Honsavady.

Rangoon.

As a local distributor of Coca-Cola, Maung Qian has been very distressed recently, because Coca-Cola's sales have plummeted in the past month.

Yangon in July is the hottest month of the year, and it is also the time when carbonated drinks are at their best.

But recently, the sales of Coke have not risen but declined, which made Maung Qian a little unable to sit still, and he hurriedly asked his subordinates to investigate the matter.

In less than half a day, several subordinates ran back out of breath.

The panting subordinate hurriedly said, "Boss, find the reason." ”

"Tell me, what the hell is going on?" Maung Qian looked anxious.

"Huhu...... It is because there is a low-cost cola on the market, and the price of the other party's 500ml bottled cola is only 300 yuan. ”

300 kyats is equivalent to about 1 Chinese dollar.

"What? Just kidding! Maung Qian was shocked.

One of the subordinates took out more than a dozen different bottles of drinks from the bag and put them on the table: "These are all drinks produced by that company, and the prices are much lower than the market price, only some real juice drinks are more expensive, but they are also lower than similar products." ”

Maung Qian picked up a 500ml bottle of Aoba Coke and looked at his subordinates with a blindfolded face: "Glass bottles? 300 yuan a bottle? ”

"Yes." The subordinates are also unbelievable.

But facts speak louder than words, and these glass bottles are right in front of you.

Holding on to the last glimmer of hope, Maung Qian unscrewed the cap of the glass bottle, and after taking a sip, his face became even worse, this cola tasted similar to Coca-Cola and Pepsi.

In fact, things like cola recipes may have been a trade secret a few decades ago, but now they can basically be made by a beverage factory with a similar taste.

After all, the technology of various ingredient testing equipment is advancing by leaps and bounds, and it is whimsical to keep it secret, unless it is not on sale, otherwise people will send the product to the laboratory, and the basic ingredients will come out, and then experiment a few more times, not to mention 100% replication, but 90% can definitely be imitated.

After all, there are only a few ingredients for Coke.

Coca-Cola and Pepsi can dominate the market by relying on huge sales channels, raw material supply systems, and marketing.

Aoba Cola, on the other hand, has no sales channels and marketing, so it relies on production costs and dumping at low prices.

Anyway, the raw materials are chemical products, such as aspartame, fructose syrup, phosphoric acid, carbon dioxide, vitamin C, citric acid, caramel color, etc., which can be synthesized by industry.

Some time ago, Liu Zhifan also bought a patent for saccharification technology from a company in Huaguo, which can transform various starches into syrup through mold fermentation.

In Luzon, Li Qingye has upgraded this technology to maximize its cost performance, and the production cost of various syrups is minimized, and even plants such as branches and grass blades can be used as raw materials for the production of syrup.

than the cost of production?

The Aoba Group can play to the death of other enterprises.

Now in the Yangon market, the flavored fruit juice drinks and carbonated drinks produced by the Qingye Group have made the local beverage companies cry and cry their mothers.

Maung Qian had to face this situation at this time.

Since Coca-Cola has the power to price beverages, Maung Qian himself has no way to drastically adjust the wholesale price, after all, the price is bound by a contract, and as a distributor in Yangon, he also has a regional general distribution presence.

In order not to be squeezed into bankruptcy, Maung Qian quickly reported the matter to the general distributor in Honsavady.

The Honsavwady branch of Coca-Cola Company soon received complaints and reports from Honsavady distributors.

Xia Ya, the branch manager, put down the documents in his hand and looked at the dozen bottles of drinks on the table with a solemn expression.

"Manager, according to the latest statistics, our company's market share has dropped to 11%, and the situation is similar for Pepsi, Luxi, and Venus." The person in charge of the marketing department also had a solemn expression.

Xia picked up a bottle of Aoba Coke, and her expression was as if she had seen some kind of flood beast: "It's terrible, if we continue like this, we will be driven out of the market in Honsavady." ”

Previously, Coca-Cola accounted for 37% of the beverage market in Honsavady, PepsiCo accounted for 28%, and the two local companies together accounted for about 20%.

Now all of a sudden, only 11% remains, and the downward trend continues.

The person in charge of the marketing department said helplessly: "Manager, let's report to the head office!" We don't have a bottling plant in Honsavady, the products are all shipped from South Asia, and the other party can push the price down to one-third of ours, we can't do it! ”

Shipping costs, warehousing costs, and profits from distributors and retailers make it too difficult for Coca-Cola to bring retail prices on par with each other.

After all, Coca's factory price in the Honsavaddy branch is about 50% of the retail price, and the wholesale price of the dealer will reach about 70~80% of the retail price.

Now that the retail price is to be reduced to one-third, and she Shia can't do magic, is she doing a loss-making business?

Taking a 500ml plastic bottle of Coke as an example, the cost of each bottle will reach about 280 kyats from the South Asian factory, the ex-factory price for the dealer is between 450~500 kyats, the wholesale price for the distributor to the retailer is between 700~800 kyats, and finally the retail price of the retailer will be between 900~1000 kyats.

Even if we open a local factory, we can only reduce the ex-factory cost by importing cola puree to about 25% of the current retail price.

After thinking about it, Xia had no choice but to report to the head office quickly and let the head office have a headache.

Americaka.

Atlanta.

Coca's headquarters are located here.

Southeast Asia in the Eastern Hemisphere is in the middle of a sunny day, while the moon is high over North America in the Western Hemisphere.

Due to the time difference, Coca's headquarters building is still brightly lit, and there aren't actually many employees working.

Until the next day, around ten o'clock in the morning.

The secretary to the president only received a report from the Honsavavid branch, although the head office is relatively comfortable, but as a commercial company, they still have the keen sense of smell.

After all, as the world's second largest beverage company, if it didn't even have this business sense, it would have gone bankrupt a long time ago.

After listening to the report, President Kean's face suddenly became serious: "Aoba Group? The retail price is only one-third of ours, and all of them are glass bottles, can they afford the cost? Even if you have a local advantage, it's difficult, right? ”

The secretary was silent.

Keane looked up, "Lady Hannah, let Caesar and Frank come over." ”

“OK。”

Not for a while.

Caesar, who was in charge of cost control, arrived first, followed by Frank, who was in charge of global market research.

Keane didn't say anything, and directly handed the document to the two of them: "Take a look!" ”

The two of them, confused, quickly flipped through the document.

After a while, Caesar exclaimed, "Impossible! That's impossible! Are they crazy? Even if glass bottles can be recycled and reused, there is no way to reduce the cost to one-third. ”

And Frank also agrees with Caesar's words: "This company probably wants to increase its market share first through low-price promotion, and then slowly raise prices." ”

But Keane shook his head: "No, I don't think so, if you look closely at the photos above, the packaging of those glass bottles is marked with a designated retail price of 300 kyats, which means that they intend to sell it like this for a long time." ”

"But can they really make money by doing so?" Caesar racked his brains and didn't think that the other party could make money from it.

Keane commanded solemnly: "This is a very important matter, Caesar, Frank, you immediately go to Honsavady to investigate this matter, I want to know how this company can reduce costs." ”

Although I felt that the president was making a fuss, the two of them did not refuse, after all, isn't a business trip just a publicly-funded tour?