Coca- Colas Failure in Thailand Market

For many years that Coca- Cola is known as the world leader in carbonated soft drink specially in Europe and South America. But is some Asia market including Thailand, Coca- Cola still its biggest rival, Pepsi Co.
The company is recognized by the importance of adaptation localization in overseas by responding to each target markets need and want, focusing more on the market, economy, culture and region. Moreover, Coca- Cola tries to approach the target consumers by decentralizing the operations and Marketing.
Trusting more on the ideas and decisions made by the individual local outfit not from the Atlanta head quarter. These are the ways to reach every target consumer in the world as the mantra of CEO and Chairman of the company. Doug Daft opines “To be within an arm’s search of desires…. Always, everywhere Coca- Cola” think local and act local.” “People don’t buy drinks globally” “We need to make our advertising as relevant as possible to local markets”.
With mixing these two components (global brand and localization), Coca- Cola is still found to loose connection with Thai consumers. According to Sasie Vadhanpanich, a chief ideation officer of marketing Research company in Thailand, Thai’s expectation for Coca-Cola brand is that it stands for “youthful spirit”, ‘Cool ‘and ‘hip. But for many years now the company had not excited the market or consumers anymore whether through new product innovations or impactful breakthrough campaigns. Although many attempts were made to reconnect with young consumer, the impact was short-lived.
Coca- Cola said it has applied adaptation/ localizations strategy but their advertising campaigns in Thailand before 2007 still were global advertisements, the company still adapt one global advertisement and does not develop Thailand specific appeals. Product development was not considered for the local market.
Learning Objectives
1. What are the key reasons for Coca- Cola’s failure in Thailand Market?
2. Suggest some suitable marketing strategies to Coca- Cola to succeed in Thailand Market.
Leave a Reply
Your email address will not be published. Required fields are marked *
0 Replies to "Coca- Colas Failure in Thailand Market"