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