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Global Channel Management 2017

The document discusses global channel management and distribution strategies. It provides details on Coca-Cola's franchise model, where they own trademarks and develop brands globally but rely on local bottlers for production and distribution. This allows Coca-Cola to leverage global brands while remaining locally focused. The franchise model also avoids costs associated with manufacturing, storage, and distribution for Coca-Cola.

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c https://hbr.org/resources/images/article_assets/2015/09/SEPT15_07_990087-010.jpg Global Channel Management c https://hbr.org/resources/images/article_assets/2015/09/SEPT15_07_990087-010.jpgManagement Internationaler Verkaufkanäle
Tom Fleerackers tom.fleerackers@kdg.be
What are your expectations?
What are your expectations?
What are your expectations?
1.8 Billion bottles sold daily
1891 - 9 servings daily
2016 Worldwide unit case volume
2016/2017 - Reshaping the story
2017 - Reshaping the story Offering Choice Shaping Choice Volume Value
2017 - Reshaping the story Offering Choice Shaping Choice One brandMultiple Brands
Consumer
Production Consumer
Production ConsumerBottler
Production Bottler Retailer supermarket airlines clubs, bars restaurants vending machines Consumer
Owner of the trademark Concentrate supply Brand development Consumer Marketing
Bottling Company Bottling Sales & Distribution Customer management in outlet execution investment in production facilities, … delivers demand
create demand Bottling Sales & Distribution Customer management in outlet execution investment in production facilities, … delivers demand Coca Cola BIG
create demand delivers demand Coca Cola BIG
create demand delivers demand Coca Cola BIG 2015 - 25% of all bottling
Coca Cola is re-franchising in the US
Coca Cola is re-franchising in the world
create demand delivers demand Coca Cola BIG The Coca Cola System Bottling Company
create demand delivers demand Coca Cola BIG The Coca Cola System Bottling Company
The franchise model allows The Coca-Cola Company to avoid costs associated with manufacturing, storage, and distribution.
approx. 3500products
Global Business
 Local Scale
Coca Cola World Map
one brand worldwide
"This model has allowed the company to leverage global brands but remain very local.” 
 David Butler
 Coca Cola VP of innovation and entrepreneurship
Mission • To refresh the world... • To inspire moments of optimism and happiness... • To create value and make a difference.
Product
Product Price
Product Price Promotion
Product Price Promotion Place
Product Price Promotion Place 4P’s
Product Price Promotion PlaceProcess Physical Evidence People Physical Evidence 7P’s
Product Price Promotion PlaceProcess Physical Evidence People Physical Evidence 7P’s
Product Price Promotion Place (distribution)
Place (distribution) Fundamental strategic distribution decisions
Place (distribution) Fundamental strategic distribution decisions 1. What role should distribution play in the firm’s overal objectives and strategies?
Place (distribution) Fundamental strategic distribution decisions 1. What role should distribution play in the firm’s overal objectives and strategies? 2. What role should distribution play in the marketing mix?
Place (distribution) Fundamental strategic distribution decisions 1. What role should distribution play in the firm’s overal objectives and strategies? 2. What role should distribution play in the marketing mix? 3. How should the firm’s marketing channels designed to achieve its distribution objectives?
Place (distribution) Fundamental strategic distribution decisions 1. What role should distribution play in the firm’s overal objectives and strategies? 2. What role should distribution play in the marketing mix? 3. How should the firm’s marketing channels designed to achieve its distribution objectives? 4. What kind of channel members should 
 be selected to meet the firm’s distribution objectives?
Place (distribution) Fundamental strategic distribution decisions 1. What role should distribution play in the firm’s overal objectives and strategies? 2. What role should distribution play in the marketing mix? 3. How should the firm’s marketing channels designed to achieve its distribution objectives? 4. What kind of channel members should 
 be selected to meet the firm’s distribution objectives? 5. How can the marketing channel be managed to implement the firm’s channel design effectively and efficiently?
Place (distribution) Fundamental strategic distribution decisions 1. What role should distribution play in the firm’s overal objectives and strategies? 2. What role should distribution play in the marketing mix? 3. How should the firm’s marketing channels designed to achieve its distribution objectives? 4. What kind of channel members should 
 be selected to meet the firm’s distribution objectives? 5. How can the marketing channel be managed to implement the firm’s channel design effectively and efficiently? 6. How can channel member performance be evaluated?
definition A marketing channel1 is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process. 1 Marketing channel or distribution channel
definition Your channel strategy lays out the details of
 how you plan to get your product in the hands of your customers Or in simple terms
definition Supply Chain Distribution Channel
definition Supply Chain Upstream partners Production-oriented
definition Supply Chain Downstream Partners Upstream partners Production-oriented Customer-oriented
definition Supply Chain Demand Chain ‘Make & Sell’ ‘Sense & respond’
definition Demand Chain ‘Sense & respond’ A demand chain view starts with planning the need of the target customer, and the firm responds to these needs by organizing a chain of resources and activities with the goal of creating customer value.
Value Intermediaries offer producers greater efficiency in making goods available to target markets.
Value Intermediaries offer producers greater efficiency in making goods available to target markets.
Value Intermediaries offer producers greater efficiency in making goods available to target markets.
Value Intermediaries offer producers greater efficiency in making goods available to target markets.
Value Intermediaries offer producers greater efficiency in making goods available to target markets.
Value Intermediaries offer producers greater efficiency in making goods available to target markets. Number of contacts = 25
Intermediaries offer producers greater efficiency in making goods available to target markets. Number of contacts = 25
Intermediaries offer producers greater efficiency in making goods available to target markets. Number of contacts = 25
Intermediaries offer producers greater efficiency in making goods available to target markets. Number of contacts = 25 Number of contacts = 10
Value Through their contacts, experience, specialization, and scale of operations, intermediaries usually offer more value 
 than the firm can achieve on its own.
Value Intermediaries help you sell your product to the end user Or in simple terms
Value How do channel members add value?
Value How do channel members add value? Intermediaries transform the assortment of products into assortments wanted by consumers
value How do channel members add value? Intermediaries bridge major time, place and possession gaps that separate goods and services from those who would use them.
value Marketing intermediaries can be eliminated 
 but their activities can not! Or in simple terms
design worldwide & multi-local - Product (development) - Marketing (Communication)
design worldwide & multi-local - Product (development) - Marketing (Communication) local & multi-local - Production - Distribution & Sales Sell Cola Cola concentrate
design worldwide & multi-local - Product (development) - Marketing (Communication) local & multi-local - Production - Distribution & Sales Sell Cola Cola concentrate Consumer always local Create demand
design worldwide & multi-local - Product (development) - Marketing (Communication) local & multi-local - Production - Distribution & Sales Sell Cola Cola concentrate Consumer always local Create demand Direct Sales
 vending machines
design worldwide & multi-local - Product (development) - Marketing (Communication) local & multi-local - Production - Distribution & Sales Sell Cola Cola concentrate Consumer always local Business local & multi-local Create demand B2B sales
 Key-accounts Direct Sales
 vending machines
design worldwide & multi-local - Product (development) - Marketing (Communication) local & multi-local - Production - Distribution & Sales Sell Cola Cola concentrate Consumer always local Business local & multi-local Fullfill demand Create demand B2B sales
 Key-accounts Direct Sales
 vending machines
Manufacturer Retailer Wholesaler Contractor End-user
Importance Channel/Distribution Management is important because it affects sales.
Importance Channel/Distribution Management is important because it affects sales. Availability is key for customer loyalty!
Channel/Distribution Management is important because it affects profits. Importance
Channel/Distribution Management is important because it affects profits. Importance Each channel member (should) add(s) value!
Channel/Distribution Management is important because it affects profits. Importance Total Cost $6.70
Channel/Distribution Management is important because it affects profits. Importance Total Cost $6.70 Sold to retailer $15.00
Channel/Distribution Management is important because it affects profits. Importance Total Cost $6.70 Sold to retailer $15.00 Sold to you $50.00
Channel/Distribution Management is important because it affects customer satisfaction. Importance
Service-Profit Chain Service- Profit Chain The Service Profit Chain (1997) James L. Hesketh, ea
Service- Profit Chain Profit
Service- Profit Chain ProfitLoyalty
Service- Profit Chain Satisfaction ProfitLoyalty
Service- Profit Chain Satisfaction ProfitLoyalty Value of services
Channel/Distribution Management is important because it affects customer satisfaction. Importance How to increase customer satisfaction?!
Channel/Distribution Management is important because it affects customer satisfaction. Importance How to increase customer satisfaction?! 1. Be reliable - deliver on your promise!
Channel/Distribution Management is important because it affects customer satisfaction. Importance How to increase customer satisfaction?! 1. Be reliable - deliver on your promise! 2. Speed of delivery.
Channel/Distribution Management is important because it affects customer satisfaction. Importance How to increase customer satisfaction?! 1. Be reliable - deliver on your promise! 2. Speed of delivery. 3. Keep it fast and simple.
Utility Channel/Distribution Management creates the utility of form What does your customer have the utility to buy?
Utility Channel/Distribution Management creates the utility of time When does your customer have the utility to buy?
Utility Channel/Distribution Management creates the utility of time When does your customer have the utility to buy?
Utility Channel/Distribution Management creates the utility of place Where does your customer have the utility to buy?
Utility Channel/Distribution Management creates the utility of place Where does your customer have the utility to buy?
Utility Channel/Distribution Management creates the utility of possession How does your customer get access?
Utility Channel/Distribution Management creates the utility of possession How does your customer get access?
Utility Channel/Distribution Management creates the utility of information How do you communicate with your customer?
Know 
 Your Customer Know your end-user
Know 
 Your Customer Your end user is the final user of your product or service
Know 
 Your Customer 1. Who are your potential customers?
Know 
 Your Customer 1. Who are your potential customers? 2. Where do they buy?
Know 
 Your Customer 1. Who are your potential customers? 2. Where do they buy? 3. When do they buy?
Know 
 Your Customer 1. Who are your potential customers? 2. Where do they buy? 3. When do they buy? 4. How do they buy?
Know 
 Your Customer 1. Who are your potential customers? 2. Where do they buy? 3. When do they buy? 4. How do they buy? 5. What do they buy?
Know 
 Your Customer Develop marketing channel behavior insights for your product!
Know 
 Your Customer 15% buy with iPHONE USA 100% domestic sales 40% buy online 50% are men single men without children 25% buy in store 50% use desktop 39% use laptop
Know 
 Your Customer 1. Does the end user need personalized service? If so, who is the best person to provide that service to them?
Know 
 Your Customer 2. How much will you need to educate the end user on your product? Who is in the best position to help you educate the end user?
Know 
 Your Customer Sales Journey
Know 
 Your Customer Sales Journey Understanding the psychology 
 of the buying proces “People don’t want to buy a quarter-inch drill.
 They want a quarter-inch hole” Theodore Levitt
Know 
 Your Customer Sales Journey Understanding the psychology 
 of the buying proces Everything starts with a need!
Know 
 Your Customer Sales Journey What influences a customer’s purchase? Content information availability Loyalty Price incentives Business differentiators Reviews & Referrals Location
4 types of purchases Know 
 Your Customer Sales Journey Emotional complex sensible routine impulse Involvement/Risk
4 types of purchases Know 
 Your Customer Sales Journey Involvement/Risk Sensible ImpulseRoutine Complex Emotional
4 types of purchases Know 
 Your Customer Sales Journey Involvement/Risk Sensible ImpulseRoutine Complex Emotional
4 types of purchases Know 
 Your Customer Sales Journey Involvement/Risk Sensible ImpulseRoutine Complex Emotional
4 types of purchases Know 
 Your Customer Sales Journey Involvement/Risk Sensible ImpulseRoutine Complex Emotional
4 types of purchases Know 
 Your Customer Sales Journey Involvement/Risk Sensible ImpulseRoutine Complex Emotional
4 types of purchases Know 
 Your Customer Sales Journey Involvement/Risk Sensible ImpulseRoutine Complex Emotional
4 types of purchases Know 
 Your Customer Sales Journey Involvement/Risk Sensible ImpulseRoutine Complex Emotional
4 types of purchases Know 
 Your Customer Sales Journey Involvement/Risk Sensible ImpulseRoutine Complex Emotional
Know 
 Your Customer Sales Journey
Know 
 Your Customer Once you’ve evaluated the end user, 
 start working your way backwards in the distribution model.
Let’s go to work
Let’s go to workSouth Africa Malaysia Australia Argentina South Korea MexicoPeru
Let’s go to work What is Vaude all about? (Mission/Vision/Strategy)
 What are they selling? Who is your customer in the target countries?
 Why are these targeted countries for Vaude? Compose the customer journey of a Valued Customer.
Let’s go to work Your end-product One-Page Strategy (+ appendix) 5m presentation (Management Summary) Evaluation Not the what, but the how is important
c https://hbr.org/resources/images/article_assets/2015/09/SEPT15_07_990087-010.jpg Global Channel Management c https://hbr.org/resources/images/article_assets/2015/09/SEPT15_07_990087-010.jpgManagement Internationaler Verkaufkanäle

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