【正文】 senior Japanese experience glass ceiling ? Japan seen as strong progression path – CEO used to head Japan Product ? Adapts products to local markets – Almost 10% of revenue es from Japanspecific products – Brands include Georgia Coffee, Sokenbicha, and Aquarius – Bottlers guided Coke into developing localized products ? “Fast follower” strategy – quickly followed lead of smaller local players to enter tea and coffee drinks ? Coke maintains full control over product content ? Launches new types of products in Japan (., canned soup drink) Middle Far East Europe North America Sales $ Billions 1993 1995 1997 1999 Performance/background Levers for success Other Market information ? Market is very petitive – more than 7,000 soft drinks are sold in Japan by 500 manufacturers ? Vending machines account for 50% of soft drink sales Company information ? Coke is the market leader in Japan ? Japan is a very profitable market for Coke (potentially the most profitable) ? Maintains 900,000 vending machines, 2x the number of petitors Products ? Coffee drinks, green tea, black tea, milk/yogurt drink ? Coke offers 5 brands with 60 flavors。 75% of brands are Japanese Competitors: ? Kirin, Ito En, Suntory CST DCS ? Eric Friberg*, Todd Guild*, Mark Loch, Hirokazu Yamanachi* 33 32 21 14 23 15 33 29 34 29 22 15 25 23 38 14 CAGR 9% * Has worked on Japan studies CONTENTS ? Company overview ? Japan market entry strategy ? Products ? Capabilities ? Organization COKE – COMPANY BACKGROUND ? Founded 1886 in Atlanta, USA ? Number of global employees: 37, 400 ? CEO: Douglas N. Daft (Australian) ? Most senior manager for Japan: Mary Minic (President, Japan) ? Key products: carbonated and sports drinks, juices, tea, coffee ? Market cap: $151 billion (as of November 13, 2000) ? Key industry focus: beverages – No. 1 soft drink pany globally – 50% global market share – Owns two of top three global brands (No. 1 CocaCola classic, No. 3 Diet Coke) – Market leader in soft drinks in Japan 56% market share。 petes with 500 manufactures selling over 7,000 drinks ? Global petitors: PepsiCo, Cadbury Schweppes, Nestle ? Competitors in Japan: Kirin, Ito En, Suntory ? Owns 40% stake in CocaCola Enterprises (world’s largest bottler) COMPANY EVOLUTION Coke has been an international pany since the start of the century, but WWII made it a true multinational. Coke entered the bottling business in the mideighties. Recently, the pany has seen strong profits from financial reengineering in its bottling segment. 1800s ? Invented in 1886 in Atlanta, USA, as a headache, indigestion, and exhaustion remedy ? Major advertising started in 1892。 by 1895 Coke was sold in every . state 1900s1920s ? Coke sells in Cuba, Jamaica, Bermuda, the Philippines, Puerto Rico, and Europe by 1916 ? First bottling franchise established in 1901 ? Repositions Coke as nonmedicinal product ? Coke bottle invented in 1916 ? Devotes personnel to maintaining good relations with bottlers in 1922 ? Establishes pioneering market research agency 1930s1960s ? Advertising targets minorities starting in 1950s ? World War II catapults Coke into world market, creating first . multinational ? Fanta innovated by Coke in Germany, driven by ingredient constraints during WWII ? Opens 1520 plants worldwide during 1950s ? Merges with Minute Maid in 1960 ? Merges with Duncan Foods in 1964 ? Acquires Belmont Springs Water Co. in 1969 ? Expands product line in response to PepsiCo petition in 1960s – Fanta in . in 1960 – Sprite, Tab, Fresca introduced – Diet versions introduced 1970s1980s ? Acquires AquaChem (desalting machines) in 1970 ? Acquires Taylor Wines and other w