Coca-Cola cuts 4,000 jobs and severance pays up to $400m: What makes the centennate less strong?

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Briefing: Friday, October 9, 2020, August 23, 2020, happy work, happy life!

1, the PLA military aircraft rarely shouted "Taiwan": Please do not interfere with my normal operation observer network: PLA military aircraft from mid-September to date, continue to cruise the airspace near Taiwan. This morning (7th), when PLA military aircraft re-entered Taiwan's "southwestern airspace" and were "driven away" by Taiwan's military broadcast, a rare message said, "Taiwan, I am the Chinese People's Liberation Army, is conducting routine training, please do not interfere with my normal operations!" Taiwan media said that this is the first time this year the PLA military aircraft in response to the broadcast, but also the first record of the PLA military aircraft directly called "Taiwan."

2, Germany and 38 countries in the United Nations to discredit the border-related issues, nearly 70 countries to support the Chinese observer network: after the European Union, the Czech Republic, Canada, Germany, Britain, the United States and 36 countries, Tuesday (6) at the United Nations disinformation smear-related issues related to Hong Kong. At the same time, Russia, Pakistan, Cuba and other nearly 70 countries jointly voice, on the relevant issues to support China.

3, China ahead of schedule to complete the target of 100 million people settled in Xinhua News Agency: "13th Five-Year Plan" period, China's household registration system reform is progressing smoothly and with remarkable results. According to the Ministry of Public Security, 100 million people settled ahead of schedule, more than 100 million agricultural transfer population voluntarily and orderly realization of civilization, household registration population urbanization rate increased from 35.93 percent in 2013 to 44.38 percent in 2019.

4, seven days in a row more than 10 million! National Railway 7 is expected to send 12 million passengers China News Network: Reporters from China National Railway Group Co., Ltd. was informed that the National Day holiday nearing the end of the railway return passenger flow significantly increased. The railway sector has increased capacity and is working hard to meet the demand for return passengers. On October 7th the national railway is expected to carry 12 million passengers and add 1,129 passenger trains.

5, into Beijing personnel need to pass the "health treasure" verification of the trip nearly 14 days to obtain the "green code" Beijing Daily: the Beijing Municipal Government website on October 7 issued a tip that, in accordance with Beijing's existing epidemic prevention policy, into (return) Beijing personnel need to pass the "health treasure" verification of the trip nearly 14 days to get the "green code."

Small editor, Yuan Shou

Belongs to the editorial department of the I Love Learning Club

Coca-Cola may no longer be "cola".

Following the massive layoffs, Coca-Cola is considering slashing its brand again.

Coca-Cola, the world's largest beverage company, appears to have loaded up its "upgraded strategy" in the face of the crisis. Part of Coca-Cola's ongoing restructuring is related to it. At the same time, to achieve this, Coca-Cola needs to drive its product portfolio.

At the end of August 2020, Coca-Cola announced the establishment of a new operations division and a global beverage industry leadership team, supported by a new platform service organization to better implement the "whole class" strategy and achieve business growth. Then, earlier this month, the company unveiled a list of leadership teams under the new structure, including the appointment of Vamsi Mohan Thati, Coca-Cola's new head of Greater China.

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Coca-Cola will cut its brand by more than half

Coca-Cola will stop production of its coconut water brand Zico and consider removing some of its less popular Coca-Cola and Diet Coke beverage categories, Fox News reported on October 5. In response to the outbreak, the company is slashing the number of brands.

A Spokesman for Coca-Cola said the company is now highly focused on meeting the needs and needs of consumers and has decided to discontinue Zico by the end of the year. The spokesman said the company was screening and streamlining the number of its brands and would retain those that could be large-scale.

Coca-Cola, which has 500 whon-owned or partially owned brands worldwide, has previously said it plans to cut that number by more than half, the report said. It is understood that this initiative is the new crown pneumonia outbreak triggered by one of the extensive restructuring measures, including layoffs and improve marketing strategy.

With a portfolio of 500 brands, Coca-Cola will be "more focused" in the future.

In the short term, it is clearly easier for customers to manage fewer SKUs in the supply chain because of the outbreak. For Coca-Cola, this is actually a golden opportunity to accelerate portfolio management, Coca-Cola has previously realized that in the next few years there are many problems to be solved, and when the company in the long-term growth model is doing well, when the engine is still turning, when the flame is still flying, the company has time to fix these problems, but the new crown outbreak, the company has to speed up the movement, speed up the adjustment of the product portfolio.

Coca-Cola, which now has 500 brands, has become very good at "going in, experimenting and innovating" and these efforts are driving growth, but not disciplined enough to "focus on some of the winning products in the category". But the company needs to focus more in the future, which will be combined with Coca-Cola's plans to accelerate its marketing transformation.

Under the arrangement, from 1 January 2021, Coca-Cola's nine operating divisions will replace the existing Group and Business Unit structures. The beverage giant believes its recent major organizational restructuring will help drive the strategy.

In order for Coca-Cola's strategy to land, and to manage its product portfolio fairly, the company needs to adjust its organizational structure so that it can "focus more on the biggest opportunities in regional markets or globally" while continuing to experiment and seize local opportunities.

This adjustment will not only really drive Coca-Cola's growth, but also make the company clearer about category changes, such as clarifying the focus of each category of business.

For Coca-Cola, which has a leading position in the global cola market with more than 50% of the market, it can continue to drive this advantage. Coca-Cola's market share is not that high for Fanta, Sprite and some other categories, which have different tasks. It is important to break the existing architecture so that fair and appropriate arrangements are made for each category.

In Europe, Coca-Cola has historically organized marketing around bottling partners. If Coca-Cola is to be truly consumer-centric and achieve its "number one priority", which is to drive the development of its product portfolio and provide consumers with the product choices they need, it needs to "target consumer groups" first, rather than using bottling partners as the main driver of integrating operations.

So it's easier to think of European consumers as a whole, rather than splitting them up. Similarly, Latin America has many similarities. Coca-Cola has four business units and does not have the most effective plans for the category. The company does a good job with Coca-Cola, but not necessarily in other categories. The company already has a place in categories such as juice, but it doesn't make the profits it deserves because it distracts from its efforts.

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It plans to cut 4,000 jobs in North America

On August 28th, local time, Coca-Cola announced an employee restructuring plan that would provide eligible employees with voluntary separations in the hope of preventing subsequent involuntary layoffs, CNBC reported.

The plan is expected to affect about 4,000 employees in the United States, Canada and Puerto Rico. It is reported that this round of layoffs will generate about $350 million to $550 million, about 2.4 billion yuan to 3.78 billion yuan severance pay.

In the beverage business, Coca-Cola also plans to reduce the number of operations from 17 to nine.

Coca-Cola reported revenue of $7.15 billion in the second quarter, down 28.48 percent from a year earlier, and net profit of $1,981 million, down 31.8 percent from a year earlier, according to its July 21 earnings.

But is Coca-Cola's fatigue really affected by the outbreak, as reported?

Back in 2017, the company cut jobs, but the outbreak has exposed the problem more and accelerated the "clean-up" program.

As far as the market is around, Coca-Cola's biggest rival has changed from Pepsi several times, and Coca-Cola now looks like a giant piece of cake, and whoever can take away a piece of market resources.

Notably, Coca-Cola's sales did not fall entirely in the second quarter, with sales in China up 14 per cent in the second quarter, mainly due to sales growth in traditional cola and sugar-free cola.

According to star chart data, this year's Tmall 618 water drinks brand performance, 気sabling water yuan気 forest sales ranked first, while Coca-Cola ranked fifth.

In the Chinese market alone, Coca-Cola with its own cash cattle products can not do the industry's first, once the overlord appears more and more "old", can not keep up with the tastes of young people.

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Choose happiness or health?

In recent years, with the improvement of people's living standards, health problems have been gradually brought to attention.

The former beverage industry spent heavily on research and development teams to study how to add sugar to drinks to make people fall in love with the feeling. But now, the progress of consumption power and ideas, so that enterprises have to make subtracts.

Born more than a hundred years ago, high-sugar Coca-Cola can no longer meet the needs of modern tastes. The beverage market has also been replaced a little by sugar-free bubble water, with consumers opting for the latter in "happiness" and "health".

Although Coca-Cola is not waiting to die, since 2013 launched for the Chinese market, printed with "literary youth, technical men, emoji emperor" and other Internet buzzword packaging.

In addition to focusing on carbonated beverages, sports, coffee and tea, we now hope to expand in other categories, such as soda and plant-based beverages.

But now the beverage market has long been a "sea of knives and fire", Coca-Cola gradually lost its natural advantage, even if there is a strong brand endorsement, consumers can not see from a large number of fresh things.

Today, the number one sales of 気 forest, "sugar-free drinks" team is growing.

As one of the fastest-running dark horses, from 0 yuan to the recent valuation of 14 billion yuan, spread out in large and medium-sized cities, convenience stores and other channels, it took only four years.

"0 sugar, 0 fat, 0 card", good drink and not fat combination, is undoubtedly double the happiness.

Yuan 気 founder, Tang Binsen, is not a veteran driver of consumer goods, but a cross-border player who has entered the food and beverage industry from the gaming industry, similar to the experience of Theodo founder Huang Qi.

Fast consumer drinks generally sold to about three yuan price, five yuan to the top, but a group of Internet people, successfully sold a drink with little name to more than 6 yuan high price, how do they do it?

Unlike the traditional fast-moving practice, meta気forestation" all comes from big data, whether it is packaging, product naming, or product taste, "not to anyone's personal will for the transfer", which is the root cause of meta気forestation can burst into flames.

From big data analysis, to understand the new generation of consumers like what, from positioning, products, taste, packaging, they pinched the consumer subconscious like what, on what direction to work. That is to say, our new generation of consumers have entered the "secondary era".

Like "tea π, xiaoyu students", these hot drinks seem to have become popular, Yuan気Forestation is also caught this feature, Yuan気 Forest also changed gas to the Japanese word 気, with Hokkaido and other as a propaganda language, to create a Japanese drink image.

Coca-Cola has reorganted its operating division around a larger consumer base, divided into North America, Latin America, Europe, Africa, Eurasia and the Middle East, India, China, ASEAN, Japan and South Korea, said Mr. Zhan, Chairman and CEO of Coca-Cola. Once you want to make fewer marketing decisions around your core consumer base, you'll have fewer operations. That's why we've effectively streamlined from more than 20 businesses to nine.

Coca-Cola needs to provide more value, including digital services, by standardizing (partial capabilities) on certain platforms. This (standardized, shared) approach not only provides more value to the company, but may also work with bottling partners to create value for all.

Previously, Coca-Cola said it would redistribute some personnel and resources as a result of the change in structure, and develop programs and voluntary separation plans: first, about 4,000 employees in the United States, Canada and Puerto Rico who joined on or before September 1, 2017 (at the date of their most recent entry), while similar programs would be implemented in other countries around the world, with an expected global cost of $350 million to $550 million.

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Focus on "disruptive" innovation

In recent years, the company has expanded its Coca-Cola brand into functional beverages. Coke Energy has been launched. The giant is trying to attract more Consumers of the Coca-Cola brand by using an existing trademark and making it more attractive.

One of Coca-Cola's fast and cautious innovations is to take advantage of the size and resources of existing brands to introduce "disruptive" innovations with the potential for scale.

The risk of innovation is that it may do a lot but it won't help business growth, says Mr. Zhan, Chairman and CEO of Coca-Cola. Coca-Cola therefore needs to focus on new products that are "disruptive and ultimately bring substantial scale growth to the company".

Coca-Cola announced the closure of its Odwalla juice business, the Wall Street Journal reported.

After Coca-Cola announced a moratorium on advertising, Coca-Cola re-adjusted its product strategy and announced that it would close its juice brand Odwalla juice business and refrigerated truck distribution.

Odwalla is understood to be a high-end producer of bottled fruitshakes, and in 1980 founder Greg Steltenpohl founded the juice brand Odwalla and sold it to Coca-Cola in 2001, but coca-cola decided to close its Odwalla juice business because the brand's growth stalled.

A Coca-Cola spokesman said Odwalla, one of Coca-Cola's biggest brands, could cut about 300 jobs after the business closes.

It's interesting to note that in April 2017, consumers in California took Coca-Cola to court because Coca-Cola's Odwalla 100% juice was labeled "No added sugar."

Consumers argued that labels such as "No added sugar" would mislead people into thinking that the juice contained no sugar, and the case caused a lot of controversy in the local food lawyer community at the time, but coca-Cola won the case and the court held that Coca-Cola could continue to use the "No added sugar" label.

On top of that, Coca-Cola's market value evaporated by about $55.8 billion on June 27th when it stopped global advertising and announced that it would suspend advertising on social media platforms around the world, including Facebook and Twitter, for "at least 30 days" from July 1.

"The company will use this time to re-evaluate advertising standards and policies to determine whether internal revisions are needed and that Coca-Cola should place more expectations on its social media partners to eliminate hate, violence and inappropriate content on the platform," said James Quincey, Ceo of Coca-Cola.

When it comes to Cola drinks, Coca-Cola is the most well-known brand, Coca-Cola was founded in 1886, focused on carbonated beverages and rarely involved in other industries, in 2006 in France, Canada, the United States and other regions launched Coca-Cola BlāK, the same year into the coffee industry, in September 2017, Coca-Cola's Choya coffee in Japan to sell the new Coca-Cola Coffee Plus, After Coca-Cola announced its $5.1 billion acquisition of Costa, the world's second-largest coffee chain, in 2018, Coca-Cola expanded its Costa Coffee business and formally completed its acquisition of Costa in early 2019.

Now Coca-Cola has announced the closure of its Odwalla juice business, a move that officials believe is intended to cut costs by cutting some of its operations.

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Marketing is in crisis, selling products is the first task

Without young people drinking Coke at big events and restaurants, Coca-Cola's global shipments have fallen 25% so far in April.

The outbreak has reduced market share and underperformed, disrupting Coca-Cola's marketing plans. Coca-Cola plans to cut some of its brand marketing budgets and new product launch plans this year, James Quincey, Coca-Cola's global CEO, said at an investor analysis on the 21st.

Because in today's situation, "brand marketing is very limited," Quincey said, "with that in mind, we're going to reduce direct consumer communication and wait longer for the right time to rejoin." "It can also be understood that Coca-Cola's brand advertising production and delivery will be reduced this year.

In fact, in terms of earnings, Coca-Cola's first-quarter results largely met analysts' expectations: it reported revenue of $8.6 billion and net income of $2.78 billion in the first quarter, compared with $1.68 billion a year earlier.

This is mainly because the outbreak did not spread to some markets around the world as of March 27 of the first quarter's earnings season. Throughout February, organic shares outside the Chinese market rose 3 per cent, meeting Coca-Cola's previous annual performance target.

But it is clear that as the global epidemic spreads further, Coca-Cola will face more serious problems in the second quarter of this year than in the first quarter, and for a long time to come, concerts, sporting events, catering channels and other important coca-Cola sales channels in the past will be pressed the pause button.

As a result, brand-related marketing budgets could be slashed this year. Product efficiency is a marketing industry concern in the past few years, but brand advertising and performance advertising most of the time or "do their job", brand advertising often can not take the goods as the ultimate goal. But at a time when sales of individual brands are falling, selling products first may be the top priority.

Coca-Cola said this year that it would adapt its production, marketing and selling methods to the current global situation, including introducing more small packaging products, improving product sizes to suit online sales, and doing more promotions and ways to attract consumers through online channels.

Xin 児: The most important thing is to feel that people pay more and more attention to health, before whether family gatherings or business should pay less than drinks, now almost everyone loves to drink boiled water.
Baby: Coca-Cola, the name sounds good
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ROGER: Coca-Cola will always drop God

James Weng: Say Coca-Cola layoffs, how to say yuan, than the yuan and cola each raised how many people, you know it is not an order of magnitude.

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(3) Original article contribution: ilsclub@ilsclub.com