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PAGE TWO And Foreign Markets By PAUL OECHSLIN, of the Coca-Cola Export Corporation Coca-Cola is securing increased re cognition in many foreign markets where methods of production, sales, and advertising arc similar, in prin ciple at least, to methods used by the Coca-Cola bottlers of the United States. This increase In Coca-Cola exports has a more important effect upon gen eral business than one would at firs* suppose, as it gives employment and profit to many industries associated with the bottling business. Manufac turers of bottling machinery, bottles, crowns, cases, and carbonic acid gas; sugar growers and sugar refiners; manufacturers of paints and advertis ing material; exporters; forwarding agents; railroads, air lines, and steam ship lines are directly benefited by the increase of Coca-Cola business in foreign countries. Coca-Cola is now being sold in ap proximately seventy-eight foreign markets and, while the total gallon age is relatively small in comparison to the number of countries in which Coca-Cola is sold, there arc many lo calities, especially some individual franchise territoi ics, where the sale of Coca-Cola is rapidly growing in Importance. In Canada* Panama and Cuba. Coca-Cola has been marketed for more thap twentv-five years and we are not especially concerned with those territories >n this article. In 3926, The Coca-Cola Company created its Export Department. We then began to give serious thought to the develnnnient of foreign markets. Lat er this Export Department was in corporated and called The Coca-Cola Export Corporation. In this article we shall try to give you an idea of our experience?? c-jneo that time. Wc can safely say that Coca Cola sold under proper conditions; that Js to say, a quality product, sold ice cold and advertised intelligently, is ac cepted in any country and is liked by people of all nationalities, races, and creeds. The sometimes encount ered objection that Coca-Cola does hot appeal to a certain type of people either for its flavor nr for other rea sons, has ben found to be totally fal lacious. The Coca-Cola hot*: in the Unit ed States may have a number of prob lems to solve to successfully carry on their business, but we do no* hclieve that American bottlers are forced to cope with snob r>. variety and no great a number of problems as is the for eign Coon-Cola bottler. Among the difficulties which we shad outline, you will, no doubt, find many with which you a ,- e nio”e o’ less familiar. Time required for communications is an imonrtont item to he consider ed. Certain negotiations niu°t he car ried on with bottlers in foreign coun tries who are interested in marketing Coca-Cola, orders for Svrup, advertis ing material, etc., must he executed, and if these eommunientions take place by mail, a considerable length of time is required. Tn some instanc es, as much as three nv-nths elapse from the time a ,r *tnr i written until a reply can be received. Cheap labor in fovsjcrj-i countries presents a serious problem both from our standpoint and from the bottler’s standpoint. Untrained labor, ineffi cient and sometimes antiquated ma chinery, and’ unscientific production’ methods ultimately remit in higher production costs. Premise of the availability of cheap labor, some for eign bottlers are reluctant to install automatic machinery. Tn Tientsin, China A painted wall on the side of a building infrpms the residents of Tientsin, China, that there Coca-Cola Is bottled by Crystal Limited. Coca-Cola at the Bullfight Two Coca-Cola bulletins flank what formerly was the Royal Box at the Bullfight Arena in Barcelona, Spain, and while the Spaniards indulge in their native sports they are confront ed with the high-sign of refreshment, i When introducing Coca-Cola in a pew tetri tory, we always select the nattier who is the most aggressive and jwido-awake business man, al though his factory may be one of the Showers in Co ca-Cola Building r rr , |[L . JJJJI iUUJILL.. rl ,. r .... r .i,l. m HBKtMMws&iBsSZx Jhk Hi. »■■ %%m ?eBH mt MBBSBmm f piif Provision has been made for separate shower baths for white and col6i*efl fcmjgloyees of the Henderson Coca-Cola Bottling Company at the new plant on the national highway south of the city smallest in the territory. The bottler is usually quite willing to adopt our methods of production and merchan dising which soon gives him a decid ed advantage over the poorly operated although much larger competitive bot tling plants. In addition to freight charges, ma rine insurance, forwarding and con sular charges, duties are imposed, often excessive, either ad valorem or by weight which further increase the production cost of Coca-Cola in for eign markets. It is a well known effect of the world wide economic de pression that governmental bodies in foreign countries have set up high tariffs on imports, and are attempting to bring back prosperity by estab lishing various exchange restrictions and by imposing taxes on every con ceivable phase of business, including taxes on outside and inside advertis ; ing. billboards and signs, taxes on car bonic acid gas or direct sales taxes on each bottle sold. In many coun tries, exchange restrictions placed on the purchase of foreign currency makes it extremely difficult for our bottlers to settle their accounts. With the exception of our foreign Coca-Cola bottlers, what we recog nize as modern and scientific adver tising and merchandising methods, sales organization. and sales effort are practically unknown to the aver age foreign soft drink manufacturer. Their salesmen could more truth fully he called delivery men. “How many bottles do you want today,” is is far as their sales efforts goes. In many territories, lack of proper sanitation presents a very serious problem. It is the established cus tom to wash bottles bv hand and without the use of an effective steril izing agent. Sanitary laws exist in practically every country but fre quently they are not enforced. A Batavia Truck A truck delivers and advertises Coca-Cola in three languages, namely, Dutch, Chinese and Malay. Sales in Batavia, where this truck operates, have been \ increasing steadily and Coca-Cola is as well advertised there as it is in anv American city. Man ager Gernv Konings should be credit ed with this good work.. In Monterrey, Mexico Here we see small posters put up in frames, help the street venders sell Coca-Cola from refrigerated push carts in many foreign cities. Tn almost all foreign markets there are small bottling plants which pro duce cheap soda waters made with synthetic flavors which saccharin and these are placed on the market at a fraction of the cost of a quality product. Moreover, the six ounce bot tle is not widely established, and it takes real sales effort to overcome (he competition of the eight, ten, and twelve ounce bottle of soda water, es pecially in those markets where a six ounce bottle of Coca-Cola must bp sold at a higher price than the larger bot tle of soda water. Tn all foreign countries Coca-Cola crowns are being used and. conse quently, we are able to use practical ly the same advertising material which is used in the American mar ket!. Nevertheless, care must be exercised" in selecting this material as certain subjects are taboo in some territories. For instance, the “Man in Shirt Sleeves” or “Steel Worker” as well as the poster showing a bus iness man with his feet on his desk can be uLd only In a few countries where Coca-Cola is not being offered to a class market. These subjects arc excellent for Mexico and Ger many but would seriously injury! Coca-Cola prestige in the Orient and Elsewhere. The Coca-Cola “Bathing Girls’ ’are extremely popular, espe cially with the Latins. In fact, the “Girls make such a hit that it has been seriously considered whether or not the cutouts often miss their call ing completely as a piece of Coca-Cola advertising. The practice of charging a deposit on bottles and cases has not been universally established, and very fre (Continued on next Page) HENDERSON. (N. C.) DAILY DISPATCH, THURSDAY, OCTOBER 31, 1935 Entrance to Building This is the main entrance to the new Coca-Cola plant on the na tional highway south of the city. The door is of artistic design, tlanked on both sides with beautiful shrubbery. ■I ■■■=■ ===== "nzrm:.. | *s ‘ s 'jj Wishing The Coca-Cola Bottling Company of Henderson Much Success In Their New Home ■> {I Compliments Os i J. B. “KING” SALOMON Richmond, Va. PHILADELPHIA IS BUILDING OUTDOOR AMPinTHEATER Philadelphia, Oct. 31 —A new out door amphitheatre is being construct ed in the Fort Hill section of Fort Washington Park, just off the Bethle hem Pike, which runs through vari- Office Furniture Furnished by I I Jo Norwood Holmes t »oldsboro, N* C. “I Buy and Sell Anything” 1, r ous Philadelphia suburbs. The work is being done by the Commissioners of Fairmount Park, with WPA assist ance, and with money given by Wil liam Boulton Dixon Post, American Legion. The old redoubt, built during the Revolution, has 1 een used many times for patriotic exercises on holif , is now being remodeled and ays - ! ' er’s platform is to he built 9 Spea,: of it. facing the natural Language and customs diff most as much in some of t aV Vinces of Chino a s they do ' Pr °' 1 various countries of Europe l ‘ K