Kola Real Ajegroup Case Study

1471 words - 6 pages

The Ajegroup has been very successful since it was founded in 1988 by Eduardo and Mirtha Ananos by taking a $30,000US second mortgage on their home. The company has grown into a multinational enterprise currently represented in 20 countries worldwide with its holding company in Spain. In order to strengthen bonds within all its market sectors, the company has gained ownership of 22 factories and 120 fulfillment centers employing over 20,000 people. Its infrastructure reaches out to more than 1,000,000 retail outlets worldwide enabling Ajegroup to sell over 3 billion liters of beverages including beer, sports drinks, energetic and isotonic drinks, water, various juices and tea (1).
According ...view middle of the document...

6. Its distribution system. Ajegroup distributed its products via small, privately-owned trucking companies, which in turn, was responsible for distributing Kola Real via their own means. Because Ajegroup did not have to invest in its own distribution system, this “subcontracting” distribution contributed to fast sales growth. In fact, by 2006, Ajegroup had nearly 180,000 points of sale in Peru (2).
These were several key success factors that led to fast growth and profitability in Peru alone. What about markets outside of Peru? In 1999 when Ajegroup decided to enter foreign markets so that its success (or failure) would not solely be dependent upon Peru, it decided to do business in countries that had a high concentration of low socioeconomic population and where there was low soft drink consumption. These countries included Venezuela, Ecuador, Mexico and Costa Rica. Ajegroup utilized its same “blueprint for success”—sell more for less.
Its key success factors in Venezuela included the introduction of Kola Real in non-returnable plastic bottles. Up to this point (1999), soft drinks had always been packaged in glass bottles. With the plastic bottling strategy, AJEGROUP gained a 12% market share in Venezuela—an equivalence of 30% market size in Peru. Further, AJEGROUP captured 8% market share in Ecuador; by 2005 gained 8% market share in Mexico, equivalent to 70% of the Peruvian market; and penetrated the Central American soft drink market by investing $10-15 million US to build a plant in Costa Rica. The plant was able to produce over 1,000,000 liters each month and by 2006 it was fueling sales in both Guatemala and Nicaragua (2).
After doing an online search for Ajegroup since this case was written, here’s what I discovered.
* The company has begun to produce its products in Brazil. In January 2011 the company announced that its factory in Rio would have the capacity to produce 80 thousand bottles of soda per hour. Also, the manufacturer would market its main brand there in four different versions: (cola traditional, zero caffeine and zero calorie) and Guarana. Although prices had not yet been defined, Ajegroup would have a different pricing strategy. "But we will not be the cheapest brand in the market," says sources.
Also, the distribution in supermarket chains will be made by the company itself and other point of sale, by third-party carriers (3).
* Although AJEGROUP began operations in Nicaragua in 2005, when the beverage brand Big Cola entered the country after discovering its potential for soft drinks and with an initial investment of approximately US$1 million, the company announced in August 2011 that it would expand its operations in Nicaragua by reinvesting approximately US$25 million to further distribute its product in the Nicaraguan market. At the time of the announcement AJEGROUP had generated approximately 300 direct jobs and 150 indirect jobs in the country; however, this expansion plan would increase direct...

Other Papers Like Kola Real - Ajegroup Case Study

Information Essay

5390 words - 22 pages COCA-COLA CASE STUDY Presentation Identifier Goes Here 1 STATISTICS AND FACTS ON LIQUID REFRESHMENT BEVERAGE BRANDS The liquid refreshment beverage (LRB) market encompasses CSDs, bottled water, ready-to-drink (RTD) coffee and tea, fruit beverages, energy drinks and sports beverages. Based on sales, Coca-Cola, Pepsi, Mountain Dew, Dr Pepper and Gatorade were the leading liquid refreshment beverage (LRB) brands in the United States

Doc, Docx, Pdf, Wps, Rtf, Odt

3233 words - 13 pages FACTORS AFFECTING STUDENTS’ PERFORMANCEA Case Of Private CollegesSyed Tahir Hijazi 1 andS.M.M. Raza Naqvi 2 Abstract: Many empirical studies are carried out to explore factors affecting college students’ performance. The focus of this research is that student performance in intermediate examination isassociated with students’ profile consisted of his attitude towards attendance in classes, time allocation for studies, parents’ level of

Product Strategy Coca Cola

1439 words - 6 pages pharmacist John Stith Pemberton. The famous product of the company is Coca-Cola or often referred to simply as Coke. The name refers to two of its original ingredients which are kola nuts, a source of caffeine and coca leaves. Coca-Cola or Coke is the most popular and biggest selling carbonated soft drink, as well as the best known brand in the world. According to Edinburgh Evening News (2010), Coca-Cola has become the first brand to top 1

Effects of Study Habits on Fouth Year Students

3298 words - 14 pages real exams, only to be disappointed when the real exam has none of the same questions). Such exams help you understand the breadth of content and types of questions to expect, not the actual material to study for. Some people enjoy reviewing their materials with a group of friends or classmates. Such groups work best when they’re kept small (4 or 5 others), with people of similar academic aptitude, and with people taking the same class. Different

Effects of Poverty and Government Policies in Nigeria on Students Performance

1645 words - 7 pages - Lecturers' and Students' Perceptions on Influence of Supervision on Examination Malpractice in Kwara State-Owned Tertiary Institutions.......................................................................108 9. B.O. Gbadamosi - Forging Inter-Library Co-operation As a way of Enhancing Library Services: A case study of Resource sharing in three Academic Libraries in Oyo Township...................................122 10. Dr. Abdulrazaq Olayinka

How to Write a Case Study

568 words - 3 pages How to Write a Case Study Case Studies are a very effective promotional tool. Next to White Papers, they are the second most popular device used to promote the benefits of a product or service. With that in mind, if youve been commissioned to write a case study or are new to this area, this backgrounder might help. What is a Case Study? A case study demonstrates how a specific situation was initially identified, which solution was selected

Preparatory Jamb Test

2969 words - 12 pages Bangladesh e-Journal of Sociology. Volume 7, Number 2. July 2010 34 Factors Affecting Students’ Academic Performance: A case study in Agartala Municipal Council Area Amitava Raychaudhuri*, Manojit Debnath**, Saswata Sen*** and Braja Gopal Majumder**** Abstract: Number of empirical studies has been done to determine the factors affecting school students’ performance in the elementary level. The basic objective of the present study is

Case Method on Le Chateau

953 words - 4 pages A) DEFINITION A case method is a documented study of a situation that transpires in real life or it can be about a fictional situation, which is used as teaching or learning tool in business schools and firms. These studies allow students evaluate cases and provide their own interpretations on potential solutions for the provided business scenario. Furthermore, the case method can also be described as something that gives you a detailed

A Case Study of Homeless Students

948 words - 4 pages inquiry that investigates a contemporary phenomenon within its real-life context; when the boundaries between phenomenon and context are not clearly evident; and in which multiple sources of evidence are used (p. 23). It presents details on a bounded event or participant experiencing the event. Case study has its roots in anthropology, sociology, and psychology, but gained legitimacy as a valid methodology for use in other fields of study in the 1980

Case Analysis Of Bank Of America: Mobile Banking

1193 words - 5 pages . Summary 8. Questions for group discussion 9. References 1 Harvard Case Study: Bank of America 1. Introduction / Definitions Description of the case study “Bank of America (A)” * The case study describes how Bank of America is creating a system for product and service innovation in its retail banking business. Emphasis is placed on the role of experimentation in some two-dozen real-life "laboratories" that serve as fully

Hcs 440 Week 1 Individual Economic Terms And Health Care History

358 words - 2 pages This document MGT 350 Week 2 Learning Team Case Analysis Project Plan Critical Thinking Strategies in Decision Making contains a solution on following task: "Decisions in Paradise Case Analysis Project Plan. Submit the following: 1) Summary of Case 2) Company selected 3) Action Plan, e.g. who and how will this paper be researched and written. UMUC CMIT 425 Security Policy Project Using the GDI Case Study, complete the Security Policy

Related Essays

Real World Case Study, "Ecourier, Cablecom, And Bryan Cave."

890 words - 4 pages Question 1: Information technologies are crucial to an effective business. In this case study, the three companies demonstrated how their businesses were enhanced using information technology. First was eCourier, which delivers packages around London. They wanted to recieve instant feedback of customer satisfaction. eCourier used SeeWhy software to provide them customer data more expediently. The software allowed them to see dormant

Real World Case Study, "Ecourier, Cablecom, And Bryan Cave."

605 words - 3 pages MGMT 221 1. Information technologies contributed to the business success of the companies depicted in the case as follows. eCourier: eCourier was dealing with the concern of losing customers to other couriers in a blink of an eye if there was anything the customer was not satisfied with. According the chief Technology officer and cofounder Jay Bregman, “ clients are more likely to take their business elsewhere than they are to report a

Big Cola Vs. Coca Cola & Pepsi Essay

2516 words - 11 pages producto de “KR-Kola Real, una embotelladora peruana fundada en 1988 por la familia Añaños en tiempos de ataques terroristas”.[1] Esta “nueva” embotelladora abre el mercado promoviendo bebidas refrescantes de cola a un precio de 10 a 20% menos que sus competidores como Coca-Cola y Pepsi, logrando atraer un mercado nuevo e inclusive quitándole clientes a ambas empresas debido a su bajo precio y calidad en sus bebidas. La embotelladora peruana ya se

Study Habits Essay

2467 words - 10 pages a course is available, use it as a guide – do not study to the practice or old exam! (Too many students treat such exams as the real exams, only to be disappointed when the real exam has none of the same questions). Such exams help you understand the breadth of content and types of questions to expect, not the actual material to study for. Some people enjoy reviewing their materials with a group of friends or classmates. Such groups work best