With its strong economy, Japan has long been an attractive market for international companies, but most have found entrance difficult. Aside from formal trade restrictions, the business environment in Japan includes long-standing relationships and interrelationships which can be difficult for foreign companies to understand and even more difficult for them to exploit. Nonetheless, Japanese consumers are delighted with American goods and American style, and so some Western goods have found popularity in Japan that continues to encourage other manufacturers. Disney is one example of an American company whose product (Tokyo Disneyland) has successfully been adopted by Japanese consumers; soft drinks are another area in which American companies in general, and Coca-Cola in particular, have found success. This research examines the beverage industry in the United States and Japan, and considers the marketing implications for beverage manufacturers seeking to enter or expand their presence in Japan.
This area of research is important and relevant because soft drink sales in many parts of the world, and in the United States in particular, have plateaued. Many companies, including Coca Cola realize a higher percentage of their profits from their foreign operations than their domestic operations, and these companies are seeking ways to expand their market share and maintain their profitability as the potential for new markets apparently declines. In some areas in Japan, for example, Coca Cola has already added canned teas and milk to its vending machines (Shirouzu B1).
The soft drink industry is one of the strongest and largest industries both within the United States and abroad. Domestic growth in the industry is expected to be in the three to four percent range for both 1995 and 1996 with the international market posting strong performance, as well (Sanborn 1541).
Three international companies, Coca-Cola, PepsiCo and Cadbury Sc...