1. Introduction of Coca-Cola in China. Coca-Cola Company is the biggest soft drink company in the world and famous for its classic coke. It has over 100 years of history and its business scope covers more than 200 countries. The extended experience and abundant resources have made the brand a great success. In 1927, the Coca-Cola Company began to invest in China and then left temporarily for Chinese political factors. In 1979, it returned after Chinas reform and opening to the outside world. By now it has broken in Chinas market for 25 years after returning. Its investment has exceeded $1,200,000,000 and it has set up 34 companies and 28 factories.
2. Why Cooperate With I.T. Companies2.1. The disadvantageous situation for Coca-Cola. With time going, Coca-Cola now seems somehow not very fashionable. There are only a few tastes which more or less are the same for customers to choose from. However, its competitors such as Pepsi, Jianlibao and Nongfu Spring have offered a lot of new drinks with varieties of tastes and functions. For example, Kang Shifu, a very large Chinese food and drink producer, has produced some tea drinks, which suit Chinese peoples taste very much.
And during these years, the market of carbonated drink in China was in recession. The sales volume of carbonated drink within the first ten months in 2004 in Shanghai has decreased by 13.4%, compared with the sales volume in the same period of the year before. With a large share of Chinese drink market, Coca-Cola were certainly attacked.
On the other hand, the traditional ways of advertisement such as news papers advertisements, hoardings, TV shows, are unable to communicate with customers adequately. Their abilities to attract the youth have decreased as the youth are now more dependent on the Internet. Furthermore, the competitors of Coca-Cola such as Pepsi can also use these traditional ways to promote.
To improve this situation, Coca-Cola needs to find new ways to enhance their brand as well as to promote their products.
2.2. The target market & the brand culture. Most of the Coca-Colas customers are the youth and the children, especially in China. Deservedly, its target market is these lively people. Those young, energetic persons are always curious about new things. Most of them live a life dependent on Internet and they are more used to the taste of carbonated drink. However, they are also more likely to try new kinds or new tastes of drinks.
To hold these customers, the brand culture of Coca-Cola has been defined as enthusiasm, liveliness and vitality. And this brand culture requires the company to be enthusiastic, creative and modern enough. As a large company with a history more than one hundred years, its difficult for Coca-Cola to keep such a youthful image. Advertisement through the web pages or online games can make it look more fashionable.
2.3. The development of Internet in China. Being known to Chinese people step by step, Internet has been used more and more...