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ession path to top positions in the pany ? Coke is currently the market leader in Japan’s soft drink segment with a 56% market share. Coke owns the number 1 local brand Geia (coffee drink). However, the pany has been a slow mover in exploiting new opportunities (. water and sports drinks) ? In the future, Coke faces the challenge of expanding its low market share peration (20%) in the Japan’s most rapidly growing segment of specialized beverages CONTENTS ? Company overview ? Japan market entry strategy ? Products ? Capabilities ? Organization PRODUCT STRATEGY Coke understands the importance of offering products that appeal to the local market, in addition to its existing, classic products. Ta il or s p ro duc tsto l oc a l ta s te s? Cre a te s n e w p ro d u ct s t h a t a p p e a l t o lo ca l cu st o m e rs fo ll o w in g le a d o f s m a ll e r lo c a l p la y e rs– Mil kb a se d d ri n ks (e .g., A mb a s a )– Co ff e e d ri n ks (e .g., G e o rg ia )– T e a d ri n ks (e .g., S a ry u sa isa i)? O ff e rs p ro d u ct v a ri e ty w h ich is im p o rta n t t o w in in J a p a n– O n ly 2 5 % of s a le s in J a p a n c o me f ro m C o k e b ra n d , re st f ro m J a p a n sp e ci f ic p ro d u ct s– P ro d u ct ra n g e in J a p a n in clu d e s o v e r 2 5 b ra n d s a n d 60 f la v o rsDe v e lo ps n e wc a te gor ies? L a u n ch e s n e w p ro d u c t ca t e g o ri e s f o r J a p a n– In tro d u ce d c a n n e d s o u p s? Ho w e v e r, d o e s n o t c o mp e t e in m a n y n e w c a te g o ri e s in t re n d o ri e n te d J a p a n– Did n o t m o v e fa st en o u g h t o c a p ita li z e o n h u g e o p p o rtu n ity in w a te r a n d s p o rts d ri n ksAl te rs p ro duc t fla v or sto l oc a l ta s te s? O ff e rs e x istin g b ra n d s in f la v o rs w ith lo ca l a p p e a l– “ Fa n ta ” b ra n d is o ff e re d a s “ Fa n ta G o ld e n P in e a p p le ” in J a p a nIn c or por a te s lo c a lbottle rs ’ a dv ic e? He e d s lo c a l b o tt le rs’ a d v ice on c a te g o ri e s to c o mp e te in– 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 ? Geia (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。 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。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。 Standard amp。 unfavorable customer reaction ? Divests entertainment business in 1987 ? Focuses on core, profitable business and dou