Coca-Cola's Re-Entry and Growth Strategies in China


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : BSTR140 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

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Case Length : 12 Pages
Period : 1978-2004
Organization : Coca - Cola
Pub Date : 2004
Teaching Note : Available
Countries : China
Industry : Beverages

Abstract:

Coca-cola has a presence in over 200 countries worldwide and is acknowledged as the most recognized brand in the world. This case explains Coca Cola's entry and growth strategies in China and the reasons for its success in this market. The case discusses its strategy for re-entry into the Chinese market and its long-term localization strategy.

The case also looks at how Coke cooperated with the Chinese government in order to soften the impact of the restrictive policies regarding Foreign Direct Investment in China, and how it designed its marketing and promotion strategies to suit the Chinese market.

Issues:

» Understand the re-entry strategy of a multinational beverage company

» Understand how a multinational company can work with the government in a situation where policies are restrictive of FDI

» Understand the long-term localization strategy of a multinational company

» Understand how a multinational company adapts its distribution, marketing and promotion to the new market that it enters

Contents:

  Page No.
Introduction 1
Background Note 2
Localisation Strategies 3
China, Coca-Cola's Second Largest Market in Asia 8
Exhibits 9

Keywords:

Coca-Cola, China, Entry strategies, Growth strategies, E. Neville Isdell, Chinese beverages market, Coca-Cola system, Advertising strategies, 'open door policy', Localization strategies, Special Economic Zones, Swire Pacific, Kerry Beverages Group, distribution network and Coke bottlers.

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