麦肯锡-日本可乐产品咨询报告

CONFIDENTIALThisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotacompleterecordofthediscussion.DiscussiondocumentDecember2000CokeCaseStudy–WinninginJapanFINGERPRINT–COKEHighLow1NJ-262408.756/001117NbgeoHR1COKEINJAPANCapabilitiesLocalizesphysicalassets;bottlinganddistributionmanagedthroughalliances;bottlingalliancesaretypicallyinclusive17bottlersinJapanCreatesdirectdistributionsystemtostoresthroughbottlersOffersmarketing,manufacturing,andinvestmentsupporttopartners,whenneededHassupplyallianceswithMcDonaldsSpendshugeresourcesoninfluencerrelationshipsPartnerswithlocalagenciesformarketingcapabilities

(e.g.,Dentsu)CustomerpulldemandinproductpushJapanUsessegmentmarketingtounderstandcustomerbehaviorOrganizationStrongcommunityfeeltoCokeHoldsconventionsforbottlersDistributesbottlersmagazineCompensationiscompetitive–attractsgraduatesfromtopschoolsAlmost10%ofJapanofficeisforeigners–somedegreeoftensionwithlocalstaff;stillhas“uglyAmerican”syndrome;seniorJapaneseexperienceglassceilingJapanseenasstrongprogressionpath–CEOusedtoheadJapanProductAdaptsproductstolocalmarketsAlmost10%ofrevenuecomesfromJapan-specificproductsBrandsincludeGeorgiaCoffee,Sokenbicha,andAquariusBottlersguidedCokeintodevelopinglocalizedproducts“Fastfollower”strategy–quicklyfollowedleadofsmallerlocalplayerstoenterteaandcoffeedrinksCokemaintainsfullcontroloverproductcontentLaunchesnewtypesofproductsinJapan(e.g.,cannedsoupdrink)Middle

FarEastEuropeNorth

AmericaSales

$Billions1993199519971999Performance/backgroundLeversforsuccessOtherMarketinformationMarketisverycompetitive–morethan7,000softdrinksaresoldinJapanby500manufacturersVendingmachinesaccountfor>50%ofsoftdrinksalesCompanyinformationCokeisthemarketleaderinJapanJapanisaveryprofitablemarketforCoke(potentiallythemostprofitable)Maintains>900,000vendingmachines,2xthenumber

ofcompetitorsProductsCoffeedrinks,greentea,blacktea,milk/yogurtdrinkCokeoffers5brandswith60flavors;75%ofbrandsareJapaneseCompetitors:Kirin,ItoEn,SuntoryCSTDCSEricFriberg*,ToddGuild*,MarkLoch,HirokazuYamanachi*14.018.018.919.833322114231533293429221525233814CAGR

9% * HasworkedonJapanstudies2NJ-262408.756/001117NbgeoHR1CONTENTSCompanyoverviewJapanmarketentrystrategyProductsCapabilitiesOrganization3NJ-262408.756/001117NbgeoHR1COKE–COMPANYBACKGROUNDFounded1886inAtlanta,USANumberofglobalemployees:37,400CEO:DouglasN.Daft(Australian)MostseniormanagerforJapan:MaryMinic(President,Japan)Keyproducts:carbonatedandsportsdrinks,juices,tea,coffeeMarketcap:$151billion(asofNovember13,2000)Keyindustryfocus:beveragesNo.1softdrinkcompanyglobally50%globalmarketshareOwnstwooftopthreeglobalbrands(No.1Coca-Colaclassic,No.3DietCoke)MarketleaderinsoftdrinksinJapan56%marketshare;competeswith500manufacturessellingover7,000drinksGlobalcompetitors:PepsiCo,CadburySchweppes,NestleCompetitorsinJapan:Kirin,ItoEn,SuntoryOwns40%stakeinCoca-ColaEnterprises(world’slargestbottler)4NJ-262408.756/001117NbgeoHR1COMPANYEVOLUTIONCokehasbeenaninternationalcompanysincethestartofthecentury,butWWIImadeitatruemultinational.Cokeenteredthebottlingbusinessinthemid-eighties.Recently,thecompanyhasseenstrongprofitsfromfinancialreengineeringinitsbottlingsegment.1800sInventedin1886inAtlanta,USA,asaheadache,indigestion,and

exhaustionremedyMajoradvertisingstartedin1892;by1895CokewassoldineveryU.S.state1900s-1920sCokesellsinCuba,Jamaica,Bermuda,thePhilippines,PuertoRico,andEuropeby1916Firstbottlingfranchiseestablishedin1901RepositionsCokeasnon-medicinalproductCokebottleinvented

in1916Devotespersonneltomaintaininggoodrelationswithbottlersin1922Establishespioneeringmarketresearchagency1930s-1960sAdvertisingtargetsminoritiesstartingin1950sWorldWarIIcatapultsCokeintoworldmarket,creatingfirstU.S.multinationalFantainnovatedbyCokeinGermany,drivenbyingredientconstraintsduringWWIIOpens15-20plantsworldwideduring1950sMergeswithMinuteMaid

in1960MergeswithDuncanFoodsin1964AcquiresBelmontSpringsWaterCo.in1969ExpandsproductlineinresponsetoPepsiCocompetitionin1960sFantainU.S.in1960Sprite,Tab,FrescaintroducedDietversionsintroduced1970s-1980sAcquiresAqua-Chem(desaltingmachines)

in1970AcquiresTaylorWinesandotherwineriesin1977IntroducesCokeinRussiaandChinain1970sAcquiresColumbiaPicturesin1982for$750millionReformulatesCokein1985;unfavorablecustomerreactionDivestsentertainmentbusinessin1987Focusesoncore,profitablebusinessanddoublesnetincometo$1billionin1988Entersbottlingbusinessinmid1980s1990sLaunches“AlwaysCoca-Cola”themein1993CEOarticulatesprioritiesin1993creationofstockholdervalue,brandbuildinglong-termfocusTop16marketsaccount

for80%ofvolume;themarketscomprise20%ofworldpopulationBottlingbusinessplaysimportantroleinprofitabilityInventionRepositioningandmarketingExpansion,acquisitions,

anddiversificationDiversification

andrationalizationMarketing Source: InternationalDirectoryforCompanyHistories5NJ-262408.756/001117NbgeoHR1Source: Annualreport;Standard&Poor’sRegistarNameRoleJapanexperienceDouglasN.DaftCEOandChairmanSENIORMANAGEMENTPresidentandCOOJamesE.ChestnutEVP,OperationsSupportCharlesE.FrenetteGaryP.FayardSVPandCFOJosephR.GladdenEVPandGeneralCounselCarlWareEVP,HeadofGlobalPublicAffairsand

AdministrationSVP,ChiefMarketingOfficerStephenC.JonesCokehasadiversifiedteamofseniormanagers.UsedtoheadJapanJackL.StahlEVP,PresidentofGreaterEuropeUsedtorunmarketinginJapan6NJ-262408.756/001117NbgeoHR1COKESTOCKPRICECOMPARISON–U.S.Coca-ColaCo.Beverages(non-alcoholic)S&P500Comp–Ltd.Cokedramaticallyoutperformedthemarketaswellasitscompetition,especiallywhenitstarteddivestingnon-corebusinessestofocusonitsprofitablesegment.Coca-ColaCo.Beveragesindex

(non-alcoholic)S&P500index7NJ-262408.756/001117NbgeoHR1COKESALESBYREGION$BillionsCokehasanestimated56percentmarketshareinJapanandhasbeengrowingitsJapanesecontributiontototalsales.199319951997199914.018.018.919.8OtherMiddleandFarEastEuropeNorthAmericaCAGR=9%142132332933231514222935382326138NJ-262408.756/001117NbgeoHR1 Source: Companyweb-siteCOKE’SSALESBYBRANDIn1999,63percentofCoke’stotalgallonsalescamefromproductsbearing“Coke”trademark.CokeOther9NJ-262408.756/001117NbgeoHR1Cokehashistoricallymadeequityinvestmentsinselectedbottlerswiththeintentionoffinancialreengineering,butisnowmovingawayfromthisstrategy.Thecompanyhasrealizedthat“bigisnotalwaysbetter”andistryingtogetoutofanchorbottlersinBrazilandthePhilippines. Source: Annualreports;McKinseyanalysisHIGHLIGHTSOFCOKE’SBOTTLINGBUSINESSBreakdownofworldwideunitcasevolumeproduced/distributedBottlersownedandcontrolledbyCokeIndependently

ownedbottlersBottlersinwhoCokehasnon-controllingownershipPercentHistorically,Cokeinvestedinundervaluedbottlersworldwide,providedfinancialandmanagerialsupport,andimprovedoperatingefficiencieswhichgeneratedincreasedsales;Cokebenefitedfromgrowth,improvedcashflowsandincreasedownervalue;attimes,Cokesoldthesebottlersafterturningthemaround,forsoundprofits10NJ-262408.756/001117NbgeoHR1SELECTEDLOCATIONSCokeisheadquarteredinAtlanta,GeorgiaintheU.S.,buthassubsidiarieslocatedoverawidegeography.NOTEXHAUSTIVE11NJ-262408.756/001117NbgeoHR1CONTENTSCompanyoverviewJapanmarketentrystrategyProductsCapabilitiesOrganization12NJ-262408.756/001117NbgeoHR1STORYLINEInordertoenterandsucceedinJapan,Cokerealizedthatitneededtoadoptapartneringstrategy.Cokealliedwith17locallyownedandmanagedbottlersandleveragedtheserelationshipstosetupadirectdistributionchannelaswellasgainmanufacturingandmarketingcapabilitiesItfolloweditsbottlers’adviceandexpandeditsproductofferingstoincludespecializedbeverages(e.g.,milk-baseddrinks,coffeedrinks,teas).Inaddition,Cokeintroducednewproductcategories(e.g.,cannedsoups,Coo,aflavoredjuiceproduct)andnewflavorsinexistingbrands(e.g.,FantaGoldenPineapple)toincreaseitsmarketshareintrend-orientedJapanThecompanywasalsoinnovativeinitsalliancestrategy(e.g.,supplyalliancewithMcDonalds),itsmarketingtechniques(e.g.,introducedreclosablePETbottles),anditsacquisitions(e.g.,acquisitionofKanebo’svendingmachineoperations).Coke’ssaleschannel(930,000vendingmachines,overtwiceasmanyasitsnearestcompetitor)isadistinctcompetitiveadvantageinJapanwherevendingmachinesarethemostpopularsaleschannelCokerealizedthatitneededtoptalenttocompeteeffectivelyinJapanandsentstrongmanagerslikeDougDaft(currentCEO)andStephenJones(currentChiefofMarketing),toJapaninleadershiproles.Thus,JapanwasseenasaprogressionpathtotoppositionsinthecompanyCokeiscurrentlythemarketleaderinJapan’ssoftdrinksegmentwitha56%marketshare.Cokeownsthenumber1localbrandGeorgia(coffeedrink).However,thecompanyhasbeenaslowmoverinexploitingnewopportunities(e.g.waterandsportsdrinks)Inthefuture,Cokefacesthechallengeofexpandingitslowmarketsharepenetration(20%)intheJapan’smostrapidlygrowingsegmentofspecializedbeverages13NJ-262408.756/001117NbgeoHR1CONTENTSCompanyoverviewJapanmarketentrystrategyProductsCapabilitiesOrganization14NJ-262408.756/001117NbgeoHR1PRODUCTSTRATEGYCokeunderstandstheimportanceofofferingproductsthatappealtothelocalmarket,inadditiontoitsexisting,classicproducts.15NJ-262408.756/001117NbgeoHR1COKE’SJAPANESEPRODUCTSCokehasconsistentlyrolled-outnewproductstailoredfortheJapanesemarket. Source: CompanywebsiteGeorgia(coffeedrink)Ambasa(non-carbonatedlacticsoftdrink)

RealGold(carbonatedherbmixflavoreddrink)Vegitabeta(fruitydrinkwithmultiplenutrients)KoChaKaDen(blended

tea–RoyalMilk,FineAromaStraight,GardenLemon)Saryusaisai

(non-sugarOolongtea)SaryusaisaiSokenbicha(special

brandedtea)

Seiryusabo(GreenandBarleyteas)Shipla(“functional”,stressflavored

drinkwithmulivitamins)

Lactia(lactic,non-carbonateddrink;promoteshealthydigestion)Calo(“functional”softdrink;helpsbuildhealthybones)

PerfectWater(mineralwater)16NJ-262408.756/001117NbgeoHR1CONTENTSCompanyoverviewJapanmarketentrystrategyProductsCapabilitiesOrganization17NJ-262408.756/001117NbgeoHR1COKECAPABILITIESINJAPANCokeleverageslocalalliancestogaincapabilities.Thecompanyalsooffersmarketing,manufacturing,andinvestmentsupporttopartnerswhenneeded.18NJ-262408.756/001117NbgeoHR1JapanisCoke’smostprofitablemarketaftertheU.S.Cokederivesabout17-20%ofitsoverallprofitfromJapan.