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By: Stephen Hudgens

By: Stephen Hudgens. Background. Dr. John Pemberton made first Coke in 1886 Asa Candler founded Coca-Cola Company Headquartered in Atlanta, Georgia Today over 500 beverages brands are sold in over 200 different countries. More Background.

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By: Stephen Hudgens

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  1. By: Stephen Hudgens

  2. Background • Dr. John Pemberton made first Coke in 1886 • Asa Candler founded Coca-Cola Company • Headquartered in Atlanta, Georgia • Today over 500 beverages brands are sold in over 200 different countries

  3. More Background • Their segments include Eurasia, Africa, Europe, Latin America, North America, and Pacific. • Last year Coke reported revenues of $46.7 billion. • 80% of these sales come from outside the US!!!

  4. Product • Coca-Cola is not just simply known for the famous soft drink Coke. • They own hundreds of other product lines like Powerade, Bacardi Mixers, Minute Maid, Dr. Pepper, Monster, and Fuze. • Several of these companies are used under license by Coca-Cola like Monster and Dr. Pepper

  5. World Of Coke • Coca Cola tourist attraction in Atlanta where it shows the story of Coke and the hundreds of different brands they produce • Basically the Museum of Coke

  6. Fun Coke Facts • In the U.S., Coke has 42.8% of the market share • 1.7 billion Coke products are consumed every day • The Coca-Cola brand is worth an estimated $74 billion: more than Budweiser, Pepsi, Starbucks and Red Bull combined • Coke’s logo is recognized by 94% of the world’s population • The average person consumes a coke product every 4 days.

  7. Expansion into China • Coca-Cola first expanded into China in 1927 • Today Coca-Cola has 34 bottling plants scattered throughout China • They are now the leading carbonated soft drink manufacturer in China

  8. Why China? • Retail sales are growing at a double digit rate • More and more companies are generating great revenues in China…ex: GM and KFC • Coca Cola believes the beverage market in China is “untapped and has wide scope for expansion”

  9. Chinese Coke Commercial http://www.youtube.com/watch?v=1PRzphk3rxE

  10. Chinese Corporate Culture • China culture would fall under a collectivist culture since they place such heavy value on family. • They also value seniority in business • Take their time in business meetings • The Chinese recognize a need for investment, but do not like being dependent of foreigners

  11. Quality Issues • Some batches of Coke were found to have traces of chlorine • The Chinese recent ranked Coke lowest in a survey of 12 mainstream beverage brands • Coke said they were attempting to solve the problem but only planned improvements in the US

  12. Quality Issues • A recent consumer survey showed that the Chinese are becoming more health conscious and are looking for healthier drinks • This shift could be the cause of the recent drop in popularity

  13. Coke’s Solution • Coca-Cola attempted to purchase Huiyuan Juice for $2.3 billion • Attempt by Coke to provide consumer’s a healthier alternative to soda • Unfortunately, China rejected the buy

  14. WHY? • China wants to increase competition in their markets • They were afraid if this purchase went through Coca-Cola would have to much market share • China is afraid of a possible monopoly!!

  15. Chinese Laws • Coca-Cola thought China would not mind this acquisition • BUT, if they read the Chinese law closer, they could have foreseen this outcome • China doesn’t want foreign firms buying huge stakes in companies that don’t need financial or managerial assistance

  16. Coke’s Response • Coca-Cola plans to invest more than 4 billion dollars in China in the next 3 years • Want to introduce new products and build more plants • Looking for healthier drinks to introduce like juices or plant protein drinks

  17. China ExpansionNeeded • Pepsi is becoming very competitive in China • They are coming up with new products, constructing new facilities, and expanding every day in China • Coke still has more of the market share but needs to keep expanded to remain on top

  18. Personal Opinion • Coke should focus more time and money on maintaining good quality of products in China • Keep researching for new healthier drinks to please the consumer • Advertise the switch to more health conscious drinks • Be aware of the fact that China doesn’t want Coca-Cola becoming a monopoly in the beverage industry

  19. Works Cited • http://www.forbes.com/2009/03/24/coca-cola-china-leadership-citizenship-huiyuan.html • http://www.zacks.com/stock/news/113912/Coca-Cola-Pushes-into-China • http://chinabevnews.wordpress.com/2012/08/23/coca-cola-suffers-brand-damage-due-to-quality-problems-in-china/ • http://www.businessinsider.com/facts-about-coca-cola-2011-6?op=1 • http://www.pagepersonnel.com.hk/minisite/coca-cola_HK/work.html

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