1. The market is growing rapidly. In 1998, the performance of China's beverage industry was very gratifying. On the basis of achieving the target of 1 million tons three years ahead of schedule in 1997, the total output of beverages increased by 18. The growth rate of 8% has reached 12 million tons. Among them, carbonated drinks account for about 5%.

2. Coca-Cola, Sprite, Fanta, Eye-catching and other brands under the Coca-Cola Company, and Pepsi-Cola, 7-Up, Rush, mirinda and other brands under the Pepsi-Cola Group occupy the vast majority of the market share. The division of carbonated beverage market has been basically completed, and the market competition led by Coca-Cola and Pepsi-Cola is quite orderly. If it is very cola, it is risky and costly to break in at this time.

3. In recent five years, Coca-Cola Company has attached great importance to the development of China market. China inland has been listed by Coca-Cola Corporation as one of the fastest growing markets and one of the best markets in the world, and its sales volume has ranked second in Asia and sixth in the world.

4. as far as the development trend of various beverages is concerned, the market share of cola will be relatively reduced and the competition will be extremely fierce.

5. The industry profit rate is relatively stable and higher than other industries. However, due to the low technical content, it is relatively easy to enter the market.

6. In China Coke market, there is a lack of state-owned brands. In the 198s, some brands of carbonated drinks in China, such as Tianfu Coke, Changning Coke, Olin Coke, etc., were also full of ambitions for a while, but eventually they were defeated by the acquisition, merger and alliance of Coca-Cola and Pepsi. In the early 199s, Laoshan Coke, China Coke, etc., or the products after joint venture were changed to foreign crystal brands, and the market was handed over to foreign products; Or no one cares about the product, resulting in operating losses, insolvency, and automatic withdrawal from the historical stage.

(II) Advantages and disadvantages of Wahaha

1. Advantages

(1) Advantages of national brands. Wahaha is a well-known trademark in China, and its popularity is quite high in rural China, which accounts for about 7% of the population.

(2) market network advantages. After ten years of painstaking efforts, Wahaha has thousands of powerful dealers all over the country. Very cola can make use of the sales channels of pure water and fruit milk to realize the enjoyment of sales network resources.

(3) It is easy to create a price advantage. The beverage industry is a typical "equipment production" industry. First-class equipment means first-class production efficiency and lower production cost. If Wahaha can introduce a more advanced production line than foreign coke, then very coke has stood at the same starting line of production cost as foreign coke. At the same time, Wahaha's management expenses and labor costs are lower than those of foreign cola, so very cola can be sold at a relatively low price.

2. Disadvantages

(1) Psychological disadvantages. Some teenagers who grew up drinking Coca-Cola choose Coca-Cola, not because it is the best drink, but just a habit. In fact, taste is not the decisive factor for coke to catch consumers. The psychological advantage of Coca-Cola in the minds of consumers is the biggest rival of Coca-Cola.

(2) management disadvantages. Wahaha, with only ten years' experience, is younger than Coca-Cola and Pepsi-Cola, and its management system is not mature enough.

(3) talent disadvantage. "Coca-Cola" and "Procter & Gamble" have become the "Whampoa Military Academy" for white-collar workers in China. Many outstanding talents in China yearn for Coca-Cola Company, and Coca-Cola Company has also trained many useful talents through strict training, selection and appointment system. Wahaha company, which is a school-run factory, is difficult to compete with. Pepsi has also trained a large number of talents in the competition with Coca-Cola.

(4) comparison of financial strength. In 1996 and 1997, the global business volume of Coca-Cola Company was above $18.5 billion. In 1998, Coca-Cola Company spent $1.8 billion on advertising. Wahaha's annual output value in 1997 was only 2 billion RMB, and its profits and taxes were only 4. 9 million RMB! Since the end of 1978, the total investment of Coca-Cola in the inland of China has reached more than 8 million dollars.

Facing the pressure, Wahaha made a decision to enter the cola market after careful investigation and repeated argumentation. In 1998, Wahaha Group established a joint venture with France's Danone Company to launch a very cola series.

(3) Marketing strategy of Coca-Cola

1. Product

Coca-Cola has been improved in taste, with low sweetness, refreshing taste and different fragrance from Coca-Cola. Under the guidance of low price strategy, all the packaging is made of plastic bottles.

2. Price

Wahaha Coca-Cola series is launched at a unit price 2% lower than that of Coca-Cola (Coca-Cola packaged in 6mlPET in supermarkets is generally 2. 6――2。 7 yuan/bottle, while Very Coke only sells for 2. 1――2。 2 yuan/bottle), which has great advantages.

3. Channels

Using Wahaha's original sales channels, it successfully entered thousands of households. And successfully avoided the direct sales system in Coca-Cola city.

4. Promotion

The listing of Coca-Cola is equipped with the "carpet bombing" of TV media. From the prime time of CCTV to the county-level TV stations, hundreds of TV advertisements are broadcast at the same time. Half a month later, the whole of China knew that "Wahaha had a very coke". Immediately afterwards, Wahaha launched large-scale promotional activities, such as "collecting five special cola labels to give gifts" and "drinking special series and winning special prizes", which were publicized in TV media at all levels with great fanfare. "China people's own cola", very cola has won some consumers with a national outlook.

The first battle was a success, and in the second half of 1998, the sales of extraordinary cola series were about 1. 5 million yuan, the whole summer products in short supply. In Zhejiang, Anhui, Liaoning, Jilin, Heilongjiang and other provinces, the average market share of Coca-Cola series has reached 15%, followed by Coca-Cola and before Pepsi. In some provinces, such as Hunan, the sales volume of Coca-Cola is almost equal to that of Coca-Cola, and it is likely to catch up. According to the news, the monthly order amount of Extraordinary Coke series has reached 2 million yuan, but its actual monthly output value is only 5 million yuan, and the products are in short supply. Statistics show that in 1998, Coca-Cola won 2% of the national coke market with a sales volume of 1, tons, and the development momentum is very good. In 1999, it broke the monopoly of two foreign cokes. As the management of small and medium-sized cities and rural markets has gradually shown results, the sales volume of Coca-Cola has increased significantly, accounting for 15% of the coke market share, surpassing the "second child" Pepsi. For the rapid rise of Coca-Cola, Coca-Cola, which has been firmly at the top of the cola market, has a relatively dull response. Relevant persons of Coca-Cola believe that Coca-Cola's market share is still small, which poses no threat to Coca-Cola. "If we use the powerful strength and joint mechanism of the Coca-Cola system, we can invest a sum of money and launch a price war to kill competitors. However, Coca-Cola's development theme in China is' * * * with development', and it will not do so. "

(IV) Strategic arrangement of Wahaha

How to seek a breakthrough in the increasingly fierce competition for Coca-Cola, which has initially gained a foothold in the cola market, has become the strategic focus of Coca-Cola and even the whole Wahaha Group.

1. Expanding production In 1999, the production line of Wahaha Coca-Cola soared from 3 to 1. The annual production capacity of Coca Cola is over 1 million tons. According to Zong Qinghou, general manager of Wahaha Company, "Coca-Cola currently has three carbonated beverage production lines, and the annual output of coke products is less than 2, tons. Although the supply has been in short supply, it is still not the same as that of Coca-Cola with an annual output of more than 2 million tons. This decision is very coke in the current market, can only play a supporting role. The seven new lines were officially launched in the fourth quarter of this year. This will make the output of Coca-Cola reach 1 million tons, which is comparable to that of Pepsi and nearly half that of Coca-Cola. "

2. Seeking a new product appeal point. There are great differences of opinion within Wahaha Group regarding "China people's own cola" as the product appeal point. Some senior managers believe that it is impossible for any product to survive only by patriotism.

3. Prepare for the price war At the end of 1999, Pepsi (canned) has dropped from 45 yuan to 37 yuan. At the same time, the new factory of Coca-Cola Beijing Company was completed in the Technology Development Zone, which increased the production capacity of Beijing Coca-Cola Factory from 23.34 million TEUs to 61.7 million TEUs, more than doubling the production at one time. Moreover, the position of the second phase is reserved next to the new factory, and it is ready to expand production again after two years. Other domestic manufacturers such as Fenhuang Coke are also seeking greater market share. Large-scale expansion of production by major coke manufacturers made the output in 2 increase by 2 million tons at once, but the market demand of coke increased relatively peacefully, and the output of 2 million tons was difficult to be digested by the market, so the competition was bound to be fierce.

4. Product diversification. Non-carbonated beverages such as fruit juice and tea show a powerful substitution for cola products. In recent years, due to people's increasing respect for natural diet, the consumption of fruit juice and tea drinks has been driven, and the market position of carbonated drinks has gradually weakened.

(Ding-na Tang et al.: The Case of Enterprise Marketing in China, Higher Education Press, 21)

Thinking questions:

1. How do you evaluate Wahaha's entry into the coke market

2. What are the advantages and disadvantages of the marketing mix strategy of Coca-Cola

How to choose the target market for a small paint factory

There is a small paint factory in Britain, which has visited many potential markets. There are also four sub-markets, each with a share of 1%. One is a housewife group, which is characterized by not knowing what paint is needed for interior decoration, but demanding good quality, hoping that the painter can provide design and the paint effect is beautiful; One is the painter's assistant group, customers need to buy better quality paint to decorate the interior for residents. They used to buy paint from old-fashioned metal ware stores or timber factories. One is the old paint mechanic group, whose characteristic is that they never buy prepared paint, but only buy pigments and oils to prepare themselves; Finally, there are young couples who are price-sensitive. They have low incomes and rent apartments. According to British custom, apartment residents must paint their houses within a certain period of time to protect their houses. Therefore, they buy paints without seeking quality, as long as they are slightly better than white plaster, but at a lower price.

after research, the factory decided to choose young couples as the target market, and formulated the corresponding marketing mix: (1) products. Deal in a few paints with different colors and sizes. And according to the favorite of the target customers, add, change or cancel the color variety and can size at any time. (2) distribution. Products are delivered to every retail store near the target customer's residence. Once a new store appears in the target market, we will immediately attract and distribute our products. (3) price. Keep a single low price, do not provide any special offers, and do not adjust prices with other manufacturers. (4) promotion. Take "low price" and "satisfactory quality" as the call to adapt to the demand characteristics of target customers. Regularly change the store layout and advertising version, create a novel image, and change the use of advertising media.

Due to the proper market selection, the marketing strategy has been well adapted to the target customers. Although it deals in low-grade products, the enterprise has achieved great success.