You are on page 1of 5

Coca-Cola marketing channel strategy study in China Chapter Coca-Cola Company's development in China Section the basic situation

of Coca-Cola Company 1. Coca-Cola and the company's produce Coca-Cola, the world's one hundred years the popularity of the wonderful liquid is from the United States in 1886 in Atlanta, Georgia pharmacist John Dr . Peng Bodun (John S. Pemberton) in the backyard at home, will Carbonated water and sugar and other ingredients mixed in a triangle pot in the invention. Coca-Cola; is the English name was Pemberton's assistant and partner in accountant named Robinson. Robinson is a classical calligrapher, he considered t hat 'the two capital C character will look great', so he had to personally write cursive scripts using Spencer's 'Coca-Cola'. 'coca' is the son of refined spice s cocoa leaves, 'cola' is the fruit of the cocoa component removed. Coca-Cola; t rademark has not changed over the past century. In 1892, businessman Hom Chandler in 2300 U.S. dollars to buy all the se crets of Coca-Cola franchise, and the creation of Coca-Cola Company. Under his l eadership, less than three years Bianba Coca-Cola extended to across the country . In 1899, Benjamin Franklin Thomas and?? Whitehead signed with the Candler regional elopment in the United States most of the bottling business contracts. Since the n its development momentum will be unstoppable in 1904 developed into a 120 bott ling plants, to the 1919 development of 1,200 bottling plant. 1916 Canton Chandler 'be unique among the bottle shape, even in the dark can also be identified is the Coca-Cola, even if the smashes, and people will k now that it can also be a Coca-Cola' under the direction, creating the world's T he well-known curve shape glass bottle. In 1919, Hom was spilled to 25 million U.S. dollars, will be sold to Coc a-Cola Company in Atlanta consortium. 2. Coca-Cola Company Status Coca-Cola Company, headquartered in Atlanta, Georgia, USA, is currently the world's largest beverage company, is the world's soft drink sales market lea der and pioneer in its own world's best-known of the four top five soft drink br ands: Coca-Cola, Diet Coke , Fanta and Sprite. A total of more than 200 countrie s around the world and regions, consumers can enjoy the company locally to provi de a variety of drinks. Coca-Cola Company's products have been the amount of the daily consumption of more than one billion cups. (Note: 8 ounces per cup) In 2001, the world-famous 'international brand' The consultants made the world's most valuable brand rankings, 'Coca-Cola' to 68.95 billion U.S. dollars tops. In November 2001, the famous global consumer behavior and market informat ion to investigative bodies AC Nielsen released a research report 'Towards --- 1 billion in today's global brand recall'. The report shows that in the internati onal market, only 43 consumer brands, with annual sales of more than one billion U.S. dollars, while achieving truly global. Among them, Coca-Cola ended in Marc h 2001 in the past 12 months, the global sales of more than 15 billion U.S. doll ars, of which sales in the Asia Pacific region more than 15 billion U.S. dollars , can be said that 1 billion brand in the giant . And it's the Coca-Cola and Die t Coke brands themselves are up to 10 billion U.S. dollars. Coca-Cola beverages sold include four categories: the mouth as a trade mark of the carbonated cola b everage products; drinking water products; a caffeine and vitamin functional bev erages; healthy and nutritious juice and milk beverage. To 2003, Coca-Cola Company has a total of more than 370 brands (Attachme nt: Brand schedules, data sources In addition to Coca-Cola, the other three major international brands and many other brands under the produ ct packaging will state that 'Coca-Cola Company honor products' words. Coca-Cola Coca-Cola, this multi-brand strategy is based on the strong brand as the core, Sprite, Diet Coke, Fanta for second-line to protect the brand, other brands for the third line, to add brands, the formation of its brand family. The main advan tage of this brand structure is the three-line brands have maintained a relative ly reasonable distance of the brand, enabling them both mutual support and prote ction, one either prosperity; they can be appropriate to avoid the risk associat ed between the brand so to a loss for both sides.

3. Coca-Cola Company's basic strategy Coca-Cola Company to its basic strategy summed up as 6, and follow the o rder in which they are as follows: 1. Coca-Cola led to accelerate the growth of carbonated drinks; Coca-Cola Coca-Cola is the eternal theme, but also the basis for their b usiness survival, therefore, maintain the carbonated beverage market, Coca-Cola and categories based on expanding the primary strategy for their companies. 2. Selectively expand our beverage brand portfolio, in order to promote the interests of growth; Now, Coca-Cola Company is working to a comprehensive beverage company's direction, but not willing to just a provider of carbonated beverages, so it rem ains valid under the premise of profit in the world within the framework of expa nding its beverage series, continued to the development of new beverage products . Only in 2000, Coca-Cola in 45 Asian countries introduced 15 new varieties of d rinks. 3. With bottling partners to improve product profitability and productiv ity of the system; Business system is a special bottling Coca-Cola Company to achieve its g oal of globalization, one of the principal means, therefore, attention and maint ain its bottling partners in the operation of the state, but also ensure that Co ca-Cola Company an important part of self-interest. 4. To innovation and the spirit of hospitality has always been a view in all areas of mutual growth; 'Common prosperity' idea is that Coca-Cola Company's basic philosophy, b ut also its ability to grow into global companies one of the factors inherent in commercial circles, while innovation is the Coca-Cola Company to achieve 'win-w in' the principal means. 5. Put the money in all markets with the most potential areas; 6. In all aspects to enhance the effectiveness and economic benefits. 4. Coca-Cola's marketing strategy Over the years, Coca-Cola Company to pursue marketing, ring, ring interl ocking strategy (see Figure 1-1-1): Until 1984, three-ring represents the 3A, affordable and accessible and happy to buy, including: affordable (AFFORDABILITY): is to ask the retail price of Coca-Cola products properly to ensure that consumers can afford; I buy (AVAILABILITY): is to ask the Coca-Cola products in the market Dis tribution rate, to ensure that consumers can buy, the total can buy; happy to bu y (ACCEPTABILITY): it is striving to enable consumers to accept and like the Coc a-Cola Company's products, willing to buy and drink it. As the market and consumers in the development and changes in consumptio n patterns, in 1984, Coca-Cola Company in conjunction with the company based on the actual conditions of sale will be from the 3A development of marketing strat egy 3P, value for money, everywhere, the hearts of first choice, of which: Value for money (Price to Value): Coca-Cola Company's products is to req uire not only the consumers the ability to purchase, and must strive to make the return of consumers to meet or exceed his pay. Everywhere (Pervasiveness): is t o ask the Coca-Cola Company's products must penetrate into every corner of the m arket, allowing consumers to at any time, anywhere, can easily buy. The hearts o f the preferred (Preference): Coca-Cola Company's products requires not only to be liked and accepted by consumers, but also to strive to occupy the consumer ha s allowed Liu, become a preferred product or brand. 5. Coca-Cola company's operating philosophy General speaking, Coca-Cola company's operating philosophy includes the following four aspects: 1. Continuing to improve product quality Coca-Cola Company believes that the image of the product advertising is very important, but the product itself is the most important factor. If the prod uct itself is flawed, will eventually be discarded by consumers, so Coca-Cola Co mpany has always attached great importance to product quality management and qua

lity assurance. Such as the current Coca-Cola bottling plant in the global promo tion of TCCQS (The Coca-Cola Quality System) system is fully embodies this conce pt of the Coca-Cola. (See Figure 1-1-2) 2. Keen to enhance the work efficiency Efficiency is to determine the enterprise market competitiveness and pro fitability of the core of one of the factors, therefore, Coca-Cola Company has a lways attached importance to work of production and operation of efficient and m ake improvements. Coca-Cola Company to enhance work efficiency of the methods in clude updates factories, the introduction of new production technology, emphasis on the use of information systems, continue to optimize the operation process, in practice the operation of the advanced concepts (such as supply chain concept ), and so on. 3. Constantly improve the sales network Coca-Cola Company has always attached importance to constantly improve t he sales network, its ubiquitous (Pervasiveness)'s marketing strategy is a conce ntrated expression of this belief. Coca-Cola bottling company's sales network in cludes business, a franchise network and the regional network of marketing chann els. Among them, Coca-Cola's marketing channel strategy, mainly in the Chinese m arket, marketing channel strategy, it is the content of this thesis research. Co ca-Cola sales network sound momentum in its pursuit of 'common prosperity' philo sophy, that is, efforts and special bottling companies, employees, partners, ret ailers, suppliers, consumers and other relevant people together to create wealth philosophy. 4. Emphasis on training of professionals Coca-Cola Company has always attached importance to personnel training. They are all over the world to establish a Training Center, School of Management , for different grades, different positions for continuous training of employees . China, for example, Coca-Cola Company in Tianjin, regarding the establishment of a training center for the entire Coca-Cola production process, technical trai ning, individual professional topics, lectures, training center launched in Tian jin. In addition, the Coca-Cola Coca-Cola was kind enough to Fudan University Sc hool of Management, co-organized an aim of professional training for senior mana gement. Coca-Cola system itself is global, so they will send employees to the U. S. headquarters and other areas, with colleagues within the Learning Exchange. 6. Coca-Cola Company's performance results Coca-Cola Company in 2003 released data showed: Coca-Cola by the end of 2002 to achieve global sales of 19.4 billion sta ndard containers (see Figure 1-1-3). By the end of 2002 the annual global per capita consumption of Coca-Cola Company's products to meet the 74 cup capacity (see Figure 1-1-4). Coca-Cola Company worldwide by the end of 2002 to reach approximately 49 ,000 employees (see Figure 1-1-4). 2 Coca-Cola Company's global development process 1. Coca-Cola's global development process Coca-Cola Company's global business development process can be divided i nto three stages: The first phase, 1923 to World War II, Coca-Cola Company to seek the ini tial stage of the development of globalization. In 1923, Robert Wu Defu was elec ted president of the company. 'Coca-Cola' can grow into the world's most popular drinks, he played a crucial role. Robert Wu Defu office was established after t he start of Coca-Cola 'Overseas Division'. In addition, he also seek to increase the 'Coca Cola' in terms of quality control, and significantly enhance the worl dwide marketing and advertising program. To 1929, 'Coca-Cola' has been staged in 28 countries, has produced 64 special operators, and in that year Coca-Cola Ove rseas Development Corporation was established specifically to deal with foreign affairs. The second phase, during World War II, is Coca-Cola Company in the globa

l high-speed development stage. To make a long time away from home the soldiers were able to drink Coca-Cola through the continuation of the American way of lif e, raise their morale, the U.S. government and the army actively sought and full support of the Robert Wu Defu promised to the world anywhere in the U.S. Armed Forces personnel for the production of 5 cents a bottle of Coca-Cola, which bega n to develop around the world Coca-Cola bottling operations, Coca-Cola products process. Along with the footprints of U.S. soldiers, to the end of World War II, Coca-Cola annual sales volume has reached more than 50 billion bottles, only Co ca-Cola bottling plants throughout the world on to a 64. The third stage, after World War II, Coca-Cola Company to adjust policie s to promote global development stage. With the end of World War II, as well as a large number of war U.S. troops home, Coca-Cola shop abroad will also benefit from the huge framework under the war by the United States Department of Defense as a munitions production of human and financial resources to maintain, into a must rely on the company the strength of independent self-supporting. Coca-Cola' s overseas markets are facing a rapid decline of the danger. In this context,?? ? on lop the company's globalization strategy, thus the level of Coca-Cola company's globalization brings a new level. To 2003, Coca-Cola company has built more than 1,200 overseas bottling plants, sales reached 19.4 billion TEUs. 2. Coca-Cola Company globalization Status: In 2002, Coca-Cola products in the global beverage market share reached 9%. Among them, the market outside North America to achieve a total sales volume of about 13.8 billion TEUs, accounting for 71% of the company's total sales. Ch ile and Mexico market share as high as 23% and 19% (see Figure 1-2-1). In 2002 Coca-Cola's worldwide market share of non-alcoholic beverages up to 18%. Among them, Chile and the Philippines is respectively 53% and 46% (see Figure 1-2-2). Coca-Cola products worldwide in 2002 the amount of per capita consumptio n has reached 74 cups (see Figure 1-2-3). 3. Coca-Cola Company's global development strategy 'Localization' is after the end of World War II, the company introduced a global development strategy of Coca-Cola is Coca-Cola to gradually get rid of geographical features, is a more extensive global consumer acceptance of the imp ortant reasons. According to statistics, for decades, Coca-Cola has been in the global use of 'localization' strategy built more than 1,200 bottling plants. Of course, the Coca-Cola's 'localization' strategy is with the business and the constant development of the market development. Initially, the localizat ion strategy is the core of '2 L 3O ', that is a long-term (Long term), the loca lization of (Local), confidence (Optimism), opportunity (Opportunity), civic res ponsibility (Obligation). Now, Coca-Cola Company has made the world's first 'loc al thinking, according to local conditions (Think Local, Act Local)' the idea, i t is about to be Coca-Cola Company will respond to the need to make the relevant parts of the decision. It is worth mentioning that, in the localization process, the Coca-Cola company's operations around the world is not entirely independent, each branch c an also be implemented between the sharing of resources, for developing successf ul products can be introduced with each other and, based on local market demand and consumer habits to adjust, so that the success of the system a good product and consumers around the world to share the maximum to maintain a 'localization' and 'international' consensus, such as the current best-selling Chinese market, 'cool children 'is the 1999 developed by the Coca-Cola Japan and to promote the success of juice drinks. 4. Coca-Cola's global development strategy Coca-Cola Company can quickly successful business around the world, main ly thanks to its effective global development initiatives. General speaking, Coc a-Cola's global development initiatives include the following aspects: 1. Coca-Cola company's successful business model special brand expansion

and business expansion skillfully combining ingenuity to create a world-class C oca-Cola 'Red World'. Coca-Cola's special business model (see Figure 1-2-4), began in the earl y twentieth century, that is, with local partners within the region signed a cer tain number of years of production and operation of concession contracts, by the ir production and sales in a given area Coca-Cola products and to assist in the maintenance and development of the brand. In this way, Coca-Cola has not only so lved the market expansion in the resource constraints, but also extremely clever realization of the brand internationalization and localization of the operation of the harmony. 2. Coca-Cola Company is extremely good at capturing business opportuniti es, promoting the development of global business enterprises, and to help Coca-C ola brand stands a century, and become the boast of the Kingdom of the world's n umber one beverage supremacy. 1989 fall of the Berlin Wall, German unification for Coca-Cola provides a good opportunity to display their attractiveness. In 1994, the U.S. government officially announced the lifting of the Vietnamese trade embargo for 30 years, within 24 hours after the Coca-Cola Company's products is sent to Vietnam! June 21, 2000 at noon, that is, the United States announced a partial lifting of sanc tions against North Korea continued for 50 years the third day of the first batc h of 9600 Coca-Cola soft drinks on by truck from China into North Korea in Dando ng. These moves to make Coca-Cola Coca-Cola to become a model for businesses to seize the commercial opportunities, but the Coca-Cola Company that this was a ve ry natural thing. Coca-Cola into North Korea, for example, Coca-Cola Company in Hong Kong, vice president, Coca-Cola operations so quickly is not to fighting fo r the chance to become the first company to trade with North Korea U.S. companie s, but just want to fight for a client only, without any political implications Or the idea of speculation, not to mention with the others taking away the marke t mean. He said: 'We do not want to compete who is wanting to do business and no thing more. ' 3. Good cooperation, good at Coca-Cola Company and the strong alliance i s to achieve its global strategy, another important measure. Alliance with the Coca-Cola Enterprises, both McDonald's, Nestle, Procte r & Gamble, the United States, Disney, and so established an internationally renowned enterprises, there are Lenovo and other new businesses. Coca-Cola with these other sectors of the advanced Enterprise Alliance, can continue to update and improve its business structure and mode of operation to expand the brand an d product range, to explore new market opportunities and access to high-growth m arkets. 4. Sports in Coca-Cola company's globalization process also has very imp ortant significance. Continued sponsorship of global sporting events, sports for consumers ar ound the world take full advantage of the tremendous influence to promote corpor ate globalization, is the Coca-Cola Company has consistently adhered to the meas ures. Coca-Cola is not only the Olympic Games and the World Cup long-time part ner, but also very keen on becoming a variety of sporting events and sports prom otional activities sponsor. At present, Coca-Cola into the sports market every y ear the amount of more than 4 billion U.S. dollars, sponsorship is also more tha n 70 kinds of sports. 5. Coca-Cola company's organizational structure