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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 CocaCola 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
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 25th 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.
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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COCA COLA GOES SMALL IN RUSSIA

200.1 199.9 200.2 200.2 200

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