The Coca-Cola Business in MALAYSIA The Coca-Cola Business System While The Coca-Cola Company is a global company with some of the world’s most widely recognised brands, the Coca-Cola business in Malaysia, as in each country where we operate, is a local business. Our beverages are produced locally, employing Malaysian citizens, our product range and marketing reflect Malaysian tastes and lifestyles, and we are deeply involved in the life of the local communities in which we operate.
Coca-Cola was first bottled in Malaysia in 1936, by Fraser & Neave Ltd. Today, Coca-Cola beverages are produced and sold in the country by the Company’s authorised local bottling partner, F&N Coca-Cola (Malaysia) Sdn. Bhd. (F&NCC), based in Shah Alam, Selangor. F&NCC owns and operates three bottling plants, one in Peninsular Malaysia, in Shah Alam, and two in East Malaysia, in Kuching and Kota Kinabalu. The new, state-of-the-art bottling facility in Shah Alam, just outside the capital, Kuala Lumpur, became fully operational in 1998.
F&NCC is held 90 per cent by Fraser & Neave Holdings Bhd. The remaining 10 per cent of F&NCC is held by The Coca-Cola Company. The Coca-Cola Company owns the trademarks and provides the concentrate for its products to the local bottling partner, and a local service office, Coca-Cola Far East Limited (CCFEL), focuses on marketing the Company’s brands locally. Products, Quality and Marketing The products of The Coca-Cola Company include a wide range of non-alcoholic beverages. In Malaysia, the Company’s range of trademarked beverage brands ncludes: Coca-Cola, Coca-Cola light, Sprite, Schweppes, A&W Rootbeer and Aquarius natural mineral water. In addition, F&NCC produces and sells its own range of beverages, under the F&N brand name, in the flavours Orange, Sarsi, Zappel, Fruitade, Strawberry, Grape, as well as Isotonic drinks, under the 100Plus brand name, and the Seasons range of Asian drinks. The Company’s products are made available to consumers in a range of convenient and affordable packages, including: returnable 10 oz. glass bottles, 500 ml and 1. 5-litre plastic bottles, and 325 ml cans.
We consider the consistent high quality of our beverages to be one of our business’ primary assets. In each country where we produce our beverages, the Coca-Cola system adheres not only to national laws on food processing and labelling, but also to our own strict standards for exceptional quality. In everything we do, from the selection of ingredients to the production of our beverages and their delivery to the marketplace, we use our specialised quality management system, The Coca-Cola Quality System, to ensure that we are offering consumers only the highest quality products.
We monitor our success through our customer and consumer feedback and our in-trade monitoring programmes, and this information enables us to continuously improve our already demanding systems. While broad direction and themes for our international brands are created at a global level, specific marketing programmes for our products are determined locally. In 2002, Coca-Cola launched a new, innovative marketing campaign in Malaysia called “Coca-Cola Cuba Try Alaminya” (try new experiences with Coca-Cola).
This broad campaign platform and programme creates opportunities for Malaysians to try new and exhilarating experiences through participation in a number of individual Coca-Cola activities. The programme has received an overwhelming response from Malaysian consumers, who have vied to participate in the following activities: • Coca-Cola Cuba Try to be a Video Jockey (VJ) for a Day on Channel V, in which a Malaysian consumer who sent in the first complete entry in the Coca-Cola Cuba Try promotion won the opportunity to be a guest VJ on this popular music station. Coca-Cola Cuba Try to win a scholarship, in which two young Malaysians who submitted the best entry for the Malaysian National Day essay contest, under the theme of ‘If I can dream it, I can do it’, won an all-expenses-paid trip to the US, and a scholarship which was presented by golfing great Tiger Woods. This programme was made possible through the partnership between The Coca-Cola Company and the Tiger Woods Foundation. • Coca-Cola Cuba Try to develop Festive Advertising, in final year students of the Kuala Lumpur-based Dasein Academy were given the opportunity to participate in developing festive Coca-Cola TV commercials. Through brand Sprite, Coca-Cola Malaysia initiated a consumer promotion that gives two Malaysians the chance to see a National Basketball Association (NBA) match live in the US. This programme was made possible through the partnership between The Coca-Cola Company and the NBA. • When the Coca-Cola Cuba Try Style-A-Coke programme was launched in September 2002, Malaysian Coca-Cola consumers were the first in the world to be given the chance to choose their own individualised bottle label, making their Coca-Cola bottle a collectors’ item in future years.
Consumers could shrink-wrap 500ml PET bottles of Coca-Cola in one of four designs featuring local Malaysian lifestyle themes. Malaysia was the first of only three countries to test this Style-A-Coke labelling programme, which has proved very popular with consumers. Investment, Employment and Economic Impact The Coca-Cola Company and its bottling partner have made significant investments to build and continually improve its business in Malaysia, with more than US$ 61 million invested in last five years alone.
The Coca-Cola business system directly employs approximately 1,700 people in Malaysia. In addition, several independent studies have documented that, by providing opportunities for local enterprises, the Coca-Cola business also generates a significant employment “multiplier effect. ” For every direct job, our business indirectly generates employment for approximately seven additional people in other, related industries.
These studies also demonstrate how the Coca-Cola system acts as a catalyst, generating revenues, employment and know-how for a wide array of local businesses that either sell goods and services to the Coca-Cola system (suppliers), or sell the Company’s products (retailers). In Malaysia, we are major purchasers, for example, of sugar, cans, PET and glass bottles, labels, cartons, marketing material and services. More than 90 per cent of all supplies required by the CCB are sourced in Malaysia. Corporate Citizenship In Malaysia, as everywhere Coca-Cola does business, we strive to be trusted partners and model citizens.
We are committed to operating around the world with a consistent set of values that represent the highest standards of integrity and excellence – values that are reflected in all of our relationships: in the workplace, the marketplace, the environment and the community. ? Workplace: We strive to foster an inclusive environment that encourages all employees to develop and perform to their fullest potential. Marketplace: We are committed to the highest ethical standards, the highest quality for our products, superb customer service, and respect for he unique customs and cultures where we do business. ? Environment: We are committed to conducting our business in ways that protect, preserve and enhance the environment. We integrate principles of environmental stewardship and sustainable development into our business decisions and processes. ? Community: We contribute our time, expertise and resources to help develop sustainable communities and to improve the quality of life everywhere we do business, because we recognise that the future of our business depends on strong, vibrant communities.
In Malaysia, Coca-Cola provides extensive support for community programmes aimed at advancing education and development, sports and culture. Education Coca-Cola has partnered with the United Nations Development Programme (UNDP) and the Malaysian Ministry of Education to launch an innovative new programme called ‘e-learning for life’, an initiative that promotes the innovative, enjoyable use of information and communications technologies (ICT) both for education and for community development.
The initiative, launched in March 2002, establishes ICT ‘hubs’ that provide internet access, educational software and ICT training for students, teachers and local community members in peri-urban and rural areas. The project supports the Malaysian government’s vision of building a knowledge-based economy and the Ministry of Education’s drive to bridge the digital divide by bringing internet access and e-learning resources to Malaysian classrooms and communities.
Six ICT hubs have now been set up in secondary schools across Peninsular Malaysia equipped with state-of-the-art infrastructure, multimedia resources and software. Each hub is set up with the active participation of the local community, which, along with students, also has access to the resources. Under the leadership of the Ministry of Education, these ICT hub schools are integrating computer lab-based training into existing curricula.
A core group of teachers and students are also being trained as ‘peer trainers’ who will then transfer their ICT skills to others in the hub area. As well as providing financial support to the programme, Coca-Cola sits on the project steering committee together with representatives of UNDP and the Ministry of Education. Technical support is provided by the Kuala Lumpur-based UNDP Asia Pacific Development Information Programme (APDIP), which promotes ICT for social and economic development throughout the region.
Ownership of ICT hubs will ultimately be turned over to the Ministry of Education. The pilot project is intended to produce a model that will help inform the Ministry of Education’s future e-learning schools projects. Arts & Culture • Coca-Cola actively supports young and emerging local music talent. The company partnered with the Music Authors Copyright Protection (MACP) organisation to offer an opportunity for emerging local talents to showcase their music.
They were invited to submit a demo tape of their music, and those with potential were invited to perform live at a concert attended by representative of recording companies. Sports • Coca-Cola is a leading supporter of sports and active lifestyle in Malaysia, particularly through its sponsorship of football, the country’s number one sport. The Coca-Cola system works closely with the Football Association of Malaysia (FAM) to help develop football at every level, from youth training and competitions to professional organisations.
This includes sponsorship of the 14 state football academies in Malaysia, the national under-17 Coca-Cola Cup football competition and the national premier league. Another highlight of the partnership with FAM was the ‘Coca-Cola Malaysia at the World Cup’ programme that enabled promising young Malaysian footballers to play at the venue of the 1998 World Cup finals in France. Similar programmes were organised for the EURO-2000 tournament, and FIFA World Cup 2002, in which young players were selected from educational institutions and sent to the tournament to escort various participating teams. Another example of Coca-Cola’s support of sports development in Malaysia is the Coca-Cola Olympian of the Year Awards – an annual award scheme that recognises and rewards the best Malaysian sportsman and sportswoman. The Company is also strongly committed to the Olympic Council of Malaysia (OCM), sponsoring the annual Olympic Day Run and local Marathons. Coca-Cola was the soft drink sponsor of the 2001 Southeast Asia Games, the region’s most prestigious sporting event, which was held in Kuala Lumpur. ———————– [pic]
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