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Dive into the consumer market analysis and strategic positioning of Coca-Cola in China, exploring its business model, growth strategies, and customer value creation. Discover insights into facing market challenges effectively.
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Market study of Coca Cola company Jumyeong Kim 11340696046 XinyiGoh 11349086092
Contents • Overview of Beverage industry and Non-alcohol business trend in the world and in China • Coca Cola business model and brands and products • The consumer value Coca Cola created and What can Coca Cola do to make clients happy and loyal • Consumer market analysis of Coca Cola • SWOT and Competitor analysis in China • How to face the challenges in China C
Overview of Beverage Industry • & • Non-alcohol Business Trend • in the World C
Beverages • Non-alcohol • Alcoholic Beverages • Soda • Tea & Coffee • Energy Drinks • Fruits Juice • Drinking Water • Enhanced Water • Sports Drinks • Milk Beverages C Refrechin Everyone We Touch
Beverages • Oligopoly(intense competition) • Limited growth opportunity • (endeavor to diversify offerings) • Changing consumer tastes • Volatile commodity costs • Non-alcohol • Alcoholic Beverages • Soda • Tea & Coffee • Energy Drinks • Fruits Juice • Drinking Water • Enhanced Water • Sports Drinks • Milk Beverages C Refrechin Everyone We Touch
Beverages • Historically dominated by Pepsi and Coca Cola • Distribute via sizable bottling subsidiaries • Consumer preferences drive product diversification (growing awareness of health issues). • Demand for bottled water, low-sugar drinks, RTD tea increases • Non-alcohol • Alcoholic Beverages • Soda • Tea & Coffee • Energy Drinks • Fruits Juice • Drinking Water • Enhanced Water • Sports Drinks • Milk Beverages C Refrechin Everyone We Touch
Overview of Beverage Industry • & • Non-alcohol Business Trend • in China C
1980s • 1990s • Early 2000 • Present • Future • size of the industry will continue to expand • Bottled water, tea drink, protein drink will increase • rise of healthy drinks • domestic beverage industry has a huge market-based • enjoys a great room for growth • Carbonated beverages : • Coca Cola, • Pepsi • Bottled Water: • Wahaha, Robust, • Nongfu • Tea beverages and fruit juice: • Master Kong • Uni-president C Refrechin Everyone We Touch
Beverages • Dominated by 6 brands • Nongfu Spring • Master Kong • Wahaha • Uni-president • Robust • Nestle • Non-alcohol • Alcoholic Beverages • Soda • Tea & Coffee • Energy Drinks • Fruits Juice • Drinking Water • Enhanced Water • Sports Drinks • Milk Beverages C Refrechin Everyone We Touch
Beverages • Non-alcohol • Alcoholic Beverages • Soda • Tea & Coffee • Energy Drinks • Fruits Juice • Growth is limited but large consumer base • Drinking Water • Enhanced Water • Sports Drinks • Milk Beverages C Refrechin Everyone We Touch
Beverages • Consumers’ need of natural, low sugar, healthy beverage • Rapid growth • Non-alcohol • Alcoholic Beverages • Soda • Tea & Coffee • Energy Drinks • Fruits Juice • Drinking Water • Enhanced Water • Sports Drinks • Milk Beverages C Refrechin Everyone We Touch
Beverages • Dominated by 2 brands • Master Kong • Uni-president • account for about 80% of the market share • Non-alcohol • Alcoholic Beverages • Soda • Tea & Coffee • Energy Drinks • Fruits Juice • Drinking Water • Enhanced Water • Sports Drinks • Milk Beverages C Refrechin Everyone We Touch
Atlanta, Georgia Founded in 1892 Since 1886 Asa Griggs Candler John Stith Pemberton C Refrechin Everyone We Touch
43% : the United States 37% : Mexico, India, Brazil, Japan and China 20% : spread throughout the rest of the world owns its anchor bottler in North America Serves Over 1.7 billion drinks each days Coca Cola refreshments More than 500 brands in over 200 countries C Refrechin Everyone We Touch
Coca Cola Business Model Canvas C Refrechin Everyone We Touch
C Value Proposition • Quench thirst • Cool down on hot days • Get sugar • Familiar Taste • Feel one of the cool guys • Happiness • Uniquness (special feeling) • For Distributors: • Winning product • Guaranteed to sell Refrechin Everyone We Touch
C Customer Segments • Mass Market • Children • Young Adults/Teens • All the rest • Dep, Stores, Restaurants • Larger retail outlets • Vending machine operators • Redistributors Refrechin Everyone We Touch
C Channels Refrechin Everyone We Touch
C Customer Relationships • Display • Advertisement for customers • Campaigns Refrechin Everyone We Touch
C Key Activities • Production • Bottling • Marketing • Distribution Refrechin Everyone We Touch
C Key Partners Coca Cola Company Advertisement Agency Bottle Supplier/ Bottler Refrechin Everyone We Touch
C Key Resources • Bottling/Syrup Factory • Distribution Center • Employees(146,200) • Marketing Budget • Franchise Contract Refrechin Everyone We Touch
C Revenue Streams • Retail Price • Fixed Pricing(Volume, product feature dependent) Refrechin Everyone We Touch
C Cost Structure • Marketing • Bottling and Distribution • Producing Syrup • Franchise Contract Refrechin Everyone We Touch
Coca Cola Brands & Products Refrechin Everyone We Touch
The consumer value Coca Cola created & What Coca Cola do to make clients happy and loyal C
Quench Thirst • Cool down on hot days • Get sugar • Healthy • Feel one of the cool guys • Uniqueness The consumer value • Happiness
What Coca Cola do to make consumers happy and loyal • Consumer-Centricity • first beverage company to offer front-of-package labeling that states the number of calories in each can • aligning their product offerings with the consumer’s growing search for healthy and green product solutions • Familiarity • Familiarity creates a sense of affinity between the customer and brand • more exposure to Coca Cola by lots of advertisements and campaigns • memory refreshment and positive association
C C Refrechin Everyone We Touch
C Segmentation Dividing the market • Geographic segmentation • Place of consumption • Types of products bought by customers • Demographic segmentation C
C Geographic Segmentation To divide markets into different geographic units Population Density City or Metro Size World Region or Country Region Climate C
C Place of Consumption At home Cinemas Streets C
C Types of products bought by customers Demographic Segmentation C
Targeting Geographic Segmentation: Winter VS Summer C C
C Targeting The heath conscious segment of the market C
C Positioning Creating an identity in the minds of a target market Refreshing and Thirst Quenching Consistent and High Quality Happiness C
C SWOT Analysis C
C SWOT Analysis C
C SWOT Analysis C
C SWOT Analysis C
C Master Kong • Tingyi Holding Corporation • Largest instant noodle producer • 48.3% leading market share in RTD market • 19.6% leading market share in bottled water market • Second to Huiyuan in fruit juice market C
C Coca Cola in Asia VS RTD Teas and Fruit Juices 24% Soda Less than 9% C