Operational implementation of CCEP's product diversification strategy in a growth context : application to Chaudfontaine products.

Abstract

Non Alcoholic Ready-to-Drink (NARTD) beverage category represents approximately € 100 billion in retail sales on territories where Coca-Cola European Partners (CCEP), the world’s largest independent Coca-Cola bottler based in revenue, operates. The value share opportunity for CCEP is about 71 %. But consumer needs are evolving rapidly: less or no sugar, new type of beverages and more sophisticated flavours. CCEP has defined a diversification strategy in order to generate profitable growth and respond to this trend while reinforcing its competitive advantage. This strategy also applies to the Belgian market, in which water consumption has been increasing in volume and value since 2016. The competitors have already started the transition and Chaudfontaine brand, despite a favourable growth context, was lagging behind… In March 2018, a € 20 million investment in new technology has been decided in order to propose, new, more sophisticated, fruity, Chaudfontaine mineral-water based products. Objective: launch the new products for summer 2019. This ambitious deadline requires an agile manufacturing organisation in order to deliver production volumes while successfully launching new products. This agile manufacturing organisation will be designed and implemented in a project mode. The subject of this final paper treats about how this agility project, consequence of a diversification strategy, has been implemented based on theories related to project management, agile manufacturing and change management. It also covers the innovations that have been made in terms of people and change management, negotiations with unions, workers up and multiskilling and mastery of a new technology.