Tccc in Japan
TCCC in JAPAN
Executive Summary
The Coca-Cola Company (TCCC) is engaged in the manufacturing, distribution and marketing of nonalcoholic beverage concentrates and syrups. The company owns the worlds most valuable brand: Coca-Cola. Furthermore, TCCC markets four of the worlds top five nonalcoholic sparkling brands, including Diet Coke, Fanta and Sprite. The company offers a portfolio of more than 3,300 products in over 200 countries worldwide.
The Japanese soft drinks market grew by 2.3% in 2009 to reach a value of $52,668.6 million.
Japan accounts for 49.6% of the Asia-Pacific soft drinks market value.
RTD tea & coffee is the largest segment of the soft drinks market in Japan, accounting for 42.3% of the
Markets total value.
Coca-Cola Company, The is the leading player in the Japanese soft drinks market, generating a 15.8%
share of the markets volume.
Coca-Cola Co. in Japan
The market selection is based on the use of PEST analysis and Porters 5 competitive forces
Political – Coca-Cola Japans growth and its recognition as a Japanese corporate citizen, rooted in the local marketplace is the result of successive generations of excellent managerial leadership, the dedication of employees, and the tireless efforts of bottling partners and affiliates. Japanese law and business customs dictate that, in Japan, Coca-Cola must operate through one of that countrys major trading companies. It is not that Coca-Cola would not be permitted to establish an American-type operation in Japan.
Economic – Japans population is estimated at around 127.3 million, has a soft drinks market which has witnessed a marginal growth rate between 2005 and 2009, due to sluggish sales growth in the carbonates, juices, and RTD tea and coffee categories. The growth in this market is expected to accelerate in the forthcoming five years.
The Japanese soft drinks market is fragmented, with the leading players such as The Coca-Cola
Company and Suntory accounting for 26.8% of the market volume collectively.
Source: Datamonitor
Socio- Cultural – The soft drinks industry is an industry in which key goals are most often stated in terms of market share. In actual practice, however, the Japanese government has erected trade regulations which make the establishment of foreign industrial subsidiaries in the country quite difficult (“Japan” 761).