2. History
• John Pemberton (1886 – 1887)
• Gallons of Syrup (1888 – 1891)
• First Bottles (1892 – 1894)
• Syrup Plants (1895 – 1898)
• Candler Loses Coca-Cola (1899 – 1904)
• Designing The Bottle (1905 – 1918)
• Introducing to the Olympics (1919 – 1940)
• World War II and Coca-Cola (1941 – 1959)
• Re-entry of Coca-Cola in China (1979)
3. “ Putting cold bottles on shelves is the best marketing we can do ”
E. Neville Isdell
From Bubble to Trouble –
סּ In 1920’s, Coke entered China
סּ Bottling operations plant in Shanghai &
Tianjin
סּ Communist take over in 1949
סּ Re-entry after 30 years
סּ Joint-Venture with local Chinese companies
סּ Face-off competitions
4. Success factor in China –
o Approach of "Think local, act local“
o Encourages local managers
o Localization entire Coca-Cola system
o Strong relationships with the government
o Technology and Joint venture
From Coca cola first foreign FMCG-
company to enter the Chinese market
To China, Coca-Cola's Second Largest
Market in Asia
5. Health conscious Chinese consumers.
Honor the ruling party (Huiyuan).
Opportunism.
Lack of Market Knowledge.
Cross cultural advertising (Ke-Kow-Ke-La) (Ko-Kou-Ko-Le).
Lack of proper infrastructure and distribution channels.
Competition.
Problems faced by Coca Cola
6. COCA COLA ESTABLISHES A MARKET IN CHINA
1995
• Coca Cola acquired 12.5% stake in Swire
• Forms agreement with Kerry Beverages
Group to produce and sell north and interior
China.
1996
• Tian Yu Di- Non carbonated drink.
• Included flavours such as lychee, oolong,
jasmine tea.
1997
• Xingmu- non carbonated drink having
flavours such as green apple, watermelon &
coconut.
• Qoo- Non carbonated juice drink.
7. THE SETBACK THE IMPLICATIONS:
The sales of American companies including Coca
Cola declined following the Anti-American
sentiment.
However sales did not drop so high as expected and
the company continued to implement its growth
strategy.
• Chinese Embassy was bombed in
Belgrade, Yugoslavia by the U.S.
Chinese were suspected of monitoring
the cruise missile attacks on Belgrade,
with a view to developing effective
counter-measures against US missiles.
8. GOOD TIMES AHEAD
• Coca Cola became the official sponsor of the National Football team in 2002.
• Chinese citizens often visited McDonalds to watch basketball.
• Coke traded their tech and beverage companies helped them market in China.
• Tong Zhiguang-advocate of Coke’s entry to Beijing.
• Coca cola became the fastest growing brand, nicknamed as “happy water for fat otakus”
9. BRAND IMPLICATIONS
• Small packaging- Allowed coca cola penetrate the market of office goers.
• Effective packaging, helped ease the trouble of carrying coke containers.
• Smaller containers carried smaller prices.
• Coca cola was able to expand into the non aerated market as well.
10. Interesting facts
If you drank 1 Coca-Cola brand per day, it would take you 9 years to try them all.
It has 3,500 drinks, and 500 brands.
If you put every drop of Coke ever produced into an 8 ounce bottle and laid them
end-to-end, they could reach the moon and back over 2,000 times.
The production of Coca-Cola is equal to if Niagara Falls flows at its normal rate of 1.5
million gallons per second instead of water. The falls will flow for straight 38 hours
and 46 minutes.
Coca Cola has more than 9 Million Estimated Retail Outlets in 206 Regions which is
more than the countries in UN.