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 that
'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 spices cocoa leaves,
'cola' is the fruit of the cocoa component removed. Coca-Cola; trademark has not
changed over the past century.
In 1892, businessman Hom Chandler in 2300 U.S. dollars to buy all the secrets
of Coca-Cola franchise, and the creation of Coca-Cola Company. Under his
leadership, less than three years Bianba Coca-Cola extended to across the country. In
1899, Benjamin Franklin Thomas andղķʿ??̘ Whitehead signed with the Candler
regional development in the United States most of the bottling business contracts.
Since then its development momentum will be unstoppable in 1904 developed into a
120 bottling 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 know that it
can also be a Coca-Cola' under the direction, creating the world's The well-known
curve shape glass bottle.
In 1919, Hom was spilled to 25 million U.S. dollars, will be sold to Coca-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 leader and
pioneer in its own world's best-known of the four top five soft drink brands: Coca-Cola,
Diet Coke , Fanta and Sprite. A total of more than 200 countries around the world and
regions, consumers can enjoy the company locally to provide 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 information to
investigative bodies AC Nielsen released a research report 'Towards --- 1 billion in
today's global brand recall'. The report shows that in the international 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 March 2001 in the past 12
months, the global sales of more than 15 billion U.S. dollars, 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 Diet 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 beverage products; drinking water products; a caffeine
and vitamin functional beverages; healthy and nutritious juice and milk beverage.
To 2003, Coca-Cola Company has a total of more than 370 brands (Attachment:
Brand schedules, data sources WWW.Coca-cola.com). In addition to Coca-Cola, the
other three major international brands and many other brands under the product
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 advantage of this brand
structure is the three-line brands have maintained a relatively reasonable distance of
the brand, enabling them both mutual support and protection, one either prosperity;
they can be appropriate to avoid the risk associated 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 order
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 business
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 remains valid
under the premise of profit in the world within the framework of expanding 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 drinks.
3. With bottling partners to improve product profitability and productivity of the
system;
Business system is a special bottling Coca-Cola Company to achieve its goal of
globalization, one of the principal means, therefore, attention and maintain its bottling
partners in the operation of the state, but also ensure that Coca-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, but
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-win' 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 interlocking
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 Distribution
rate, to ensure that consumers can buy, the total can buy; happy to buy
(ACCEPTABILITY): it is striving to enable consumers to accept and like the Coca-Cola
Company's products, willing to buy and drink it.
As the market and consumers in the development and changes in consumption
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 strategy 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 require
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 to ask the
Coca-Cola Company's products must penetrate into every corner of the market,
allowing consumers to at any time, anywhere, can easily buy. The hearts of 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 has allowed
Liu, become a preferred product or brand.

5. Coca-Cola company's operating philosophy 经营理念

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 product itself is
flawed, will eventually be discarded by consumers, so Coca-Cola Company has
always attached great importance to product quality management and quality
assurance. Such as the current Coca-Cola bottling plant in the global promotion of
TCCQS (The Coca-Cola Quality System) system is fully embodies this concept 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 profitability
of the core of one of the factors, therefore, Coca-Cola Company has always attached
importance to work of production and operation of efficient and make improvements.
Coca-Cola Company to enhance work efficiency of the methods include 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 the
sales network, its ubiquitous (Pervasiveness)'s marketing strategy is a concentrated
expression of this belief. Coca-Cola bottling company's sales network includes
business, a franchise network and the regional network of marketing channels. Among
them, Coca-Cola's marketing channel strategy, mainly in the Chinese market,
marketing channel strategy, it is the content of this thesis research. Coca-Cola sales
network sound momentum in its pursuit of 'common prosperity' philosophy, that is,
efforts and special bottling companies, employees, partners, retailers, 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 training, individual
professional topics, lectures, training center launched in Tianjin. In addition, the Coca-
Cola Coca-Cola was kind enough to Fudan University School of Management, co-
organized an aim of professional training for senior management. 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 standard
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 into
three stages:
 The first phase, 1923 to World War II, Coca-Cola Company to seek the initial
stage of the development of globalization. In 1923, Robert Wu Defu was elected
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 the 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 worldwide 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 Overseas Development
Corporation was established specifically to deal with foreign affairs.
The second phase, during World War II, is Coca-Cola Company in the global
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 life,
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 began 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 Coca-Cola bottling plants
throughout the world on to a 64.
The third stage, after World War II, Coca-Cola Company to adjust policies 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,??̘Ω?· �one to develop
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. Chile 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 consumption 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 important 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 localization strategy is
the core of '2 L 3O ', that is a long-term (Long term), the localization of (Local),
confidence (Optimism), opportunity (Opportunity), civic responsibility (Obligation).
Now, Coca-Cola Company has made the world's first 'local thinking, according to local
conditions (Think Local, Act Local)' the idea, it 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 can also be
implemented between the sharing of resources, for developing successful 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, mainly
thanks to its effective global development initiatives. General speaking, Coca-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 Coca-
Cola 'Red World'.
Coca-Cola's special business model (see Figure 1-2-4), began in the early
twentieth century, that is, with local partners within the region signed a certain number
of years of production and operation of concession contracts, by their 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 solved 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 opportunities,

promoting the development of global business enterprises, and to help Coca-Cola
brand stands a century, and become the boast of the Kingdom of the world's number
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 sanctions against North Korea
continued for 50 years the third day of the first batch of 9600 Coca-Cola soft drinks on
by truck from China into North Korea in Dandong. 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 very 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 for the chance to become the first company to
trade with North Korea U.S. companies, 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 market mean. He said: 'We do not want to compete who is wanting to
do business and nothing more. '
3. Good cooperation, good at Coca-Cola Company and the strong alliance is to
achieve its global strategy, another important measure.
Alliance with the Coca-Cola Enterprises, both McDonald's, Nestle, Procter &
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 and product range, to
explore new market opportunities and access to high-growth markets. 4. Sports in
Coca-Cola company's globalization process also has very important significance.
Continued sponsorship of global sporting events, sports for consumers around
the world take full advantage of the tremendous influence to promote corporate
globalization, is the Coca-Cola Company has consistently adhered to the measures.
Coca-Cola is not only the Olympic Games and the World Cup long-time partner,
but also very keen on becoming a variety of sporting events and sports promotional
activities sponsor. At present, Coca-Cola into the sports market every year the amount
of more than 4 billion U.S. dollars, sponsorship is also more than 70 kinds of sports.
5. Coca-Cola company's organizational structure