Coca-Cola, also known as Coca-Cola, is a carbonated beverage containing caffeine produced by the American Coca-Cola Company. Chinese translation comes from Jiang Yi, which is one of the most famous and successful examples in translation field.
At present, Coca-Cola is in a leading position in markets all over the world, far exceeding its main competitor Pepsi. Among them, Hong Kong has almost monopolized the carbonated beverage market, while Taiwan Province has a market share of over 6%.
The formula of Coca-Cola is unknown to anyone except the owner's family, and the Coca-Cola Company will strictly prevent its employees from stealing the formula. Up to now, although Coca-Cola has many competitors (such as Pepsi), it is still the best-selling carbonated beverage in the world.
Different flavors
Coca Cola (original flavor)
Lemon Coke
Vanilla Coke
Cherry Coke
Diet Coke
Lemon Diet Coke
Lemon Diet Coke
Vanilla Diet Coke
Cherry Diet Coke
Zero (sugar-free.
Ingredients:
carbonated water (water, carbon dioxide), white sugar, caramel color, phosphoric acid, spices (including caffeine)
About Coca Cola
Coca Cola is the trademark of the beverage, which is translated into Coca Cola in Chinese. The beverage has a special flavor, which comes from the seeds of the raw material.
Cola is also called cola fruit. It belongs to the family Sterculiaceae. There are two kinds of cola: red cola and white cola. The leaves are broad and generous, and the flowers are oval and pointed. The flowers are yellow and beautiful. There are two flowering periods throughout the year, and the seeds in the fruits are used to make cola drinks.
Cola is native to the tropical areas of western Africa, and it is cultivated in tropical parts of the world today. In recent years, it has been successfully introduced to China, and cola drinks with Chinese flavor, such as Tianfu Cola, are all made of cola seeds. But each has its own secret formula. Coca-Cola seeds contain caffeine and theobromine, which can stimulate nervous system activities.
Coca-Cola Company
1. Industrial Analysis
Introduction of Coca-Cola Company
In May p>1886, Coca-Cola first appeared in Jacob's Pharmacy in Atlanta, Georgia, USA. It is 12 years old now. Coca-Cola Company is the largest beverage company in the world and the leader and pioneer in the soft drink sales market. Through the largest distribution system in the world, it sells well in more than 2 countries and regions in the world, with a daily consumption of 1 billion cups, accounting for 48% of the world soft drink market, and its brand value has exceeded 7 billion US dollars. It is the first brand in the world.
Introduction to PepsiCo
PepsiCo was born in new york, USA in 1919, and rose rapidly after World War II. By the end of the 194s, PepsiCo had developed into a successful professional soft drink enterprise. By 1996, PepsiCo had formed eight major components: PepsiCo North America Company, Pepsi-Cola International Company, Freetorre Company, Pepsi Food International Company, Pizza Hut Pizza World Company, Tyco Bell World Company, KFC Fried Chicken Company and Pepsi System World Company. Now, its business scope has extended to 134 overseas countries. According to statistics, There are 3 billion people in the world who have tasted Pepsi.
Intra-industry competition
There are basically only two competitors in the soft drink industry in the United States (because the two companies account for 7% of the market share), but the two brands have certain differences in customer feelings and impressions.
Why is the competition between the two companies not out of control? The reason is that the purpose of their competition is not to destroy each other. But in order to gain advantages and profits.
Barriers to entry
Both major cola companies have a long history and huge advertising investment in the soft drink industry. History and advertising influence make Coca-Cola and Pepsi-Cola the symbols of American culture.
Franchise system enables the two companies to obtain huge scale without huge investment. Every potential entrant will carefully consider whether it is possible to surpass the two companies in the operating cost of unit products before deciding to enter.
The root cause of industry monopoly
Restrictive intra-industry competition
Locked buyers
" The secret formula "
Coca Cola
II. Background analysis
(I) About Coca Cola
1, the leader in the beverage industry, with a history of 1 years
2, a professional concentrated solution manufacturer
3, is in a slow-developing industry: in the early 198s, the per capita consumption of soft drinks grew very slowly in the United States and internationally. The average growth rate of the industry is 3% in China. < P > 4. The Coca-Cola Company grew by 5% in China and by 7% abroad. < P > 5. The market value of Coca-Cola increased from $4 billion in 1984 to $16.5 billion in 1999, accounting for 46% of the global soft drink market. < P > (2) The head of the 198s and 199s < In 1999, September/October gave a brief description of entrepreneurs and theorists who have made outstanding contributions to the development of industrial and commercial enterprises in the past 1 years. Gozieda is on the list.
Ropot Gozieta (1931-1997), a Cuban American, Since the early 198s, he has been the CEO of Coca-Cola Company. During his 16 years in power, the market value of Coca-Cola Company has increased from $4.3 billion to $14.7 billion.
Roberto Goizueta's dilemma
After he took charge, the first challenge for Coca-Cola Company is how to solve the unfriendly hostage of independent bottlers. Secondly, it is faced with the requirement of high discount of large international retail groups, especially the lack of flexibility of bottling factories in meeting the needs of chain stores. Third, the pressure of competition from PepsiCo in the next few years. PepsiCo has implemented the plan to acquire fast food chain stores, and PepsiCo has also vigorously expanded into the sports industry. Get some more profitable sales channels.
Roberto Goizueta's business ideas
In this context, Goizueta adopted a distribution system of buying back coke from independent bottling plants. At the same time, it has adopted a bold global expansion plan.
It has accelerated the expansion of fast food and automatic water dispensers. This practice has enabled the Coca-Cola Company to achieve a profit return twice that of retail stores.
(3) The early business model of Coca-Cola
The value chain of soft drink industry
Concentrated solution manufacturing-bottling-inventory-distribution-advertising promotion-retail-customer relationship management and other links
1. Coca-Cola's early value activities were
the manufacturer of concentrated solution, trademark licensing and advertising (advertising cost of 6 million dollars per year)
(3) Coca-Cola's early business model
2, which provided exclusive bottling license and regional sales license to regional enterprises, and Coca-Cola Company hardly held any shares in various bottling plants.
At that time, Every bottler signed a "franchise agreement contract" with Coca-Cola. The contract stipulated the price of concentrated solution and granted the bottler the exclusive right to operate in the region. This early model of franchising bottlers was a great success. Consumers were satisfied, bottlers became rich, and Coca-Cola became the largest company. _
(3) Coca-Cola's early business model
How could Coca-Cola control the bottling enterprises without any shares? Shangwu College of Coca-Cola Company was established in Shanghai and Fudan University.
2. Every post has strict regulations, such as experience and skills.
3. Strict standards have been set for bottling enterprises, which require them to meet. If they fail to meet, they should review the reasons and limit the date for improvement.
4. Actively promote localization strategies.
Coca Cola < Industry changes and challenges to Coke Company
(1) Changes in the competitive environment since the late 197s
1. Competition in the beverage market has intensified: Pepsi-Cola, non-carbonated drinks.
2. Large supermarket chains have become the mainstream of retail. They require bottlers to provide: (a) lower prices; (b) Unified and convenient global services; (c) timely supply capacity in large quantities.
3. People's lifestyles are changing rapidly, and tourism and convenience have put forward new requirements for the way of selling drinks.
Continued: the direct impact of lifestyle changes
Due to the promotion of business development and tourism, restaurants, airports, entertainment places and so on are increasingly becoming specific places to expand sales and earn high profits, especially self-help consumption in these places. Moreover, compared with the products on the shelves, people tend to ignore the price and pay more attention to convenience, practicality and timeliness.
The traditional food store field (non-self-service consumption) has gradually become a low-profit area.
(2) The impact of industry changes on the early business model
The licensed bottlers of Coca-Cola: (a) operate independently, with different profit levels and capital structures, and it is difficult to form a unified price; (b) monopolizing the sales right for a long time and not actively promoting the expansion of sales scale; (c) Lack of capital, unable to invest in new bottling technology, delivery skills and methods.
This production and sales system has gradually become an obstacle to large-scale occupation of large supermarkets and high-profit sales areas.
Coca Cola
Fourth, new business model
(1) Coca Cola's new business model
1, expanding the scope of consumers-customer choice < Become the manager of the value chain-gain value
3, reorganize the sales channels-strategic control
4, determine and expand key businesses-define the scope
5. March into the international market.
6. Change from pursuing market share to trying to increase the value of shareholders.
1. Expand the scope of consumers.
Expand the scope of consumers. The concept of "beverage" consumers determines what liquids will flow into people's mouths, including drinks, milk, coffee, tea, and beer. < P > 2. The value chain manager Focus on value growth
is not limited to the existing business fields, but expands from selling concentrated solutions to high value-added fields such as bottling and retailing
3. Reorganize the sales channels
Take consumers as the center, start from meeting consumers' needs, transform the relationship with bottlers and strengthen the control of bottlers.
Specific measures to reorganize the business relationship with bottlers
(1) Buy part of the equity of bottlers, buy back franchise rights and sell concentrated solution to friendly and capable bottlers.
(2) Invest in and modernize bottlers. Assist in marketing major customers
(3) guide bottlers into high-profit areas to make their operations more effective
(4) provide financial support to new bottlers and distributors to ensure that they can cooperate with the company's growth strategy
4. Key business activities and expansion
(1) emphasize low-cost sales channel construction strategies, increase sales scale in high-profit sales places, and vigorously develop self-service consumption. Airports, hotels and other places are using vending machines to capture value.
(2) Establish global strategic alliances: McDonald's and Disney.
(3) Enter foreign markets and strive to implement localization strategy.
(4) Accelerate the serial development of products.
5, Entering the overseas market
One of the basic problems in entering the international market is the discontinuity of the market. Therefore, the key problem encountered by multinational enterprises is localization.
Coca-Cola Company is committed to cooperating with large and advanced "backbone" bottlers in several host countries to provide Coca-Cola to their regions or countries. At present, it has been in Eastern Europe, Western Europe, Latin America and Australia. Southeast Asia and other places have established a strong network of key bottlers.
6. Increase the value of shareholders
Use effective means such as capital operation to increase the value of shareholders
After Coca-Cola Company acquired some bottlers, some very thorny problems appeared, mainly: expanding the asset scale of Coca-Cola Company, affecting shareholders' income. (Asset intensity = assets/sales)
Solutions. Coca-cola bottlers holding company was established to control the acquired bottlers, 49% of which were owned by Coca-Cola, and the remaining 51% were listed and publicly issued. < P > Results: (1) The financial statements of Coca-Cola Company did not show the financial status of bottlers, which reduced the asset intensity; (2) The control of bottlers has been realized; (3) The funds raised by listing can be used to buy back bottlers or to invest capital and technology in existing bottlers.
Coca Cola
VI. Corporate culture
2L+3O
Localization: The system of Coca Cola Company in China has 15, employees. There are only 2 foreign employees.
Long-$ TERM: No profit for 1 years in a row.
Optimal: I believe tomorrow will be better.
Opportunity: Let more people drink Coke, and let them drink more.
Obligion: In every place, Everyone should devote part of their profits to social welfare undertakings.
Coca Cola
VII. Enlightenment
Enlightenment to China enterprises
The business model of enterprises must reflect:
(1) Fully understand and demonstrate the changes in the business environment and industry, and look at the future trends of enterprises from a dynamic rather than static point of view.
(2) Take consumers as the center. Establish the value growth of enterprises on the basis of meeting the needs of consumers.
The organizational model must adapt to the business model.
Coca Cola
VIII. Strategic analysis
(1) Why Coke Succeeded in the past
The success of Coca Cola lies in its focus on the value creation department which plays a key role.