Coca Cola decides to invest two million dollars in India for five years to develop its brand building and manufacturing capacity. The company hopes to increase its profits by opening up to the world’s second-fastest growing economy as it claims that the majority of its sales come from outside its headquarter in the United States.
Coca Cola’s move raises certain issues in the marketing field. For instance, how will the company plan to develop its brand image in India to attract consumers into buying its products like the rest of the world? This will pose a challenge to the company if coke does not have the ability to induce demand.
In terms of foreign operation, Coca Cola is most likely an expert since it is a worldwide company. However, the company also has to ensure how it will hire the employees and where they will come from. For instance, is the company going to hire people from the States and send them to India or is it going to hire locals and provide a training program for them to adapt to the company’s values and rules? All of these challenges will be a concern to Coca Cola and might even pose a risk to the company’s well-being.
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