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Milan Halada
Jindřich Štraser
Content
1.History of the company & introduction
2.Competitors & consumers
3.Kofola‘s main advantages in the market
4.Country selection
5.Why and where to expand?
6.Strategy of 4P‘s
1. History of the Kofola & introduction
• Carbonated soft drink manufactured in Czech Rep.• Established and produced from 1960‘s• Kofola holding a.s. – 2003, after period of decline
and lawsuits became leader on soft drinks market• Nowdays 700 employees in CZ, 4 plants of
production in 4 countries
1. History of the Kofola & introduction
• Group of Kofola´s company includes: • Kofola Holding a.s., Kofola S.A. - Ostrava (CZ), Varšava (PL) • Kofola a. s. - Krnov, Mnichovo Hradiště, Praha (CZ)• Kofola a. s. - Rajecká Lesná, Senec, Malý Šariš, Zvolen (SK) • Hoop Sp. z o. o. - Kutno, Bielsk Podlaski, Grodzisk Wielkopolski, Varšava
(PL) • Megapack - Moskva (RU)
1. History of the Kofola & introduction
Portfolio of Kofola Products:
• Kofola Original• Kofola Citrus• Kofola Sugar Free• Special editions – flavouring of cynamon and cherry
1. History of the Kofola & introduction
Portfolio of Kofola´s Products:
• RC Cola • Water Rajec• Children drink Jupík• Top Topic and Vinea
1. History of the Kofola & introduction Ingredients• Kofo syrup - fourteen natural ingredients • Sugar• Karamel• Caffeine• Water• Carbon dioxide
2. Competitors & consumers
Competitors• Coca-cola• Pepsi
Consumers• Mainly young people• Middle age (tradition)
3. Kofola‘s main advantages in the market
• Less share of sugar• Less share of caffeine• No contains of phosporic acid• Draught from barrels in pubs - flavour• Lower price • Attractive design• History
4. Country selection
4. Country selectionIndicators Germany Belarus UkrainePopulation 82 mil. 9 mil. 46 mil.
GDP $3.316 trillion
(2010 est.)$54.71 billion (2010 est.)
$136.4 billion (2010 est.)
GDP real growth rate
3.5% (2010 est.) 7.6% (2010 est.) 4.2% (2010 est.)
GDP per capita $35,700 (2010
est.)$13,600 (2010 est.) $6,700 (2010 est.)
GINI index 29,1 (2010) 27.2 (2008) 27.5 (2008)Inflation
(consumer prices)
1.1%(2010 est.) 7.8% (2010 est.) 9.4% (2010 est.)
Labor force43.44 million (2010
est.)5 million (2009)
22.02 million (2010 est.)
4. Country selectionIndicator Germany Belorussia Ukraine
Country credit rating
AAA B- B+
Political system
Federal, Parliamantery,Representative
Democratic
President RepublicUnitary,Semi-Presidential
Republic
Main citiesBerlin,Hamburg,Munich,Köln,Frankfu
rt, Stuttgart
Minsk, Vitebsk, Brest, Gobel
Kiev,Kharkiv,Dnipropetrovsk,Odessa,Donetsk
Currency Euro (EUR)Belarusian ruble
(BYR)Hryvnia (UAH)
Unemployment rate
7.1% (2010) 1% (2010) 8,1% (2010)
Our choice is Ukraine!
5. Why and where to expand?
Ukraine - Pros
• Summer (35oC) +
• Ukrainians work in Czech and Slovakia
• Cheap logistics (train) + new highways
• Strategic point in the east of Europe
5. Why and where to expand?
Ukraine - Cons
• Logistics only between the biggest cities
• High level of bureaucracy
• Low number of malls
• Taxes and customs
• Competitor Kvass
6. Strategy of 4P‘s - Product
Kofola Original • Name of the product converted to cyrillic,• Ingredients translated in Ukrainian, Russian
and English language
6. Strategy of 4P‘s - Price
Czech price • 2l of Kofola – 26CZK = 1,01EUR• draught Kofola in pubs – 5CZK/1dl = 0,20EUR
Ukraine price• 2l of Kofola – 9UAH = 0,88EUR• Draught Kofola in pubs – 7UAH/0,5l = 0,78EUR(an average wage in Ukraine, in 2006 was 1063.59UAH)
6. Strategy of 4P‘s - Promotion„If you love her there is nothing to question“
• Bilboards – highways, cities• Television - spots• Radios – spots • Internet – banners• Shops – promotions, gifts• Sponsoring of events, Fashion• Public transport, Cars
• Cars
6. Strategy of 4P‘s - PlaceExpand to the biggest cities in Ukraine
6. Strategy of 4P‘s - PlaceUkraine main roads
6. Strategy of 4P‘s – PlaceUkraine main railways
6. Strategy of 4P‘s - Place• Supermarkets
Negotiate prices with
local headquaters
• Pubs, clubs
Approach local breweries to fill up 50l barrels
• Events – sports, music
Thank you for your attention
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