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SALES AND DISTRIBUTION CASE STUDY COCA COLA
- 1. CASE STUDY: COCACOLA
- 2. FLOW OF PRESENTATION • COMPANYOVERVIEW PRODUCT SPECIFICATIONS BUSINESS MODEL MARKET CLASSIFICATION, SEGMENTATION SALES ORGANIZATION STRUCTURE • DISTRIBUTION MODEL LOGISTICS, PRODUCT FLOW PERFORMANCE MANAGEMENT PROMOTIONAL SCHEMES MARGINS & FINANCIALS RECOMMENDATIONS
- 3. COMPANY OVERVIEW • COKE RE-ENTEREDINDIA IN 1993 • COKE INDIA COMPRISES OF: COCA-COLA INDIA HINDUSTAN COCA-COLA BEVERAGES FRANCHISEE BOTTLING OPERATIONS • COKE GLOBALLY SERVES 500 BRANDS IN 200 COUNTRIES @ 1.7 BILLION SERVINGS PER DAY • OPERATESA FRANCHISED DISTRIBUTION SYSTEM 1889 MARKET CAP: $167.25 BILLION (GLOBAL) REVENUES: $46.542 BILLION (GLOBAL) EMPLOYEES = 25K DIRECT & 150K INDIRECT (INDIA
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- 6. PROMOTIONAL SCHEMES • SOFT DRINKS: 600ML1CASE + 2X500MLSODA FREE 600ML 2CASE + 5X500ML SODA FREE 2 LITRE 1CASE + 2X500MLSODA FREE 1.25LITRE 1CASE + 1.25LITRELIMCA FREE (1.5LITRE OUT OF STOCK) • JUICE: 1.25LITRE 1CASE MAZAA + 1.25LITRE MAZAA FREE • WATER: 5BOX (15X5) + 1BOX FREE • ENERGY DRINK: 1BOX (24PCS) + 4PCS FREE
- 7. BUSINESS MODEL • MANUFACTURES& DISTRIBUTES • CONCENTRATES SYRUPS • BOTTLERS MAKE THE FINAL BEVERAGETHROUGH • COBO FOBO • EACH BOTTLER HAS AN EXCLUSIVE TERRITORY ACTUAL FORMULATIONS ARE TIGHTLY HELD TRADE SECRETS
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- 9. MARKET CLASSIFICATION Geographical Internationally Coke segmentsits product Country & region wise Variations as per tastes & income Competition Presence of players such as: Pepsi RC Cola
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- 13. DISTRIBUTION • DISTRIBUTIONROUTES KEY ACCOUNTS • EXAMPLES: CLUBS, FINE DINE RESTAURANTS, HOTELS, CORPORATE HOUSES ETC. FUTURE CONSUMPTION • EXAMPLES: DEPARTMENTAL STORES, SUPER MARKETS ETC. IMMEDIATE CONSUMPTION • EXAMPLES: SMALL SIZED BARS AND RESTAURANTS, EDUCATIONAL INSTITUTIONS ETC.
- 14. DISTRIBUTION • GENERAL : •Area wise distribution & promotion schemes • Focus on high traffic locations Railway stations Bus stand • Coke India distributes using 2 routes Direct • Indirect •
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- 17. DISTRIBUTORS FUNCTIONS PARAMETER Bulk Breaking Dependsupon location Warehousing Storage & safety Transportation Distributor to retailer Market Information Sourcing Customer Intelligence Competitor Intelligence Consumer tastes & preferences Maintaining a) Visual Merchandising b) Banners, posters, etc. a) Signage b) Interior ambience c) Overall environment
- 18. CONT. • PROBLEMS FACEDBY DISTRIBUTOR • FROM COMPANY : DISCOUNTS/INCENTIVES GIVEN AT THE END OF THE MONTH • FROM RETAILER : BAD DEBTS/RUN AWAY
- 19. LOGISTICS PARAMETERS 1) Average ordersize a) Distributor to company b) Retailer to Distributer : Based on Demand, Season 2) Order placement a) Distributor to company b) Retailer to distributer : Phone Distributor Representative 3) Transit Time : 2 Days 4) Order frequency : Daily
- 20. FLOW OF THEPRODUCT On a tablet or Blackberry
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- 22. PERFORMANCE MANAGEMENT • REDSTRATEGY – RIGHT EXECUTION DAILY TOOL TO MEASURE THE PERFORMANCE OF THE DISTRIBUTOR IN THE • OUTLET BY SETTING SOME STANDARD OR PARAMETEROF EXECUTION. • RED CHECK VISI-COOLER MANAGEMENT AVAILABILITY OF THE PRODUCT IN THE OUTLET CHECK THE ACTIVATION IN THE OUTLET • MARKET DEVELOPER CHECKS 25 OUTLETS A DAY AND REPORT TO HCCBL ON THE SCORE OF 100.
- 23. MARGINS • MARGINS PERCRATE (COMPRISING 24 BOTTLES OF 300 ML EACH) IS RS 20. • ON THE 200 ML PACK SIZE, MARGIN IS RS 16 PER CRATE. • SALES OF THE MORE AFFORDABLE 200 ML PACK SIZE ACCOUNT FOR ABOUT 60 PER CENT OF ITS TOTAL CARBONATEDSOFT DRINK (CSD) SALES. • NON-CSD BUSINESS ACCOUNTS FOR 15 PER CENT. • OUTSOURCED DISTRIBUTION SO THAT TRUCKS AND OTHER EQUIPMENT NEEDED FOR THE PURPOSE ARE NO LONGER OWNED BY THE COMPANY.
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- 25. LEARNING’S • THE REALTIME ORDER PROCESSING SYSTEM THROUGH USE OF TECHNOLOGY HELPS REDUCE THE LEAD TIME • 24HRS WORKING I.E. THE LOADING CASES IN THE NIGHT SAVES VALUABLE TIME • RECOMMENDATIONS • PRE-SELLERS SHOULDN’T BE LOOKED AT AS AN EXTRA COST. ON THE CONTRARY, SINCE THEIR INCEPTION SALES HAVE RISEN • ORDER DEVICES AT DIAMOND OUTLETS CAN FACILITATE QUICKER ORDER PLACEMENT