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.

1. 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

2. Tom Fleerackers
tom.fleerackers@kdg.be

3. What are your expectations?

4. What are your expectations?

5. What are your expectations?

8. 1.8 Billion bottles sold daily

9. 1891 - 9 servings daily

10. 2016
Worldwide unit case volume

14. 2016/2017 - Reshaping the story

15. 2017 - Reshaping the story
Offering Choice Shaping Choice
Volume Value

16. 2017 - Reshaping the story
Offering Choice Shaping Choice
One brandMultiple Brands

17. Consumer

18. Production Consumer

19. Production ConsumerBottler

20. Production Bottler Retailer
supermarket
airlines
clubs, bars
restaurants
vending machines
Consumer

21. Owner of the trademark
Concentrate supply
Brand development
Consumer Marketing

22. Bottling Company
Bottling
Sales & Distribution
Customer management
in outlet execution
investment in production
facilities, …
delivers demand

23. create demand
Bottling
Sales & Distribution
Customer management
in outlet execution
investment in production
facilities, …
delivers demand
Coca Cola BIG

24. create demand delivers demand
Coca Cola BIG

25. create demand delivers demand
Coca Cola BIG
2015 - 25% of all bottling

26. Coca Cola is re-franchising in the US

27. Coca Cola is re-franchising in the world

28. create demand delivers demand
Coca Cola BIG
The Coca Cola System
Bottling Company

29. create demand delivers demand
Coca Cola BIG
The Coca Cola System
Bottling Company

31. The franchise model allows The Coca-Cola Company to avoid
costs associated with manufacturing, storage, and distribution.

32. approx. 3500products

33. Global Business
Local Scale

34. Coca Cola World Map

35. one brand worldwide

38. "This model has allowed the company to
leverage global brands but remain very
local.”
David Butler
Coca Cola VP of innovation and entrepreneurship

42. Mission
• To refresh the world...
• To inspire moments of optimism and happiness...
• To create value and make a difference.

43. Product

44. Product
Price

45. Product
Price
Promotion

46. Product
Price
Promotion
Place

47. Product
Price
Promotion
Place
4P’s

48. Product
Price
Promotion
PlaceProcess
Physical
Evidence
People
Physical
Evidence
7P’s

49. Product
Price
Promotion
PlaceProcess
Physical
Evidence
People
Physical
Evidence
7P’s

50. Product
Price
Promotion
Place
(distribution)

51. Place
(distribution)
Fundamental strategic distribution decisions

52. Place
(distribution)
Fundamental strategic distribution decisions
1. What role should distribution play in the firm’s overal
objectives and strategies?

53. 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?

54. 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?

55. 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?

56. 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?

57. 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?

58. 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

59. 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

60. definition
Supply
Chain
Distribution
Channel

61. definition
Supply
Chain
Upstream
partners
Production-oriented

62. definition
Supply
Chain
Downstream
Partners
Upstream
partners
Production-oriented
Customer-oriented

63. definition
Supply
Chain
Demand
Chain
‘Make & Sell’
‘Sense & respond’

64. 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.

65. Value
Intermediaries offer producers greater efficiency in making
goods available to target markets.

66. Value
Intermediaries offer producers greater efficiency in making
goods available to target markets.

67. Value
Intermediaries offer producers greater efficiency in making
goods available to target markets.

68. Value
Intermediaries offer producers greater efficiency in making
goods available to target markets.

69. Value
Intermediaries offer producers greater efficiency in making
goods available to target markets.

70. Value
Intermediaries offer producers greater efficiency in making
goods available to target markets.
Number of contacts = 25

71. Intermediaries offer producers greater efficiency in making
goods available to target markets.
Number of contacts = 25

72. Intermediaries offer producers greater efficiency in making
goods available to target markets.
Number of contacts = 25

73. Intermediaries offer producers greater efficiency in making
goods available to target markets.
Number of contacts = 25 Number of contacts = 10

74. Value
Through their contacts, experience, specialization, and scale
of operations, intermediaries usually offer more value
than the firm can achieve on its own.

75. Value
Intermediaries help you sell your product to the end user
Or in simple terms

76. Value
How do channel members add value?

77. Value
How do channel members add value?
Intermediaries transform the assortment of products into
assortments wanted by consumers

78. 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.

79. value
Marketing intermediaries can be eliminated
but their activities can not!
Or in simple terms

80. design
worldwide & multi-local
- Product (development)
- Marketing (Communication)

81. design
worldwide & multi-local
- Product (development)
- Marketing (Communication)
local & multi-local
- Production
- Distribution & Sales
Sell Cola Cola
concentrate

82. design
worldwide & multi-local
- Product (development)
- Marketing (Communication)
local & multi-local
- Production
- Distribution & Sales
Sell Cola Cola
concentrate
Consumer
always local
Create demand

83. 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

84. 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

85. 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

86. Manufacturer
Retailer Wholesaler
Contractor
End-user

87. Importance
Channel/Distribution Management is
important because it affects sales.

88. Importance
Channel/Distribution Management is
important because it affects sales.
Availability is key for customer loyalty!

89. Channel/Distribution Management is
important because it affects profits.
Importance

90. Channel/Distribution Management is
important because it affects profits.
Importance
Each channel member (should) add(s) value!

91. Channel/Distribution Management is
important because it affects profits.
Importance
Total Cost
$6.70

92. Channel/Distribution Management is
important because it affects profits.
Importance
Total Cost
$6.70
Sold to retailer
$15.00

93. Channel/Distribution Management is
important because it affects profits.
Importance
Total Cost
$6.70
Sold to retailer
$15.00
Sold to you $50.00

94. Channel/Distribution Management is important
because it affects customer satisfaction.
Importance

95. Service-Profit Chain
Service-
Profit
Chain
The Service Profit Chain (1997) James L. Hesketh, ea

96. Service-
Profit
Chain
Profit

97. Service-
Profit
Chain
ProfitLoyalty

98. Service-
Profit
Chain
Satisfaction ProfitLoyalty

99. Service-
Profit
Chain
Satisfaction ProfitLoyalty
Value of services

100. Channel/Distribution Management is important
because it affects customer satisfaction.
Importance
How to increase customer satisfaction?!

101. Channel/Distribution Management is important
because it affects customer satisfaction.
Importance
How to increase customer satisfaction?!
1. Be reliable - deliver on your promise!

102. 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.

103. 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.

104. Utility
Channel/Distribution Management creates the
utility of form
What does your customer have the utility to buy?

105. Utility
Channel/Distribution Management creates the
utility of time
When does your customer have the utility to buy?

106. Utility
Channel/Distribution Management creates the
utility of time
When does your customer have the utility to buy?

107. Utility
Channel/Distribution Management creates the
utility of place
Where does your customer have the utility to buy?

108. Utility
Channel/Distribution Management creates the
utility of place
Where does your customer have the utility to buy?

109. Utility
Channel/Distribution Management creates the
utility of possession
How does your customer get access?

110. Utility
Channel/Distribution Management creates the
utility of possession
How does your customer get access?

111. Utility
Channel/Distribution Management creates the
utility of information
How do you communicate with your customer?

112. Know
Your
Customer
Know your end-user

113. Know
Your
Customer
Your end user is the final user of your product or
service

114. Know
Your
Customer
1. Who are your potential customers?

115. Know
Your
Customer
1. Who are your potential customers?
2. Where do they buy?

116. Know
Your
Customer
1. Who are your potential customers?
2. Where do they buy?
3. When do they buy?

117. Know
Your
Customer
1. Who are your potential customers?
2. Where do they buy?
3. When do they buy?
4. How do they buy?

118. 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?

119. Know
Your
Customer
Develop marketing channel behavior insights
for your product!

120. 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

121. Know
Your
Customer
1. Does the end user need personalized service?
If so, who is the best person to provide that
service to them?

122. 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?

123. Know
Your
Customer
Sales
Journey

124. 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

125. Know
Your
Customer
Sales
Journey
Understanding the psychology
of the buying proces
Everything starts with a need!

126. Know
Your
Customer
Sales
Journey
What influences a customer’s purchase?
Content information availability
Loyalty
Price incentives
Business differentiators
Reviews & Referrals
Location

127. 4 types of purchases
Know
Your
Customer
Sales
Journey
Emotional
complex sensible
routine impulse
Involvement/Risk

128. 4 types of purchases
Know
Your
Customer
Sales
Journey
Involvement/Risk
Sensible
ImpulseRoutine
Complex
Emotional

129. 4 types of purchases
Know
Your
Customer
Sales
Journey
Involvement/Risk
Sensible
ImpulseRoutine
Complex
Emotional

130. 4 types of purchases
Know
Your
Customer
Sales
Journey
Involvement/Risk
Sensible
ImpulseRoutine
Complex
Emotional

131. 4 types of purchases
Know
Your
Customer
Sales
Journey
Involvement/Risk
Sensible
ImpulseRoutine
Complex
Emotional

132. 4 types of purchases
Know
Your
Customer
Sales
Journey
Involvement/Risk
Sensible
ImpulseRoutine
Complex
Emotional

133. 4 types of purchases
Know
Your
Customer
Sales
Journey
Involvement/Risk
Sensible
ImpulseRoutine
Complex
Emotional

134. 4 types of purchases
Know
Your
Customer
Sales
Journey
Involvement/Risk
Sensible
ImpulseRoutine
Complex
Emotional

135. 4 types of purchases
Know
Your
Customer
Sales
Journey
Involvement/Risk
Sensible
ImpulseRoutine
Complex
Emotional

136. Know
Your
Customer
Sales
Journey

137. Know
Your
Customer
Once you’ve evaluated the end user,
start working your way backwards in the distribution model.

138. Let’s go to
work

139. Let’s go to
workSouth Africa
Malaysia
Australia
Argentina
South Korea
MexicoPeru

140. 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.

141. 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

142. 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