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 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 different areas in the world, those are North American, Latin American, European, European- Asian and Middle East, Asia and Africa B Strategy: 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 development economy has (1955 – shown a rapid recovery (1945-1954), high 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 purchasing behaviors, goods preferences, influence their 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 Group North America composes of the U.S and Canada Latin America Group includes the company's operations throughout Central and South America, from Mexico to the top of Argentina 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 Africa and Middle East Group, group executive of the company's most populous, includes the Middle East and entire African continent Asia Pacific Group operates from India through the Pacific region including China, Japan and Australia 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: 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 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 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 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 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: Consumer demand drives everything we Coca-Cola brand is the core of our business We will serve consumers a broad selection of non-alcoholic ready to drink drinks, but they want to drink throughout the day We will be the best marketers in the world We will think and act locally 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 longterm 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 ... program which creates big value 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... 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... 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