Managing in Troubled Times Case Study

Coca-Cola – Struggling in Germany

OR

Abstract:

In late 2004 and early 2005, Coca Cola Co. (Coke), the leading soft drinks manufacturer in the world, faced a massive decline in sales in Germany due to the impact of the newly enacted Recycling Law. The company was forced to make use of recyclable bottles, abandoning its trademark packaging as well as to alter its distribution system in Germany in order to make a turnaround in the country.

The case, while highlighting the challenges faced by Coke in Germany, also focuses on the initiatives taken by the company to restore its former position in the German market.

Pedagogical Objectives:

• To understand the structure and competitive forces in the German soft drinks industry
• To understand the regulatory framework in Germany and the challenges faced by soft-drinks manufacturers due to strict German Recycling Law
• To discuss the turnaround strategies of Coca-Cola, with reference to the German market
• To discuss the localization strategy of Coca-Cola with modifications to its global marketing-mix variables.

Keywords : Coca-Cola; Germany; Managing in Troubled Times Case Study; E Neville Isdell; German Recycling Law; Pepsi; Store brands; Soft drinks market; Bottlers; Coca-Cola Erfrischungsgetraenke; Packaging; Island solutions; Non-reusable bottles

Contents:

• Introduction
• The German food & beverage retailing and Soft-Drinks market
• The German recycling law
• The challenges before Coke
• Coke's Turnaround Strategies