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- 1. At Coca-cola China, our mission is to create high quality beverages that will refresh mind, body and spirit. Alongside our personal motto Think local, Act local we will continue to strive to provide a wide variety of beverages to suit everyone around the world while benefiting our stakeholders. In order to maintain our position as Chinas favorite beverage company, we continue to deliver this by committing ourselves to explore new areas and create beverages that are accessible to every one of all backgrounds
- 2. Corporation Objectives (3 Year) Double online sales +15% Total sales +10% organic brand sales + 8% RTD Tea Market share
- 3. Original Leaf Refreshment/ hydration Relaxation/ Fun Sense of belonging New experience Better health/ wellbeing Saving money ? Interactive Games/ Coded labels ? Promotions/Discounts ? Knowledge of ingredients/ educational facts ? Celebrity proximity ? Availability ? New Flavours ? Natural Consume, Scan, Read
- 4. Buying criteria Original leaf Motivators factors ? Natural ingredients * ? Traditional tastes ? Branding * ? Low-sugar content Hygiene factors ? Price ? Variety ? Safety ? Convenient
- 5. NaturalArtificial Western Traditional Kong Fu panda Health seeker Adventurer School kids 300,000,000 Tea beverage drinkers In China 11.5L/57.5?/person/year) Total Volume (2015-18) 17457.7 to 20157.5 mn litre Growth rate 2015-16 5.3% 2016-17 4.9% 2017-18 4.5% Questionnaire (30 in total) 300M* 16/30= 160M (KFP) 300M* 9/30= 9M (HS) 300M* 2/30= 2M (SK) 300M* 3/30= 3M (Ad)
- 6. PESTEL Analysis Politic: - Bureaucracy and corruption - Min standard for product - Rivalry between centuries - Tax Economic: - Exchange rate - Price of raw material (Oil price) - Income level - Employee wages Social: - Awareness of health - Educated people - MIC (culture loyalty) Technology: - Evolution of machines - Online shopping - Artificial ingredients development Environment: - Organic ingredients - Recycling packaging - MIC (culture loyalty) Legal: - Law for anti-monopoly - Tea beverage regulation - laws favouring local distributors
- 7. 7 Rivalry- High PepsiCo Wahaha Tingyi Uni-Pesident Ent. Bargaining power of buyers C Moderate 1. Small local stores 2. Restaurant chains 3. Vending machines 4. Large supermarkets 5. Internet Threat of Substitutes - High 1.Chinese Cola 2. Juice 3. Sports & energy drinks 4. Milk/ flavoured milk Five Forces Product/product category: Original Leaf 7 Threat of new entrants - Low 1. Local Brands 2. Lower prices 3. Innovative products 4. Endorsed products 5. Novel/ Foreign beverages Bargaining power of suppliers C Low 1. Substitutes available 2. Differentiated 3. Supplier concentration 4. Prices 5. Packaging
- 8. MA Weight Kungfu Pandas Health seeker School kids Adventurer Growth 15% 6 0.9 8 1.2 8 1.2 5 0.75 Profitability 25% 6 1.5 7 1.75 4 1 2 0.5 Size 25% 8 2 6 1.5 2 0.5 3 0.75 Health 15% 8 1.2 9 1.35 2 0.3 4 0.6 Competition 10% 5 0.5 6 0.6 8 0.8 8 0.8 Tradition 10% 8 0.8 4 0.4 2 0.2 4 0.4 Total 100% 6.90 6.80 4.00 3.80
- 9. C.S.F.s Score/weighting Above the diagonal line: Score out of 10 Below the diagonal line: Multiply score x weight Weights Coca Cola Jiaduobao Master kong 1. Price 20 5 6 5 1 1.2 1 2. Quality 50 8 4 5 4 2 2.5 3. Flavor 10 5 9 8 0.5 0.9 0.8 4. Accessibility 20 6 1.2 9 1.8 9 1.8 Totals 100 6.7 5.9 6.1 Critical Success Factors Product-market segment: Health seekers Relative Business Strength: 6.7 C 6.1 = 0.6 ? Cranfield University 2013 9
- 10. C.S.F.s Score/weighting Above the diagonal line: Score out of 10 Below the diagonal line: Multiply score x weight Weights Coca Cola Jiaduobao Master kong 1. Price 20 5 6 5 1 1.2 1 2. Quality 50 8 4 5 4 2 2.5 3. Flavor 10 5 6 9 8 0.5 0.6 0.9 0.8 4. Accessibility 20 6 7 1.2 1.4 9 1.8 9 1.8 Totals 100 6.7 7 5.9 6.1 Critical Success Factors Product-market segment: Health seekers Relative Business Strength: 6.7 C 6.1 = 0.6 0.9 10
- 11. C.S.F.s Score/weighting Above the diagonal line: Score out of 10 Below the diagonal line: Multiply score x weight Weights Coca Cola Jiaduobao Master kong 1. Quality 30 8 4 5 2.4 1.2 1.5 2. Price 25 5 7 7 1.25 1.75 1.75 3. Accessibility 15 4 10 10 0.6 1.5 1.5 4. Flavour 30 5 1.5 7 2.1 7 2.1 Totals 100 5.75 6.55 6.85 Critical Success Factors Product-market segment: Kung Fu Panda Relative Business Strength: 5.75 C 6.85 = -1.10 ? Cranfield University 2013 11
- 12. C.S.F.s Score/weighting Above the diagonal line: Score out of 10 Below the diagonal line: Multiply score x weight Weights Coca Cola Jiaduobao Master kong 1. Quality 30 8 4 5 2.4 1.2 1.5 2. Price 25 5 8 7 7 1.25 2 1.75 1.75 3. Accessibility 15 4 8 10 10 0.6 1.2 1.5 1.5 4. Flavour 30 5 6 1.5 1.8 7 2.1 7 2.1 Totals 100 5.75 7.4 6.55 6.85 Critical Success Factors Product-market segment: Kung Fu Panda Relative Business Strength: 5.75 C 6.85 = -1.10 0.55 ? Cranfield University 2013 12
- 13. Directional Policy Matrix High Low +2 +1 0 -1 -2 Low Relative business strength Market attractiveness High ? Cranfield University 2013 13 KFP SK A HS
- 14. Directional Policy Matrix - Future High Low +2 +1 0 -1 -2 Low Market attractiveness High ? Cranfield University 2013 14 HS KFP SK HS-2 SK -2 KFP-2 A A-2 Relative business strength
- 15. NaturalArtificial Western Traditional Kong Fu panda Health seeker Adventurer School kids 300,000,000 Tea beverage drinkers In China 11.5L/57.5?/person/year) Total Volume (2015-18) 17457.7 to 20157.5 mn litre Growth rate 2015-16 5.3% 2016-17 4.9% 2017-18 4.5% Questionnaire (30 in total) 300M* 16/30= 160M (KFP) 300M* 9/30= 9M (HS) 300M* 2/30= 2M (SK) 300M* 3/30= 3M (Ad)
- 16. Decrease Price e.g. lower price, promotion Contract with local retailer/ restaurant Better Flavours New recopies/ technologies Improve Distribution Marketing department M Sales and logistic department H R&D department M
- 17. 7 Ps. Segment: _____KFP2 & HS2_____ Element Current Future Product Price Promotion Place Provision of customer experience People Processes 17 ? Cranfield University 2013 High quality, Natural ingredients Remind, but better flavour 3 - 3.5 2.5 C 3 TV commercial advertising More channel :e.g. weibo, wechat Hard be found in Central China Reach Central China No data Multi channel interaction, reliable product No data No data Employee engagement, commitment (if possible) Adver to showing how to make the product, higher productivity (if possible)