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Author: from:, published on May 25th, 2005.
Enterprise introduction: Coca-Cola beverage was prepared by a pharmacist in Atlanta, USA in 1886, and it has a history of 1 10 years. During the period of 1999, the company's beverage sales were Coca-Cola Company, which was the largest beverage company in the world at that time. During the period of 1998, the brand value reached $83.845 billion, ranking first in the world for three consecutive years. Turnover1881million dollars, ranking 201in the world; The profit is 3.53 billion US dollars, ranking 25th in the world; Assets1.91.40 billion USD, ranking 295th in the world; There are 29,500 employees, ranking 359th in the world.
Coca-Cola's success is not unrelated to its gradual foreign investment. At present, 70% of its output value and 80% of its profits come from foreign markets. 1927 Established a bottling plant in Shanghai, China, with an annual output of 1 10,000 cases of Coca-Cola. His idea is to quickly open the China market by following three interlocking three-way principles: "everywhere", "the first choice in mind" and "value for money".
1. Product analysis:
Coca-Cola is a carbonated beverage, which is mainly composed of water, syrup, carbon dioxide, phosphoric acid, caramel and spices (including caffeine). The composition has hardly changed. Function: It can make people feel comfortable and reflect the so-called consumption fashion.
Sprite, carbonated drinks, sugar, spices or drinks.
Keywords Fanta, carbonated beverage, tangerine flavor,
Eye-catching series, fruity carbonated drinks, the taste is relatively more suitable for China people.
Although there are many beverage manufacturers and various products in China, the absolutely excellent product quality of Coca-Cola Company contributes a lot to its profits.
Carbonated drinks have their unique cooling function, which is also a big reason why people choose to buy delicious products in midsummer.
According to the survey, the carbonated beverage markets in Europe and the United States are saturated, and Asia is being continuously developed into a new and most potential market. It is reported that since 2000, the international carbonated beverage market has gradually declined. With the continuous listing of fruit juice drinks, tea drinks and dairy products, carbonated drinks with unlimited scenery in the past are changing into bright smiles. People are increasingly ignoring the extremely simple cooling effect of carbonated drinks and deliberately pursuing the health care and nutritional value brought by drinks. When people finally realize the essence of carbonated drinks, sugar+water+essence+pigment is just the change of body temperature, and the affluent life of carbonated drinks begins to decline irreversibly.
2. Market analysis
Coca-Cola was imported at the beginning of its investment in China. At that time, the income level of ordinary people in China was very low, and the sales volume was naturally very small. However, since Coca-Cola started to invest in China on 1979, it has a preconceived advantage, which is also the reason why Coca-Cola began to make profits after operating in China for more than ten years. Coca-Cola has been operating in China for more than ten years and is widely known as a brand-name product for mass consumption. After the income of ordinary people in China increases, they will naturally have more subjective preferences for their familiar products. In addition, with the continuous investment, the mainland has cultivated a large number of raw material suppliers, including cans manufacturers, with its capital and technology, laying a good foundation for future development in China.
With the improvement of residents' consumption level, Coca-Cola has entered the lives of ordinary people, especially becoming the consumption fashion of the younger generation. Advertising, various promotion methods and activities have expanded their influence in China and cultivated a group of brand consumers.
The timely launch of eye-catching fruit-flavored beverage series further expanded the share of the beverage market, diversified products brought a broader market, and more people bought Coca-Cola products.
Coca-Cola is a household name in China, but the market situation in underdeveloped areas of China is not very good. Take the operation of Taiyuan Coca-Cola Company as an example: Until April 20th to May this year 10, during the golden season of soft drinks market, the share of all products of Taiyuan Coca-Cola Beverage Co., Ltd. in Shanxi market was only about 9%, and the current Taiyuan Coca-Cola Beverage Co., Ltd. is still in a state of semi-operation and semi-suspension.
3. Production cost
Take canned coca-cola as an example;
Cost of cans: cans are provided by professional cans manufacturers, with stable supply and price to be determined.
The sales of cans account for 30% of the total Coca-Cola beverages. Many people are used to consuming Coca-Cola canned drinks and will not change other forms.
In addition, there are plastic bottles, glass bottles, or sold in bulk.
Raw material cost: water, carbon dioxide, spices, phosphoric acid, caramel, etc.
The cost of these raw materials is low. At present, the production of Coca-Cola in China has achieved 65,438+000% localization, so the cheap raw materials in China contribute a lot to its cost reduction.
Production equipment costs: filling equipment, disinfection equipment, batching equipment, packaging, etc.
Electricity and water charges
Employee wages
production cost
In the process of sales, Coca-Cola Company makes use of the existing quite complete sales network for sales.
The transportation of products will undoubtedly increase its cost, so Coca-Cola has set up a number of branches to carry out filling sales in various places, thus reducing the transportation cost to a considerable extent.
Advertising expenses: a large number of TV advertisements, a large number of print advertisements, a large number of related activities and sponsorship activities.
It is reported that more than 90% of Coca-Cola's profits are spent on advertising. Whether this data is true or not, compared with the investment in advertising, the huge economic returns it brings are acceptable.
4. Policy issues
We believe that Coca-Cola's foreign policy philosophy is: first, establish a foreign franchise system, integrate into local culture, and wait for opportunities to occupy its market.
(1) The decision-makers of Coca-Cola believe that "the integration of brand and local culture" is a long way to become a leader in the beverage market in China. To this end, Coca-Cola launched a large-scale integration action. Realize the localization of production raw materials, realize the localization of management talents, set up special institutions to study China folk customs, build local brands in China, invite celebrities loved by Chinese people to advertise, donate education and sponsor sports on a large scale ... all these make Coca-Cola quickly integrate into the lives of China people. At the same time, it quickly pushed Coca-Cola's market share in China to a peak.
(2) The China government limited the number of bottling plants invested by Coca-Cola Company in China. 1993, Coca-Cola Company signed a memorandum of cooperation with the former Ministry of Light Industry of China, willing to cooperate for a long time. This is actually to ensure the market share of national industrial products by limiting their production scale. Coca-Cola Company can do nothing about this protection policy. At the same time, the China government has also put forward some economic requirements as the conditions for Coca-Cola to enter the China market. For example, the memorandum with the partners of American "Two Music" (Coca-Cola and Pepsi-Cola) stipulates that the filling enterprises in China should produce "Two Music" at the same time, and the filling volume should be no less than 30%. These are the investment costs brought by national policies.
5. Competitors:
Coca-Cola's main competitors are other existing competitors and potential competitors in the beverage market. Among them, the existing competitors include foreign competitors and local competitors. Pepsi is Coca-Cola's biggest competitor. Now, the two companies have formed an oligopoly in the cola beverage market together. For these two oligarchs, the competition between them is inevitable. However, because the products of the two companies have their own characteristics and have their own consumer groups. The existence of monopoly determines that these two consumer groups are relatively stable. Coca-Cola's biggest potential competitors should come from other beverage manufacturers, that is to say, perhaps one day, other beverages may replace or partially replace the market of this beverage, which will bring great influence to the companies that produce Coca-Cola. The current situation is that in five cities such as Hangzhou, both music companies have certain comparative advantages, and comparative advantages refer to their respective average market conditions. Pepsi-Cola is dominant in five cities including Shanghai and Wuhan, while Coca-Cola is dominant in seven cities including Beijing and Tianjin.
Local competitors: mainly very cola and saffron cola. However, in the eyes of people in China and even the whole world, Coke has already precipitated a culture-American culture. As long as coke is mentioned, people will naturally think of American or western culture. So under the attack of Liangle, China's carbonated drinks were defeated again and again.
Current market distribution:
Market penetration rate% 2000 1999
Coca Cola 85 83.9
Pepsi 67.9 65.5
Very cola 15 12.8
Huang Fen cola 10.6 7
6. Risks:
Coca-cola, which focuses on the beverage industry, puts all its energy into its main business, so that they can do their main business well in order to keep improving. When developing any beverage, they can use the original brand sales channels, so that new products can open the market quickly and save costs greatly. Therefore, in terms of the width of product mix, Coca-Cola's product mix is very simple, so its operational risk in the beverage market will be very small: the market is quite mature, and consumer groups already exist, especially many consumers will not change their tastes casually, which greatly reduces the sales risk.
The only thing to worry about is the emergence of accidents, business accidents, the impact of the world economic situation, war or other force majeure, but this is often inevitable.
7. Standardization and diversification of products:
After entering the China market, Coca-Cola has been focusing on the standardized production of Kolo and Sprite.
Main reasons for supporting product standardization:
1. Production economy. Companies can export their products overseas without modification, or sell the same product in different target markets at the same time, thus increasing the production scale of products and reducing the production cost of unit products.
2. The economy of product development. The company provides the same products to all target markets, which can reduce the development cost of unit products.
3. Marketing economics. The standardization of the company's products provides a premise for the standardization of product sales and promotion, which is conducive to reducing the sales cost of unit products.
4. The image of the company's products. Producing and selling standardized products in many target markets is conducive to creating world-famous brands and making customers deeply impressed by the company and its products.
5. The demand of international consumers. Diplomats, scientists, businessmen and tourists who cross national boundaries want to buy their favorite brand-name products wherever they go. The standardization of the company's products can enable them to identify and buy their favorite products in different markets, and at the same time increase the company's profit opportunities.
Main reasons for supporting product diversification:
1. The use conditions of the products are different. Different countries have different natural environment and infrastructure, which requires companies to improve the performance of their products according to the conditions of the target market.
2. The income of residents is almost the same. The income of residents in different countries is almost the same, or even very different. Therefore, companies should diversify the weight, grade and packaging of products to meet the purchasing power of residents in different countries.
3. Consumers have different hobbies. In the target market, consumers have different hobbies due to differences in cultural background, economic conditions and age. Companies should do what they like and increase the types and varieties of products.
4. The laws and regulations of the government are different. For ideological, social, cultural and economic reasons, governments of various countries often impose different restrictions on the types, performance and packaging of products. In this way, the company's products must vary from country to country.
Overseas investment has different purposes. Companies invest in some countries in order to occupy the local market. Therefore, only by localizing the products of subsidiaries can we realize the company's overseas investment.
Blindly pursuing the standardization of marketing strategy is easy to lose potential markets and favorable opportunities; And blindly pursuing the diversification of marketing strategies will increase the cost and expense of unit products. This dilemma often makes multinational companies helpless. However, at any time, companies should not blindly go to extremes. The company should carefully weigh the advantages and disadvantages of marketing strategy standardization and diversification, choose the best scope and degree of the combination of marketing strategy standardization and diversification, foster strengths and avoid weaknesses, and maximize the overall profit of the company.
8. Brand strategy:
There was once a widely circulated story. A traveler who traveled around the world came to the desolate hinterland of the Sahara desert and said to the driver, "Can we go to a place where there are no signs of modern civilization?" The driver is puzzled. The tourist added, "That's where you can't see Coca-Cola." The driver shook his head and said it was impossible. At the same time, Interbrand, a global brand management consulting company, cooperated with Businessweek to publish 100, the most valuable brand in the world, on August 8th, 2002. Coca-Cola beat Microsoft, IBM, Nokia and Mercedes-Benz and topped the list again. The Coca-Cola brand announced this time is worth 69.64 billion US dollars, slightly higher than last year.
In China, Coca-Cola also showed its strong brand value appeal. According to a national urban consumer survey report released by CCTV survey and consultation center, Coca-Cola ranks first among similar products, and is ahead of similar products in market share, best brand recognition and popularity, setting an unbeaten record for six consecutive years.
Woodruff, the former boss of Coca-Cola, once boasted that even if all the assets of Coca-Cola were burned overnight, only the word Coca-Cola could create a powerful enterprise. Such a Haikou is based on confidence in brand value, not bragging.
The following question is, how did Coca-Cola gain such a solid brand foundation in the world? Below, I will analyze the marketing strategy of Coca-Cola in China.
First, forward-looking price strategy.
Coca-Cola struggled in China for more than ten years before making a profit. I believe some people don't believe this report, but it's true. Why has Coca-Cola been operating at a loss for more than ten years in China? Let's illustrate the problem with figures. Coca-Cola Company entered the China market in 1979. At that time, China was still in the planned economy stage, and people's living standards and wages were at a very low level. It is hard to imagine that people will be in the mood to worry about dinner while buying a bottle of such a beverage containing 99.6438+0% carbonic acid, syrup and water. Specifically, at that time, the monthly salary of an ordinary worker in China was only about 10 yuan, while the price of Coca-Cola at that time was 1 yuan and 50 cents a bottle. That is to say, a worker worked hard for a month, and as a result, he could get more than a dozen bottles of drinks. Is this still a drink? In people's minds, it has been completely a luxury. This drink may only be seen at first-class banquets in those big hotels. Coca-Cola Company chose this time to enter the China market, but it has good intentions. What they saw was not the insignificant market in China at that time. They are waiting for the people's living standards to improve significantly, and they also know that this day will come. Therefore, since Coca-Cola entered the China market, its price has remained basically unchanged. At present, the average monthly income of each city is about several hundred yuan, which is not high, but the price of Coca-Cola is only two yuan and fifty cents. In other words, you can buy luxury goods that were originally only available at banquets with less than 1% of your income. Doesn't this satisfy people's consumption psychology to a great extent? At the same time, in people's minds, Coca-Cola has changed from easy to get, affordable and happy to buy, to ubiquitous, the first choice in people's minds and value for money. Isn't such touching "customer loyalty" the unparalleled wealth of Coca-Cola?
Second, the advertising strategy of painstaking management.
Woodruff, the former boss of Coca-Cola, famously said, "Coca-Cola is 99.438+0% carbonic acid, syrup and water. If there is no advertisement, who will drink it? " 1886, the turnover of Coca-Cola was only $50, but the advertising fee was $46. 190 1 The annual turnover is 1.2 million USD, and the advertising fee is 1.0 million USD. Today, Coca-Cola's advertising costs exceed $600 million a year.
How did Coca-Cola Company open the China market step by step through advertising? First, let's recall Coca-Cola's advertisement of conquering the world in China. This is an early advertisement, which most people may not know. But if everyone knows its content, I think the purpose of Coca-Cola Company is self-evident. The advertisement starts with a child holding a bottle of Coca Cola, then a young man, and then the camera looks into the distance. A large group of men, women and children, each with a bottle of Coca-Cola, sang together. Through this advertisement, Coca-Cola Company tries to explain that Coca-Cola belongs not only to the United States, but also to children, and it belongs to everyone. At the same time, it gives a hint that everyone likes Coca-Cola. If you don't like it, you are a lonely person. It can be seen that this is in line with the special psychology of Le China consumers. We have to admire that Coca-Cola keeps a clear head while it is popular all over the world. Instead of stubbornly spreading and selling American ideas, it adopted the strategy of divide and rule for different regions, different cultural backgrounds, different religious groups and different races.
Secondly, Coca-Cola Company often seizes some special opportunities and spares no effort to promote its own brand. For example, July 200 13 13 was a sleepless night for many people in China. When China/KLOC-300 million people were eagerly looking forward to Samaranch's word "Beijing", several delivery trucks of Coca-Cola Company galloped in the streets of Beijing, and their destinations were located in several large supermarkets in the southeast and northwest of Beijing.
Therefore, Coca-Cola is not just a single "functional product" but a "cultural product" only when advertising makes the market work.
Finally, decision analysis:
(1) Successful business strategy: 1 is the belief of "more output with less input" and the way of foreign investment led by this belief-using other people's resources to expand the market and brand of Coca-Cola can not only better avoid investment risks, but also get the best income with the least investment and expand the market at the fastest speed. 2, is the pioneering spirit, dare to be the first "crab eater" in the world. China is a huge developing market. It has decisively intervened in the beverage industry in China and achieved success. Furthermore, western strategy: Coca-Cola formulated China strategy as early as 65,438+00 years ago, and "westward advancement" is "in progress" rather than "future tense" for Coca-Cola. In fact, Coca-Cola has established its own bridgehead in Chengdu, Xi and Kunming. In another year or two, Coca-Cola's factory in Xinjiang will also be launched, and everything is going according to the established policy.
(2) Successful brand strategy: Grasping people's consumption psychology and successfully controlling people's thoughts are the essence of Coca-Cola's success in the world and China.
(3) Successful product strategy: Coca-Cola believes that the best opportunities for performance growth are in the fields of health, fitness, water and drinks and refreshing drinks, namely tea, water, coffee, orange juice and energy supplement drinks. However, he has gone through a short detour-he has invested in film industry, planting industry, aquaculture and so on. , but all ended in failure. Therefore, Coca-Cola concentrates on "selling drinks", so that their main business continues to improve. But he didn't just stick to a single product, but put this main force into his work: in the development of China in the past 20 years, Coca-Cola has rapidly developed from a single brand "Coca-Cola" to a brand group including international brands such as Coca-Cola, Sprite and Fanta, and local brands such as Tiandi, Eye-catching and Jinmeile.
(4) Simple and practical split sales strategy: "Selling products to make money is the last word". At present, Coca-Cola Company has established 23 bottling plants and 27 production bases in China, and also established a concentrated solution production plant in Shanghai. Except for a small amount of essence, 98% of products and packaging materials have been localized. This localization of production and processing undoubtedly greatly reduces the cost of products. In addition, its sales methods are very flexible, such as cooperation, joint venture, delivery only, etc ... Some mountainous areas use camels to transport Coca-Cola goods.
(5) Unique market forecast: In Coca-Cola's view, the whole China market is divided into many blocks, of which the rural market is an important part, and it is also doing its best at present. Coca-Cola Company believes that there is a typical investment efficiency problem in beverage consumer goods, that is, the funds invested in coastal cities are more useful than those invested in rural areas, because consumers in coastal cities have purchasing power, but they also have many competitors, so consumers can easily refuse to buy promotional activities. On the contrary, due to the lack of competitors in underdeveloped areas, some promotional methods are more efficient in rural areas or second-tier cities, because consumers here are not "immune" to promotional measures.