Homo sapiens

Chapter 68 Smell
Hong Shavadi.

Yangon.

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

You must know that Yangon in July is the hottest month of the year, and it is also the time when the sales of carbonated drinks are the best.

But recently, the sales volume of Coca-Cola has not increased but decreased, which made Maung Qian a little impatient, and he hurriedly asked his subordinates to investigate this matter.

In less than half a day, several subordinates ran back panting.

The panting subordinate hurriedly said, "Boss, I found the reason."

"Tell me, what happened?" Maung Qian said anxiously.

"Huhu... because there is a low-priced Coke on the market, and the other party's 500ml bottle of Coke is only 300 yuan."

300 kyats is roughly equivalent to 1 Chinese yuan.

"What? Just kidding!" Maung Qian turned pale with shock.

One of the subordinates took out a dozen bottles of different drinks from the bag and put them on the table: "These are drinks produced by that company, and the prices are much lower than the market price. lower than similar products."

Maung Qian picked up a 500ml bottle of Green Leaf Coke, and looked at his subordinate with a masked face: "Glass bottle? 300 yuan a bottle?"

"Yes." The subordinate was also unbelievable.

But the facts speak louder than words, and these glass bottled drinks are right in front of us.

Holding the last hope, Mao Qian unscrewed the cap of the glass bottle, and after taking a sip, his complexion became even worse. The taste of this cola is similar to that of Coca-Cola and Pepsi.

In fact, such things as cola recipes may have been commercial secrets decades ago, but now basically a beverage factory can come up with similar tastes.

After all, the technology of various component testing equipment is advancing by leaps and bounds. It is whimsical to want to keep it secret. Unless it is not on the market, otherwise the basic components will come out as soon as the product is sent to the laboratory, and then it will be tested several times, let alone 100% replica , but 90% can definitely be imitated.

After all, Coca-Cola only has those few ingredients.

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

However, Green Leaf Cola 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 industrially.

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

In Li Qingye in Luzon, this technology has been upgraded to maximize its cost performance, and the production cost of various syrups has been reduced to the lowest. Plants such as branches and grass leaves can even be used as raw materials for syrup production.

Than production costs?
Aoba Group can kill other companies.

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

Maung Qian had to face this situation at this time.

Since Coca-Cola holds the right to set prices for beverages, Maung Qian himself has no way to adjust the wholesale price significantly. After all, the price is bound by a contract. As a distributor in the Yangon area, he also has a regional general distributor.

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

The Hongshawadi branch of Coca-Cola soon received complaints and reports from the Hongshawadi dealers.

The branch manager, Xi Ya, put down the documents in her 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 of Pepsi, Luxi, and Jinxing is similar." The person in charge of the marketing department also had a solemn expression.

Xi Ya picked up a bottle of Green Leaf Coke, with an expression as if she saw some scourge: "It's terrible. If this continues, we will be driven out of the Hongshawadi market."

Previously, in the beverage market in Hongshawadi, Coke accounted for 37%, PepsiCo accounted for 28%, and the two local companies together accounted for about 20%.

Now all of a sudden there are only 11% left, 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 filling factory in Hongshawadi, and the products are all transported from South Asia. The other party can lower the price to one-third of ours. We can't do it!"

Transportation costs, warehousing costs, plus the profits of distributors and retailers, it will be too difficult for Coke to equalize the retail price with the other party.

After all, Coke's factory price in Hongshawadi branch is about 50% of the retail price, and the wholesale price of distributors will reach about 70-80% of the retail price.

Now to reduce the retail price to one-third, she, Xiya, doesn't know magic, so is it a loss-making business?
Take the 500ml plastic bottle of Coke as an example. The cost of each bottle is about 280 kyats when it is transferred from the South Asian factory. The ex-factory price for the dealer is between 450 and 500 kyats. It is between 700-800 kyats, and the final retail price of retailers will be between 900-1000 kyats.

Even if a local factory is set up, by importing cola puree, the factory cost can only be reduced to about 25% of the current retail price at most.

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

America.

Atlanta.

The headquarters of the Coca-Cola Company is here.

Southeast Asia in the Eastern Hemisphere is enjoying a sunny noon, while the moon is high above North America in the Western Hemisphere.

Due to the time difference, despite the fact that Coke's headquarters building is still brightly lit, there are actually not many employees working.

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

The president's secretary just received the report from the Hongshawadi branch. Although the head office is relatively comfortable, they still have the keen sense of smell that a commercial company should have.

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

After listening to the report, President Keen's face suddenly became serious: "Qingye Group? The retail price is only one-third of ours, and all of them use glass bottles. Can they afford this cost? Even if they have local advantages, it is very difficult. Bar?"

The secretary remained silent.

Keane raised his head: "Ms. Hannah, let Caesar and Frank come over."

"OK."

Soon.

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: "Let's take a look!"

Confused, the two quickly flipped through the document.

After a while, Caesar exclaimed: "Impossible! This is 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 very much: "This company probably wants to use low-price promotions to increase market share first, and then slowly increase prices."

But Keen shook his head: "No, I don't think so, look carefully 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 like this for a long time. "

"But by doing this, can they really make money?" Caesar racked his brains to think that the other party could make money from it.

Keane solemnly ordered: "This is a very important matter. Caesar, Frank, you go to Hongshawadi to investigate this matter immediately. I want to know how this company keeps costs down."

Although I felt that the president was making a big fuss, the two of them did not refuse. After all, isn't a business trip just a public trip?
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(End of this chapter)