Cola Wars in China.pptx

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 Cola Wars in China Case Study Analysis

Group Members  T  Tushar ushar

Jalan (1282118)  Pranay Mukherjee (1282065)  Visharu Visharu! ! A"haryya (1282120)  Vi#ek Chatt$!adhyay (1282121)  Purnendu Chatterjee (12820%1)

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Soft Drinks - Introduction 

Any kind $& 'e#erae that d$esnt "$ntain al"$h$l "an 'e "$nsidered as a *s$&t drink+,  S$-e ./a-!les   ruit Jui"e  .nery rinks  Car'$nated rinks  Pa"kaed 3ater •

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Players in China China’s soft drink market has some major players -

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Company Introductions Coca Cola  The 3$rlds larest s$&t4drink "$-!any And &th  larest &$$d and 'e#erae "$,

"estle  The $rlds larest &$$d and 'e#erae "$,

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Pe!siC$  The &$urth larest &$$d and 'e#erae "$-!any in the $rld

Danone anked si/th in the l$'al &$$d and 'e#erae industry

China’s soft-drink industry 

1780s -ultinati$nal enter int$ the Chinese -arket

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Annual r$th 21 &$r last 20 years

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Annual $ut!ut in"reased &r$- 0,288 -illi$n t$ns (261 -illi$n liters) in 1780 t$ 16,67 -illi$n t$ns(15,191 'illi$n liters) in 2001

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Per "a!ital "$nsu-!ti$n in"reased &r$- 0,: liter !er annu- in 1782 t$ 8 liters !er annu- in 2001

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 T$tal re#enues e/"eeded M; 90 'illi$n in 2000

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S$&t drink 'e"$-e a reularly "$nsu-ed !r$du"t

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S$&t drink industry de#el$!ed &r$- "ar'$nated drinks in 1780s t$ !a"kaed ater in 1770s t$ tea in 2000s

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Wahaha Wahaha - #istory 

 $unded in 178% 'y sellin '$ttled s$da ater> ?"e "rea- and stati$nery in @anh$u> like &ruit4 Ba#$ured -ilk and &ruit jui"es,

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 ?n 1776> the "$-!any laun"hed its $n rane $& !uried '$ttled ater and 'e"a-e the -arket leader,

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 ?n the sa-e year> it entered int$ a j$int #enture ith ren"h "$-!any Danone.

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?n 1778 it laun"hed Future Cola, c$-!etin dire"tly ith the -ultinati$nal iants,

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$uture Cola 

A Preser#ati#e &ree "ar'$nated drink si-ilar t$ C$ke,

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irst started in 1778

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Pr$-$ted as a nati$nal 'rand t$ "$-!ete aainst the leaders> C$"a4"$la and Pe!si

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 The Ba#$r is -$died a""$rdin t$ the Chinese taste

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 Ty!es $& uture C$la 1, eular uture C$la 2, Dids C$la ("aEeine &ree) :, uture C$Eee C$la

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SW%&

Matri' 3eakness ( 弱點 )

Strenth ( 實力 ) S,3,F,T   F!!$rtunity ( 機會 )

 Threat ( 威脅 )

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Stren)th *nalysis 

./"ellent e!utati$n

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elati$nshi! ith rural distri'ut$rs

  J$int

#enture ith

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esear"h and de#el$!-ent tea-

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i#ersity in !r$du"ts

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  Weakness *nalysis 

3ell kn$n "$-!etit$rs,

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Stratey $& distri'uti$n in !r$du"ts,

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C$n"entrates it sales in rural areas,

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Pr$t -arin t$$ l$,

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 Sales &$r"e isnt as str$n as "$-!etit$rs,

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%pportunities 

?n"rease in sales

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Gr'an -arkets in China (lare "ities)

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Markets in near'y "$untries ith si-ilar "ulture and tastes

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a!id r$th in the s$&t4drink industry

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&hreat *nalysis 

Presen"e $& -ultinati$nal "$r!$rati$ns in the -arket (Pe!siC$, and C$"a4C$la),

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isk $& turnin int$ an$ther *"hea! Chinese "$-!any+ (re!utati$n)

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  Fther l$"al "$-!etit$rs like Fenhuang Cola, Alishan  Zhonghua Cola, Yanjing Cola and  Jianlibao’s Huating Cola

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Marketin) Mi' +,P’s Pr$du"t

Pla"e

 Taret Market Pr$-$ti$ n

Pri"e

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P.%D/C&

Coca-Cola • • • •

 Classi"  iet  S!rite  anta

P.IC0

P1*C0

Sa-e 'asi" !ri"e as Pe!si

Ma/i-u!resen"e in lare "ities> #ery eak in rural areas,

P.%M%&I%" @ea#y use $& TV ad#ertisin  Chaned !a"k desin t$ "ele'rate ;eijin h$stin the 2008 Fly-!i"s •

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P.%D/C&

Pepsi Cola • • • • •

 Classi"  iet  e  %G!  Mirinda

P.IC0 Sa-e !ri"e as C$"a4C$la

P1*C0 Ma/i-u- &$"us $n the -aj$r "ities,  H$t e#en !resent in the rural areas, •

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P.%M%&I%" $ne in a lesser a-$unt "$-!ared t$ C$"a4C$la,  Gse $& TV ad#ertise-ents and !rint -edia •

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P.%D/C&

$uture Cola  eular  Dids  C$Eee

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P.IC0 I$ !ri"e "$-!ared t$ "$-!etit$rs

P1*C0 @ih !resen"e in the s-aller> rural> areas  Str$n relati$nshi! ith l$"al distri'ut$rs

P.%M%&I%" Marketed as *Chinas Fn C$la+,  Hati$nal "ele'rities are used in TV and !rint ad#ertise-ents

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$uture *ction Plan 

3ahaha sh$uld try its 'est in maintainin) its current market position and l$$k &$r any kind $& r$th $!!$rtunities a#aila'le

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  M$re e-!hasis sh$uld 'e i#en t$ the brand 2alue, The *Chinas Fn C$la+ "$n"e!t sh$uld 'e -arketed hea#ily t$ "reate an e-$ti$nal i-!a"t ith the "$nsu-ers

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More 2ariations $& uture C$la "an 'e intr$du"ed in $rder t$ !ut -$re !ressure $n the -ultinati$nals

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 The 3youth4 se)ment sh$uld 'e tareted -$re thr$uh ad#ertise-ents and stylish !a"kain,

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Conclusion 

3ahaha has !r$ressed in"redi'ly ell in the s$&t drink se"t$r, All it needs t$ d$ is t$ maintain its current form and at the same time5 try for )ro6th7

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  ?& it "$ntinues ith its su""ess> it -iht end u! 'ein $n the sa-e le#el as C$"a4C$la $r Pe!siC$> hi"h $uld really -ake the *C$la 3ars+ e#en -$re interestin,

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Thank y$u @a#e a $$d day