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The consumption of Chinese soft drink is quite huge, of course coke takes much of it. As we all know, in summer people drink more coke because of hot weather, so consequently coke corporations do most of their advertisements in these season in order to stimulate the market. But it’s not all about positive affairs, these companies also face Chlorine problem, which hinder their strategy of expanding.

Coca-Cola in China

Coca-Cola was the first American company to distribute its products in China after Deng Xiaoping(邓小平) implement his Reform and open strategy to foreign investors in 1978. Now the behemoth owned more than 20 bottling joint-ventures indirectly through 2 Hong Kong based corporations. The reason why Coca-Cola establish nationwide operations and generate a strong market presence is because it’s long-term strategies of localizing production and building up infrastructure through partnerships with Chinese government and domestic companies. In 2009 Coco-Cola meant to purchase the biggest domestic juice company Huiyuan(汇源), unfortunately it failed. Due to those distributions and branches, the company generate large quantities of working opportunities.

Pepsi in China, cooperation with Tingyi, known as Master Kong(康师傅)

PepsiCo Inc is putting more effort into marketing, research and development and food development in China after it swapped its holding in its bottling operation in China for a stake in a leading Chinese drink maker, Indra Nooyi, company CEO said. In recent years, Pepsi has taken such a lot of strategies on advertising. At the end of March this year, PepsiCo and Tingyi announced the formation of a strategic alliance in China. As a result, in the agreement, PepsiCo is to retain control of the marketing and branding in the beverage business while Tingyi is to supervise manufacture, sales and distributions in China. Tingyi, known as Master Kong(康师傅) in China will help PepsiCo better position itself in Chinese market and take the advantage in competition with Coca-Cola Co.

Chinese domestic coke brand-Feichang Coke(非常可乐)

Feichang Coke (非常可乐) position itself as Chinese people’s own coke is owned by Wahaha (娃哈哈) company, the famous Chinese soft drink corporation. Feichang Coke was came out to the market after Wahaha’s comprehensive market research and ingredients were mixed based on Chinese people’s taste. Though it’s also a carbonated drink, Feichang is more tasty and becomes a symbol of happy life in China. Founded in 1998, Feichang Coke helped Wahaha to expand its market and build up its reputation image. Nowadays, Coca-Cola, PepsiCo and Feichang together form a situation of tripartite confrontation in the market.

Other links:

• Daxue China Consulting