Why is Coca Cola so successful in Japan?

Brand name – Strategy

A. History and Development proves the biggest brand name.
Coca-Cola (called Coke in short) is a soft drink brand name which was
registered in 1893 in the US. Coca Cola was invented by Doctor John
Pemberton a pharmacist, Coca Cola (Coke) is a medical drink as American
understood at that time. Later, Asa Candler bought the formula for Coca Cola
from inventor John Pemberton and changed American’s image upon Coca
Cola. He made consumers understand that “a medical drink” was actually a
delicious and fresh drink. Until now, Coca Cola has still inherited these criteria.
Bottle design for Coca Cola was registered for copyright in 1960.
Coca Cola was originated from name of coca leaf and cola fruit, two core
ingredients of soft drink Coca Cola. These components made a subverting
period that Asa Candler was attributed to be the person who made the whole
world addicted to this drink. Coca Cola is currently a famous soft drink brand
name in the world with a variety of different products like Coca-Cola Light,
Coca-Cola Cherry...
Some judgments about Coca Cola come from all over the world.
In 1886, it was the first time Coca Cola had been introduced to public in
Atlanta attracting a lot of attentions from drinkers thanks to great flavor and
attractive color. Time went by, that flavor and color have been preserved and
kept by persons who worked hard to produce, distribute and do marketing for
Coca Cola consumptions all over the world from their love and enthusiasm
contributing to Coca Cola. Thanks to those efforts, Coca Cola has become the
famous soft drink all over the world.
Great attractions from Coca Cola has been obvious from years to years
demonstrated in thousands of advertisements over more than a century with full
of thoughts and creativity. These images have been loved by a lot of fans
contributing to strengthen Coca Cola position in the market becoming the
favorite familiar soft drink in reality. Such a fresh, ideal and strong in flavor
soft drink, Coca Cola created a high quality standard for all consumption
products in the world. Until now, Coca Cola image has still delivered a clear,
honest and simple message to consumers.
Going with the time, bottlers, distributors and other members of Coca Cola
family in the world have still stood in the first position which not any other
producers can follow in beverage industry, resulted from the most creative,
convenient and enthusiastic services that Coca Cola wants to bring to
consumers.
Passing through more than 100 years of foundation and development, Coca
Cola always reflects time changes and unbelievable changes in the world. From
European, it is so many attractive changes to Latin American where its
economies are recovering with a lot of promising potentials, Coca Cola still
performs as greatest attraction. Last century saw great breakthroughs in human
being history. This century continue to promise much greater breakthroughs
and one of those changes, there is still something to satisfy human being’s
needs, that is “ have refreshment to gain full satisfaction” which has been met
by Coca Cola in the better way than any other products introduced in the
market. Coca Cola has been a long-lived symbol, one symbol for high quality,
honesty, value, refreshment and others.
After 100 years of foundation and development, Coca Cola has appeared in
more than 200 countries in the world.
Coca Cola has activated in 5 different areas in the world, those are North
American, Latin American, European, European- Asian and Middle East, Asia
and Africa
B. Strategy:
1. Introduction about Japan
- Capital : Tokyo
- Geography: Located off the east Asian continent. From 122o56E
longitude to 153o 59E longitude, from 20.25 latitude to 45.33 latitude.
- Area: 378,000 km2, consisting of four main islands of Honshu,
Hokkaido, Kyushu, Shikoku and about 3,900 smaller islands.
- Population: 122 million (1 / 2001) mainly Japanese (99%) with
few the Ainu people (no more than 20 thousand), in addition to over 64
thousand Koreans, 33.5 thousand Chinese and 1.7 thousand Vietnamese.
- Climate: temperate, clarified four seasons.
- Religion: Buddhism and Shinto (Shinto) are two main religions in Japan.
98% of Japanese consider themselves as believers of these two religions.
- Language: Japanese
- National Day: 23 / 12 (the birthday of Emperor Akihito)
- Currency: Yen.
Politics:
Under the Constitution in 1947, Japanese politics follows as British
constitutional monarchy in which:
- The King is the symbol of the country and unity of the nation, the symbolic
head of external communication.
- The state is organized according to the separation of powers:
+ The Legislative including two institutes: Senate and House of
Representatives
+ the Executive: Cabinet
+ Justice: Court.
The three agencies are independent of power, control and support each other.
The political parties: Liberal Democratic Party - Democratic
Party - Komei Party-Social Democratic Party (JSP) - Communist Party
In addition, there are a number of opposition parties in parliament, such
as reforming the club ...
Economy:
Japan is a country which is very poor in natural resources while the
population is too large, majority of raw material has to be imported,
economy was devastated during the exhausted war, but with the right policies,
the Japanese economy has shown a rapid recovery (1945-1954), high
development (1955 – 1973). From 1974 to date although the pace of
development slowed but Japan continues to be a potential country of the
world's economy, science and technology and finance
Foreign Policy:
Since the Cold War, Japan has entered the turning points adjusting its foreign
policy toward enhancing the independence, initiative and positive to become a
country with political power commensurate with its economic
power, promoting its the role and influence in the world and Asia -Pacific.
Overview of Japanese cultures:
Japanese culture today which is crystallized by outcomes of thousands of
residents in the Japanese archipelago is a creative combination of cultural
values of both indigenous cultural values and international ones, and by so, it is
the convergence Eastern and Western cultures.
Unique characteristics of Japanese strongly influence their
purchasing behaviors, goods preferences, design flavor to
meet Promotion Marketing, etc.
Jeans and Coca Cola are accepted by Japanese people and enter their lifestyle.
In the early days when Coca Cola appeared in Japan after Pacific war, Japanese
people hesitated, did not definitely recognize this dark soft drinks as they were
already familiar with clear soda drinks. However, Japanese people
were much attracted by the innovative style of American lifestyle at that time;
concept of American style was powerful enough to change the habits of
Japanese people. This clearly shows that it is important to consider many
factors such as environment, time, situation, etc.target area for the successful
marketing strategy.
To enjoy life style of the country of origin: Jeans-wear and Coca Cola were
well accepted by Japanese people and are well penetrating Japanese people's
life style.
In the beginning of Coca Cola's appearance in the Japanese market after the
Pacific War, Japanese people hesitated this dark colored soft drink as they were
familiar with clear soda drinks.
II. Business strategy of Coke
One of the important issues to both small and large companies is to
build strategic business planning and operational procedures. In order to
achieve high economic efficiencies, companies need to develop an appropriate
strategy in both long and short term.
Like other companies, Coke has built a sustainable long term strategy from the
beginning. And it has become long-term objectives and guidance for the
company and its functional departments. Its perseverance on chasing goals
helped to bring success to the company. Coke identified evaluated, selected
positions to maintain and expand its business operations so the business
strategy is such an important and necessary issue.
It is well – known that Coke has been rated as the most valuable brand in the
world. To be successful, ppartly due to the fact that the company has built a
right business strategy. Strategy of "focusing on key markets" than "no spread"
helped Coke own the biggest market share in the beverage market in the world.
However, it is not a really important issue for a huge company like Coca Cola.
Essentially company has still focused on its main market like the U.S .This is
entirely consistent with the original strategy of the company of focusing on key
markets not on target widely disperse without gaining expected profit. Thus
developing and implementing business strategy can be said to lead the path to
corporate success. In order to achieve that success, it is extremely important to
build a good strategy. Hence, if you build a good strategy, it will bring success
to the enterprise, and yet, if it is not a good strategy, it will lead to waste of
time, money, wealth and human resources as well.
Production
One of The Coca-Cola Company's greatest strength lies in the ability to
conduct business on a global scale while maintaining a local approach. One of
the greatest strength of Coca-Cola Company lies in its ability to conduct
business on a global scale while maintaining a local approach. Contract with
Coca-Cola Company or its local branch, local businesses are authorized to sell
beverage bottling and software company in the territory and in certain
conditions to ensure the target highest standards of quality and uniformity. The
company boasts a worldwide enterprise is always local. Bottling plant, with
some exceptions, locally owned and operated by independent business people
originating from countries in which they are located. Bottle plants are provided
with capital needed for investment in land, buildings, machinery, equipment,
trucks, bottles and cases. Almost materials are purchased from local sources
leading to create new supply industries and employment for public sector in the
local economy. Company offers focused and beverage establishments to make
use of their products and provide bottling management support to ensure
profitable growth of their businesses. Product manufacturing, quality control,
plant and equipment design, marketing and staff training are just a few of the
areas in which the company shares its expertise. Strong commitment of bottled
density profit growth helps to meet their strategic objectives and increase the
benefits of company worldwide distribution, production and marketing
systems.The strong commitment of bottlers to their own profitable volume
growth helps to meet the Company's strategic goals and furthers the interests of
the world-wide production, distribution and marketing sys
Operating structure
Executive management structure of the company consists of five geographic
groups together with the Minute Maid Company.
1. Group North America composes of the U.S. and Canada.
2. Latin America Group includes the company's operations throughout Central
and South America, from Mexico to the top of Argentina.
3. Expansion European Group stretches from Greenland to the Far East of
Russian, including some of the oldest markets in Western Europe and the
countries with rapid development of East and Central Europe.
4. Africa and Middle East Group, group executive of the company's most
populous, includes the Middle East and entire African continent.
5. Asia Pacific Group operates from India through the Pacific region including
China, Japan and Australia.
6. Minute Maid Company – business on juice located in Houston, Texas. It is
the world's leading marketer of juices and juice.
The North American Group comprises the US and Strategy
Strategy and mission
The strategy of The Coca-Cola Company has for a long time been best
characterised as follows: global marketing and local manufacturing. Strategy of
Coca-Cola Company has had for a long time with typical characteristics as
follows: Global marketing and local producers. However, global marketing
approach has been adapted to local marketing because of differences in
consumer needs and their experiences.
To make a "think local, act local" philosophy, the following areas are
considered:
1. Consumers – by using innovative and tailored marketing programs
based on local consumer insights, The Coca-Cola Company will keep
growing its core brands while also leveraging its distribution system to
capture other growth opportunities in the ready-to-drink nonalcoholic
beverage category. Consumers - by using innovative and appropriate
marketing programs based on their understanding of local consumers,
Coca-Cola Company will continue to develop its core brands in
accordance with making use of its distribution system to capture growth
opportunities in the genre which is ready to drink non-alcoholic
beverages.
2. Communities – local offices around the world ensure that the Company
is a respectful corporate citizen and participates as an integral part of
each community. Community - local offices are placed around the world
to ensure that the Company is a respected corporate citizen participating
as an integral part of every community.
3. Customers – the Company provides value to customers through every
consumer purchase, through superior customer service and through great
value creation programs. Customer - Company provides value to clients
for each consumer purchase, with better customer service and the
program which creates big value.
4. Coca - Cola system - system of Coca-Cola business model brings value
to Company and its bottling partners. By working together, Coca-Cola
 system focuses on overall profit growth from the beverage to provide a
strong return for all stakeholders.
5. Coca-Cola People – the Company recognises the value of its associates
and remains focused on ensuring it has the most talented, creative and
motivated people throughout the world. Coca-Cola - company realizes
value its associates and remains focusing on ensuring that it has the most
talented, creative and motivated people in the worldwide.
Mission: to maximize the value of share ownership over time
In order to achieve this mission, we must create value for all the constituents
we serve, including our consumers, our customers, our bottlers and our
communities. To achieve this mission, we must create value for all constituents
we serve, including our consumers, our customers, our bottlers and our
community. Coca-Cola Company creates value by implementing a
comprehensive strategy guided by six key beliefs:
1. Consumer demand drives everything we do.
2. Coca-Cola brand is the core of our business.
3. We will serve consumers a broad selection of non-alcoholic ready to drink
drinks, but they want to drink throughout the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We'll lead as a model corporate citizen.
Consumer demand drives everything we do.The ultimate objectives of the
Coca-Cola's business strategy are to increase volume, expand their share of
world-wide non-alcoholic ready-to-drink beverage sales, maximize the long-
term cash flows and create economic-value-added by improving economic prof
The ultimate goal of the business strategy of the Coca-Cola to increase volume,
expand market share worldwide nonalcoholic ready-to-drink beverage sales,
maximize cash flow in the long term and create economic value added by
improving economic profits.
Coca-Cola Company is a dynamic company, always moving to anticipate and
meet the desired current and potential customers and consumers. The world is
changing with blinding speed in countless ways: technology, education,
cultural and economic. Coca-Cola Company is able to meet these changes and
see them as new opportunities as well. Although it has faced a lot of
difficulties, it is still a very successful company that can continue this path.
Coca-Cola has worked in the global marketing strategy and local producers for
a long time. They've taken a global approach for the different countries and
tried to reach a large market share because it can offer them fairly standardized
products produced locally. With changes taking place in the global market,
companies must try to remain close to customers and consumers as it can to
satisfy their various wants best. Coca-Cola Company has also changed the
global marketing strategy and local producers to local marketing and local
producers. This will help the company to differentiate its products in more
details, which will result in meeting the different needs and wants of customers.
One of the biggest strengths of Coca-Cola is its ability to conduct business on a
global scale while maintaining a local approach.
At the core of this approach is the bottling system. Company has business
relationships with three types of bottling company: independently bottling,
without property rights; bottlers in which the company has invested and have
no control over ownership and bottlers in which the company has invested and
has a controlling ownership. Coca-Cola is considered to be one of the first truly
global companies. With this title Coke has learned the importance of respecting
cultural differences and also to recognize the humanity that link us all as
people. It is only through time and continuing education as the company
continues to learn how to satisfy the world market. Coca-Cola Company not
only runs this activity all over the world ", but it also works with a local source
committed nearly 200 countries.
Since its beginning in the spring of 1886, Coca-Cola has grown to become the
most recognized trademark in history.