Coca-Cola Amatil Indonesia

Coca-Cola's Cooler

9759 12E8

Author

Fathimah Zahra Achmad

Fathimah Zahra Achmad

School

IPMI International Business School

IPMI International Business School

Professor

Amelia Naim Indrajaya

Amelia Naim Indrajaya

Global Goals

7. Affordable and Clean Energy 9. Industry, Innovation and Infrastructure 12. Responsible Consumption and Production

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Summary

Starting from 2005, Coca-Cola Amatil Indonesia (CCAI) has invested more and more on their coolers unit in the market as they believed that drinking Coca-Cola's products are best served directly in cold temperature to consumers, especially in Indonesian tropical climate. The fact that general coolers are always high energy consumption for the earth and it is against the CCAI's key pillar on maintaining & preserving the environment, Coca-Cola along with their suppliers then tried to invented new system features embedded in their coolers to make it low cost energy consumption but at the same time are still best-in-class coolers quality with maximum capacity to meet the customer needs.

Innovation

Some of CCAI's customer outlets are actually coming from "General Trade" market with traditional and conventional retail selling. They locate their trade on road or in an unorganized trail outlets in which the capacity of the running wattage that they own might not be huge and they have no luxury to cover additional cost for expensive monthly electricity. In addition to that, although other CCAI's customer outlets from "Modern Trade" market actually are big accounts or institution with latest infrastructure, they started concerning on the environmental issues as it includes in their Company's value.

With requirement of low wattage, low running cost and more environmental friendly coolers, outlet owners are still expecting that CCAI's coolers should be able to still attract and promote products as the point of purchase resulting in increase sales.

Safety issue is also another aspect to consider as some of the coolers might be placed outdoor and the CCAI outlet owners or even the buyers might expose by these CCAI's coolers anytime they interact with them. The example are when they switch on/off the coolers, open/close the coolers' doors or re-layout the coolers position in the outlet by moving it from one spot to another.

Considering those conditions above, CCAI then introduced the specific coolers which call Glass Door Merchandiser (GDM) as the innovation way to address the issues above. The GDM has 4 features innovation system that are totally different compares with another general coolers from other brands, which are:

  1. EMS
  2. LED Lighthing
  3. ELCB (Earth Leakage Circuit Breaker)
  4. Tampered Glass for Safety

EMS is a smart solution to maximize energy efficiency. The technology monitors power usage and adjusts lighting, fan and compressor performance. This unique technology is only found in Coca-Cola's cooler. EMS basically is a smart device that is able to predict the activity pattern of the outlet (e.g what time it opens and closes and how many customers open the cooler door). By this information, the EMS is able to manage the cooler's light, fans and compressor, resulting in more efficient and reduced energy consumption.

LED Lighting is low energy consumption with 60% lower energy consumption compares with conventional fluorescent tubes. The LED delivers brighter illumination, which helps to promote products as the point of purchase resulting in increase sales.

ELCB (Earth Leakage Circuit Breaker) is a safety device used in electrical installations with high earth impedance to prevent shock. ELCB is built in to the cooler's power cable.

Tempered Glass for Safety is regularly used in applications in which standard glass could pose a potential danger. Tempered glass is four to five time stronger than standard glass and does not break into sharp shards when it fails, especially when the coolers are placed outdoors with potential more risk.

Coca-Cola's Cooler

Inspiration

This inspiration started from the believed based on many research that CCAI's product is best served in "cold & refreshing" temperature. Therefore it is important for the Company to support this believe by providing coolers to their outlets.

Yet there are many factors should be considered in providing this "free" coolers to the outlets: the high running wattage leads to high electrical cost is an issue particularly for traditional outlets, high energy consumption is against CCAI's vision in sustainability, coolers are potentially located outdoor that is easily exposed by weather, coolers should be eye-catching with exclusive COKE branding to attract and promote the CCAI's products, wide variety of capacity & type of coolers should be available due to different outlet's characteristic, safety features to prevent shock or any hazard for the users & continues maintenance mechanism should be provided.

CCAI's GDM (Glass Door Merchandiser) is actually addressing all above concerns: it is low energy consumption with low electricity cost, more environmental friendly due to its low energy consumption, supportive for indoor and outdoor location, LED Lighting for brighter and more attractive product display inside the coolers, provided with wide variety of type & coolers' dimension for customer's choice, safety features to prevent shock and any hazard through ELCB system and maintenance free support regularly from CCAI.

Overall impact

Susmawati Linda, ESP Certification Manager of CCAI explained that CCAI's cooler is the first sustainable cooler in Indonesia and it is able to minimize energy consumption with better impact to the environment. "It provides intelligent energy management system which allows these CCAI's coolers to be significantly more economic to run", she added.

In addition to that, outlet owner will receive better benefits from this CCAI's coolers which are lower running cost, free maintenance cost as it is supported by CCAI regularly, attractive promotion tools for the products due to the LED Lighting and Glass Doors type and bigger capacity which meet the variety of customer's need. When the number of CCAI products increasingly purchased from the outlets, the Company will gain higher profit and sustainable growth.

As a result, this positive business process has been beneficial for not only environment but also CCAI's customer which is outlet owners and eventually the Company.

Business benefit

According to Susmawati Linda, there are some comparison facts between Coca-Cola's Cooler and General Cooler from other brand that can be used to analyze the potential benefits for the customers:

Energy Consumption: Coca-Cola's Cooler has lower costs from energy saving tools while General Cooler has higher costs due to non energy saving tools. The Benefit for customer is Coca-Cola's Cooler will be able to has optimal use of electricity, so cost reduce and profit increase.

Placement: Coca-Cola's Cooler can be places in indoor and outdoor location while General Cooler is only placed in indoor. The Benefit for customer is Coca-Cola's Cooler has flexible placement that gives potential increase in sales.

Performance Stability Cooling: Coca-Cola's Cooler is stable, not dependent on environmental conditions while General Cooler is not suitable for harsh environment where it is hot and humid. The Benefit for customers is Coca-Cola's Cooler always keeps the products inside to be cold and fresh beverages even in a harsh environment.

Lighting: Coca-Cola's Cooler has LED while General Cooler still uses Fluorescent. The Benefit for customers is Coca-Cola's Cooler will provide brighter lighting that attracts shoppers attention.

Safety Tools: Coca-Cola's Cooler is using ELCB for safety tools while General Cooler has no any safety tools at all. The Benefit for customer is Coca-Cola's Cooler will not risk the customers on the electrical shock.

Maintenance: Coca-Cola's Cooler provided maintenance free support from the Coca-Cola Amatil Indonesia Technical Services Team while General Cooler will only maintained by Outlet's Owner.

Social and environmental benefit

There are two major benefits provided by Coca-Cola's Cooler for the societal & environmental aspects. Firstly, it is less energy consumption saving up to 54% with Coke Energy Reduction System. Susmawati Linda gave an example from one of CCAI's type of coolers which is FV 1000 (small single door cooler). "Previously, to startup the engine, it required 1,200 wattage and now it requires only 920 wattage. The running engine has also reduced from previously 935 wattage and now it is only 720 wattage. As a result, the requirement for energy consumption has decreased from 13.0 Kw/day to 5.4 Kw/day", as Linda said. Secondly, with the new system of ELCB (Earth Leakage Circuit Breaker) and grounding along with tempered glass door added in the new Glass Door Merchandisers, electrical shock can be prevented for better safety issue.

Interview

Susmawati Linda Wahyuni, ESP Certification Manager of Coca-Cola Amatil Indonesia

Business information

Coca-Cola Amatil Indonesia

Coca-Cola Amatil Indonesia

ID
Year Founded: 1992
Number of Employees: 5001 to 10000
Coca-Cola Amatil Indonesia (CCAI) is one of leading beverages company in Indonesia. They produce and distribute the Coca-Cola's product to more than 120 sales centers all over Indonesia. As part of Coca-Cola Amatil Indonesia commitment in global initiatives to take action on climate change, the Company has focused on major energy saving lies in how they can help their customers manage a transition to a low carbon economy. They worked together with equipment suppliers to improve the energy efficiency of the equipment they placed in customer premises. The best-in-class Cold Drink Equipment range with the lowest energy consumption for Indonesian market then designed to be able to reduce energy usage up to half the required power from their predecessors. Energy efficient cooler will not only benefit the environment, but also generate a significant saving to outlet owner's operating costs.