1. Milan Halada Jindřich Štraser

2. Content 1.History of the company & introduction 2.Competitors & consumers 3.Kofola‘s main advantages in the market 4.Country selection 5.Why and where to expand? 6.Strategy of 4P‘s

3. 1. History of the Kofola & introduction Carbonated soft drink manufactured in Czech Rep. Established and produced from 1960‘s Kofola holding a.s. – 2003, after period of decline and lawsuits became leader on soft drinks market Nowdays 700 employees in CZ, 4 plants of production in 4 countries

4. 1. History of the Kofola & introduction Group of Kofola´s company includes: Kofola Holding a.s., Kofola S.A. - Ostrava (CZ), Varšava (PL) Kofola a. s. - Krnov, Mnichovo Hradiště, Praha (CZ) Kofola a. s. - Rajecká Lesná, Senec, Malý Šariš, Zvolen (SK) Hoop Sp. z o. o. - Kutno, Bielsk Podlaski, Grodzisk Wielkopolski, Varšava (PL) Megapack - Moskva (RU)

5. 1. History of the Kofola & introduction Portfolio of Kofola Products: Kofola Original Kofola Citrus Kofola Sugar Free Special editions – flavouring of cynamon and cherry

6. 1. History of the Kofola & introduction Portfolio of Kofola´s Products: RC Cola Water Rajec Children drink Jupík Top Topic and Vinea

7. 1. History of the Kofola & introduction Ingredients Kofo syrup - fourteen natural ingredients Sugar Karamel Caffeine Water Carbon dioxide

8. 2. Competitors & consumers Competitors Coca-cola Pepsi Consumers Mainly young people Middle age (tradition)

9. 3. Kofola‘s main advantages in the market Less share of sugar Less share of caffeine No contains of phosporic acid Draught from barrels in pubs - flavour Lower price Attractive design History

10. 4. Country selection

11. IndicatorsGermany Belarus Ukraine Population82 mil.9 mil.46 mil. GDP $3.316 trillion (2010 est.) $54.71 billion (2010 est.) $136.4 billion (2010 est.) GDP real growth rate 3.5% (2010 est.)7.6% (2010 est.)4.2% (2010 est.) GDP per capita $35,700 (2010 est.) $13,600 (2010 est.)$6,700 (2010 est.) GINI index29,1 (2010)27.2 (2008)27.5 (2008) Inflation (consumer prices) 1.1%(2010 est.) 7.8% (2010 est.)9.4% (2010 est.) Labor force 43.44 million (2010 est.) 5 million (2009) 22.02 million (2010 est.)

12. 4. Country selection IndicatorGermanyBelorussiaUkraine Country credit rating AAAB-B+ Political system Federal, Parliamantery, Representative Democratic President Republic Unitary,Semi- Presidential Republic Main cities Berlin,Hamburg,M unich,Köln,Frankfu rt, Stuttgart Minsk, Vitebsk, Brest, Gobel Kiev,Kharkiv, Dnipropetrovsk, Odessa,Donetsk CurrencyEuro (EUR) Belarusian ruble (BYR) Hryvnia (UAH) Unemployment rate 7.1% (2010)1% (2010)8,1% (2010)

13. Our choice is Ukraine!

14. 5. Why and where to expand? Ukraine - Pros Summer (35 o C) + Ukrainians work in Czech and Slovakia Cheap logistics (train) + new highways Strategic point in the east of Europe

15. 5. Why and where to expand? Ukraine - Cons Logistics only between the biggest cities High level of bureaucracy Low number of malls Taxes and customs Competitor Kvass

16. 6. Strategy of 4P‘s - Product Kofola Original Name of the product converted to cyrillic, Ingredients translated in Ukrainian, Russian and English language

17. 6. Strategy of 4P‘s - Price Czech price 2l of Kofola – 26CZK = 1,01EUR draught Kofola in pubs – 5CZK/1dl = 0,20EUR Ukraine price 2l of Kofola – 9UAH = 0,88EUR Draught Kofola in pubs – 7UAH/0,5l = 0,78EUR (an average wage in Ukraine, in 2006 was 1063.59UAH)

18. 6. Strategy of 4P‘s - Promotion „If you love her there is nothing to question“ Bilboards – highways, cities Television - spots Radios – spots Internet – banners Shops – promotions, gifts Sponsoring of events, Fashion Public transport, Cars Cars

19. 6. Strategy of 4P‘s - Place Expand to the biggest cities in Ukraine

20. 6. Strategy of 4P‘s - Place Ukraine main roads

21. 6. Strategy of 4P‘s – Place Ukraine main railways

22. 6. Strategy of 4P‘s - Place Supermarkets Negotiate prices with local headquaters Pubs, clubs Approach local breweries to fill up 50l barrels Events – sports, music

23. Thank you for your attention