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CRKC7008 International Marketing and Business Environment, University Of Cumbria, UK

The Case of The Coca Cola Company in the UK


Question 1: Describe the tax regime and rates.

Answer: Introduction: In the modern globalised world, almost every organisation has been attempting towards expanding their businesses across the boundaries of their region or nation of origin. As a component of the expansion of the businesses beyond the realms of border, marketing plays a crucial role in enabling an organisation to gain recognition in the novel markets and thereby develop a strong brand identity in that market, majorly through the sales and promotion of the product or services. So as to conduct businesses in the international market, the organisations are required to gain an in-depth knowledge regarding the business environment of that region and recognise the threats and challenges at the initial stage so as to devise suitable strategies for overcoming them. Moreover, they are also required to identify the opportunities that prevail in the markets so that the same can be used for the profitability of the business. The following report shall focus its discussion on the various aspects of the UK market that have been attracting the foreign companies to conduct their businesses in their market. Moreover, the manner in which The Coca Cola Company has penetrated the market of the UK over the years, shall also be explored in the discussions.

Tax Regime and Rates of UK

As per the reports presented by Doing Business (2019) the UK holds a leading position in Europe for the ease of doing business in the market. Moreover, it also positions itself in the 9th rank in the world score. Irrespective of the corporate structure, the organisation, branch or LLP is required to register themselves with the Her Majesty's Revenue & Customs (HMRC) for paying all the tax liabilities associated with the business. The major taxes and incentives that are relevant with respect to conducting businesses in the UK, include the following:

1. Corporate Tax: The non-UK resident organisations are liable for the corporate tax at 19 per cent on the profits that are made through the course of conducting the trade in the UK, via a permanent establishment. The rate of the tax has been scheduled to reduce to 17 per cent from April 1st, 2020 (Penningtons Manches LLP, 2019).

2. Value Added Tax (VAT): A non-UK based resident company is required to register with the HMRC for the VAT, when the annual turnover is over £85,000, unless applicable of any kind of exemptions. There exist three rates of VAT, namely, a zero rate (0 per cent); a reduced rate of 5 per cent for certain UK property associated supplies, car seats of children and domestic fuel and power; and a standard rate of 20 per cent for majority of the goods and services (Penningtons Manches LLP, 2019).

3. Income Tax (PAYE): Income tax is fundamentally deducted from the salary of the employees every month via the system, ‘Pay as you Earn' (PAYE). The levels of income tax rates vary in the UK, with the highest band of attracting tax at 45 per cent (Penningtons Manches LLP, 2019).

4. Tax Incentives: There are varied appealing tax incentives in the UK that can be off set from the corporation tax liabilities of a business. These include the Patent Box and Research & Development expenditure credit (RDEC) (Penningtons Manches LLP, 2019).

Question 2: Review programmes to attract foreign companies to your country.

Answer: Programmes to Attract Foreign Companies to the UK: The position of the United Kingdom, in respect to both geography and business culture, places it at the centre of diverse markets and sectors collection. The market of the UK is an open market with diversified economies that offer various opportunities to the investors for accessing the domestic market and using the location as a gateway towards the rest of the world (PwC, 2013).

Figure: Ease of doing Business in the UK

Ease of doing Business in the UK.jpg


As per the reports that have been presented by Deloitte LLP (2019), the inward investment projects in the UK, within the past three years, have been $140 billion of capital from 3,900 investment projects, which is more than Germany and France combined. Moreover, about 57 per cent of the Fortune 500 companies have positioned their European headquarters in the United Kingdom. Although the debate associated with the prospective economic affect of Brexit continues occupying a crucial amount of the media attention, however, there exists no agreed conclusion regarding the same (EYGM Limited, 2018.).

As per the reports of Deloitte LLP (2019), between the period of 2015 to 2018, the UK has been successful in attracting about 6.7 per cent of the global FDI (Foreign Direct Investment). The major aspects that make the UK attractive to the global businesses, include the following:

1. Gateway to Europe: The position of the UK in the time zone, along with English language advantage are considered as favourable aspects of the UK for making investments by the Asian and American investors. Moreover, the UK is also perceived as good entre point into the businesses that seek to expand further into Europe (Deloitte LLP, 2019).

2. Stable and Pro-Business Environment: The stable and pro-business environment of the UK, along with its consistent socio-political system, flexible labour market, and tax and regulatory systems are considered as major attraction for investments by the international investors (Deloitte LLP, 2019).

3. Talent Pool: The depth that is associated with the talent pool in the UK offers flexibility that is a major differentiator. The capabilities of the UK in the specialised technological areas like high performance computing, is also considered to be significant (Deloitte LLP, 2019).

4. Entrepreneurship and Innovation: The UK is favoured by its wide consumer base, network of fast growing as well as innovative domestic small medium enterprises that the businesses with presence in the UK can develop partnership with. This allows the foreign investors to growth further in the UK, thereby making it an attractive market for growth (Deloitte LLP, 2019).

Question 3: Describe the company of your choice.

Answer: Company Overview: The Coca Cola Company

The Coca Cola Company is considered as the largest non-alcoholic beverage company in the world. The organisation owns or licenses and markets over 500 brands of non-alcoholic beverages, which is grouped into major category clusters, as follows:

1. Energy drinks

2. Coffee and Tea

3. Sparkling soft drinks

4. Plant based beverages, juices and dairy

5. Sports drinks, water and enhanced water (The Coca Cola Company, 2018)

The Company owns and markets four of the top five non-alcoholic sparkling soft drink brands of the world, namely, Coca Cola, Sprite, Fanta and Diet Coke. The beverage products are being sold in the United States since 1886 and are now available in over 200 territories and countries (The Coca Cola Company, 2018).

The branded beverage products of The Coca Cola Company are made available to the customers across the world, via the network of independent bottling partners, wholesalers, distributors and retailers, along with Company controlled and owned bottling and distribution operations, which is the largest beverage distribution system in the world. It has been estimated that over 1.9 billion of the approximated 61 billion servings of all the beverages are consumed every day, globally (The Coca Cola Company, 2018).

It is believed that the success of the brand is dependent on its ability of connecting with the consumers via providing them with varied range of beverage options for meeting their lifestyles, requirements and desires. Moreover, the further success of the company is dependent on the ability of the Company and its employees to perform and executive every day (The Coca Cola Company, 2018).

Question 4: Establish how and when they entered your country and changes have taken place (if any) since entry.

Answer: The Coca Cola Company in the UK: The Coca Cola Company first entered the markets of the United Kingdom in the 1900's when the son of the President of the Company, Charles H. Candler, visited London with a jug of Coca Cola syrup. Soon after, an order of five gallon of Coca Cola was placed and was initially served via soda fountains. The official business of the Company begun years later, although, the first Coca Cola bottling plan in Europe was installed in France in 1919 and not in the UK (Mooney, 2008). The sales of Coca Cola in the UK begun in the early 1920's and it appeared at the outlets across London, including London Coliseum and Selfridges. Eventually the Company gained access into the markets of the UK and expanded itself via various acquisitions and purchases. Coca-Cola European Partners plc ("CCEP") has the bottling and distribution operations in Britain (The Coca Cola Company, 2018).


Question 5: Outline their marketing mix.

Answer: Marketing Mix of The Coca Cola Company: Marketing mix that is implemented by an organisation, allows them to gain recognition and brand identity in a larger market and thereby gain further entrance into the market and the targeted customer segment. The marketing mix comprises of four major elements, namely, product, price, place, and promotion (Akgün, Keskin and Ayar, 2014).

With respect to the case of The Coca Cola Company, the marketing mix that is employed by the company can be detailed as follows.

1. Product: The Coca Cola Company has a broad range of products and comprises of over 500 brands of non-alcoholic beverages. The major product categories comprise of energy drinks; coffee and tea; sparkling soft drinks; plant-based beverages, juices and dairy; and sports drinks, water and enhanced water (The Coca Cola Company, 2018). The leading products of the Company include Coca Cola, Fanta, Sprite, Diet Coke, Coca Cola Zero Sugar, Powerade and so on. There has been a rise in the variety of the product ranges that are offered by The Coca Cola Company and the same had influenced the business of the Company in a varied manner. Most importantly, the consumers feel more connected with the products of Coca Cola, which is the main aim of the Company (The Coca Cola Company, 2018).

2. Price: The Coca Cola Company has made its products available with the help of competitive pricing strategy. The major pricing policies that are employed by an organisation include competitor pricing, value pricing, loss leader pricing, cost plus pricing and discrimination pricing (Huang and Sarigöllü, 2014). Due to the fierce competition that The Coca Cola Company has against Pepsi Co., the Company had ensured to use the competitive pricing strategy that allows it to provide its product to the consumers at prices that are at par with its competitor (The Coca Cola Company, 2018).

3. Place: The Coca Cola Company has made its products available across the world via its large distribution network. The products of The Coca Cola Company are available at various supermarkets and retail outlets, which make it easy for the consumers to access the products as per their convenience. Moreover, the products are also served at restaurants and other similar outlets, which makes it further easy for the consumers to get access to the products as and when required by them (The Coca Cola Company, 2018).

4. Promotion: The promotion of the products and brands of The Coca Cola Company is conducted via various online as well as offline means. In the modern technologically developed world, The Coca Cola Company has been utilising the various advancements for promoting its products, such as the social media tools, advertising campaigns, as well as other similar digital marketing tools. Moreover, The Coca Cola Company also sponsors for various events that are renowned across the world, which enables the Company to reach to larger consumer base (The Coca Cola Company, 2018).

Conclusion: The discussion that has been presented above, evidences that The Coca Cola Company has been successful in its global expansion as well as in establishment of its businesses in the United Kingdom. It can be deciphered that the various opportunities and benefits that are offered by the markets of the United Kingdom has favoured the business expansion of The Coca Cola Company in its markets.


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