changes, family values, patterns, and the entire welfare of the target customer segment. For the
case of coca cola Company, many of the people in the contemporary world fall under the age
bracket in which the consumption of beverages is no better for their health (Yüksel, 2012). The
company should consider reducing the sugar content of the concentrate or produce different
varieties with different amounts of sugars.
2.4.4 Technological factors
The emergence of new technology has led to the creation of new product and new
processes of operation procedures. Online shopping and bar coding are some of the technological
advancements that they have influenced the market positively. For instance, the company may be
required to change the packaging of the products to attract more customers and hence increase
the expansion and retain the customers.
2.4.5 Environmental factors
Climate changes of an area, for example, changes in temperature. The climate change
occurring due to the global warming is affecting the operations of the company. Arrangement for
campaigns to emphasize the importance of reducing the release of greenhouse gasses van
significantly lead to the resolution of this issue though it requires the union of all global
industries which a substantial release of such gasses or in other words has a remarkable carbon
footprint. Depending on the geographical location of an area, the company should assess the
season in which it experience high returns to compensate on the seasons when consumption is
relatively low.
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2.4.6 Legal factors
These are issues, which are related to the legal environment in which companies carry out
operations. Legal frameworks of different regions influence greatly the decision made by the
company and even the costs incurred by the firms as they offer services and products to their
customers.
2.5 Market entry strategies
2.5.1 Foreign direct investment
This strategy involves investment in manufacturing and provision of services in a foreign
country with an aim of actively indulging in their management.
2.5.2 Network models like Joint ventures
In 2000, the coca cola and Lenovo companies started the ideology of homing computers
together hence becoming a marketing partner with the Lenovo computer company. This enabled
Coca-Cola Company to be connected to the internet, as it also required technological
development. Joint ventures are vital because they help in sharing the risks (Shaw, & Onkvisit,
2008).
2.6 Impacts of international marketing on the global competitiveness of a
Business
2.6.1 Access to new Customers
International marketing results in access to new customers hence the business has a better
position to establish itself in the global market and therefore enhance its competitiveness in the
industry. With a larger market, the business can realize more profits due to the access to a greater
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customer base. Despite the fact that the marketing is associated with prohibitive situations such
as high expenses, the reward outweighs the risks.
2.6.2 Expansion
Overseas marketing forms a platform for a business to step ahead in expanding the
company as well as its reach and presence around the world and thus enabling the company to
establish itself more eventually winning a significant market share. Besides, it provides an
excellent opportunity for the particular enterprise to gauge the public reaction to the new product
or services and hence assist the corporation to understand if the business can be in a position to
compete adequately in the global market.
2.6.3 Global networking
Entering into the global market grants a business unit the distinct advantage of linking
with new clients and new trading partners. For example, a company conducting its operations in
Asia may find cheaper workforce and less stringent tax regulations or cheaper modes of product
promotion in local newspapers, televisions and other media of advertising a product. This
implies that the opportunities for networking internationally are not limited, and this may be a
company a chance to be sufficiently competitive in the international market (Gupta, 2014).
2.6.4 Brand prestige
The prestige realized by use of the global marketing and a presence in many foreign
countries accrues many competitive benefits to the company. It enables the business to create an
image for itself and utilize the image in reaching a new audience in the new market.
Commencing with the new audience sometimes helps a company to make a substantial jump to a
new price point as well and thus realize more returns.
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2.7 Coca cola marketing plan
Marketing is the role that is utilized by Coca-Cola Company to plan, price, do promotion,
and plan for the distribution of services and products to customers. This marketing plan aims at
providing a plan that supports a competitive global business strategy.
Situational analysis
Coca-cola has the largest market share hence it is the biggest company in the soft drink
industry with control of more than 50% of the world market. Pakistan has a population that is
much satisfied with the coca cola products. The company is emphasizing more in this area and
trying to develop a strategy, which can result in an increase in the growth of consumption by the
entire population of Asia. In Asia, Pakistan, India, and Bangladesh are among states with an
average increase in consumption of the products.
Market Analysis
The market for the non-alcoholic beverages is growing and expanding especially with the
advent of Asian growing and developing states, and the consumption is very soon going to be
high and the change in the lifestyle and thus the purchasing power.
Market segmentation
The company segments the different income levels by the packaging of the drinks. For
instance, people with low income, the company has a small returnable glass bottle while for the
mediocre group it has provided a non-returnable bottle and for the high-income individuals, has a
coke tin. In some cases, the promotion strategy, the company should also consider increasing the
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frequency at which it incorporates prizes on top covers, implying that people are segmented by
benefit sought.
Market behavior
The conduct of Pakistan market has been oriented on the slogan ‘what's cold gets cold'.
People frequently focus on purchasing anything that is cold either Pepsi or Coke. This implies
that the behavior of the market of the Pakistan has not changed as much as people are not
entirely health conscious. Nevertheless, over several years, due to increased awareness of
obesity, most people have adopted the alienated behavior to soft drinks, which is why the
company has provided the customers with the preferable solution, that is, provision of the
product at the best time needed.
Company analysis- SWOT analysis
Opportunities
The competitive position of Coca Cola Company is much influenced by the brand
recognition. Since the company is well known throughout the world, the main concern of the
company marketing strategy has been to improvise its system in order to make it more
recognizable. The bottling system allows the corporation to take advantage of the growth
opportunities. Diversification in the health and food sector will result in improved offerings of
the company to the customers. Because of this, the company will also realize increased revenue
from the existing customers by cross selling of the diverse products. The existing channels that
distribute the current products (beverages) can also take the responsibility of distributing the
newly launched products, therefore, resulting in the sharing of the responsibility of supplying.
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Despite the fact that developed state has a remarkable presence of coca cola, the countries
are displaying a very slow move towards healthy beverages. Nevertheless, developing countries
are still on the move of being introduced to the delight of carbonated and soft drinks.
Increased bottled water demand is a significant contributor to the improvement of healthy
hygiene. Bearing in mind that most people have comforted their minds with bottled water, the
coca cola company has an opportunity of expanding the Kinley since it has a high potential for
expansion.
Reduction in the price of production material
Opportunity to launch a new product onto market
Need for green business and sustainability in packaging business
The company has an opportunity to develop social responsibility in narrower
demographics
Threats
The main threat is on price in that increase, let's say, increase by one unit of currency can
have a drastic effect on the sales. Because people can go for an alternative, that is, Pepsi
products, then the price is an imperative factor to consider because it affect the sales of coca cola
as well as the marginal profits.
Sourcing of raw materials whereby water is a threat to the functioning of the company.
Water scarcity is thriving due to the climate change while the company is a vast consumer of the
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resource. Thus, water sourcing is an axe that that is in a position to fall anytime on the head of
the company.
From the discussion, it is observable that in preparing a market plan all the factors that
affect the business both internally and externally should be determined and the effect of the
international marketing. PESTLE and SWOT analysis provide a clear understanding of the
company thus enabling formulation of the strategies to enhance the global market of the
enterprise.
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3.0 Conclusion
Coca Cola Company is an international enterprise in the soft drink industry that faces a
stiff challenge form Pepsi Company. The company has managed to step forward and posses a
significant portion of the markets worldwide. This has enabled the corporation tm gain a
significant market share in the global markets especially due to the uniqueness of its products.
However, the company has to keep proper marketing strategies to attract more customers as well
as retaining the current ones. Implementation of the market plan with adequate controlling will
result in achieving the goals of the plan that are aimed at gaining a market share in the global
market, increasing customer awareness about the company's products and provision of strategies
of increasing the customer base.
Exportation is one of the most reliable entries to the overseas market as well as a well-
established form of operating in the foreign markets. Since the company is an aggressive
institution, it has the potential to define plans and strategy with significant consideration to the
price, product, promotion and the distribution in the implementation of the strategy. The type of
the response that will be obtained will depend on the extent of the pressure as perceived by the
decision maker. This strategy is of great advantage in that it provides an excellent opportunity to
learn the foreign market before making intensive investment.
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