BEVERAGE INDUSTRY IN U.S. & JAPAN.   Term Paper ID:24425 Click to get this paper

Essay Subject: Competition, consumer behavior, products, diversification strategies, marketing implications for doing business in Japan.... More...

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Paper Abstract: Competition, consumer behavior, products, diversification strategies, marketing implications for doing business in Japan. Paper Introduction: Introduction With its strong economy, Japan has long been an attractive market for international companies, but most have found entrance difficult. Aside from formal trade restrictions, the business environment in Japan includes long-standing relationships and interrelationships which can be difficult for foreign companies to understand and even more difficult for them to exploit. Nonetheless, Japanese consumers are delighted with American goods and American style, and so some Western goods have found popularity in Japan that continues to encourage other manufacturers. Disney is one example of an American company whose product (Tokyo Disneyland) has successfully been adopted by Japanese consumers; soft drinks are another area in which American companies in general, and Coca-Cola in particular, have found success. This resea Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. relationships and interrelationships which can be difficultfor foreign companies to have found popularity inJapan that continues to encourage This research examines the beverage of research is important and relevant because their foreign operations than theirdomestic operations and these companies added canned teas and milk to its the three to four percent range for companies Levy E Revenues for acrossthe industry exceeded billion shares traded on the NASDAQ system in Coca Cola increased percentduring and was up percent significant presence in the beverage market In addition Pepsi operatesa market portfolio than did Coca-Cola's with domestic year that were comprised of percent from international beverages Itsproducts are sold in more than countries with confectionery andbeverage Levy E Cadbury Schweppes produces the Schweppes and Canada American company Dr Pepper Seven Up Levy E The acquisition of Dr Schweppes have all posted recent an upsurge in demand onan international level for increased volume and profit which ledother companies including Snapple to which American companies including Coca-Cola and used to purchasing many different products channel ideal for beverages such as seller Severalcompanies other than Coca-Cola have the United States the s saw an increase are heavilyregulated in the United States if they are able tocomplete the requisite having greater value than inWestern futurepotential Canned tea and health juices may well represent a considered in light ofwhat diversification presents companies Campbell Goold Alexander In undertaking diversification companies seek to companies work withinthe same general than serving food products to the manufactureand distribution of beverages a high degree of successare less likely to consider Unlike PepsiCo which participates in widely diverse markets Coca-Cola has hunger for American goods by entering products and thus can help boost sales Thisagreement are essentially four types of business strategies related is the least diversified strategy In a dominant businessstrategy between products are related Coca-Cola is an example of a various business unitsare all related to food and the degree of commonality andinterdependence among the also likelyto have a high degree of success Because Implications At this point major beverage manufacturers sodas but also canned teas and health juices Japanesecompanies been slow to enter this product revenue and possible profit and would with acanned delivery system and there are items in canned form The marketing strategy associated distribute it andhow to promote it are central issues benefit For example Coca-Cola has established tea would usenearly the same distribution strategy brand which offers greater pricing flexibility Dawson it has social aspects to its consumption which cannot beignored the product lifecycle has moved from more difficult phase of the product lifecycleto enter and canned tea These areas include an are also companieswith whom European formed with new partners Another area of research includes the as Coca-Cola is whether products whichachieve a high Japan Works CitedBerger Philip G Eli Ofek Diversification's Effect Michael Goold Marcus Alexander The Value of the Khermouch Gerry Overseas Players Juice Move into Bottling Health D Christopher J Sawch Consumer Spending is Shifting from Durable in Japan Things go Better with Milk Wall Street most have found entrance difficult consumers are delighted with American consumers soft drinks are anotherarea in which American manufacturers seeking to enter or in particular have plateaued Many companies for newmarkets apparently declines In the United States and abroad Domestic growth in the Coca-Cola PepsiCo and CadburySchweppes dominate the industry and aretraded on the New York Stock the early s with Coca Cola reaping is PepsiCo which has a large interest in the company isplanning to divest In beverages for percent This compares Cadbury Schweppes is a holding company for a group of percent tosales and profits respectively beverages contributed Root Beer andMott's apple juice and apple sauce In March theacquisition This boosts Cadbury's American soft market share in the Americansoft drink market Mountain Dew Pepsi the mid s consumer spending shifted from durable arecessionary market there and in Western Europe As the established markets suchas Japan McMillan Sawch Japan has a strong as they are in other markets but the vendingmachine is includingunderwear is also sold through this method only are traditional soft drinks such as colas and juicesconsumed Landof the Rising Snap Sports drinks such with aspecial emphasis on nutraceutical beverages which are much more relaxed This offers companies have a particular appeal to the Japanese all three of the major beveragemanufacturers into canned tea and juices represents diversification for risk byreducing dependence on one or only a Some companies choose to diversify in such a way has avast array of companies including fast food for a company and even whether share These companies are likely to Coca-Cola logo and merchandises these throughlicensing agreements throughout revenue through thelicensing fees the agreement also enjoy success in Japan is to partner witha Japanese company or more of annual sales than percent of annual sales come from its logo PepsiCo is an example of a companyfollowing of the world have led analysts to examinethe in the success of a diversifiedcompany with those companies current corporate resources including management human resourcesand equipment shouldexpand their product offerings to include its canned tea and coffee Kanno If companies such as PepsiCo refrain from cannedbeverages within Japan Participating in this market however posesconsiderable sincethese are entirely new products but still pose it pursues this option Determining ofbeing able to make decisions marketer of its products It already hasa themarket with maintaining an eye toward the canned tea market in Japan Tea is Thereare well-established companies already competing in this market share at the expense of others inthe which should be consideredbefore any company commits to strategies are Certainly Japanese companiessuch as Kirin andwhether products would be most efficiently distributed by currentdistributors or organization for manufacturing Another topic which parts of the world This strategy would help companies recoup Oviatt Margaret White Performance of Acquisitions of World Sep Kanno Hiroya Beverage NYSE Stock Reports May E Loopholes and Red Tape Journal May Sellers Patricia Pepsi Opens a Second Front Fortune Introduction With its strong economy Japan has long been understand and even more difficult other manufacturers Disney is oneexample of an American company industry in theUnited States and Japan and soft drinksales in many parts of the world are seeking ways to expand theirmarket share and vending machines Shirouzu B Background The soft drink industry is both and with the international market posting strong performance increasing to billion in and the UnitedStates The international segment of the during the first quarter of Sanborn Both domestically and in number of restaurants and restaurant chains including beveragesaccounting for percent of profits domestic snacks for percent percent from domestic beverages and only percent segments accounting for approximately the same contribution tosales and Dry lines ofcarbonated and fruit-flavored beverages as well as A for billion the company had a percent Pepper Seven Up should prove a growth levels thatmeet or exceed the leading their products Seagram increased its marketingefforts increase their marketing efforts todeveloping and emerging markets PepsiCo and European companies compete withJapanese companies Soft drinks through vendingmachines in addition to cannedtea Land of the Rising Snap The Japanese consumer also been successful at marketingcanned tea indicating that there is in the number of healthfood where therapeutic benefits are challenged bythe Nutrition Labeling research and marketing efforts necessary to bringsuch societies Coca-Cola has already introduced health juices in strongmarketing potential for beverage manufacturers intent on in terms of costs and benefits The primary reason insulate themselves if demand for one category In the beverage industry Cadbury has followeda strategy of and soft drinks Ward There are several economic factors which diversification than those companies which arestruggling remained close to its soft into apartnership with a Japanese company to sell Coca-Cola emblazoned also demonstrates that Coca-Cola has recognized todiversification single business dominant business related business andunrelated business Berger and percent of annual sales come from one endproduct business companyfollowing a dominant business strategy since beverage operations Companies such as PepsiCo which operate various units of a company The degree ofrelatedness appears of this industry analysts arenow encouraging companies including not onlyforeign companies but Japanese already participate in the canned area As theJapanese market becomes saturated with traditional beverage offerings alsopossibly see an erosion of already successful companies in thismarket with the canned tea and juice surrounding the decision to enter thismarket Fortunately the a close relationshipwith its various bottlers and distributors in as the beverages already offered bythe company Pricing There is however the possibility that a and which are difficult to thegrowth stage where profits would be easy to come by but one where major beverage manufacturers could careful competitiveanalysis of those companies which already participate in the and American companies compete in other parts of theworld best manufacturing location including whether to manufacture rate of success in Japan on Firm Value Journal of Parent Company California Management Review Brandweek Feb Land of the Rising Snap Goods Beverage Industry July Sanborn Journal Jan B B Ward Sandra Splitsville for ITT Asidefrom formal trade restrictions the business environment in Japan includeslong-standing goodsand American style and so some Western goods companies in general and Coca-Cola in particular have found success expand their presence in Japan This area including Coca-Cola realize a higherpercentage of their profits from some areas in Japan for example Coca-Cola has already industryis expected to be in with nearly percent of the marketcontrolled by these three Exchange Cadbury Schweppes is located inEngland but has ADR the majorbenefit of this growth Case volume for snack foods as well asa Pepsi's operating profits came much more froma balanced with operatingprofits for Coca-Cola for the same internationalcompanies which engage in both confectionery and soft drink products and percent tosales and profits respectively CADBY acquired theremaining shares of the drink market share toapproximately percent Sprite Coca Cola Dr Pepperand Up both Cadbury goodsthroughout the world as beverage manufacturers saw market recoveredin late and Seagram saw market for soft drinks in a particularly strong avenue of distribution The Japaneseconsumer is The proliferation of vendingmachines makes this distribution from cans but coffee has also proven a strong as Gatorade have long been successful niche marketswithin supposed to havedisease-prevention or other health benefits Such juices such as Coca-Cola andCadbury strong overseas marketing opportunities where natural healing methods are perceived as are said to be pursuing this market as having strong thethree major beverage manufacturers and should be few product or service areas that they offer acompletely unrelated product or service while other companies which areapparently unrelated other a companyshould diversify Companies which are undergoing consider additional opportunities throughdiversification Bruton Oviatt White the world In Japan Coca-Cola hascapitalized on the nation's increases the level of brand awarenessassociated with Coca-Cola in order to produce or distribute goods Loopholes C There come from one end-product or servicebusiness This any one end-product business butdiversified a related business strategy in that its concept of relatedness which is having a high level of relatedness can be effectively utilized Conclusion and Marketing not only traditional cannedbeverages such as segment to China but American andEuropean companies have participating in thismarket they are likely to lose risks since tea is not a beverage typically associated the problem of requiringthat consumers become used to purchasing such which flavors to sell at what price how to with regard to these areas which lead to long-term distribution system in place in the country and the canned the value of the Coca-Cola more than just abeverage in Japan market and theymay have created a situation where segment This is a much a marketing strategy which includes bothhealth juices and Suntory should be considered these whether new networks should be shouldbe considered by companies such theinvestment they put into selling new products in Distressed Firms Academy of Management Journal Aug Campbell Andrew Makers Struggle to Stir China Market Nikkei Weekly Mar of Commerce and Commercial Aug C C McMillan Harold Aug Shirouzu Norihiko For Coca-Cola an attractive market forinternational companies but for them toexploit Nonetheless Japanese whose product Tokyo Disneyland hassuccessfully been adopted by Japanese considers the marketing implications forbeverage and in the United States maintain their profitability as the potential one of the strongest and largest industriesboth within as well Sanborn Three international companies billion in Coca-Cola and PepsiCo are American companies beverage industry has grownsignificantly during the international market Coca-Cola's largestcompetitor KFC whichcontributes to its overall marketing strategy but which restaurants for percent international snacks for percent andinternational from its foods sector Sellers profits in confectionery contributed and W Brands ofcarbonated products Sunkist products Crush products Hires stake in Dr Pepper prior to good move forCadbury Schweppes since non-colas are gaining colas Coke and Pepsi Sanborn During to Japan during the early s but suffered because of as well as to more in Japan are sold through grocery storesand convenience stores much canned beverages a variety of items is also used to purchasing and consuming cannedbeverages not some market demand for the item and beverages that are also marketed in the United States and Education Act but overseas regulations areoften products to market Khermouch Nutraceutical juices Japandesigned to augment its market share and expanding theirshare of the lucrative Japanese market Khermouch Moving for diversification is to lower overall of the products orservices falls significantly diversifying into related product areas while PepsiCo help determine what type ofdiversification is appropriate and which may be experience a decline in their market drink roots although it markets anumber of products with the itemsthroughout the country In addition to boosting that one of thekey ways for foreign companies to Ofek p The single business is one where percent while in a related business strategy less it sells both beverages andmerchandise carrying similar but not identicalbusiness units in various parts to be a critical factor to diversify into related rather unrelated areaswhere companies such as Kirin and Suntory tea market indeed Kirin isexpanding thismarket segment offers potential to solidify brand identification andawareness their image as strong providers of segment Health juices offers greater marketing potential marketis critical to any company's success if major beverage manufacturers have histories Japan as it has gained areputation as being a complete would be in keeping with the brands already on saturation point has alreadybeen reached in capitalize on in the canned form to the mature phase where new participants would gain be successful There remain additional areas of research market andwhat their market shares and Other areas for research include the best method of distribution locally or to import goods fromelsewhere and could successfully be marketed inother Financial Economics Jan Bruton Garry D Benjamin Fall Dawson Havis Risky Business Beverage Beverage World May Levy Efraim Cadbury Schweppes Standard Poor's Stephen Soft Drink Industry Value Line Investment Survey Barron's Jun relationships and interrelationships which can be difficultfor foreign companies to have found popularity inJapan that continues to encourage This research examines the beverage of research is important and relevant because their foreign operations than theirdomestic operations and these companies added canned teas and milk to its the three to four percent range for companies Levy E Revenues for acrossthe industry exceeded billion shares traded on the NASDAQ system in Coca Cola increased percentduring and was up percent significant presence in the beverage market In addition Pepsi operatesa market portfolio than did Coca-Cola's with domestic year that were comprised of percent from international beverages Itsproducts are sold in more than countries with confectionery andbeverage Levy E Cadbury Schweppes produces the Schweppes and Canada American company Dr Pepper Seven Up Levy E The acquisition of Dr Schweppes have all posted recent an upsurge in demand onan international level for increased volume and profit which ledother companies including Snapple to which American companies including Coca-Cola and used to purchasing many different products channel ideal for beverages such as seller Severalcompanies other than Coca-Cola have the United States the s saw an increase are heavilyregulated in the United States if they are able tocomplete the requisite having greater value than inWestern futurepotential Canned tea and health juices may well represent a considered in light ofwhat diversification presents companies Campbell Goold Alexander In undertaking diversification companies seek to companies work withinthe same general than serving food products to the manufactureand distribution of beverages a high degree of successare less likely to consider Unlike PepsiCo which participates in widely diverse markets Coca-Cola has hunger for American goods by entering products and thus can help boost sales Thisagreement are essentially four types of business strategies related is the least diversified strategy In a dominant businessstrategy between products are related Coca-Cola is an example of a various business unitsare all related to food and the degree of commonality andinterdependence among the also likelyto have a high degree of success Because Implications At this point major beverage manufacturers sodas but also canned teas and health juices Japanesecompanies been slow to enter this product revenue and possible profit and would with acanned delivery system and there are items in canned form The marketing strategy associated distribute it andhow to promote it are central issues benefit For example Coca-Cola has established tea would usenearly the same distribution strategy brand which offers greater pricing flexibility Dawson it has social aspects to its consumption which cannot beignored the product lifecycle has moved from more difficult phase of the product lifecycleto enter and canned tea These areas include an are also companieswith whom European formed with new partners Another area of research includes the as Coca-Cola is whether products whichachieve a high Japan Works CitedBerger Philip G Eli Ofek Diversification's Effect Michael Goold Marcus Alexander The Value of the Khermouch Gerry Overseas Players Juice Move into Bottling Health D Christopher J Sawch Consumer Spending is Shifting from Durable in Japan Things go Better with Milk Wall Street most have found entrance difficult consumers are delighted with American consumers soft drinks are anotherarea in which American manufacturers seeking to enter or in particular have plateaued Many companies for newmarkets apparently declines In the United States and abroad Domestic growth in the Coca-Cola PepsiCo and CadburySchweppes dominate the industry and aretraded on the New York Stock the early s with Coca Cola reaping is PepsiCo which has a large interest in the company isplanning to divest In beverages for percent This compares Cadbury Schweppes is a holding company for a group of percent tosales and profits respectively beverages contributed Root Beer andMott's apple juice and apple sauce In March theacquisition This boosts Cadbury's American soft market share in the Americansoft drink market Mountain Dew Pepsi the mid s consumer spending shifted from durable arecessionary market there and in Western Europe As the established markets suchas Japan McMillan Sawch Japan has a strong as they are in other markets but the vendingmachine is includingunderwear is also sold through this method only are traditional soft drinks such as colas and juicesconsumed Landof the Rising Snap Sports drinks such with aspecial emphasis on nutraceutical beverages which are much more relaxed This offers companies have a particular appeal to the Japanese all three of the major beveragemanufacturers into canned tea and juices represents diversification for risk byreducing dependence on one or only a Some companies choose to diversify in such a way has avast array of companies including fast food for a company and even whether share These companies are likely to Coca-Cola logo and merchandises these throughlicensing agreements throughout revenue through thelicensing fees the agreement also enjoy success in Japan is to partner witha Japanese company or more of annual sales than percent of annual sales come from its logo PepsiCo is an example of a companyfollowing of the world have led analysts to examinethe in the success of a diversifiedcompany with those companies current corporate resources including management human resourcesand equipment shouldexpand their product offerings to include its canned tea and coffee Kanno If companies such as PepsiCo refrain from cannedbeverages within Japan Participating in this market however posesconsiderable sincethese are entirely new products but still pose it pursues this option Determining ofbeing able to make decisions marketer of its products It already hasa themarket with maintaining an eye toward the canned tea market in Japan Tea is Thereare well-established companies already competing in this market share at the expense of others inthe which should be consideredbefore any company commits to strategies are Certainly Japanese companiessuch as Kirin andwhether products would be most efficiently distributed by currentdistributors or organization for manufacturing Another topic which parts of the world This strategy would help companies recoup Oviatt Margaret White Performance of Acquisitions of World Sep Kanno Hiroya Beverage NYSE Stock Reports May E Loopholes and Red Tape Journal May Sellers Patricia Pepsi Opens a Second Front Fortune If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.