1. Rapid market growth. The performance of China beverage industry in 1998 is very gratifying. On the basis that the total output of 1997 beverage has reached the target of100000 tons three years ahead of schedule, it has been increased to 18. The growth rate of 8% reached 6.5438+0.2 million tons. Among them, carbonated drinks account for about 50%.

2. Brands such as Coca-Cola, Sprite, Fanta and Eye-catching under the Coca-Cola Company, and brands such as Pepsi-Cola, 7-Up, Rush and mirinda under the Pepsi-Cola Group occupy the vast majority of the market share. The division of carbonated beverage market has been basically completed, and the market competition led by Coca-Cola and Pepsi-Cola is quite orderly. If it is very cola, it is risky and costly to break in at this time.

In recent five years, Coca-Cola Company has attached great importance to the development of China market. The inland of China is listed as one of the fastest growing markets by Coca-Cola Company, and it is also one of the best markets in the world, with the sales volume ranking second in Asia and sixth in the world.

As far as the development trend of various beverages is concerned, the market share of cola will be relatively reduced and the competition will be extremely fierce.

5. The industry profit rate is relatively stable, higher than other industries. However, it is relatively easy to enter the market because of its low technical content.

6. In China Coke market, there is a lack of state-owned brands. In 1980s, some brands of carbonated drinks in China, such as Tianfu Coke, Changning Coke, Olin Coke, etc. There was a time when they were full of ambitions, but they were all defeated by the acquisition, merger and alliance of Coca-Cola and Pepsi. In the early 1990s, Laoshan Coke, China Coke, etc. Or the products after the joint venture are changed to foreign crystal brands, and the market is handed over to foreign products; Or no one cares about the product, resulting in operating losses, insolvency, and automatic withdrawal from the historical stage.

(B) Wahaha's strengths and weaknesses analysis

1. Advantages

(1) Advantages of national brands. Wahaha is a well-known trademark in China, and its popularity is quite high in rural China, which accounts for about 70% of the population.

(2) Market network advantages. After ten years of painstaking efforts, Wahaha has thousands of powerful dealers all over the country. Very cola can use the sales channels of pure water and fruit milk to realize the enjoyment of sales network resources.

(3) It is easy to produce price advantage. The beverage industry is a typical "equipment production" industry. First-class equipment means first-class production efficiency and lower production cost. If Wahaha can introduce a more advanced production line than foreign coke, then very coke has stood on the same starting line with foreign coke in production cost. At the same time, Wahaha's management expenses and labor costs are lower than those of foreign cola, so very cola can be sold at a lower price.

2. Deficiencies

(1) psychological disadvantage. Some teenagers who grew up drinking Coca-Cola choose Coca-Cola, not because it is the best drink, but just a habit. In fact, taste is not the decisive factor for coke to seize consumers. The psychological advantage of Coca-Cola in the eyes of consumers is Coca-Cola's biggest rival.

(2) Management disadvantages. Wahaha, with only ten years' experience, is younger than Coca-Cola and Pepsi-Cola, and its management system is not mature enough.

(3) talent disadvantage. Coca-Cola and Procter & Gamble have become the Whampoa Military Academy for white-collar workers in China. Many outstanding talents in China yearn for Coca-Cola Company, and Coca-Cola Company has also trained many useful talents through strict training, selection and appointment system. Wahaha company is a school-run factory, so it is difficult to compete with it. Pepsi has also trained a large number of talents in the competition with Coca-Cola.

(4) Comparison of financial strength. 1996, 1997, the total global business of Coca-Cola Company was above185 billion US dollars. 1998, the advertising expenses of Coca-Cola Company were1800 million dollars. Wahaha 1997' s output value is only 2 billion RMB, and its profit and tax are only 4. 900 million RMB! Since the end of 1978, the total investment of Coca-Cola in the inland of China has reached more than 800 million US dollars.

Facing the pressure, Wahaha made a decision to enter the coke market after careful investigation and repeated argumentation. 1998, Wahaha Group and France's Danone Company jointly launched the Extraordinary Coke Series.

(C) Very Coke's marketing strategy

1. product

Coca-Cola has improved its taste, with low sweetness, refreshing taste and different fragrance from Coca-Cola. Under the guidance of low price strategy, all the packaging is plastic bottles.

2. Price

The unit price of Wahaha Coca-Cola series is 20% lower than that of Coca-Cola. 6――2。 7 yuan/bottle, while very cola only sells for 2. 1――2。 2 yuan/bottle) has great advantages.

3. Channel

Using Wahaha's original sales channels, it successfully entered thousands of households. And successfully avoided the direct selling system of Coca-Cola City.

to promote sales

The listing of Coca-Cola was accompanied by the "carpet bombing" of TV media. From the prime time of CCTV to county-level TV stations, hundreds of TV advertisements are broadcast at the same time. Half a month later, all China knew that "Wahaha had a very coke". Immediately afterwards, Wahaha launched large-scale promotional activities such as "Gathering Five Special Coke Bid Gifts" and "Drinking Special Series to Win the Grand Prize", which were widely publicized in TV media at all levels. "China people's own cola", very cola has won some consumers with a national view.

The first battle was successful, and the sales in the second half of the year 1.998 was about 1. 500 million yuan, the whole summer products in short supply. In Zhejiang, Anhui, Liaoning, Jilin, Heilongjiang and other provinces, the average market share of Coca-Cola series has reached 15%, following Coca-Cola and before Pepsi. In some provinces, such as Hunan, the sales volume of Coca-Cola is almost equal to that of Coca-Cola, and it is likely to catch up. According to the news, the monthly order amount of extraordinary cola series has reached 200 million yuan, but its actual monthly output value is only 50 million yuan, and the products are in short supply. Statistics show that 1998 Coca-Cola has won 2% of the national coke market with a sales volume of 65,438+10,000 tons, and the development momentum is very good. 1999 broke the monopoly of two foreign colas. With the management of small and medium-sized cities and rural markets gradually showing results, the sales volume of Coca-Cola has increased significantly, accounting for 15% of the coke market share, surpassing the "second child" Pepsi. For the rapid rise of Coca-Cola, Coca-Cola, which has been firmly at the top of the coke market, has responded relatively flatly. Relevant persons of Coca-Cola believe that the market share of Coca-Cola is still small and does not pose a threat to Coca-Cola. "If you use the powerful strength and joint mechanism of the Coca-Cola system, you can invest a sum of money, launch a price war and kill competitors. However, the development theme of Coca-Cola in China is' with development * * *' and will not do so. "

(D) Wahaha's strategic arrangements

How to seek a breakthrough in the increasingly fierce competition for Coca-Cola, which is firmly established in the coke market, has become the strategic focus of Coca-Cola and even the whole Wahaha Group.

1. Expand production 1999, Wahaha Coca-Cola's production line has soared from the original three to 10. The annual production capacity of Coca-Cola exceeds 6,543,800 tons. According to Zong, general manager of Wahaha Company, "Coca-Cola currently has three carbonated beverage production lines, with an annual output of less than 200,000 tons. Although the supply has been in short supply, it is still not the same as Coca-Cola with an annual output of more than 2 million tons. This decision is very cola in the current market and can only play a supporting role. Seven new lines were officially launched in the fourth quarter of this year. This will make Coca-Cola's output reach 6.5438+0 million tons, which is equivalent to Pepsi and close to half of Coca-Cola. "

2. Seek new product appeal points. There are great differences within Wahaha Group on "China people's own cola" as a product appeal point. Some senior managers believe that any product can't survive only by patriotism.

3. Prepare for a price war. 1By the end of 1999, Pepsi (canned) had dropped from 45 yuan to 37 yuan per box. At the same time, the new factory of Coca-Cola Beijing Company was completed in the technology development zone, which increased the production capacity of Beijing Coca-Cola factory from 23.34 million TEUs to 610.7 million TEUs, more than doubling the production at one time. Moreover, the location of the second phase is reserved next to the new factory, and it is planned to expand production in two years. Other domestic manufacturers, such as Huang Fen Coke, are also seeking greater market share. The large-scale expansion of coke production by major coke manufacturers has made the output in 2000 increase by 2 million tons at once, but the market demand for coke has increased relatively peacefully, and the output of 2 million tons is difficult to be digested by the market, so the competition is bound to be fierce.

4. Diversification of products Non-carbonated beverages such as fruit juice and tea show a strong substitution effect on cola products. In recent years, due to people's increasing respect for natural diet, the consumption of fruit juice and tea drinks has been driven, and the market position of carbonated drinks has gradually weakened.

(Tang, et al.: China Enterprise Marketing Case, Higher Education Press, 200 1 Edition)

Thinking about the problem:

1. How to evaluate Wahaha's entry into the coke market?

2. What are the advantages and disadvantages of Coca Cola's marketing mix strategy?

How to Choose Target Market for Small Paint Factory

There is a small paint factory in Britain, which interviewed many potential consumers, investigated their needs and made the following market segmentation: 60% of the local market is a big hot market with potential demand for various paint products, but the factory is unable to participate in the competition. There are also four sub-markets, each accounting for 10%. One is a housewife group, which is characterized by not knowing what paint is needed for interior decoration, but demanding good quality, hoping that painters can provide designs and the paint effect is beautiful; One is the painter's assistant group, and customers need to buy better quality paint to decorate the interior for residents. They used to buy paints from old-fashioned metalwork shops or lumber mills. One is the old painter group, whose characteristic is that they never buy prepared paint, but only buy pigments and oil to prepare themselves; Finally, there are young couples who are price-sensitive. They have low incomes and rent apartments. According to British custom, apartment tenants must paint their houses within a certain period of time to protect their houses. So they don't ask for quality when buying paint, as long as it is slightly better than white gypsum, but the price is lower.

After research, the factory decided to choose young couples as the target market, and formulated the corresponding marketing mix: (1) products. Deal in several paints of different colors and sizes. And can add, change or cancel color varieties and sizes at any time according to the preferences of target customers. (2) distribution. Products are sent to every retail store near the target customer's residence. Once a new store appears in the target market, we will immediately attract and distribute our products. (3) price. Keep a single low price, do not provide any special price, and do not adjust prices with other manufacturers. (4) promotion. Take "low price" and "satisfactory quality" as the call to adapt to the demand characteristics of target customers. Regularly change the store layout and advertising pages, create a novel image, and change the use of advertising media.

Due to the proper market choice, the marketing strategy is well adapted to the target customers. Although this enterprise deals in low-grade products, it has achieved great success.