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Analysis of the famous case study - Coca-Cola’s acquisition of Chinese juice company

Number of Words : 1564

Number of References : 4


 This assignment discusses the following case study –
 ”Beverage companies constantly chart out new strategies to launch their products that suit the changing tastes and preferences of the consumers. Similarly, Coca-Cola, which believes in ‘glocal’ (global-local) approach has launched products that matches with the likes and dislikes of the Chinese consumers and as a result is embraced as a local brand by the Chinese. However, carbonated beverages started losing their fizz with the outbreak of Severe Acute Respiratory Syndrome (SARS) in China in 2003. This triggered health consciousness among the people in China, which, in turn, has increased the demand for fruit juices than carbonated drinks. In order to fall in line with the changing preferences of the people, retain its market share and also to save itself from the declining stage of the Product Life Cycle (PLC), on September 3rd 2008, Coke offered to acquire Huiyuan Juice Ltd., a leading fresh fruit juice maker of China, for a premium price. Through this acquisition, Coke plans to diversify its product portfolio to cater beverages to different segments of Chinese consumers, the country in which the huge size of consumer base provides a great potential. However, the fickle-mindedness of the Chinese is a cause of concern for the company, as the life span of the beverages quickly gets shorter in China.”
 Question: Discuss and analyze the social factors in the above short case, using facts from the case and from B200 material, and using your own analysis. Also provide examples from companies within your own country where social factors were important, and how such companies used social factors to improve their market position (discuss issues of lifestyle and health consciousness within your country, and how it compares and contrasts with Chinese consumers).


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AKey : MGSC - 6384

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