The document outlines the sales and distribution management process of Coca-Cola India. It discusses Coca-Cola's company overview, product specifications, business model, market segmentation, sales organization structure, sales force motivation, forecasting, distribution model, performance comparisons to Pepsi, logistics, performance management, promotional schemes, margins, financials, and recommendations. Key aspects covered include Coca-Cola's franchised bottling system, sales force training programs, incentive structures, forecasting approach, direct and indirect distribution networks, RED performance management tool, and distributor margins.

1. Sales and Distribution Management
Group 7
LBSIM, New Delhi

2. Flow of Presentation
 Company Overview
 Product Specifications
 Business Model
 Market Classification, Segmentation
 Sales Organization Structure
 Sales Force Motivation
 Forecasting, Distribution Model
 Coke vs. Pepsi
 Logistics, Product Flow
 Performance Management
 Promotional Schemes
 Margins & Financials
 Recommendations

3. Company Overview
 Coke re-entered India 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
 Operates a franchised distribution system 1889
 Market Cap: $167.25 Billion (Global)
 Revenues: $46.542 Billion (Global)
 Employees = 25K direct & 150K indirect (India)

4. Product Specifications

5. Contd.

6. Promotional Schemes
 Soft drinks:
 600ml 1case + 2x500ml soda free
 600ml 2case + 5x500ml soda free
 2 litre 1case + 2x500ml soda free
 1.25litre 1case + 1.25litre Limca 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 beverage through
 COBO
 FOBO
 Each bottler has an exclusive territory
 Actual formulations are tightly held trade secrets

8. Business Model
Coca-Cola India Manufactures
Concentrate, Beverage
base and Syrup
Regional Bottlers Manufactures finished
COBO/FOBO Bottles/Cans/Fountain
Syrup
Customers
Consumers

9. Market Classification
Geographical
Internationally Coke segments its product
 Country & region wise
 Variations as per tastes & income
Competition
Presence of players such as:
 Pepsi
 RC Cola

10. Segmentation Model
Outlet Type
Channel Clustering Based
on Consumption Occasion
Grocery
Restaurant
Based on Income Level
Market Clustering
Outlet Clustering
of Locality
Convenience
Outlet Volume
G
Di
Si l
Br
ol
am
ve
on
d
r
Lo
ze
on
w
d
<200 200-499 500-799 >800
M
ed
Consumer
i
Hi
um
g
Choice
h

11. Organizational Structure
Chair Person
G.M.
Marketing Manager Accounting Dept. Shipping Deptt.
Factory Manager
Marketing Manager Production Manager
Quality Mechanical
Control Engineer
Sales Manager O/S Sales Manager (Base) Shipping Manager
Sales Officer Sales Officer
Shipping Officer Shipping
Sales Supervisor Sales Supervisor
Personnel Manager
Sales Man Sales Man
Distribution Officer

12. Sales Organization Structure

13. Recruitment & Selection
 Coca-Cola recruitment process is well established, they give ads in
newspaper, company’s website, institutions,etc.
 Coca-Cola recruits MT’s from premier B schools.
 They mostly offer PPO’s to the Summer Interns.
SELECTION PROCESS INVOLVES:
 Group Exercise
 Interview
 Presentations
 Psychometric tests
 Situational Exercises

14. Training
 Coca-Cola India partners with Indian School of Business (ISB)
to launch the Coca-Cola – ISB Retail Academy
 The ‘Parivartan’ program –
Training small town retailers. Coke’s new strategy involves training
retailers (around 6,000 of them) in a program launched by the
Coca-Cola University

15. Performance Ratings
 Exceptional performance –EP
Contributions significantly exceed the stated objectives in terms of quality,
quantity and timeliness
 Successful performance – SP
Contributions meet and sometimes exceed the objectives, which are based
on challenging goals
 Developing performance – DP
Contributions meet some / most but not all of the objectives and
performance improvement is necessary
 No Performance – NP
Contributions frequently do not meet the stated objectives

16. Sales Force Motivation
 Incentives based on quarterly performance
 No. of units and/or total revenue, work as a base for incentives
 Every executive needs to add new outlets every year to get UNIT
incentives
 Target achievers are recognized by giving:
 TV, Fridge, etc.
 Certificates / trophies
 Lunch / outing with senior management, etc.
 Foreign trips for managerial level & above

17. Rewards at Coke

18. Forecasting
 Combination of top down and bottom up approach
 Forecasts based on factors such as:
 Historical data
 Economic parameters
 Seasonal variation
 Festivals, ceremonies, etc.
 Weekly reviews to adjust monthly forecasts
 Forecasts are region-wise, they are further broken down into
cities, towns and villages by sales managers

19. Distribution
Distribution Routes
 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.
 General

20. Distribution
 Area wise distribution & promotion schemes
 Focus on high traffic locations
 Railway stations
 Bus stand
 Coke India distributes using 2 routes
 Direct
 Indirect

21. Cont.
 3 COBO Regions – 27 COBO units
 1 FOBO Region – 12 FOBO units
} COBO
Company owned
bottling operations
FOBO
Franchisee owned
bottling operations

22. Distribution Structure
Direct Indirect

23. Manufacturing Plant COBO
Primary
Direct
FIFO
Company Owned Depot 3 Day
Inventory
On Order Secondary
Home Delivery
Agent
&
Ready Retailers
(Diamond / Gold / Bronze)
Stock
Tertiary
Customers

24. Distribution Structure
Direct Indirect

25. FOBO
Manufacturing Plant
Indirect
Secondary
Requirements to
Distributors Distributors become distributor:
cover:
• Capacity to hold 5
Secondary days stock
500-600
outlets • FDA license
Retailers
(Diamond / Gold / Bronze) • Shop establishment
certificate
Tertiary • Electricity bill
• Address proof
Customers
• Bank statement

26. Pepsi India COMPANY
COBO FOBO
WAREHOUSE
C&F DISTRIBUTOR
SALESMEN SALESMEN
WHOLESALER SLUMS RETAILER
RETAILER CUSTOMER
CUSTOMER

27. Delhi-NCR
Full Coverage - 59 No return
Routes Retailers’ Loss
Owned & contracted vehicles
56 – Owned Vehicles
Transporting Vans
Retailer Handling
1 Driver + 2 Loaders
45– Pre- sellers

28. Distributors Functions
PARAMETER
Bulk Breaking Depends upon location
Warehousing Storage & safety
Transportation Distributor to retailer
Market Information Customer Intelligence
Competitor Intelligence
Sourcing Consumer tastes & preferences
Maintaining a) Signage
a) Visual Merchandising b) Interior ambience
b) Banners, posters, etc. c) Overall environment
Problems faced by distributor
• From company : discounts/incentives given at the end of the month
• From retailer : bad debts/run away

29. Logistics
PARAMETERS
1) Average order size
a) Distributor to company Based on Demand, Season
b) Retailer to Distributer
2) Order placement
a) Distributor to company Phone
b) Retailer to distributer Distributor Representative
3) Transit Time 2 Days
4) Order frequency Daily

30. Logistics
PARAMETERS
5) Inventory Maintained 1 day
6) Unsold/Damaged
Replaced
Merchandise
a) A/C Keeping
7) Technology b) Stock keeping
c) Complaint Handling
8) Mode of Transportation Company vehicle
(company to distributor)
9) Transportation Expenses
a) Company to Distributor Company
b) Distributor to retailer Distributor
10)Warehousing
a) Storage Capacity Minimum 30 m2
b) Ownership Owned / Rented
11) Stock keeping responsibility Stock keeper

31. Flow of The Product
On a
tablet or
Blackberry

32. Contd.
Only cash
Cannot except for a
take more few
than order

33. Performance Management
 RED Strategy – Right Execution Daily
 Tool to measure the performance of the distributor in the
outlet by setting some standard or parameter of 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.

34. Margins
 Margins per crate (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 carbonated soft 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.

35. Financials
Coco-Cola
Profit Margin
a) To distributors 1-1.5%
b) To retailers 2-3%
Advance payment
a) to company 1,00,000
b) for refrigerators 5,000
Credit terms and policies
i) Credit amount
a)Company to distributor N/A
b)Distributor to retailer Can provide.
ii) Credit period One month(for retailers)

36. Learning’s
 The real time 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

37. thank you