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wi th b o tt l e r s , r e s ta u r a n ts a n d m a r k e ti n g a g e n c i e s (e. g ., s u p p l y a l l i a n c e wi thMc Do n a ld ’s , p a r tn e r s h ip w ith D e n i s u )O r ganiz a t ion? A s p i r a t i o n a n d p r i o r i t y ? J a p a n re g i o n m a d e p r i o r i t y a n d s tron g e s t t a l e n t wa s d e p l o y e d t h e r e (e. g ., c u r r e n t CE O u s e dto h e a d J a p a n , c u r r e n t c h i e f o f m a r k e ti n g u s e d t o h e a d m a r k e ti n g f o r J a p a n )? T a l e n t ? T e n s i o n w i th l o c a l s ta f f (al m o s t 1 0 % o f J a p a n o f f i c e i s f o r e i g n e r s )? De c i s i o n m a k i n g a n dr e s p o n s i b i l i t i e s? Mo s t p r o f i ta b l e m a r k e t a f te r t h e U. S . ( 1 7 % 2 0 % o f o v e r a l l p r o f i t)。 still has “ugly American” syndrome。 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。 Standard amp。 McKinsey analysis HIGHLIGHTS OF COKE’S BOTTLING BUSINESS 581527Breakdown of worldwide unit case volume produced/distributed Bottlers owned and controlled by Coke Independently owned bottlers Bottlers in who Coke has noncontrolling ownership Percent Historically, Coke invested in undervalued bottlers worldwide, provided financial and managerial support, and improved operating efficiencies which generated increased sales。 helps build healthy bones) ? Perfect Water (mineral water) CONTENTS ? Company overview ? Japan market entry strategy ? Products ? Capabilities ? Organization COKE CAPABILITIES IN JAPAN Coke leverages local alliances to gain capabilities. The pany also offers marketing, manufacturing, and investment support to partners when needed. M a r ke t ing ? Le v erag es l oc a l a ge nc i es f or m ar k et i ng c a pa b i l i ti es– A l l i a nc e wi th Den ts u? A gg r es s i v e l y ad v ert i s es i ts b r an ds– S po ns ored 19 9 7 W i nt er O l y m pi c s i n J ap a n? Cr ea te s i nn ov at i v e pa c k ag i ng t o bo os t s a l es– Fi r s t to l au nc h b e v era ge s i n c on v e ni en t, r ec l os ab l e P E T b ot tl es i n J a pa n? Lo s es m ar k et s ha r e du e t o s l o w res po ns i v en es s t o m ark et c on di ti on s– Doe s n o t r ea c t q ui c k l y e no u gh t o c ap i ta l i z e o n ne w prod uc t op po r tu ni t i es (e. g. , wat er a nd s p orts d r i nk s )Dis t r ibut ion ? Id en t i f i es a n d ut i l i z es o pt i m al s al es c ha nn el– V en di ng m ac hi ne s a c c ou nt f or ov er 50% o f a l l J ap a ne s e s of t dri nk s al es 。 D e x p erti s e h as f oc us ed o n trad i t i on al c ar bo n at ed d r i nk s– A t pres e nt h as o n l y 20 % m ar k et s ha r e i n s pe c i al i z ed b e v era ge s i n J ap anJapan is Coke’s most profitable market after the . Coke derives about 1720% of its overall profit from Japan. Source: Wall Street Journal, January 14, 1999 8020Japan ROW Percent JAPAN CONTRIBUTION TO COKE’S PROFITS IN 1999 CONTENTS ? Company overview ? Japan market entry strategy ? Products ? Capabilities ? Organization Structure Decisionrights Talent Culture ORGANIZATIONAL LEVERS ? Realignment of anization in January 2020 – Increases focus on local business units – R