i liked to sell the world a coke (part 1): neville isdell
Coca-
Coca-Cola is losing the Philippines, where failure could be the beginning of the end of our global business.
To 1981, this country is the tenth in the world. largest soft-
Drinks market, but Pepsi has 2-to-
The San Miguel Company of the Soriano family has a market share and Coca-Cola bottling plant
He warned that it would not be able to continue to suffer losses unless Coca-Cola shared responsibility.
John Hunt, head of coca
Coca-Cola Philippines has reached an agreement with Sorianos to buy 30% of its bottling business for $30 million.
At that time, it was the biggest foreign investment in Coca-Cola.
Roberto Goizueta, the new chairman and chief executive, attended the board ---
Composed of gentlemen from the South, many of them are older and sometimes doze off during meetings.
I don\'t know how he convinced them to invest in a country run by dictator Ferdinand Marcos whose power is weakening, but Goizueta did it, despite some questionable
Next, Hunter convinced Solanos that I was needed as president and chief financial officer for the new joint venture.
The challenge is to prove that I run the company for the benefit of the two groups of shareholders, not against either side.
It was an adventure and I lost a lot.
Hunter believes that this franchise model can work well in the Philippines over time. Coca-
Coca-Cola\'s profit margin on concentrate sales is wider than that of bottled companies.
However, bottling can be a good business if you build this brand.
I believe that when God created the world, he created Coca-Cola because there was no. 1 and Pepsi --
In our office, it\'s only called \"imitators\"-as No. 2.
The problem of Coca-Cola in the Philippines can be solved.
Although 18 Coke bottling plants have been closed and some should be closed, it is not just blind faith. (
Within the quality range of 1 to 100, Coca
There are 29 coke factories in the country. )
Pepsi is more active--
But lack of discipline
When we first arrived, Marcos had just arrived.
Although the situation is about to deteriorate, it was elected.
The dictator had lupus and looked very unhealthy, but his wife Imelda was very lively.
At a social conference, she proposed a toast to the partnership between coca companies.
Coke and Sorianos, mixed with San Miguel beer and Coke, half and a half.
We followed her reluctantly, mixing drinks that were just as annoying.
At some point in the meeting someone dropped a chair on the parquet floor and I saw three security groups ---Coca-
Coke, San Miguel and Imelda-
Go get their weapons.
Fortunately, there was no gunfire.
I can\'t control it-
Imagine politics in the Philippines.
So I focus on understanding the culture of the Philippines: It\'s interesting that expats are able to live in Filipino society to some extent.
Few people invite you to his home in Japan.
But it\'s not unusual in the Philippines.
I haven\'t seen this level of integration anywhere else in Asia.
In the Philippines, loyalty to the family, the army and the school is much stronger than the relationship with the employer.
Some phrases are worth remembering.
For example, there is \"Utang na Loob\", which means obligation, which means: you will be rewarded if I help you with a favor.
There is the word \"pakikisama\" which means getting along and avoiding confrontation when meeting someone for the first time.
In a business environment, another fact is to let people know: \"Yes\" usually refers not to \"I agree with you\", but to \"I heard you \".
\"None of us is the worst thing.
All the Filipinos can do is say angrily, \"you agree to do so.
\"I have to understand the way it works in their culture.
I decided to hire a Filipino manager, a cultural translator.
John Hunter recommends Jesus Selland (
King or King. .
In the end, even though I was in my 30 s and he was about 20 years old, we were inseparable.
The King can understand what I want to do, but it can be said, \"this does not work here.
An example: sales incentives.
We have 10,500 employees.
We could actually give them a $200 fridge instead of giving them a $400 bonus, I guess, because we could buy this appliance at our own expense. “No, boss.
\"It doesn\'t work,\" the king told me . \".
He explained that when a salesman wins a $200 prize, the bonus goes into his back pocket.
Unlike the salary he gave his wife, this is his money.
In the Philippines, the wife handled the money and basically subsidized her husband.
My plan was abandoned.
In my first meeting with management, I talked about another sensitive cultural issue, the salary of expatriates, much higher than the salary of Philippine executives.
I explained to my direct Philippine subordinate that this is necessary to attract foreigners.
\"If you don\'t agree,\" I told Filipinos, \"you shouldn\'t be part of the team.
We are a team. there is no difference.
\"I started the process of modernization of the bottling plant and the vitality of the sales team.
But there is also the problem of advertising, usually the terms of reference of coca
Coke executives in Atlanta
At that time, the campaign was \"drink a Coke and smile \".
Pepsi sold more than we did. to-
I want to change in Manila.
Pepsi has Michael Jackson, so we did a series of ads with Filipino stars.
This may be considered a violation of the company\'s rules, but Tony Emms, then regional manager, made us exempt.
Since there is only one bottling agent in the Philippines, it makes sense for the representative of Sorianos to work with us during the storyboard development.
This made him accept my input in other areas in return.
This is a good lesson about how the franchise system should work.
Kings, Tony and I travel almost every weekend, jumping from island to island.
The king has a high reputation as a World War II hero in Mindanao. -
He served as an intelligence officer on the front line of Japan in guerrilla service. -
He has a language facility.
In Mindanao, two rebellion took place, one led by the New People\'s Army of the Communist Party and the second led by the Moro National Liberation Front.
However, this is Coca
The strongest market for Coke
It was a big mistake that Pepsi didn\'t attack our customer base there.
As we have a strong lead, we can charge higher prices and take advantage of these profits to hit \"imitators\" in Manila \".
If Pepsi does this to us on Mindanao, it will kill our profit center.
Wherever we go, we hold sales rallies for music, food, San Miguel beer and theater shows.
I sometimes break a bottle of Pepsi on the wall of the bottling plant to increase the combat effectiveness of the troops.
In a town, the local bottling manager arranged for us to take the tank to the rally.
To attract the country\'s militaristic charm, we created a sales team called \"Tiger Forces\" and played the song \"Tiger Eyes\" in the movie \"Rocky III \".
Until today, I was full of energy when I heard it.
I feel the thrill of fighting again.
This is a business war.
When we launched the Mello Yello, known as \"the fastest soft drink in the world\", I led the sales staff on aerobics ---doing push-
Ups on the stage
Then we ran around the factory.
I find it useful to look at our business from a competitor\'s perspective.
For this I took the team to IHG in Manila, where they entered a room decorated with Pepsi posters.
Pepsi T-shirts and ice-cold Pepsi.
Then I made one.
Daytime meetings designed to detect weakness in the Pepsi system.
The workers made an honest assessment of their defects and advantages.
Roberto gozueta of coca
CEO of Coca-Cola, help our business, fly to Manila for a visit.
It\'s interesting to see Cuba\'s Roberto in his Latin mode.
The Soriano people are Filipinos in Spain, and they have a complete connection with the Goizueta people.
At a party, we all danced the Filipino dance \"tinikling \".
Never underestimate the power of social, team sports, or cocktails.
At the end of my first 12 months, Coca
Led by a dynamic sales team and Mello Yello, Coke is increasing its market share.
New packaging is also helpful.
Pepsi has been selling 12-
Oz bottle with same price as 8-ounce one.
San Miguel does not have enough capital to convert to 12-
One bottle per ounce, but Coca-Cola
Coca-Cola\'s investment made it possible, so a plan was developed to convert it to a larger scale.
I say no to the full conversion, partly because I know Pepsi can\'t keep selling 12-
An ounce of beverage at the current price;
Inflation will shrink their profits.
Also, keep 8-
Reduce the new 12-ounce bottle-
We had to produce an ounce of bottles and saved us money.
And, because the manufacturing capacity of the new bottle is limited, keep 8-
The bodyguard means that we can speed up at least 12-in a year-ouncers.
The strategy was successful.
Our profits increase with the increase of market share.
In response, Pepsi introduced a new foreign team.
They committed the crime I was trying to avoid: sitting near the polo club in Manila, drinking beer and complaining about Filipinos.
This happens when management is disconnected;
You will be alienated by the people around you and know little about the market or customers. In 1983, Coca-
Coca-Cola leads the Philippines.
We have built a new bottling plant in Manila and have significantly upgraded the other four facilities.
1984. coke sales increased by 11%, although the year-on-year decline in 5% was soft
National beverage sales.
More importantly, I am used to the humidity.
But Coke sent me to a colder place.
I\'m going to West Germany to lead the company in Central Europe. (
Neville isdel is a unit of coca.
Coca-Cola has worked for the company in Zambia, South Africa, Australia, the Philippines, Russia, Germany for more than 30 years, served as chairman and CEO in 2004, India and Turkey
This is the first of two clips from his memoir \"Inside Coca\"
Coca-Cola: The CEO\'s life story of building the world\'s most popular brand, \"David Beasley will be published in October. 25 by St. Martin’s Press.
His own opinion is expressed. Read Part 2. )
Contact the author of this story: David Beasley of dbeasley4 @ yahoo.
Com contact HQ to take charge of the story: Mary is at mduenwald Duenwald @ bloomberg ).
Coca-Cola is losing the Philippines, where failure could be the beginning of the end of our global business.
To 1981, this country is the tenth in the world. largest soft-
Drinks market, but Pepsi has 2-to-
The San Miguel Company of the Soriano family has a market share and Coca-Cola bottling plant
He warned that it would not be able to continue to suffer losses unless Coca-Cola shared responsibility.
John Hunt, head of coca
Coca-Cola Philippines has reached an agreement with Sorianos to buy 30% of its bottling business for $30 million.
At that time, it was the biggest foreign investment in Coca-Cola.
Roberto Goizueta, the new chairman and chief executive, attended the board ---
Composed of gentlemen from the South, many of them are older and sometimes doze off during meetings.
I don\'t know how he convinced them to invest in a country run by dictator Ferdinand Marcos whose power is weakening, but Goizueta did it, despite some questionable
Next, Hunter convinced Solanos that I was needed as president and chief financial officer for the new joint venture.
The challenge is to prove that I run the company for the benefit of the two groups of shareholders, not against either side.
It was an adventure and I lost a lot.
Hunter believes that this franchise model can work well in the Philippines over time. Coca-
Coca-Cola\'s profit margin on concentrate sales is wider than that of bottled companies.
However, bottling can be a good business if you build this brand.
I believe that when God created the world, he created Coca-Cola because there was no. 1 and Pepsi --
In our office, it\'s only called \"imitators\"-as No. 2.
The problem of Coca-Cola in the Philippines can be solved.
Although 18 Coke bottling plants have been closed and some should be closed, it is not just blind faith. (
Within the quality range of 1 to 100, Coca
There are 29 coke factories in the country. )
Pepsi is more active--
But lack of discipline
When we first arrived, Marcos had just arrived.
Although the situation is about to deteriorate, it was elected.
The dictator had lupus and looked very unhealthy, but his wife Imelda was very lively.
At a social conference, she proposed a toast to the partnership between coca companies.
Coke and Sorianos, mixed with San Miguel beer and Coke, half and a half.
We followed her reluctantly, mixing drinks that were just as annoying.
At some point in the meeting someone dropped a chair on the parquet floor and I saw three security groups ---Coca-
Coke, San Miguel and Imelda-
Go get their weapons.
Fortunately, there was no gunfire.
I can\'t control it-
Imagine politics in the Philippines.
So I focus on understanding the culture of the Philippines: It\'s interesting that expats are able to live in Filipino society to some extent.
Few people invite you to his home in Japan.
But it\'s not unusual in the Philippines.
I haven\'t seen this level of integration anywhere else in Asia.
In the Philippines, loyalty to the family, the army and the school is much stronger than the relationship with the employer.
Some phrases are worth remembering.
For example, there is \"Utang na Loob\", which means obligation, which means: you will be rewarded if I help you with a favor.
There is the word \"pakikisama\" which means getting along and avoiding confrontation when meeting someone for the first time.
In a business environment, another fact is to let people know: \"Yes\" usually refers not to \"I agree with you\", but to \"I heard you \".
\"None of us is the worst thing.
All the Filipinos can do is say angrily, \"you agree to do so.
\"I have to understand the way it works in their culture.
I decided to hire a Filipino manager, a cultural translator.
John Hunter recommends Jesus Selland (
King or King. .
In the end, even though I was in my 30 s and he was about 20 years old, we were inseparable.
The King can understand what I want to do, but it can be said, \"this does not work here.
An example: sales incentives.
We have 10,500 employees.
We could actually give them a $200 fridge instead of giving them a $400 bonus, I guess, because we could buy this appliance at our own expense. “No, boss.
\"It doesn\'t work,\" the king told me . \".
He explained that when a salesman wins a $200 prize, the bonus goes into his back pocket.
Unlike the salary he gave his wife, this is his money.
In the Philippines, the wife handled the money and basically subsidized her husband.
My plan was abandoned.
In my first meeting with management, I talked about another sensitive cultural issue, the salary of expatriates, much higher than the salary of Philippine executives.
I explained to my direct Philippine subordinate that this is necessary to attract foreigners.
\"If you don\'t agree,\" I told Filipinos, \"you shouldn\'t be part of the team.
We are a team. there is no difference.
\"I started the process of modernization of the bottling plant and the vitality of the sales team.
But there is also the problem of advertising, usually the terms of reference of coca
Coke executives in Atlanta
At that time, the campaign was \"drink a Coke and smile \".
Pepsi sold more than we did. to-
I want to change in Manila.
Pepsi has Michael Jackson, so we did a series of ads with Filipino stars.
This may be considered a violation of the company\'s rules, but Tony Emms, then regional manager, made us exempt.
Since there is only one bottling agent in the Philippines, it makes sense for the representative of Sorianos to work with us during the storyboard development.
This made him accept my input in other areas in return.
This is a good lesson about how the franchise system should work.
Kings, Tony and I travel almost every weekend, jumping from island to island.
The king has a high reputation as a World War II hero in Mindanao. -
He served as an intelligence officer on the front line of Japan in guerrilla service. -
He has a language facility.
In Mindanao, two rebellion took place, one led by the New People\'s Army of the Communist Party and the second led by the Moro National Liberation Front.
However, this is Coca
The strongest market for Coke
It was a big mistake that Pepsi didn\'t attack our customer base there.
As we have a strong lead, we can charge higher prices and take advantage of these profits to hit \"imitators\" in Manila \".
If Pepsi does this to us on Mindanao, it will kill our profit center.
Wherever we go, we hold sales rallies for music, food, San Miguel beer and theater shows.
I sometimes break a bottle of Pepsi on the wall of the bottling plant to increase the combat effectiveness of the troops.
In a town, the local bottling manager arranged for us to take the tank to the rally.
To attract the country\'s militaristic charm, we created a sales team called \"Tiger Forces\" and played the song \"Tiger Eyes\" in the movie \"Rocky III \".
Until today, I was full of energy when I heard it.
I feel the thrill of fighting again.
This is a business war.
When we launched the Mello Yello, known as \"the fastest soft drink in the world\", I led the sales staff on aerobics ---doing push-
Ups on the stage
Then we ran around the factory.
I find it useful to look at our business from a competitor\'s perspective.
For this I took the team to IHG in Manila, where they entered a room decorated with Pepsi posters.
Pepsi T-shirts and ice-cold Pepsi.
Then I made one.
Daytime meetings designed to detect weakness in the Pepsi system.
The workers made an honest assessment of their defects and advantages.
Roberto gozueta of coca
CEO of Coca-Cola, help our business, fly to Manila for a visit.
It\'s interesting to see Cuba\'s Roberto in his Latin mode.
The Soriano people are Filipinos in Spain, and they have a complete connection with the Goizueta people.
At a party, we all danced the Filipino dance \"tinikling \".
Never underestimate the power of social, team sports, or cocktails.
At the end of my first 12 months, Coca
Led by a dynamic sales team and Mello Yello, Coke is increasing its market share.
New packaging is also helpful.
Pepsi has been selling 12-
Oz bottle with same price as 8-ounce one.
San Miguel does not have enough capital to convert to 12-
One bottle per ounce, but Coca-Cola
Coca-Cola\'s investment made it possible, so a plan was developed to convert it to a larger scale.
I say no to the full conversion, partly because I know Pepsi can\'t keep selling 12-
An ounce of beverage at the current price;
Inflation will shrink their profits.
Also, keep 8-
Reduce the new 12-ounce bottle-
We had to produce an ounce of bottles and saved us money.
And, because the manufacturing capacity of the new bottle is limited, keep 8-
The bodyguard means that we can speed up at least 12-in a year-ouncers.
The strategy was successful.
Our profits increase with the increase of market share.
In response, Pepsi introduced a new foreign team.
They committed the crime I was trying to avoid: sitting near the polo club in Manila, drinking beer and complaining about Filipinos.
This happens when management is disconnected;
You will be alienated by the people around you and know little about the market or customers. In 1983, Coca-
Coca-Cola leads the Philippines.
We have built a new bottling plant in Manila and have significantly upgraded the other four facilities.
1984. coke sales increased by 11%, although the year-on-year decline in 5% was soft
National beverage sales.
More importantly, I am used to the humidity.
But Coke sent me to a colder place.
I\'m going to West Germany to lead the company in Central Europe. (
Neville isdel is a unit of coca.
Coca-Cola has worked for the company in Zambia, South Africa, Australia, the Philippines, Russia, Germany for more than 30 years, served as chairman and CEO in 2004, India and Turkey
This is the first of two clips from his memoir \"Inside Coca\"
Coca-Cola: The CEO\'s life story of building the world\'s most popular brand, \"David Beasley will be published in October. 25 by St. Martin’s Press.
His own opinion is expressed. Read Part 2. )
Contact the author of this story: David Beasley of dbeasley4 @ yahoo.
Com contact HQ to take charge of the story: Mary is at mduenwald Duenwald @ bloomberg ).
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