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【正文】 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。 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。 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 still has “ugly American” syndrome。 bottling and distribution managed through alliances。 ha s h ad t odev el op n e w s k i l l s i n d ev el o pi ng non c ar bo nat ed b e v er ag es? Mar k et rel ati ons ? Bo tt l er s a l l i anc es s m oot hed m ar k et e ntr y an d c ont i n ui ng o perati o ns f or Cok e i n J a pan? D i s tr i bu ti on a nd s a l esc han ne l s? R el a ti o ns hi p w i th 17 b ott l er s , o w ns 93 0 ,00 0 v end i n g m ac hi nes ( ov er t w i c e th e n um berof c o m pet i tor s )? Mar k eti ng ? D ev ote s h uge r es ourc es to a d v er ti s i ng c am pai g ns an d p r om ote d a c t i v i t i es r es ul t i n g i n s tor yand br and i m age? Al l i a nc es an d a c q ui s i t i o ns ? F r equ en tl y a l l i es w i th bot t l er s , r es ta ur ant s a nd m ar k eti ng age nc i es ( e. g., s up pl y al l i a nc e w i thMc D ona ld ’s , pa r tners hi p w ith D en i s u)O rgan iz at io n? As pi r at i o n a n d p r i or i t y ? J apa n r e gi on m ade pr i or i t y a nd s tr on ges t t al e nt w as de p l o y e d th er e ( e. g., c ur r ent CEO us edto h e ad J a pan , c ur r ent c h i ef of m ar k eti ng us e d to he ad m ar k eti ng f or J apa n)? T al ent ? T ens i on w i th l oc al s taf f ( al m o s t 10 % of J apa n of f i c e i s f or ei gne r s )? D ec i s i o n m a k i ng an dr es pon s i b i l i t i es? Mos t prof i ta bl e m ar k et a f ter the . ( 17% 2 0% of ov er a l l pr of i t) 。 Company during an oral presentation。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。 Company. This material was used by McKinsey amp。 it is not a plete record of the discussion. Discussion document December 2000 Coke Case Study – Winning in Japan R at in g R at io n alePr o d u ct? Produc t and c ate g
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