Coca-Cola in China – Building Its Next Billion Dollar Brands through Localization

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Details
Case Code:

BSTR438

Case Length:

12

Period:

Pub Date:

2013

Teaching Note:

NO

Price (Rs):

400

Organization:

The Coca-Cola Company

Industry:

Food & Beverage

Country:

US; China

Themes:

Corporate Strategy

Abstract

The case “Coca-Cola in China – Building Its Next Billion Dollar Brands through Localization” describes the efforts of The Coca-Cola Company (CCC) in building its ‘First Billion Dollar Brand in China’ – Minute Maid Pulpy. The case begins with the history of CCC and its emergence as the leading beverage manufacturing company in the world. Later, the case talks about CCC’s entry into the Chinese market in 1979 through a localization strategy, under which it adopted a name, product packaging, and marketing tactics to appeal to the Chinese customer. The case then goes on to describe the company’s product diversification strategy, as part of which it entered into the juice drink market through its innovative new product ‘Minute Maid Pulpy’. The case also chronicles its failed acquisition of Huiyuan Juice Group Ltd., which prompted it to concentrate its efforts on developing and launching complementary products such as ‘Pulpy Super Milky’. The case concludes with a description of the competitive scenario in the Chinese beverage market and CCC’s future plan in China.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

  • Developing a targeted marketing strategy
  • The need for innovation in product diversification
  • Understanding the importance of new product development in growing market presence
Keywords

Coca-Cola, Innovation, Targeted Marketing Strategy, Emerging Markets, China, Beverage, Minute Maid Pulpy, Localization strategy, Billion Dollar Brand, Product Diversification Strategy, Product Development, Organic Growth Strategy, Mobile Marketing Campaign, Monopolistic Competition, Pulpy Super Milky, Sales Indicators, Dairy Drinks Market, Fruit Juice Drinks, Carbonated Beverages, Herbal Tea Market, Global Expansion

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