CASE NO.

3: Group 1
COCA COLA GOES SMALL IN RUSSIA

COCA COLA GOES SMALL IN RUSSIA

The Coca-Cola Company is the number-one seller of soft drinks in the world. Every day
an average of more than 1.5 billion servings of Coca-Cola, Diet Coke, Sprite, Fanta, and
other products of Coca-Cola are enjoyed around the world. The company has the world's
largest production and distribution system for soft drinks and sells more than twice as
many soft drinks as its nearest competitor. Coca-Cola products are sold in more than 200
countries around the globe. For several reasons, the company believes it will continue to
grow internationally. One reason is that disposable income is rising. Another is that
outside the United States and Europe, the world is getting younger. In addition, reaching
world markets is becoming easier as political barriers fall and transportation difficulties
are overcome. Still another reason is that the sharing of ideas, cultures, and news around
the world creates market opportunities. Part of the company mission is for Coca-Cola to
maintain the world's most powerful trademark and effectively utilize the world's most
effective and pervasive distribution system.
In June 1999, Coca-Cola Russia introduced a 200-milliliter (about 6.8 oz.) Coke bottle in
Volgograd, Russia, in a campaign to market Coke to its poorest customers. This strategy
was successful for Coca-Cola in other countries, such as India. The bottle sells for 12
cents, making it affordable to almost everyone. In 2001, Coca-Cola enjoyed a 25%
volume growth in Russia, including an 18% increase in unit case sales of Coca-Cola.
Today, Coca-Cola beverages are produced and sold in Russia by the company's
authorized local bottling partner, Coca-Cola HBC Russia, based in Moscow. The Coca-
Cola business system directly employs approximately 4000 people in Russia, and more
than 70% of all supplies required by the company are sourced locally.

Discussion
1. Because of the variability of bottling machinery, it is likely that every 200-milliliter bottle
of Coca-Cola does not contain exactly 200 milliliters of fluid. Some bottles may contain
more fluid and others less. Because 200-milliliter bottle. Fills axe somewhat unusual, a
production engineer wants to test some of the bottles from the first production runs to
determine how close they are to the 200-milliliter specification. Suppose the following
data are the fill measurements from a random sample of 50 bottles. Use the techniques
presented in this chapter to describe the sample. Consider measures of central tendency,
variability, and skewness. Based on this analysis, how is the bottling process working?

200.1 199.9 200.2 200.2 200

200.1 200.9 200.1 200.3 200.5
199.7 200.4 200.3 199.8 199.3
200.1 199.4 199.6 199.2 200.2
200.4 199.8 199.9 200.2 199.6
199.6 200.4 200.4 200.6 200.6
200.1 200.8 199.9 200 199.9
200.3 200.5 199.9 201.1 199.7
200.2 200.5 200.2 199.7 200.9
200.2 199.5 200.6 200.3 199.8

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CASE NO. 3: Group 1
COCA COLA GOES SMALL IN RUSSIA

2. Suppose that at another plant Coca-Cola is filling bottles with the more traditional 20
ounces of fluid. A lab randomly samples 150 bottles and tests the bottles for fill volume.
The descriptive statistics are given in both Minitab and Excel computer output. Write a
brief report to supervisors summarizing what this output is saying about the process.

ANSWERS:
1. The best measure to analyze this sample is by getting the central tendency,
variability, and skewness. And through this the three major points, the mean,
median and mode could be derived. Median which falls between the 25 th and 26th
terms. The value that occurs the most is 200.20 which is the mode. Overall, the
bottling process is relatively normal as the bottles contains less liquid is in by
chance minimum amount. Solutions in a separate sheet.

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CASE NO. 3: Group 1
COCA COLA GOES SMALL IN RUSSIA

2. We will report the findings in the number two discussion as:

The bottling process is practically normal. All the values shown are close to mean,
which means most bottles are filled evenly and any variation of volume differences
is minimal. Standard deviation is very little. Also minimum number of skewness
which indicates a relatively close values on mean, median and mode, thus creating
a symmetric skew.

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