The Ajegroup has been very successful since it was founded in 1988 by Eduardo and Mirtha Ananos by taking a $30,000US second mortgage on their home. The company has grown into a multinational enterprise currently represented in 20 countries worldwide with its holding company in Spain. In order to strengthen bonds within all its market sectors, the company has gained ownership of 22 factories and 120 fulfillment centers employing over 20,000 people. Its infrastructure reaches out to more than 1,000,000 retail outlets worldwide enabling Ajegroup to sell over 3 billion liters of beverages including beer, sports drinks, energetic and isotonic drinks, water, various juices and tea (1).
According to the course case study, Ajegroup has expanded to several countries outside of Peru. The international company growth includes Venezuela, Ecuador, Mexico and Costa Rica. Ajegroup has been successful in each of these markets as well. As the company considers expansion in Chile, Brazil, and the U.S. (via Mexico), it is important to understand how and why it has been successful and if the same strategies will be applicable in these new emerging markets.
The following strategies were instrumental in leading Ajegroup to its success: 1. In order to penetrate the local Peru soft drink market, Ajegroup packed Kola Real in old 620 ml beer bottles. 2. Instead of taking loans from banks, Ajegroup financed the growth of Kola Real with funds generated from its operations. 3. Counted on suppliers and distributed Kola Real in non-returnable bottles of 1500 and 620 ml. 4. Offer big sizes of high quality drinks at lower prices—underselling the competition. Ajegroup was able to convey the message of “fair price soft drink,” which implied to its customer base that they were not getting a lower-quality product even though they were getting more (volume) for their money. 5. The