Coca-Cola – 'MOTOR'ing to WIN
Thailand is a mid size (Population: 65 MM), developing market, with an established culture of consuming Sparkling Soft Drinks. It represents a huge business opportunity for the Coca-Cola System.
Market situation in early 2007: Back in 2006/2007, the growth of sparkling soft drink in Thailand was relatively flat and Traditional Trade continued to be the dominant channel (55% of volumes) despite the emerging popularity of Modern Trade Channels (Hyper/Super/Convenience). While The Coca-Cola System (KO) won consistently in Thailand in absolute terms (volume, profit, and value share in Non-Alcoholic Ready-to-Drink beverages) – the business has been losing share in Traditional Trade in relative terms within the sparkling beverage segment since 2001.
By the end of 2006, our competitor had a lead over KO in the Traditional Trade channel. This was driven by a first mover advantage by launching an 'upsized Glass Bottle after the Asian currency crisis – offering great value proposition 'just 1 Baht extra for 50% more volume' at a time when consumer confidence & spending were at an all time low.