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Coca Cola

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Coca Cola
Coca-Cola Japan: Should tea be introduced?
Outline of Report
Coca-Cola Background
Japan and its culture
Japan’s Beverage and Tea Market
Coca-Cola Japan and its success
Coca-Cola Product Line
Competition
SWOT Analysis
Research and Development
Marketing Plan and Recommendations

Coca-Cola Company Background
Founded in 1886 by John C. Pemberton
World’s leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups
More than 300 brands
Corporate Headquarters in Atlanta with local operations in over 200 countries around the world
Two Business Sectors
North American
Coca-Cola USA
Coca-Cola Ltd. = Canadian Operations
Coca-Cola Foods = juice drinks
International
Greater Europe
Latin America
Middle and Far East
Africa
Japan in the 1980s Average Exchange Rates, Japanese Yen/US Dollar, 1970-87 Japanese Beverage Market Japanese Tea Market
Places to Sell
Grocery stores
5.1% annual average growth rate
Convenience stores
15.8% annual average growth rate
Restaurants
Vending machines
The Coca-Cola (Japan) Company
1957, established in Tokyo
Due to trade regulations, focus attention on:
Local connections
Competitive environment
Japanese culture
1961, trade deregulation policies
Form strategic alliances with powerful Japanese corporations which allowed local acceptance of the product
1965, Coca-Cola best-selling soft drink in Japan

CCJC Success
Two main factors contributing to leadership position
Direct marketing approach
Distribution system

“From the TV set to the store shelf”

Direct Sales Concept
Stiff Resistance
Wholesaler concept

Turnaround
Bottlers’ enthusiasm
Strong Coca Cola sales

Key Element
In Principle
Bottlers acted as independent corporation
Sourced raw materials locally
Complete all production on site

CCJC unified bottlers through
Aggressive Monitoring
Marketing Strategies
New Product Development
Japan’s Favorites
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