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f e r s m a n y l o c a l i z e d b r a n d s , i n c l u d i n g b r a n d s i n n e w c a te g o r i e s (75 % o f s a l e s )? P r o d u c ts o p ti m i z e df o r J a p a n m a r k e t? Ch a n g e s f o r m u l a ti o n s f o r l o c a l t e s ts (e. g ., Fa n ta Go l d e n P i n e a p p l e )Ca pabil itie s? Re s o u r c e s ? S i g n i f i c a n t r e s o u r c e s a n d a t te n t i o n d e d i c a te d to m o s t p r o f i ta b l e m a r k e t? Re s e a r c h a n d d e v e l o p m e n t ? E f f e c ti v e l y d e v e l o p s c o p i e s o f m o s t p o p u l a r l o c a l b r a n d s (e. g ., c o f f e e s a n d t e a s ) 。 w e l l res p e c te d? Cu l t u r e , v a l u e s a n d s t y l e ? Re fle c ts m a n y c h a r a c te r is ti c s o f l o c a l c u ltu r e b u t r e ta in s k e y “w in n in g ” f a c to r s f r o m U. S .c u l tu r e (e .g ., m o r e a g g r e s s i v e t h a n t r a d i t i o n a l J a p a n e s e c u l tu r e s )? Co o r d i n a t i o n m e c h a n i s m s ? A p p l i e s b e s t p r a c ti c e s i n J a p a n t o b u s i n e s s e s a n d p e o p l e m a n a g e m e n tFINGERPRINT – COKE High Low COKE IN JAPAN Capabilities ? Localizes physical assets。 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。 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 Geia 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 – more than 7,000 soft drinks are sold in Japan by 500 manufacturers ? Vending machines account for 50% of soft drink sales Company information ? Coke is the market leader in Japan ? Japan is a very profitable market for Coke (potentially the most profitable) ? Maintains 900,000 vending machines, 2x the number of petitors Products ? Coffee drinks, green tea, black tea, milk/yogurt drink ? Coke offers 5 brands with 60 flavors。56% market share。 by 1895 Coke was sold in every . state 1900s1920s ? Coke sells in Cuba, Jamaica, Bermuda, the Philippines, Puerto Rico, and Europe by 1916 ? First bottling franchise established in 1901 ? Repositions Coke as nonmedicinal product ? Coke bottle invented in 1916 ? Devotes personnel to maintaining good relations with bottlers in 1922 ? Establishes pioneering market research agency 1930s1960s ? Advertising targets minorities starting in 1950s ? World War II catapults Coke into world market, creating first . multinational ? Fanta innovated by Coke in Germany, driven by ingredient constraints during WWII ? Opens 1520 plants worldwide during 1950s ? Merges with Minute Maid in 19