CONFIDENTIALThisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotacompleterecordofthediscussion.DiscussiondocumentDecember2003CokeCaseStudy–WinninginJapanNJ-262408.756/001117NbgeoHR12RatingRationaleProductProductandcategoryselectionOffersmanylocalizedbrands,includingbrandsinnewcategories(75%ofsales)ProductsoptimizedforJapanmarketChangesformulationsforlocaltests(e.g.,FantaGoldenPineapple)CapabilitiesResourcesSignificantresourcesandattentiondedicatedtomostprofitablemarketResearchanddevelopmentEffectivelydevelopscopiesofmostpopularlocalbrands(e.g.,coffeesandteas);hashadtodevelopnewskillsindevelopingnon-carbonatedbeveragesMarketrelationsBottlersalliancessmoothedmarketentryandcontinuingoperationsforCokeinJapanDistributionandsaleschannelsRelationshipwith17bottlers,owns930,000vendingmachines(overtwicethenumberofcompetitors)MarketingDevoteshugeresourcestoadvertisingcampaignsandpromotedactivitiesresultinginstoryandbrandimageAlliancesandacquisitionsFrequentlyallieswithbottlers,restaurantsandmarketingagencies(e.g.,supplyalliancewithMcDonald’s,partnershipwithDenisu)OrganizationAspirationandpriorityJapanregionmadepriorityandstrongesttalentwasdeployedthere(e.g.,currentCEOusedtoheadJapan,currentchiefofmarketingusedtoheadmarketingforJapan)TalentTensionwithlocalstaff(almost10%ofJapanofficeisforeigners)DecisionmakingandresponsibilitiesMostprofitablemarketaftertheU.S.(17%-20%ofoverallprofit);wellrespectedCulture,valuesandstyleReflectsmanycharacteristicsoflocalculturebutretainskey“winning”factorsfromU.S.culture(e.g.,moreaggressivethantraditionalJapanesecultures)CoordinationmechanismsAppliesbestpracticesinJapantobusinessesandpeoplemanagementFINGERPRINT–COKEHighLowNJ-262408.756/001117NbgeoHR13COKEINJAPANCapabilities•Localizesphysicala...