Coca Cola Japan: Should tea be introduced?

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

HI-C

Opened a way for new fruit juice market

Averted crisis for Japanese citrus farmers

Overproduction of Mikan

Coca-Cola bought crop to produce HI-C

Led to lasting relationship between CCJC and growers

Georgia

Lack of canned coffee product source of controversy between CCJC and Japanese bottlers

Leading brand in market segment

34% of market in 1987

Young businessmen primary target

Aquarious

Isotonic drinks

Touted as “health drink”

Female consumer targeted

Ideal for replenishing fluid and electrolytes lost through perspiration

Market Share

Commanded 90% of cola market

60% noncola carbonated market

10% remaining drink market

21.5% of Coca-Cola’s worldwide profits

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