unr 2 | International marketing 120 Ceres VeCT ee Before you read What are the top soft drink brands in your country? Which are international and which local? Reading Read this article from the Financial Times by jonathan Birchall and do the exercises that follow. Coca-Cola targets more $1bn China brands Jonathan Birchall Coca-Cola already owns two of China's thre best-selling sparkling Aeinks but by 2020 it wants to have four more Sin brands in what has 5 becom is third-largest market by rovenue. The ambitious target reflects Coca-Cola's confidence that its long-term plans to more than i= ple sales in China are secure both vo from domestic rivals and from potential politcal pitfalls. Coca-Cola's revenues have grown bya compound annual rte of 19 per cent over the past five years and it 1s elaims to be widening its lead over its rivals. says thas double Pepsi- Cola’ total sales in China, supported in particular by its stronger presence in sil rinks, water and juices. The 2» company has also continued (© ‘expand its range of non-carbonated {rinks where it competes with both Jol and international brands thas unched Glaceau enhanced 2 water, as well as its frst dairy and juice ‘drink, Minute Maid Super alpy Milky, entering a 1 billion cage market where competitors include Wahaha, Danone's former joint venture partner, Coke and Sprite already each sell more thant Silbn annually and Coca-Cola is forecasting that its Yuan Ye tea brand and its lee Dew botled water — both launched last year ~ will also be $b China brands by 2020, inspite of facing strong competition from ‘Taiwaa’s Tingyi, which has about half the total ready-to-drink tea marker. In terms of political challenges, the world’s largest soft drinks company suffered a blow this March ‘when China’s ministry of commerce blocked its planned $24bn takeover ‘of China's largest juice company, Huiyuan, Since the setback, Coca Cola has continued the kind of high-level commitment to China ‘demonstiated by its sponsorship of the Beijing Olympics, recently announcing plans to invest $2bn in © Pearson Education Limited 2011 PHOTOCOPIABLE (Cina over the next three yeas Mubtar Kent, chief executive, 5 noled that at a meeting with Wang Qishan, China’s vice-premler for cceonontic affairs, Coca-Cola had ‘eon praised for being the only US ‘company to have 2 pavilion at last «@ year's Shanghai World’s Expo. Mr ‘Kent says he regards the potential obstacles to Coca-Cola’s China ambitions coming from broader politcal pressures 2s China's growth 4 could sil fall short of expectations He does aot see this, including the ‘threat of potential nationalist reac~ tion to Coca-Cola's US brand idemtity. “Everyone's walking ve around with Nikes, and drinking Coke and wearing Oakleys. I think there's a difference between that and the view of the US — people don’t ‘worry ats consumer level, ata brand + level,” says Doug Jackson, head of Coke's China business unit.wwe verve vevuvvuvve vv vv vv eevee Kee 1. Look through the whole article and find all the brands and company names mentioned. 2. Now look at your answers to question 1 and find: 4) two US sof drinks companies, 8) a French company the article daes nat specifically say that it is French. ©) a Chinese company with which the company above had a joint venture 4) a Chinese juice company. ©) aTaiwanese company. f) two brands of water ®) a brand oftea, 1) a brand of favoured milk drink 1) two non-drink brands, used here in their plural forms. 3. Look at lines 1-23 and say ifthese statements are true or false. 2) Coca-Cola owns the three best-selling sparking Arik in Chin. 8) Coca-Cola makes more than a billion dollars in sales n China from each ofthese brands. ©) China is Coca-Cola's biggest overseas market. 4) Coca-Cola's amis to sell more than four times as much in China as it does now. ©) Coca-Cola's sales in China have grown by nearly afith each year for the past Five years. 4) PepsiColas sales in China are more than hal of Coca-Cola's. 8) Coca-Cola until now has only sold Coke in China. 4 Match the verbs 1~7 with the things that they go with a-g in lines 24-53. 1 enter a) ablow 2 launch ) atakeover 3. suffer ©) acommitment 4 block ©) brands 5 continue ©) plans 6 demonstrate ) acommitment 7 announce @) amatket pworocoriasie © Pearson Education Limited 2011 TEXTBANK >» UNIT2 5. Now match the verbs 1~7 in Exercise 4 with their meanings i-vi, as they are used in the article. D start seling {i give information about ti) prevent 1) negatively experience W) show i) gointo vil carryon 6 Choose the best alternative summary for the final paragraph. Coca-Cola chief executive thinks that. a) Coca-Cola will definitly suffer if here is nationalist resistance t the company's future expansion in China. 3) the design of CocaCalas stand atthe Shanghal ‘World Expo was highly appreciated bythe Chinese © people thinkin terms of brands rather than nationalities, and Coca-Cola will not unduly suffer ‘rom nationalist resistance to foreign companies. Over to you 1 How many ofthe brands mentioned in the article do you know? How strang ae they in your country? What do you think of them? Over to you 2 Has there been resistance to particular foreign brands in your country because oftheir national origins? ‘ive some background and explain how this resistance came about.