Culture consists of patterned ways of thinking, feeling and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievement of human groups, including their embodiment in artifacts, the essential core of culture consists of traditional ideas and especially their attached values.
Likewise, Coca-Cola arrangements with substantial bottling, canning and distribution companies. Coca-Cola partners are responsible for the bottling, sale and distribution of the product and they have benefited in a number of ways. They have had the exclusive right to distribute to a certain geographical area, received technical support, and reaped the rewards of the Coca-Cola brand, global marketing and advertising. And also worldwide advertising and marketing my lead to the creation of a global product by changing local tastes. Soft drinks such as Coca-Cola is a case in point. However, even with the establishment of an internationally popular brand, some concessions to local differences may have to be made. Consequently, Coca-Cola has slightly different formula according to local market preferences for sweetness, differing even between such as United State and India
In a business context( Coca-Cola), it can be easy to underestimate the degree of which a person's perceptions, attitudes and behaviours can be shaped by cultural influences, some of which may be relatively enduring ( e.g. certain core values and beliefs) while others may be more open to change( secondary beliefs and values). In the United States , for example, American citizens believe in the right of individuals and also culture not only influences an individual's response to products and the nature of the buying and selling process, but it also exercises a significant influence on the structure of consumption within a given society. For companies which can gain acceptability on a global scale, despite cultural differences between countries, the potential benefits are huge.
Cultural differences, while difficult to observe and measure, are obviously very important. For the purpose of this note, culture shall be defined as a set of shared values, assumptions and beliefs that are learnt through membership in a group, and that influence the attitudes and behaviours of group members. This definition includes three key characteristics: First, culture can be understood as a group phenomenon that distinguishes people of one group from another. From this perspective, cultures exist at many different levels, including organizational functions or business units, occupational groups, organizations, industries, geographical regions, and nations. This note focuses in particular on national culture and the role of cultural differences across countries rather than other cultural groups because this level of culture is particularly relevant for multinational business.
Cultural differences remain persistent and present an array of challenges for multinational companies. Firms that manage adaptation effectively are able to achieve congruence in the various cultures where they operate while extending their main sources of advantage across borders, and in some cases even making cultural diversity itself a source of advantage
On the one hand, it has been found that cross-cultural differences do exist among the different cultures. These differences have an impact on communication among people from different cultures. Since there are many companies that have to operate in different parts of the world, people are exposed to different cultures that they have to absorb and get used to. On the other hand, Cultural awareness shapes how business firms behave in cross-culturally reflected international markets. It is broadly recognized that cultural factors act as invisible barriers in international business communications. Understanding cultural differences is one of the most significant skills for firms to develop in order to have a competitive advantage in international business.
A firm that has a cost competitive advantage can produce a product or service at a lower cost than all its competitors while maintaining satisfactory profit margins. Firms become cost leaders by obtaining inexpensive raw materials, making plant operations more efficient, designing, products for ease of manufacture, controlling overhead costs, and avoiding marginal customers.
Company normally use one of the two generic strategies. Differentiation strategy or focus strategy... Differentiation strategy is one in which the marketer is trying to convince the customers that our product is different from that of our competitors. The company tries to give the message that its product offers more value. We are also using differentiation strategies and trying to convince the customers that our company can provide more value for the money we spend by selling shoes at lowest prices
Promotional strategy is a plan for the optimal use of the promotional mix elements such as advertising, sales promotion, celebrity endorsement etc. Promotion's role in the marketing mix is to bring about mutually satisfying exchanges with target markets by informating, educating, persuading and reminding them of the benefits of an organization or a product.