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Peru`s Aje Group: Successfully Competing with the Global Cola Giants? |
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In 1999, Aje made its first international foray when it began exporting to another Latin American country, Venezuela. Aje chose the country because of its hot climate and higher per capita beverage consumption, and because Venezuela used glass containers exclusively to sell beverages. Aje, which sold its soft drinks in low cost PET containers, believed that selling in those containers in Venezuela would give it a distinct cost advantage during market penetration. The company eventually enjoyed success in Venezuela... |
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PayPal (11 USD)
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| Aje’s successful market expansion into Latin America made it consider an expansion strategy that was unheard for a Peruvian company – an internationalization strategy with a focus on Asia. In 2006, Aje made its first Asian foray when it entered Thailand, where it launched several of its soft drink brands... |
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| Aje mainly targeted consumers from medium to lower socio-economic groups at the BoP in all its countries of operation. The company followed its ‘low price strategy’ in all of the countries it entered, in a bid to attract these groups. Aje positioned itself as ‘the fair-price beverage’, which was priced almost 20-30% below the average market price of beverages. Aje also tended to sell its beverages in larger sizes than its competitors. It sold beverages in recyclable PET packaging of 2.6 liter and 3.1 liter sizes, in order to make them more accessible to the lower classes.. |
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| Aje’s international expansion strategy paid off and the company experienced tremendous success in several Asian markets. In Thailand, it launched Big Cola, Cielo, Cool Tea, and Sporade. Big Cola became a top-three player in Thailand only six years after its launch. Its success in this market prompted Aje to enter the country’s beer market, challenging the local beer giants . Hernan Cordova, Managing Director of Aje’s Thai unit, Ajethai Co., said,.. |
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| As of 2019, Aje was considered to be one of the largest multinational beverage companies, with a market presence in over 23 countries in Latin America, Asia, and Africa (See Exhibit III for Geographical Presence of Aje). It had more than 13,000 employees and sold more than three billion liters of various kinds of beverages each year... |
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Exhibit I Information on the ‘Bottom of the Pyramid’ (BOP)
Exhibit II:Brands of Aje
Exhibit III: Geographical Presence of Aje, as of 2019
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