J@pan Inc Newsletter<br>The 'JIN' J@pan Inc Newsletter<br>A weekly opinion piece on social, economic and political trends<br>in Japan.<br>Issue No. 465 Wednesday May 14, 2008, Tokyo<br><br>-----------------------------------------------------------<br>
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More about PBXL: <a href="http://www.pbxl.jp/aboutus2">http://www.pbxl.jp/aboutus2</a><br>-----------------------------------------------------------<br><br>Coke Japan<br><br>Coca Cola is ubiquitous and Japan is no exception. Last year, <br>
the company celebrated its 50th anniversary in the Japanese <br>market boasting a total of 60 brands and over 200 sparkling <br>and still beverages. In the non-alcoholic beverage sector here <br>Coke is the market leader and its range of products include ones<br>
that have been tailored especially for the local market as well <br>as its global trademarks. <br><br>The Coca Cola Japan Company has slowly been strengthening its <br>control of bottling partners in Japan acquiring a 34% stake in <br>
its oldest partner, the Tokyo Coca Cola Bottling Company, last <br>year. However, tieups between bottlers, such as that between <br>Kinki Coca Cola in Osaka and Fukuoka-based Coca Cola West in <br>2005, mean that the bottlers have also consolidated their <br>
position. They also allow other corporations a stake in the <br>business - Kinki Coca Cola was part owned by Kirin Brewery Co <br>and Coca Cola West was owned over 20% by Ricoh Co. The latter <br>two companies retain shareholdings of 15.9% and 11% respectively<br>
of the newer entity, the Coca Cola West Holdings Company. <br><a href="http://www.ccwh.co.jp/english/ir/stockholder/shareholders.php">www.ccwh.co.jp/english/ir/stockholder/shareholders.php</a><br><br>In a press conference yesterday, Coca Cola Company President and<br>
COO (soon to be CEO), Muhtar Kent, explained how Japan has been <br>a challenge, 'Japan calls for constant innovation, constant <br>reinvention.' Kent recalled how in 1975 it was Japanese <br>consumers' demand for ready-to-drink coffee that sparked the <br>
genesis of Georgia coffee, a leading brand now available in 17 <br>flavors and a source of half the company's profit in Japan. <br>Another brand, Sokenbicha (a blended ice tea), has also proved <br>popular although it recently suffered a setback after it was <br>
reported that police found weed killer in some bottles.<br><br>As Kent set out, Coke has at least three major global trends <br>working in its favor: rapid urbanization, the rise of middle <br>class consumers and the natural conversion to ready-to-drink <br>
beverages. These trends suggest that growth may be fastest in <br>emerging/BRIC markets, but Japan is a stable source of profit, <br>estimated to be a fifth of its total. Moreover, there has been <br>no lack in focus in terms of marketing here; Coke Zero has been <br>
heavily advertised and from vending machines to TV, and events <br>to Web 2.0, Coke and all of its associated brands maintain a <br>high profile presence. <br><br>Its marketing in Japan has been appropriately innovative and <br>
distinctive, often following a common theme. For example, giving<br>away Mercedes Benz miniatures with cans of Georgia coffee <br>created a typical buzz and, for the Coca Cola brand, it recently<br>started a popular promotion involving mini radio-controlled cars <br>
<a href="http://tinyurl.com/5hzh3c">http://tinyurl.com/5hzh3c</a>. However, it has also had its share of<br>difficulties, most topically concerning its sponsorship of the <br>Olympics. In Japan, the company abandoned its plans to have a <br>
sponsored float running alongside the torch relay. However, <br>Muhtar Kent remained firm in the company's support for the <br>Olympics in general, which dates back to 1928, and his belief in<br>the event to act as a catalyst for positive political and <br>
economic consequences. All other Olympics merchandising and <br>sponsorship, such as limited edition bottle designs with free <br>mini-mascots, remain unchanged. <br><br>In terms of working with partners, Coke in Japan has been <br>
somewhat promiscuous – it has enjoyed joint marketing campaigns <br>and promotional projects over the years with most major Japanese<br>brands including DoCoMo, Itochu, Shiseido, Edy, JAL, Suica, <br>Tokyo Disneyland, and, most recently, iTunes Japan <br>
<a href="http://tinyurl.com/463fhr">http://tinyurl.com/463fhr</a>. <br><br>Ultimately, we don't need Mr Kent and the media echo to tell us <br>that Coke will keep getting bigger in all of its markets - as <br>Kent openly acknowledges, Coke has been simultaneously a key <br>
driver and beneficiary of economic globalization. It thus sees <br>further market liberalization as both inevitable and positive. <br>In Japan, where consumers tend to be relatively wealthy, <br>remarkably brand conscious and place a premium on convenience, <br>
the ready-to-drink beverage sector is surely a happy market to <br>be in, and, with innovations such as the <br>shake-to-fizz 'Fanta Furufuru Shaker,' the Coca Cola marketers <br>seem ever-ready to embrace the challenge of novelty.<br>
<a href="http://tinyurl.com/3qgmgl">http://tinyurl.com/3qgmgl</a>. <br><br>Peter Harris<br>Editor-in-Chief<br><br><br>--------NEW GADGET BLOG: TEKRONOMICON.COM------------------<br><br>In collaboration with Gadget Watch, Gadget blog Tekronomicon<br>
offers a detailed look at select gadgets - shiny and strange,<br>from gizmo ground zero in Tokyo.<br>See the gadgets introduced in Gadget Watch,<br>with photos and more at: <a href="http://www.tekronomicon.com">www.tekronomicon.com</a><br>
<a href="http://www.japaninc.com/gadget_watch">www.japaninc.com/gadget_watch</a><br>-----------------------------------------------------------<br><br>++EVENTS<br><br>-------------------- ICA Event - May 15 ------------------<br>
<br>Speaker: Ron DiCarlantonio, founder and CEO of iNAGO Group<br><br>Topic: How are Japanese companies innovating<br>in Customer Service?<br><br>Details: Complete event details at <a href="http://www.icajapan.jp/">http://www.icajapan.jp/</a><br>
(RSVP Required)<br><br>Date: Thursday, May 15, 2008<br>Time: 6:30 Doors open includes open bar and light buffet<br>Cost: 4,500 yen (members), 6,000 yen (non-members)<br>Open to all - venue is The Foreign Correspondents'<br>
Club of Japan<br><br><a href="http://www.fccj.or.jp/aboutus/map">http://www.fccj.or.jp/aboutus/map</a><br><br>-----------------------------------------------------------<br>Marcus Evans Events - Supported by J@pan Inc<br>
<br>Customer Relationship Excellence, 15th - 16th April 2008, Tokyo<br><a href="http://www.marcusevans.com/html/eventdetail.asp?eventID=13548">http://www.marcusevans.com/html/eventdetail.asp?eventID=13548</a><br>Featuring speakers from American Express International and others<br>
<br>Compensation and Benefits Forum, 27th - 28th May, Tokyo<br><a href="http://www.marcusevans.com/html/eventdetail.asp?eventID=13778">http://www.marcusevans.com/html/eventdetail.asp?eventID=13778</a><br>This event provides Japanese firms the 'how-to' of investing in<br>
their employees to sustain their businesses.<br>Supported by JSHRM<br><br>3rd Annual LNG World, 15th - 16th July 2008, Tokyo<br><a href="http://www.marcusevans.com/html/eventdetail.asp?eventID=13569">www.marcusevans.com/html/eventdetail.asp?eventID=13569</a><br>
This event focuses on key operational aspects of LNG business and<br>current market dynamics to succeed in this competitive market.<br><br>'J@pan Inc readers are entitled to a 10% discount upon<br>registration with Ms. Esther Wong.'<br>
Contact: +603 2723 6736 Email: <a href="mailto:estherw@marcusevanskl.com">estherw@marcusevanskl.com</a><br>-----------------------------------------------------------<br><br>Start a Company in Japan<br><br>Entrepreneur's Handbook Seminar 31st of May, 2008<br>
<br>If you have been considering setting up your own company,<br>find out what it takes to make it successful.<br>Terrie Lloyd, founder of over 13 start-up companies in Japan,<br>will be giving an English-language seminar and Q and A on<br>
starting up a company in Japan.<br>This is an ideal opportunity to find out what is involved,<br>and to ask specific questions that are not normally answered<br>in business books.<br>All materials are in English and are Japan-focused.<br>
<br>For more details:<br><a href="http://www.japaninc.com/entrepreneur_handbook_seminar">http://www.japaninc.com/entrepreneur_handbook_seminar</a><br>-----------------------------------------------------------<br><br>++END<br>