Back To China Case Study

Back to China:

Coca-cola Performs Far Better than other Drink Companies during 2000 to 2015 in China.

In the marketing history, Coca-cola and other drinking companies have fought with others for over 100 years. Coca-cola had come into Chinese market but then forced out. However, when it came back, it made every effort to develop Chinese market；The branding of combing Chinese tradition and the advertisements endorsed by popular singers or actors attract lots of Chinese people. Early market entrance in China ensures a steady group of consumers. Distribution of factories in different areas of China and the merging strategy enable Coca-cola to increase the efficiency of operation. Coca-cola was able to perform far better than others in Chinese

At the beginning of 20 century, Coca-cola entered the Chinese market and it set up the headquarters in Shanghai in 1927. This first mover strategy took up almost all market shares in China and got a further influence on the choices of cola to Chinese customers. No matter the elderly or young people could know the Coca-cola brand and it had become a typical coke in people’s mind. Even though ‘because of the historical problem, Coca-cola suffered unsalable stage in China in 1949 (Zi Chunfang, Kang Yonghua, 2013) it never stopped Coca-cola from launching again into China. In 1979 Coca-cola returned to China and became the first drinking brand that went back to China. This time it became the first mover again and took advantage of the empty market. “Other competitors who wanted share the market later could not change the situation of the market.” (Zhang Mi, 2009). It laid a foundation of wider the consumer groups because the population in China all accepted this brand and it made sure the profits. Other companies such as Pepsico as the second comer dominantly targeted on young communities which lacked financial incomes so it enjoyed few market shares compared with Coca cola. According to the 2005 Annual Report, the company sold beverage products in more than 200 countries. The report further stated that of the more than 50 billion beverage servings of all types

At the same time, it developed more branches of other drinking. In general, the Coca-Cola Company and its subsidiaries only produce syrup concentrate, which is then sold to various bottlers throughout the world. Coca-Cola bottlers, who hold terrestrially exclusive contracts with the company, produce the finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise the resulting Coca-Cola product to retail stores, vending machines, restaurants and food service distributors. Since 1980s, Coca-cola expended its bottlers from 3 to 23 and it was still increasing since 1985 till now. “As a world known enterprise, the success of Coca-cola company in China is owing to its supply chain management model, including raw material supply, information system, cooperation and manage model.” (Pan Xudong, 2010) Besides, Coca-cola Merges Huiyuan Fruit Juice to enlarge its product market because it contained juice from now and the good reputation of Huiyuan helped a lot to Coca-cola. This merging action was the second large record in its around 120 years history and it consumed Coca-cola 17.92 billion HKD. (Liu Hua,