Coca-Cola in China - Building Its Next Billion Dollar Brands through Localization
|
Case Code: BSTR438 Case Length: 12 Pages Period: 1979-2013 Pub Date: 2013 Teaching Note: Available |
Price: Rs.300 Organization: The Coca-Cola Company Industry: Beverage Countries: US, China Themes: Business Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In November 2012, The Coca-Cola Company (CCC) appointed Saatchi & Saatchi Shanghai (Saatchi), as its advertising agency to handle its first billion dollar brand in China-'Minute Maid Pulpy'.CCC expected China to emerge as its largest market in the near future with more billion dollar brands emerging from that country. In the late 1970s, CCC was the first international beverage company to be granted permission to sell soft drinks in China. From its early days, the company adopted a localization strategy, wherein it tried to adopt a name and the kind of packaging, promotions and marketing strategy that would appeal to the unique tastes of the Chinese customer.
CCC gradually grew to be a leading market player in the Chinese carbonated drinks market. In the early 2000s, it decided to diversify its product line in China. After market research, it came up with a unique drink called the "Minute Maid Pulpy", which was launched in 2005. Theeconomically priced drinkappealed to Chinese tastes. The success of the drink prompted CCC to distribute it in several other Asian, Latin American, and even East European countries.
In 2008, in keeping with its product diversification and growth strategy, CCC decided to acquire a rival companyHuiyuan Juice Group Ltd. (Huiyuan). However, the deal was rejected by the Chinese government,on the grounds that the acquisition would curtail market competition. This prompted CCC to grow by introducing new products and continuing with its localization strategy. Accordingly in 2009, it entered the fast growing dairy drink market in China, through its new drink, "Pulpy Super Milky". Over a period of time, the new drink became a huge success, leading to the growth of the Chinese dairy drink market.
By 2010, the "Minute Maid Pulpy" brand attained global retail sales of over US$ 1 billion and became CCC's first 'Billion Dollar Brand' that had been developed and launched in an emerging market. As of 2013, CCC was a strong player in the Chinese beverage market, with a robust presence in various beverage segments. It made heavy investments in infrastructure, new products, and packagingto further enhance its market share. CCC expected China to emerge as its largest market in the near future, with more billion dollar brands emerging from that country. At the same time, the company faced increasing competition across its product lines.However, this also contributed to the growth in beverage consumption in China.
Buy this case study (Please select any one of the payment options)
| Price: Rs.300 |
Price: Rs.300 | PayPal (7 USD) |
