Coca Cola Japan Company
... Short Synopsis The Coca-Cola (Japan) Company (CCJC) is the leading beverage selling company in Japan in 1987 and it is the industry leader in improving quality standards and introducing new products. ... Regulatory Factors: Till 1961 trade regulations prohibited Coca-Cola from expanding to other Japanese locations. ... 2 Competition As already mentioned the soft drink industry is highly competitive in Japan. ... Coca-Cola is the best selling soft drink in Japan since 1965. ... CCJC has 90% market share of the cola market, slightly less than 60% market share of the non-cola carbonated market, and around 10% market share of the remaining drink market. ... : • Japan’s largest distiller • Gaining ground in its nonalcoholic divisions • Introduced a canned oolong tea called “Tess” in 1987 • Hold 50% of the oolong tea market in 1987 • Also produce colas, green tea, and health tonics • Plan to enter coffee market Kirin: • First produced a canned black tea (“Afternoon Tea”) in 1986 • Fifth largest brewery in Japan • 50% of Japanese beer market • One of Japan’s leading soft drink producers and marketers • Soft drink sales of around US$1 billion • Produces also fruit drinks, vitamin-enriched drinks, sports drinks, and canned coffee Hitachi Zosen Corp.: • “Big Five” shipbuilder in Japan • Also biotechnological business segments • Developed a new tea from the Chinese tochu tree and introduced this “healthy” and unsweetened tea in cans and bottles Asahi Breweries Ltd. ... 3 Company Objectives The Coca-Cola Company is the world’s largest producer and distributor of soft drink syrups and concentrates. The company’s products are sold through bottlers and fountain wholesalers and distributors in more than 155 countries. One of the objectives of the Japanese division CCJC is the further expansion in Japan. ... Another objective is to maintain and strengthen the leadership position in soft drink segment, which has been mainly reached by the company’s direct marketing approach and the company’s distribution system of independent local franchises. ... 4 Target Market The Coca-Cola Company operates two business sectors: the North American and the international business sector. ... They get from Coca-Cola soft drink syrups and concentrates for producing canned and bottled drinks. ... 6 Marketing Mix Products The CCJC product line consists of Coca-Cola, Coca-Cola Light, Fanta, Sprite, HI-C, Aquarious, Ambasa Water, Georgia Coffee, Real Gold, and Mello Yello. ... Distribution The CCJC beverages are produced through 17 individual bottlers in 17 regions in Japan. ... Overall the company is still getting financial larger, however, the revenues could increase more. ... 5% of Coca-Cola’s worldwide profits refer to beverages which are sold in Japan. ... One reason is that the profit per gallon is four times higher in Japan than for example in the USA. ... Hence Japan is an extremely important market for the global Coca-Cola Company. ... Problem Statement After analyzing the current situation of CCJC, following problems are taken into consideration: • Should CCJC enter the ready-to-drink tea market in Japan? ... Because the ready-to-drink tea market with different kinds of tea already exists in Japan, there is a lower risk of non acceptance regarding to consumers. ... Japan has 123 million inhabitants, of whom 75% are urban dwellers. ... Entering the tea market would be sensible since Japan is a tea drinking nation.