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Why Coca-Cola Company will enter China’s beverage market

Recently, Coca-Cola has changed its packaging. But in reality, nothing has changed. All designs remain the same. The classic Coca-Cola logo: red, ribbon, and handwritten letters, but with the thin black lines on the letters removed. It is still the familiar taste to us, but it is still setting off a new cola trend in the market. Netizens who drink Coca-Cola, you know why Coca-Cola has been a leading beverage market in China for so long. This is not just a new packaging. A survey by a product research company shows that Coca-Cola is a rare case of successful market occupation by a foreign company in the beverage market.

The three most popular words in the world throughout history are God, her and Coca-Cola. When the Coca-Cola Company first entered China in the 1920s, Coca-Cola was translated as "tadpole chewing wax." When Chinese people saw this name, they speculated that this dark, fizzy soda with a Chinese medicinal flavor seemed like There is some "indissoluble bond" with tadpoles, so no one wants to be the "first person to eat tadpoles." Coca-Cola executives saw that the Chinese market could not be opened, so they assigned the export company responsible for overseas business to publicly publish a newspaper offering a reward of 350 pounds for a Chinese translation. Market survey questionnaire sample collection Jiang Yi, a Shanghai professor who was in the UK at the time, saw this news and defeated other opponents with the four words "Coca-Cola" and took away the bonus.

This "magic stroke" opened the door to Chinese business for Coca-Cola. The four words "Coca-Cola" have always been considered the best-translated brand name in China. It not only maintains the English transliteration, but also has the Chinese meaning of "good luck and happiness". These four words vividly hint at the feelings that the product brings to consumers - delicious, refreshing and happy - Coca-Cola whets consumers' appetites and creates an "unstoppable feeling".

Because of this, Coke has gradually become synonymous with the category and an industry standard. Today, a name as good as "Coca-Cola" would definitely not be registered, because China's Trademark Law stipulates that food trademarks must not directly express deliciousness, taste, freshness, etc. in the name. You are delicious and coke, making other brands embarrassed.

Watching the Coca-Cola Company’s growing glory, Professor Jiang Yi suddenly realized: “It’s a pity that I didn’t understand business and economics at that time and didn’t ask for “copyright” or rotation. Otherwise, I would be a tycoon now. Just a professor." It is reported that Jiang Yi's descendants will also take Coca-Cola to court to get back the benefits they have deserved for decades. But times have changed and the name transfer contract has come into effect. It is obviously impossible to find Coca-Cola's back account.

If Jiang Yi had wanted a few shares of the company's shares at that time, the outcome would have been very different. The “richest painter in the world” makes money from equity. When Apple moved, they hired a mural painter and asked him to paint the walls of the company. As a result, after the project was completed, Jobs touched his pocket and found that he had no money, so he had no choice but to use stocks to pay off the debt. At that time, Apple was still a small company and its stock was worthless. However, as the company became stronger and stronger, it hit a record high price of US$700 per share in 2012. This lucky painter made a living just because of a painting. The life of a rich man.

Similarly, the designers of Coca-Cola bottles are also much smarter. In 1915, Swedish designer Alex Samuelson designed a streamlined bottle for the company. Although he did not require royalties, the company required the company to give him one cent for every bottle of Coca-Cola sold. From then on, the money flowed like a torrent of water, and he also lived a life of receiving checks from Coca-Cola every month.

After entering China, many multinational companies have mastered the study of Chinese culture and are even more professional than some local companies. Some people say that Chinese people are the smartest people in the world. This is a strong proof that many foreign brands have been translated perfectly by us when they entered China.

For example, the word (Benze) in car was originally translated as "Stupid Death", and it was also called "Pingzhi" in Hong Kong. It was not until the appropriate translation of "Benz" was found that it started to run like flying in China.

The translation of BMW into BMW is a stroke of genius. As for being called "Don't touch me", it is like interpreting CBD as the abbreviation of Dabei Yao in Beijing, China (CHINABEIJINGDABEIYAO), which will definitely make the founder unhappy.

Translation is comfortable, like scratching a thousand-year-old itch for the brand.

In the late 1970s, China began to reform and open up, and Coca-Cola, which had disappeared for 30 years, returned to mainland China. Coca-Cola used a gradual penetration method to open the door to mainland China.

At the beginning of reform and opening up, China's economy was still very backward. In order to enter the Chinese market, Coca-Cola adopted the consignment method and placed it in Friendship Stores, exclusively for foreigners who came to work in China and those with foreign exchange earnings. Enjoyed by privileged people. Even if the Chinese market is not profitable, Coca-Cola has begun advertising in mainland China, thereby establishing a brand image of Coca-Cola as a "foreign product", "high-end" and representative of American culture.

The second step for Coca-Cola to open up the Chinese market is to "sugar daddy" and cooperate with privileged Chinese-funded companies in China. On December 13, 1978, Coca-Cola reached an agreement with COFCO to use compensation trade to provide Coca-Cola canning, canning, and bottling equipment, and set up a dedicated factory to fill and sell Coca-Cola in China. The Coca-Cola Company also "marries multiple women" and cooperates with Zhongcui Company, a subsidiary of CITIC Group, to produce Coca-Cola in cans. At the beginning of the cooperation, Coca-Cola adopted a strategy of retreat and advancement. It did not ask for a controlling stake. As long as it produced and sold Coca-Cola, even if it only held a small share, it would reach a cooperation as soon as possible. At the same time, relying on the strength of the brand, it gradually eroded the market in mainland China, defeating China's local cola brands such as Tianfu Coke, Huangshan Coke, Pacific Coke and other competitive brands one by one.

Coca-Cola has been committed to building a huge beverage empire. It produces not only carbonated drinks such as Sprite and Fanta, but also fruit drinks (Minute Maid, Queer), herbal drinks (Health Studio), Tea drinks (Chayan Workshop), drinking water (Shuisenhuo, Ice Dew), and even vitamin drinks (Coolers). Coca-Cola adopts a multi-brand strategy to fully cover the beverage market. In 2008, Coca-Cola planned to acquire Huiyuan, China's largest local juice manufacturer, but it was aborted because the Chinese Ministry of Commerce opposed the acquisition.

In the late 1980s, according to opinion poll samples, China's national drink "Jianlibao" once challenged Coca-Cola with its reputation as the "Oriental Magic Water", but eventually withdrew from the market due to property rights issues. Entering the 21st century, the sales of China's herbal beverage "Wanglaoji" in mainland China once exceeded that of Coca-Cola. However, due to trademark disputes, GPHL and Jiaduobao fought over the "Wanglaoji" trademark and their cooperation broke down. The benefit is from international beverage giants like Coca-Cola. There are many reasons for the success of Coca-Cola’s brand myth in China, one of which is the lack of success of China’s local brands