【正文】 es ( 75% of s al es )? Produc ts o pti m i z e df or J apa n m ar k et? C han ges f or m ul ati ons f or l oc a l tes ts ( e. g., F a nta G o l d en Pi nea pp l e)C ap ab ilit ie s? R es ourc es ? Si g ni f i c an t r es ourc es an d a t ten t i o n d edi c a ted to m os t prof i tab l e m ar k et? R es earc h a nd d ev el opm ent ? Ef f ec ti v el y d ev el ops c op i es of m os t po pul ar l oc a l br a nds ( ., c of f ees an d t eas ) 。56% market share。P 500 index COKE SALES BY REGION $ Billions Coke has an estimated 56 percent market share in Japan and has been growing its Japanese contribution to total sales. 1993 1995 1997 1999 Other Middle and Far East Europe North America CAGR = 9% 14 21 32 33 29 33 23 15 14 22 29 35 38 23 26 13 Source: Company website COKE’S SALES BY BRAND In 1999, 63 percent of Coke’s total gallon sales came from products bearing “Coke” trademark. 63%37%Coke Other Coke has historically made equity investments in selected bottlers with the intention of financial reengineering, but is now moving away from this strategy. The pany has realized that “big is not always better” and is trying to get out of anchor bottlers in Brazil and the Philippines. Source: Annual reports。D nee ded to s uc c es s f ul l y c om pete i n no n c ar bon a ted pr od uc ts i n J a pan es e m ar k et– H i s tor i c a l l y R amp。 promotes healthy digestion) ? Calo (“functional” soft drink。 the markets prise 20% of world population ? Bottling business plays important role in profitability Source: International Directory for Company Histories Source: Annual report。 bottling alliances are typically inclusive – 17 bottlers in Japan – Creates direct distribution system to stores through bottlers ? Offers marketing, manufacturing, and investment support to partners, when needed ? Has supply alliances with McDonalds ? Spends huge resources on influencer relationships ? Partners with local agencies for marketing capabilities (., Dentsu) ? Customer pull demand in product push Japan – Uses segment marketing to understand customer behavior Organization ? Strong munity feel to Coke – Holds conventions for bottlers – Distributes bottlers magazine ? Compensation is petitive – attracts graduates from top schools ? Almost 10% of Japan office is foreigners – some degree of tension with local staff。CONFIDENTIAL This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey amp。 still has “ugly American” syndrome。 Standard amp。 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 ket in g ? Lev er ag es l oc a l a gen c i es f or m ar k eti ng c a pab i l i ti es– Al l i a nc e w i th D ents u? Aggr es s i v e l y ad v er t i s es i ts br and s– Spo ns or ed 199 7 W i nter O l y m pi c s i n J apa n? C r eates i nn ov ati v e pac k agi ng to boo s t s a l es– F i r s t to l aun c h be v er a ges i n c on v e ni ent, r ec l os ab l e P E T bottl es i n J a pan? Los es m ar k et s har e due t o s l o w r es po ns i v ene s s to m ar k et c ond i ti ons– D oes no t r eac t q ui c k l y e nou gh t o c ap i ta l i z e on ne w pr od uc t op por tu ni t i es ( e. g., w ater a nd s p or ts dr i nk s )D ist ribu t io n ? Ident i f i es an d ut i l i z es o pti m al s al es c han n el