Analysis on the Management Strategy of Coca-Cola Company

Based on the theory of advertising and cultural attributes, this paper analyzes the advertising development of Coca-Cola Company in China, and summarizes the localization advertising strategy of Coca-Cola Company in China. Let me answer the business strategy of Coca-Cola Company for you, hoping to help you.

The Business Strategy of Coca-Cola Company

Coca-Cola's position in China's drinks is constantly being rewritten, just like his different feelings from childhood to now when we are growing up.

When I was a child, it was so sacred in our minds. Regionally, it belongs to imported products and belongs to? Foreign? Gas products, and then live in the countryside, only a better-off partner can consume them, so we envy our partner and the coke we can't drink, and he can drink it often. We envy the mysterious color of coke and the feeling of being on cloud nine after drinking it. Therefore, in childhood, we have an envious eye for coke just like the poor have for the rich, and we are eager to have the same enjoyment, the same material and the same happiness as the rich. Coke is the enjoyment we wanted to pursue when we were young, and it has also become a microcosm of our material pursuit.

As we grow up day by day and improve our living conditions, we can occasionally buy coke. We will hide aside and savor the feeling it brings. It feels so comfortable. We are eager for this frequency to increase? With the growth of junior high school, senior high school and university, we know more about the history of coke. After every exercise, we will use it to wash our fatigue. Although history has created too many mysteries for him, we feel that he is powerful and exciting, and we are eager to keep alive.

? Localization thinking, localization marketing? It is the core of Coca-Cola's global business strategy, but as far as China is concerned, it has not changed the consumption concept of China people with western culture. On the contrary, it has chosen to influence the production and marketing methods of Coca-Cola with China culture. [1] First thought? Localization? How does Coca-Cola have a series of strategies in China? Localization? Market operation, including the use of marketing methods adapted to the China market, and China partners * * * to jointly develop the brand of China, provide quality services to consumers and become local corporate citizens.

1 Coca-Cola Company

Coca-Cola is a century-old world-renowned enterprise. Since its birth, it has created one miracle after another in the world market. Take China as an example. In the short ten years from 1989 to 2006, the company achieved nearly 30 times of sales growth and kept the brand number one.

1. 1 Development of Coca-Cola Company

Coca-Cola Company was founded in 1886, and its headquarters is in Atlanta, USA. Coca-Cola Company is a global leader and pioneer in soft drink sales, with nearly 400 kinds of beverage brands, which sell well in 200 countries and regions around the world, and the daily consumption exceeds 65.438 billion cups. In 2004, Coca-Cola and Sprite won the honor of super brands. [2] In the same year, among the 65,438+000 most valuable brands in the world published by Business Week, Coca-Cola ranked first with a brand value of $67.4 billion.

1.2 Development of Coca-Cola Company in China

Coca-Cola has become one of the most famous international brands in China. According to the Gallup survey conducted by 1999 in China, 8 1% of China consumers know the brand of Coca-Cola. In 2003, an independent authoritative consumption survey in China showed that Coca-Cola was selected as the most popular beverage in China for eight consecutive years.

1927 Coca-Cola established the first bottle decoration factory in China.

1948 Shanghai factory became the first bottling factory outside the United States, with sales exceeding 1 10,000 cases.

1979 65438+ 10 Coca-Cola returned to China and became the first international brand to return to China. 25 years, in a sense, China's reform and opening up has created a miracle era, and the maturity and development of China's business thought can also be called a grand business epic. Coca-Cola was fortunate to be the first member of this commercial epic, which not only witnessed the rapid economic development of China, but also wrote a successful chapter for foreign investment in China with its own successful experience.

198 1 year, the first bottle decoration factory was established in Beijing.

In 2000, Coca-Cola moved its headquarters in China from Hongkong to Shanghai.

At present, the cumulative investment of Coca-Cola in China market has exceeded $654.38+04 billion, the annual sales have exceeded 900 million TEU, and the Coca-Cola system has more than 30,000 employees in China market. By 2005, Coca-Cola had established 29 bottle decoration companies and 35 production plants in China, most of which were controlled by Chinese or China enterprises.

Coca-Cola beverage has gone through a glorious course of 1.20 years since its birth. At present, consumers in nearly 200 countries around the world enjoy more than 6,543.8 billion cups of Coca-Cola products every day, and the brand of Coca-Cola has been deeply rooted in people's hearts. Has anyone ever made an interesting statistic? Coca-Cola bottles sold over the years are placed side by side, and the length is equal to 1 15 round trips from the earth to the moon. From 1927, Coca-Cola entered China, Shanghai and Tianjin. Up to now, it has invested 1 1 billion dollars in China, established 23 canned beverage factories, and formed a nationwide production base and sales network, with annual sales of nearly10 billion yuan. Now it has become a leader in the soft drink market in China. In the survey of urban consumers, Coca-Cola has topped the list of similar products for many times. After 30 years of innovative brand management and effective marketing, Coca-Cola has become a household name in China.

2 The localization of Coca-Cola Company in China

1927? Coca cola? Set up factories in Shanghai and Tianjin, and then produce in Qingdao and Guangzhou. 1933 the coca-cola factory in Shanghai is the largest factory outside the United States? Coca cola? The factory, located at 1948, is the first factory outside the United States with an annual output exceeding 100 cases. Coca-Cola returned to China in 1979, and has invested 1 1 billion dollars in China so far. After more than ten years of development, Coca-Cola Company has established 23 canned beverage factories in China, forming a production base and sales network all over the country, with annual sales of nearly10 billion yuan. Such brilliant achievements can not be separated from the application of brand localization strategy. Mr. Han Chengping, deputy general manager of Beijing Coca-Cola Beverage Co., Ltd. said that the localization of Coca-Cola includes all aspects, including factories, raw materials, personnel, products, packaging and marketing, and 99% of them are from China.

2. 1 brand naming localization

Because different countries have formed their own cultures for a long time, brand naming will affect the market acceptance of products. [3] Early translation of Coca-Cola in China? Tadpoles chew wax? This name is not very popular in the market, which makes consumers feel confused and lose interest in the product. Once the market sales volume was very poor, so the company made a major decision, that is, to change the name, adapt the name to the local culture, and rename it? Coca cola? . The new name is catchy, easy to read and remember, deeply loved by people and quickly accepted by the market. It has also become a must-have drink for people to celebrate festivals, which has opened the door to the market and laid a good foundation for the operation of Coca-Cola in China market.

2.2 product localization

Doctor du, chairman of coca-cola, said: only localized drinks are the best-selling drinks? . They found that Asian consumers consume less than 65,438+000 cans of carbonated drinks every year, while Americans binge on 395 cans every year. The popularity of carbonated drinks in Asia cannot be compared with that in the United States and Europe. Asians, especially China people, prefer fruit juice and traditional tea drinks. Seeing this change in demand, Coca-Cola adjusted its products accordingly and successfully launched the first non-carbonated beverage in 2002? Ice dew? After that, a series of non-carbonated and even local beverages such as Queer, Tiandi, Shuisenhuo, Minute Maid, Fruit Orange, Tea Research Workshop and Health Workshop were launched one after another, which were well received by the market. Zhao, vice president of Coca-Cola China Company, said that the development of new products such as fruit oranges was successful in China. Coca-Cola Company also invested 80 million US dollars to establish the largest overseas R&D center in Shanghai to accelerate the localization of products.

2.3 Localization of advertising

Sandy, President of Coca-Cola Asia? Ai Hua said? As a direct result of the implementation of localization concept, Coca-Cola is closer to consumers than ever before? . [4] This concept stands out in advertisements. The headquarters of Coca-Cola Company strictly controls advertising, but the TV advertisement of 1999 launched in China was shot in China for the first time, designed by China Advertising Company for the first time, and invited China actors to shoot advertisements for the first time. The picture appears as a vibrant and healthy image, paying attention to the localized image of China. For example, Liu Xiang, S.H.E, Wilber Pan and Shawn Yue series sitcoms, which are popular on TV, are some of the plot arrangements that China people are most familiar with. They are very close to life, infectious and deeply loved by the people. In fact, the localization of Coca-Cola has a deeper meaning? That is, both products and spokespersons are not far from local consumers!

2.4 packaging localization

In addition to localization in brand naming, products and advertisements, Coca-Cola Company also pays attention to making great articles on packaging. Traditional festivals in China? Spring Festival? During the period, in view of local traditional customs, launch? Ah fu? 、? Gillian? The image of China makes consumers feel more cordial and deeply loved by people. In addition, the traditional China 12 Lunar New Year package is adopted to cater to the traditional New Year culture in China and publicize the animal images that China people are familiar with and love. Subsequently, all kinds of China-colored packaging, such as the golden bowl for the Olympic bid, the football version of the China team, and the paper-cut during the Spring Festival, have narrowed the distance between Coca-Cola and China consumers. In view of the needs of China people's weekday parties, festivals and celebrations and other special occasions, the large bottle packaging is specially introduced, which conforms to the cultural characteristics of China people gathering and sharing with large bottles and fully meets the market demand. At the same time, we have also introduced glass bottles, plastic bottles and other packages with different materials and capacities to meet the different needs of China people on different occasions.

2.5 Localization of personnel

What is the most unique feature of Coca-Cola Company in the process of developing and occupying the China market? Talent localization? . The theoretical essence of Coca-Cola Company's employment strategy is: (1) set up a company in the local market, and all employees use local people; (2) The head office is responsible for sales policies and personnel training. It is this principle that makes Coca-Cola (China) Company achieve rapid and fruitful development.

2.5. 1 Localization of management personnel

Generally speaking, employees of multinational companies in China often give you the impression of foreigners with beards, green eyes and suits; Work is often half time at home and half time on holiday abroad; There are no more internal employees to communicate with except the secretary, which is an unfathomable gesture; The language of communication is undoubtedly a foreign language. In Coca-Cola (China) Co., Ltd., this is not the case at all: (1) In China, more than 99% of Coca-Cola employees are China employees; In the Beijing area of Coca-Cola, except for the general manager and chief financial officer from Taiwan Province Province and Australia, all the others are mainland natives. (2) The communication language of all managers is not only fluent English, but also fluent Chinese. Even the foreign president of Coca-Cola (China) Co., Ltd. can talk and joke in fluent Chinese; Many foreign colleagues also use dialects such as Cantonese. (3) All documents are exchanged in Chinese and English. The localization of management talents is the real charm of localization. Imagine, which other multinational company can have such tolerance and dare to implement such a large-scale localization of high-level talents at the beginning of entering non-native? This is not? Glass ceiling? The huge promotion space allows local managers to truly relieve their worries, grow with the enterprise in a down-to-earth manner, and serve the enterprise for a long time without worries.

Localization of ordinary employees

Wherever the sales network of Coca-Cola products extends, people are selected and hired. The management of Coca-Cola Company believes that local gymnasts have unique conditions: first, they are familiar with business conditions, including neighborhoods, businesses, buying habits and so on. , so that the sales of Coca-Cola beverages can be integrated into the local environment as soon as possible; Second, the scope of influence is large, and the relatives and friends of local specific operators will be affected by their work and help them expand their work; Third, the team is stable. Local employees settle in the local area, have no worries, have a stable working mentality and can concentrate on their work. These innate advantages are unmatched by outsiders. Therefore, in the 23 bottle decoration factories in China and all offices of Coca-Cola (China) Co., Ltd., the specific operators are locals. Here, localization is not only about recruiting local employees, but also about further development according to local conditions. For example, the recruitment of laid-off eldest sister-in-law as tallyman in Beijing and community street personnel in Shanghai are the best and most in-depth extensions of localization strategy.

The rapid development of Coca-Cola Company in China can be said to benefit from the application of localization strategy, as Keane, president of Coca-Cola (China) Beverage Co., Ltd. said: Coca-Cola has implemented a series of? Localization? Measures, including the use of marketing methods to adapt to the China market, and China partner * * * to develop the brand of China, to provide quality services to consumers and to become local corporate citizens.

Analysis of the reasons for the success of Coca-Cola Company

1. Strengthen the concept of localization

Brand localization refers to developing different strategic combinations and localized communication according to different target market countries. Its ideological basis is the theory of national cultural diversity. Enterprises need to adapt to the different needs of target consumers in various countries' markets and realize the organic combination of internationalization and localization to the maximum extent. The essence of localization is the process that multinational companies integrate production, marketing, management, personnel and other aspects into the host economy. Since entering China, Coca-Cola Company has set an example for international brand enterprises in regional development, bottling plant construction, seamless cooperation with partners, new product promotion, hiring local managers, advertising and localization. The rapid development of Coca-Cola Company in China also proves that localized operation can give wings to the development of multinational companies.

2. Establish a partnership

Coca-Cola and three important bottling partners? China Cereals, Oils and Foodstuffs Import & Export (Group) Co., Ltd., Kerry Group and Swire Group cooperated closely, invested more than 654.38+0.2 billion US dollars in China, and established 28 bottle decoration companies and 34 factories. At present, more than 600 wholesalers have established cooperative partnership with Beijing Coca-Cola Beverage Co., Ltd. Establishing partnership with local enterprises has accelerated the expansion of Coca-Cola in China market.

Coca-Cola relies on close cooperation with partners and bottling companies in product production, marketing and after-sales service. As an active promoter of localization, all the concentrated solutions used by Coca-Cola's bottling plant in China are made in Shanghai, 98% of the raw materials are purchased locally in China, and 99% of the employees are local employees in China.

Coca-Cola has been operating as a localized enterprise since it entered China for 25 years. Coca-Cola does not simply move its business model in the United States or other regions to China, but constantly adjusts its products and services according to the characteristics of the China market, so as to truly meet the needs of consumers in China. At the same time, Coca-Cola attaches great importance to the cooperation with bottling partners and works with them to promote the rapid and healthy development of Coca-Cola business in China.

3 Cooperation with the host country * * * wins

Coca-Cola Company has provided more than 414,000 employment opportunities in China, and directly or indirectly increased profits and taxes for tax authorities by 654,380+06 billion yuan every year. At the same time, a huge supply and marketing network has been established, which has greatly promoted the development of many industries including sugar industry, transportation industry, plastic processing industry, warehousing and logistics industry, and promoted the healthy development of the local economy.

4. Building public welfare undertakings

Coca-Cola Company has a clear long-term commitment: let every business department of Coca-Cola become a local model corporate citizen, so that everyone involved in Coca-Cola business can benefit. With the continuous development of Coca-Cola business in China, Coca-Cola China System has spared no effort to devote itself to various social welfare undertakings and strive to fulfill its corporate citizenship responsibilities. So far, Coca-Cola China has participated in public welfare projects in many countries and regions, involving education, sports, environmental protection, disaster relief, poverty alleviation and employment. With a total donation of over 40 million yuan, it is one of the most active advocates and participants of social welfare undertakings in China. For decades, Coca-Cola has fully supported and actively participated in various public welfare undertakings in China. Coca-Cola has clearly realized that there is only a starting point and no end point on the road of practicing the core values of model corporate citizens. Saying goodbye to yesterday's achievements, Coca-Cola continued to fully support and actively participate in various public welfare undertakings in China, striving to become a popular social member and community partner, shouldering corporate social responsibility and establishing a good social image.

5 Rational use of celebrity effect

Coca-cola company hired celebrities to advertise from the beginning, hoping that consumers would follow the example of baseball superstar ty? Cobo or actress Hilda? Clark. In the 1930 s, from Clark? Bob and Kaiduan? Grant versus Jane? Hello, Joan? Movie stars such as Crawford advertise for Coca-Cola Company. In the late sixties, from Neil? Diamond, Leslie? Goyle, Ray? Charles versus Aretha? Singers like Franklin think that drinking Coca Cola will make everything better. However, excessive celebrity effect is also dangerous. On the one hand, the audience remembers more stars than products. Coca-Cola has always maintained a real star position in commercial advertisements, and Pepsi has a headache for stars who charge too much. This shows another danger of relying too much on celebrities. Although Madonna and Jackson have made a lot of efforts to improve the popularity of Pepsi, they are not as good as the company hoped. Coca-Cola re-launched the late stars Louis Armstrong and Grocho? Max and Humphrey. In order to solve this thorny problem, the images of Bo Xingte and others are advertised as sketches.

Coca-Cola has made achievements.

These mergers eventually led to the establishment of Coca-Cola Enterprise Group (CCE), which sold 5 1% shares to the public in June. After CCE was established, it renegotiated with suppliers and sales channels, consolidated major markets, cut 20% of the workforce, and reduced costs through unified distribution and raw material procurement. At 1986 and 1987, the net selling price of coke per case of CCE decreased by 2.5%. 1989, KKE bought 20% more Suto than 1986, and CCE's profit was unstable throughout the late 1980s.

In the late 1980s, Coca-Cola Company proposed that its franchise agreement should be made by? Master bottle contract "instead, reduce the fixed syrup price and Coca-Cola trademark use fee. By the end of 1989, the new contract covered about 70% of Coca-Cola's production in the United States. From 1978 to 1989, the bottling plant under the new contract experienced a 60% increase in the price of Coca-Cola syrup.

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