Organisation Structure
Cool Drinks International, founded in 1910 in the USA, is the world's leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups. It currently operates in over 110 countries worldwide and is most famous for the innovative carbonated soft drink, “Cool Fizzy”. 70% of the company revenue and 80% of the company profit come from outside the United States. Its subsidiaries employ nearly 30,000 people around the world. It is one of the most visible beverage companies in the world. Their Cool Fizzy product is now available all over the world and has resulted in the drink becoming the world’s favorite soft drink.
This carbonated soft drink was first sold to the public at the local store, which has been serving as a meeting place for people of all ages. This signified that the special formula of Cool Fizzy is the choice of drink for the public, to go with their meals or just to quench their thirst. To date, Cool Fizzy is consumed at the rate of more than a billion drinks per day worldwide. According to their annual report, Cool Drinks is a business with a popular, affordable product, with a strong foothold in many countries.
The core brand, “Cool Fizzy” is the world’s number one brand in the carbonated soft drink category. As part of the business model to meet the local needs, Cool Fizzy operates through local bottlers in various countries, which is known as a franchise model. In this model, local bottlers will get a license to bottle, sell and distribute Cool Drinks products in the local markets. To stay close to local market preferences and tastes of people, Cool Drinks International introduced nearly 230 products in 110 countries.
Mission: The Cool Drinks mission statement declares their purpose as a company and serves as the standard against which they weigh their actions and decisions.
To build local, consumer driven, customer focused, profitable and sustainable businesses.
Vision: Their vision serves as the framework for their roadmap and guides every aspect of their business by describing what they need to accomplish in order to continue achieving sustainable, quality growth.
To be a model, leading world class beverage organization
Values:
Product Details: The main product, Cool Fizzy, is currently in the phase of re-formulation, and is estimated to re-launch with a brand new yet traditional taste to the public later this year.
At this stage, Cool Drinks India (Cool Drinks International’s India business) is strongly promoting their new fruit juice products in 2 flavors- orange and a mixed fruit flavor - "Cool Juice". The company's strategic direction is to reduce its dependence on Cool Fizzy and get 20% of its sales from Cool Juice in the next 3 years.
India is the first market in Asia in which Cool Juice has been launched. As there are many existing fruit juice brands in the market, Cool Juice is facing critical challenges to compete with the other brands for its own market share. The company's strategic direction is to have a good mix of carbonated and non-carbonated drinks, as research shows that customers' tastes are changing and the maximum growth in the future is in non-carbonated drinks.
Recognizing that Delhi is a strategic place which has a population of 1.4 million people and is also crowded with foreign and local tourists, Cool Drinks India is very keen to place the priority product Cool Juice on sale in all the retail stores in Delhi. The company's sales target for Cool Juice is INR 150 million, with 60% of the total from General Trade (provision store / mini market / sundry shop / petrol kiosk / traditional food services / newsagent / canteen / bookstores), and the other 40% from Modern Trade (hypermarket, chain stores). From the expected 60% of General Trade market, it is expected that 45% would be coming from Delhi.
Pricing: Cool Drinks India has standard rules about the product pricing, but they have stated that the Area Sales Manager, with the approval of the Regional Sales Manager, can give a 5-10% discount on the price list as a last resort. However, this is not encouraged as it has an impact on the Sales team’s incentives.
Business Strategy: As part of the business strategy, Cool Drinks India has developed a customer-focus program known as the Loyal Retailer Special Program (LRSP) for the key business partners in General Trade to support their business. Cool Drinks India is the first and only company that provides such a customer-focused program with a rewards system. There are three main classes of the program, and with each class enrolled, there will be different attractive rewards for the customer. In this stage, the LRSP is the main program to attract the enrolment of customers, in addition to the usual individual retail.
Challenges: The main challenge that Cool Juice is facing is the competition in the market that resulted in relatively limited areas for Cool Juice to be sold in the stores. Cool Juice is a late entrant in the market and the taste is not much liked by consumers, as it is less sweet than the market leader.
Delivery Model: Cool Drinks India delivery model is based on the principle of "Serving within 24", in which product stocks would be delivered to customers within 24 hours after the order has been generated. This delivery model is more efficient than its competitors, such as Pop Gassy, whose delivery services are done within 48 hours to 7 days.
Packaging: Cool Drinks India is currently in the stage of discussing their new packaging plan, which is more environment friendly in response to increased awareness on recycling and responsible packaging. They are planning to adopt recyclable bottles to replace the current bottles and cans to package their products. This new packaging plan is also in line with Cool Drinks India's differentiating portfolio.