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Presentation Topic1
Sales and Distribution Management
2
Group Name
INFORMATION OF GROUP MEMBERS
3
NAME OF MEMBER ID
MD. AMZAD HOSSAIN 15102225
MEHEDI HASAN TUSHAR 15102255
RIFAT AHMED 15102183
AZIZUR ROHMAN SHAWON 15102164
MD. TARIKUL ISLAM 15102220
PRESENTATIONCORE ISSUES :
 Company Overview
 Product Specifications
 Business Model
 Market Classification, Segmentation
 Sales Organization Structure
 Sales Force Motivation
 Forecasting, Distribution Model
 Coke vs. Pepsi
 Logistics, Product Flow
 Recommendations
4
Company Overview5
Type Soft Drink (Cola)
Manufacturer The Coca- Cola Company
Founder (s) John S. Pemberton
Country of Origin United States
Introduced 1886
Area Served Over 200 countries
Flavors Cola, Cola Green Tea, Cola Lemon,
Cola Lemon Lime, Cola Lime, Cola
Orange and Cola Raspberry.
Employees 92,400
Servings per Day 1.6 Billion
Coca-Cola was first sold to the public in Atlanta at
Jacob’s Pharmacy
 Only 9 servings of the soft drink were sold each day
 Sales for the first year were only $50
Today it has 3000 brands-200 nations
6
Product Specifications7
Market Classification8
Market Classification
Geographical Area Competition
Geographical
Internationally Coke segments its product
 Country & region wise
 Variations as per tastes & income
Competition
Presence of players such as:
 Pepsi
 RC Cola
Sales Organization Structure9
AGM
Sales Manager
Area Sales Manager
Sales Executives
Market Development Executive / Pre-sellers
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
10
Rewards at Coke11
• Employee salary increment
• Grade Jump, Designation change
• Annual incentive Plan (AIP) (for business performance, but fixed)
• Personal Progress report (PPR) (Annual Appraisal)
Yearly Basis
• Making the move (MTM, sales target achieve)
• Monthly turn hall (extraordinary performance)
Monthly
Basis
• Employee of the Quarter (EOQ, non sales)
• Sales Dangle context
• Gold Context
Quarterly
Basis
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
12
Distribution13
 Area wise distribution & promotion schemes
 Focus on high traffic locations
• Railway stations
• Bus stand
 Coke India distributes using 2 routes
• Direct
• Indirect
Plant Warehouse
Direct Route Market
Indirect Route Distributor Market
Distribution Structure14
Direct Indirect
15
Manufacturing Plant
Company Owned Depot
Primary
Retailers
(Diamond / Gold / Bronze)
Customers
Secondary
Tertiary
Home Delivery
Agent
COBO
FIFO
3 Day
Inventory
Direct
On Order
&
Ready
Stock
15
16
Manufacturing Plant
Distributors
Secondary
Retailers
(Diamond / Gold / Bronze)
Customers
Secondary
Tertiary
Requirements to
become distributor:
• Capacity to hold 5
days stock
• FDA license
• Shop establishment
certificate
• Electricity bill
• Address proof
• Bank statement
Indirect
Distributors
cover:
500-600
outlets
FOBO16
Logistics17
PARAMETERS
1) Average order size
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
18
PARAMETERS
5) Inventory Maintained 1 day
6) Unsold/Damaged Merchandise Replaced
7) Technology
a) A/C Keeping
b) Stock keeping
c) Complaint Handling
8) Mode of Transportation
(company to distributor)
Company vehicle
9) Transportation Expenses
a) Company to Distributor
b) Distributor to retailer
Company
Distributor
10)Warehousing
a) Storage Capacity
b) Ownership
Minimum 30 m2
Owned / Rented
11) Stock keeping responsibility Stock keeper
19
• Pre-seller goes on
his route and books
the orders
9am- 6pm
• Order is registered
on the server
through GPRS on
the spot
9am-6pm
• Order is processed
• Load sheet is
released
6pm-11pm
• Loading the
vehicles is done by
the C&F people
11pm-6am
Flow of The Product
Flow of The Product20
• First vehicles
leaves at 6am
• All vehicles leave
by 9.30am
6am-9.30am
• Product delivery
• Empty bottles are
collected
9.30am-8.30pm
• Trucks return to
depot
• Unloading takes
place
8.30pm-11pm
• Records are
tallied
• Cash submission
11pm
Forecasting21
 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
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
22
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
23
24
25

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Sales and Distribution Management of Coca-Cola

  • 1. Presentation Topic1 Sales and Distribution Management
  • 2. 2
  • 3. Group Name INFORMATION OF GROUP MEMBERS 3 NAME OF MEMBER ID MD. AMZAD HOSSAIN 15102225 MEHEDI HASAN TUSHAR 15102255 RIFAT AHMED 15102183 AZIZUR ROHMAN SHAWON 15102164 MD. TARIKUL ISLAM 15102220
  • 4. PRESENTATIONCORE ISSUES :  Company Overview  Product Specifications  Business Model  Market Classification, Segmentation  Sales Organization Structure  Sales Force Motivation  Forecasting, Distribution Model  Coke vs. Pepsi  Logistics, Product Flow  Recommendations 4
  • 5. Company Overview5 Type Soft Drink (Cola) Manufacturer The Coca- Cola Company Founder (s) John S. Pemberton Country of Origin United States Introduced 1886 Area Served Over 200 countries Flavors Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry. Employees 92,400 Servings per Day 1.6 Billion
  • 6. Coca-Cola was first sold to the public in Atlanta at Jacob’s Pharmacy  Only 9 servings of the soft drink were sold each day  Sales for the first year were only $50 Today it has 3000 brands-200 nations 6
  • 8. Market Classification8 Market Classification Geographical Area Competition Geographical Internationally Coke segments its product  Country & region wise  Variations as per tastes & income Competition Presence of players such as:  Pepsi  RC Cola
  • 9. Sales Organization Structure9 AGM Sales Manager Area Sales Manager Sales Executives Market Development Executive / Pre-sellers
  • 10. 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 10
  • 11. Rewards at Coke11 • Employee salary increment • Grade Jump, Designation change • Annual incentive Plan (AIP) (for business performance, but fixed) • Personal Progress report (PPR) (Annual Appraisal) Yearly Basis • Making the move (MTM, sales target achieve) • Monthly turn hall (extraordinary performance) Monthly Basis • Employee of the Quarter (EOQ, non sales) • Sales Dangle context • Gold Context Quarterly Basis
  • 12. 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 12
  • 13. Distribution13  Area wise distribution & promotion schemes  Focus on high traffic locations • Railway stations • Bus stand  Coke India distributes using 2 routes • Direct • Indirect Plant Warehouse Direct Route Market Indirect Route Distributor Market
  • 15. 15 Manufacturing Plant Company Owned Depot Primary Retailers (Diamond / Gold / Bronze) Customers Secondary Tertiary Home Delivery Agent COBO FIFO 3 Day Inventory Direct On Order & Ready Stock 15
  • 16. 16 Manufacturing Plant Distributors Secondary Retailers (Diamond / Gold / Bronze) Customers Secondary Tertiary Requirements to become distributor: • Capacity to hold 5 days stock • FDA license • Shop establishment certificate • Electricity bill • Address proof • Bank statement Indirect Distributors cover: 500-600 outlets FOBO16
  • 17. Logistics17 PARAMETERS 1) Average order size 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
  • 18. 18 PARAMETERS 5) Inventory Maintained 1 day 6) Unsold/Damaged Merchandise Replaced 7) Technology a) A/C Keeping b) Stock keeping c) Complaint Handling 8) Mode of Transportation (company to distributor) Company vehicle 9) Transportation Expenses a) Company to Distributor b) Distributor to retailer Company Distributor 10)Warehousing a) Storage Capacity b) Ownership Minimum 30 m2 Owned / Rented 11) Stock keeping responsibility Stock keeper
  • 19. 19 • Pre-seller goes on his route and books the orders 9am- 6pm • Order is registered on the server through GPRS on the spot 9am-6pm • Order is processed • Load sheet is released 6pm-11pm • Loading the vehicles is done by the C&F people 11pm-6am Flow of The Product
  • 20. Flow of The Product20 • First vehicles leaves at 6am • All vehicles leave by 9.30am 6am-9.30am • Product delivery • Empty bottles are collected 9.30am-8.30pm • Trucks return to depot • Unloading takes place 8.30pm-11pm • Records are tallied • Cash submission 11pm
  • 21. Forecasting21  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
  • 22. 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 22
  • 23. 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 23
  • 24. 24
  • 25. 25