Coca-Cola brand suffers from channel strategy failure marketing

Coca-Cola was born in 1886, and Pepsi is 12 years later than Coca-Cola. Pepsi has always played the role of a challenger. Coca-Cola is still far more than Pepsi, whether it is market penetration or brand value. Therefore, people still think that Coca-Cola is a leader and Pepsi is a challenger. From the perspective of China, this is an indisputable fact.

According to the continuous monitoring of the "China Market and Media Research (CMMS)" implemented by the Cenozoic Market Monitoring Agency, Coca-Cola took advantage of its "pull-style" market strategy, promoted the nationwide network, and promoted the market penetration rate. The ratio of the number of Coke’s consumers to the total number of Coke consumers has always been “far ahead” of Pepsi. In 1999 and 2000, the penetration rates of 20 cities in the country were 83.9% and 85%, respectively, while those of Pepsi were only 65.5% and 67.9%. However, if we analyze carefully, we will find that Pepsi's market penetration growth is slightly higher than that of Coca-Cola. The former is 3.7%, while the latter is only 1.3%, and this trend is still being carried out silently. By 2004, the former reached 89%, and the latter reached 81%, which is really encouraging people to push forward. The vicissitudes of life felt. In particular, the media recently reported that the stock market value of Pepsi exceeded the taste for the first time in a hundred years. This is more reminiscent of the sharpness of the new generation of Pepsi and the frustration of Coca-Cola.

PepsiCo’s market performance in various cities has obvious polarization. The market penetration rate is even higher than that of Coca-Cola, and the lower one is less than 50% of Coca-Cola. This is precisely the result that PepsiCo hopes to see in the near future, because their purpose is to seize The weakness of Coca-Cola's strategy of “casting all over the world” and concentrating on superior strength in implementing center breakthroughs has focused on the campus, tourist attractions, entertainment venues and other channels, intensively cultivating and digging channels. He finally won the competition between Shanghai, Guangzhou, Chengdu, Chongqing, Changchun, Harbin, Wuhan, Shenzhen, and other cities. In Beijing's two music competitions, the situation was changing and the balance was slow. Chao tilt towards Pepsi.

The struggle between the two music is not only lingering for a hundred years, but also more and more like a Broadway drama never ending. The competitive games during this period are ups and downs. However, judging from the process and results of their competition in recent years, a large number of facts have caused the marketing community to ponder and confound. From many aspects, we have seen the marketing leader's inability to market.

In the Chinese carbonated beverage market in 1998, 4 of the top 5 were Coca-Cola's brands, and half of the market for carbonated drinks was owned by Coca-Cola. At that time, many consumers should have this experience: When you want the restaurant's waiter to take "Coke" drinks, the waiter usually gives you "Coca Cola." But after 2002, in the restaurants of many large and medium-sized cities in China, Pepsi's three-dimensional posters can be seen everywhere. Often when you want a cola drink, the waiter takes out Pepsi. When you say Coca-Cola, she will make you with a strange expression. I didn't think clearly. This also shows from one aspect that Pepsi has gradually occupied a number of commanding heights in the challenger's position in the Chinese market, and the market is undergoing a change of situation.

Why does Coca-Cola, a representative of American culture, always face the "new generation of choices"? From the point of view of marketing, there may be too much content to analyze, Pepsi's differentiated communication strategies, unique product portfolio strategies, and public relations wisdom, and so on. The author would like to discuss the topic of how to win strong competition among industries from the channel strategies and team management of the two music marketing.

Lens Playback: Harbin Market: Pepsi's Blue Position

The Harbin market is a must for the northern market, especially for the beverage industry. Domestic brands are difficult to share. Since its establishment in 1993, Coca-Cola has always occupied an absolute dominance in the market of Harbin, accounting for 70% of the market share of carbonated beverages. However, Harbin PepsiCo Co., Ltd. did not build a factory in the local (factory in Changchun), in the action to challenge Coca-Cola, has been profitable for many years, sales have increased significantly year by year. In 2004, Pepsi Cola had a 31% market share of carbonated beverages and a win over Coca-Cola. The Harbin market was awarded by PepsiCo as the “fastest growing market”. Walking in the major squares and bustling streets of Harbin, you can see the blue ocean of Pepsi and the atmosphere of a strong new generation. So often I heard a college student say: “We like Pepsi, because we are a rebellious generation, we like innovation, but in the face of the pressure of employment and survival, we cannot romanticize ourselves like Coke does.” So, in the face of cruel In the market competition, Coca-Cola is not "delicious" or "Coke". Instead, "I wish you Pepsi Cola" has become a festive or birthday greeting for young people who are advancing with the times.

Why so far:

Behind this success is a good channel strategy, promotion strategy, and well-trained personnel management. All this leads to a healthy and lasting driving force for the marketing system.

1. Good channel management.

Pepsi divided the front-line sales staff into WAT (Wholesale Assist) and DSD (Direct Seller), with DSD as the main force and direct sales in the regional market. The work contents of WAT and DSD mainly include customer visits, line management, bottle box management, refrigerator management, shelf display, POS posting and management, sales and purchase situation management, and competitive product feedback. At the same time, PepsiCo strictly enforces the standardized line visit system and implements the terminal development strategy of “four timings and eight steps”. In terms of market reality, this intensive farming channel model is very fruitful. Although the models are similar, PepsiCo's performance over the past few years is clearly better than that of Coca Cola, so it is only natural to say that Coca-Cola's strategic position is shaken.

In the early 1990s, in order to quickly open the market and seize the commanding heights, the Shanghai Pepsi Co., Ltd., which was initially established, adopted the direct sales model. As a result, a large Pepsi sales team began to appear in the streets of Shanghai. Then, Iveco, which Shanghai Pepsi spent a great deal of money on to buy, provided door-to-door service. From this day, the customer's emperor felt that it was born. PepsiCo constantly changes its channels and promotes innovation. It launched the model of wholesaler collaboration and spared no expense to cover some of the operating expenses, helping wholesalers serve the end customers and serving as the postman function of the street terminal to achieve the ultimate marketing purpose of intensive farming.

From 1992 to 1993, Shanghai PepsiCo imported 1,500 bulk beverage machines from abroad in order to adapt to the new transaction in different locations in Shanghai. This is a fast, on-site configuration, freezing, and one-time consumption of many advantages. Shanghai citizens accepted. In the late 1990s, Shanghai PepsiCo already had considerable market share and popularity.

For Pepsi's overall market strategy, it can basically be explained as follows: One type of strategic market is directly managed, and the second type of market is set up as an auxiliary sales agency for the sales of dealers; three types of markets are used for normal visit management. There is potential for permanent staff management. No matter what kind of model Pepsi has never forgotten the development and control of the channel, the control and management of the channel is one of the core contents of Pepsi's marketing personnel at all levels. The future market competition is the competition of brands and channels, just as the army has only the army and the Air Force can not fight. The 3A rule advocated by Coke (affordable, buyable, willing to buy) is the axiom in truth, but the fact is that in many cities, when you buy Coca-Cola, the owner often tells you not, when you want to go He said I would look for it again, and then there will be. In the face of neat Pepsi Cola, I think this is Coca-Cola's channel crisis. The brand has no problem. The consumer's sign purchase is the best comment. It is caused by problems in his promotion, personnel and channel. . There is no impetus to drive the channel, and even the best brands have little to do with sales. I often go to the terminal to check the display of various consumer products, and talk to the owner about the sales staff, listen to their opinions and evaluation. The shop owner often said: “Although all visits are regular, Pepsi’s business can come once in 4 days. Delicious business often takes seven days to visit the shop. At the same time, Coca-Cola’s industry wears neat and neat words and listens. Do not do things, Pepsi's is not the same, adjust the product display, wipe the dust, and even into the narrow library to see the inventory, there is also a prompt sales notice, so you do not have to ask why my Pepsi sold in my shop is good In addition to the lack of channel planning and management, it seems that the quality of the company’s human resources is improved and training is equally important. High-frequency, high-quality visits are often controlled by highly efficient channels. Huge sales.

2. Flexible marketing strategies

Promotion, also known as sales promotion or business promotion, is the most pragmatic marketing strategy in marketing mix 4P, and it is also the most powerful means to influence and attract consumers. It can be divided into consumer-oriented, dealer-oriented SP tactics. Pepsi's achievements are inextricably linked to its flexibility and thorough sales promotion. Comparing the promotional methods and content of Pepsi-Cola and Coca-Cola, it is not difficult to find that both of them have exhausted their minds and dedication, and they are all wonderful. But in-depth understanding of Pepsi-Cola seems to be slightly better. From 1998 to 1999, PepsiCo launched in the Chinese market the pull-tab for the World Cup, the replacement and redemption of football caps for the World Cup, the seven-inch romantic passbook to redeem prizes and Macau tourism. During 2000-2005, Pepsi gradually launched a series of promotional activities, "Love will fight will win," "Longing for unlimited," "Blue Storm", divided into live lottery, set card redemption and other methods, well-designed Pepsi Star shirt The star maps and so on have all become endorsements of Pepsi's rebellion, passion, and innovation. These activities involve a wide range of influences and have a positive effect on terminal sales and sales.

For dealers, PepsiCo uses sales promotion strategies such as gifting, price discounts, and discounts. In the carbonated beverage sales in 2002, the wholesale price of Pepsi was among the lowest among all competing brands, and Pepsi often made a large amount of product capacity, making Pepsi products highly competitive. In addition to direct low prices, PepsiCo also provided dealers with such activities as one-month credit support, free travel, quarterly draws, and VCD awards. For distributors with better cooperation and innovative ideas, PepsiCo offers a variety of sales promotion methods, providing dealers with training opportunities, providing human resources to support the market, and a series of promotion methods. No matter whether it is attacking or attacking the city, the potential for sublimation is accumulating. The effect is to make the admirers jealous.

3. Strictly systematic sales staff management

PepsiCo has a modernized marketing concept that has been updated over the past century. It has a modern marketing management system based on this and a management team familiar with the Chinese market. All this has created a highly effective, pragmatic and successful management platform for Pepsi, and it also constitutes Pepsi. Huge advantage of human resources. The management of PepsiCo's bottling plant companies in China is now almost identical to the Chinese people. Managers who understand the characteristics of the Chinese market and the characteristics of Chinese employees can avoid weaknesses in the Chinese market, have a proper strategy and win. After the Chinese made top management, they knew the Chinese traditional strengths and shortcomings. They could adapt to local conditions, develop pragmatic management policies that varied from person to person, give full play to people’s subjective initiative, and avoid the strategic policies of heaven. , The grassroots working on the ground to go out of the vicious situation. Now the author has learned through investigation that the marketing staff of Pepsi's various branch factories feel that their work pressure is high, and they may be fired at all times.

PepsiCo’s achievements today cannot be separated from its tightly regulated salesperson management. Marketing people know that today's Chinese market, even if it has a high-quality brand does not mean sales and profits, only to master the channel terminal, to master the consumer; can we really have a market. PepsiCo has adopted a line pre-sales system that has been used abroad. It divides its sales staff into WAT (Wholesale Assist) and DSD (Direct Seller), with DSD as its main force and direct sales in various markets. The work contents of establishing WAT and DSD mainly include line management, marketing item management, product shelf display, dynamic file registration management, and competition information feedback. The settlement of the payment with the customer is done by the driver responsible for delivery. The directors of the Pepsi regional districts conduct on-the-spot supervision and management. The business staff must have records of each visit, and the number of daily visits (face visits) has gradually increased from the past to 30, 35, 40, and up to 45 today. Times! Strict management and crisis awareness make marketers who are not afraid to slack off.

In order to better exert the execution power of the company's good scientific marketing system, Pepsi also established a strict and meticulous form system, and has a process supervision and management system for various levels of marketing personnel. For all levels of marketing managers, Pepsi employs a layered work responsibility system. Sales targets and market expenses are implemented to the people. Everything is quantified and institutionalized, and a positive and negative marketing incentive system with clear penalties is established. At the same time, the rewards of business personnel are directly linked to the sales performance. Under the premise of the specified base number, the cash rewards are partially fulfilled, and certain welfare incentives are provided, including material, cash, honors and even training opportunities.

Due to the large number of direct sales methods used by PepsiCo, a large number of patrolling teams have been established in many large and medium-sized cities. Directly facing the terminal retail market, digging deep into channels, most retailers have adopted Pepsi's refrigerators and bottle boxes, taking up a large amount of bottle-pressing funds from dealers, intensive personnel, resource-intensive, and large investment strategies, making Coke capable. The efficient team faced Pepsi's tactics and was rather mournful about the wolf's woes. When Coca-Cola wakes up and uses the same method to develop the terminal market, dealers have been reluctant to come up with more bottle-pressing funds, which naturally creates an obstacle to Coca-Cola's sales channels.

Although Pepsi's sales personnel have moved a lot in recent years, 20-30% of the staff flow every year, but under the perfect pre-sales platform, there are good brands to support, there is a good management strategy, bigger The proportion of migrants has instead created a fresh flow of blood for the company. Water is not rot. When we face Coca-Cola for more than five years as a business representative, can we really believe in his passion and motivation?

In order to make full use of the marketing staff at all levels, PepsiCo has a complete set of human resources development plans. From the grassroots industry CR to the business director TDS, to the regional manager TDM, the regional manager UM, each level has its own strict assessment criteria. The performance has arrived, all the indicators have been achieved, there is a promotion, there is more room for improvement, there is no position to increase income and salary standards, and is included in the candidate manager's database.

Waving corporate blue or bright red banners are all people, so only when people move, the vitality of your brand can be displayed, the channels are more motivating, sales promotion has penetration, and the brand has more core competitiveness. Therefore, the competition among enterprises is in the final analysis the competition of people, because if people are powerless and the channels have no power, the marketing will be weak, and the brand will have no more vitality.

Apply a popular saying: What is the hottest competition in the 21st century: talent!