Andina Bottling Company Case
Andina is a major distributor of Coca-Cola products in Latin America. The market for soft drinks is very competitive in Latin America. The dominate brands are not necessarily Coca-Cola or Pepsi brands. For a company to succeed in the distribution and manufacturing of soft drinks in Latin America, they need to be efficient. The plants need to work at capacity or close to it. The distribution also has to be logical. It is not worth it for them to sell to less populated mountain areas. The point of the new system that Andina is introducing is going to make sales, distribution, and manufacturing easier. The three countries are going to share their information with each other. Control panel and the rest of the system will be successful if Andina can convince each country that they can trust it. Andina is doing a good job of trying to unite the three subsidiaries through Control Panel.
For Andina to succeed in the bottled drinks manufacturing and distribution business, they need to be the most efficient that they can be. There are many bottled drinks in Latin America. There are many knock-offs of Coca-Cola as well. Andina is facing a lot of competition. They need to make sure that they are selling to a larger audience and not to a smaller one. There is no point in concentrating a large amount of your sales force on a mountain area or one that is spread out over some distance unless there is a large population that the drink is marketed to. If the mountain region makes up less than 5% of the company's sales, they should try to focus on a more populated area with more of a target market. In the case, it talks about how this happened in Argentina. They had 25,000 clients that accounted for only 3% of their sales, (1 ...