【正文】 – In itia ll y , w a n te d t o s e ll o n ly C o ke b ra n d s (h ig h p ro f it m a rg in ) b u t J a p a n e s e b o t tle rsa d v ise d in tro d u cin g lo ca l, s p e cia li z e d p ro d u ct sCOKE’S JAPANESE PRODUCTS Coke has consistently rolledout new products tailored for the Japanese market. Source: Company website ? Georgia (coffee drink) ? Ambasa (noncarbonated lactic soft drink) ? Real Gold (carbonated herb mix flavored drink) ? Vegitabeta (fruity drink with multiple nutrients) ? Ko Cha Ka Den (blended tea – Royal Milk, Fine Aroma Straight, Garden Lemon) ? Saryusaisai (nonsugar Oolong tea) ? Saryusaisai Sokenbicha (special branded tea) ? Seiryusabo (Green and Barley teas) ? Shipla (“functional”, stress flavored drink with mulivitamins) ? Lactia (lactic, noncarbonated drink。P 500 Comp – Ltd. Coke dramatically outperformed the market as well as its petition, especially when it started divesting noncore businesses to focus on its profitable segment. CocaCola Co. Beverages index (nonalcoholic) Samp。 unfavorable customer reaction ? Divests entertainment business in 1987 ? Focuses on core, profitable business and doubles ine to $1 billion in 1988 ? Enters bottling business in mid 1980s 1990s ? Launches “Always CocaCola” theme in 1993 ? CEO articulates priorities in 1993 creation of stock holder value, brand building longterm focus ? Top 16 markets account for 80% of volume。 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 bottling and distribution managed through alliances。 Company during an oral presentation。 Company. This material was used by McKinsey amp。 w e l l r es pec te d? C ul t ur e, v a l ues a nd s t y l e ? R ef lec ts m an y c h ar ac ter is ti c s of l oc a l c u ltur e but r eta ins k e y “ w in ni ng” f ac tor s f r o m .c ul tur e ( e .g., m or e a ggr es s i v e tha n tra di t i on al J a pa nes e c u l tur es )? C oord i nat i o n m ec han i s m s ? Ap p l i es be s t pr ac ti c es i n J ap an t o b us i nes s es a nd p eop l e m ana g em entFINGERPRINT – COKE High Low COKE IN JAPAN Capabilities ? Localizes physical assets。 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 – mo