coca cola final report

8/7/2019 COCA COLA FINAL REPORT

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Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,

Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer

and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400

beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,

distributors, fountain retailers and fountain wholesalers. The Coca-Cola Company and its

network of bottlers comprise the most sophisticated and pervasive production and distribution

system in the world. This unique worldwide system has made The Coca-Cola Company the

worlds premier soft-drink enterprise.

The system of coca-cola in India directly employs approximately 6,000 people, & indirectly

creates employment for many more related industries throw our wash procurement, supply and

distribution system.

The vast Indian operations comprise 25 companies owned bottling operations & 24 franchises

owned bottling operations. The apart a network of contract packers also manufacturing a range

of the product for company. On the distribution front, 10 tone trucks, open-bay three wheelers

that can navigate the narrow alleyways of Indian cities, ensure that our product available in each

corner of the country.

Glass PET Can

200ml, 300ml 600ml, 1.2L, 2L, 2.25L 330ml


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Channel Structure

The actual production and distribution of Coca-Cola follows a franchising model. The Coca-ColaCompany only produces a syrup concentrate, which it sells to various bottlers throughout the

world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce

the final drink by mixing the syrup with filtered water and sugar (or artificial sweeteners) and

then carbonate it before filling it into cans and bottles, which the bottlers then sell and distribute

to retail stores, vending machines, restaurants and food service distributors.

Di str ib ut io n Channel

These channels transfer goods from producer to end users that are consumers. It over comes the

major factor such as time placed and possession gaps that separate goods and services from those

who would use them. Members of the marketing channel perform many key functions. To the

extant that the manufacturer performs these functions, its cost rises and its price becomes high.

At the same time, when some at these functions are shifted to intermediaries the producer is

lower, but the intermediaries must change more to cover the cost of their work in dividing the

work of channel.

Channel of distributors are also called trade channels the problems of selecting the most suitable

channel of distribution for a product is complex. Channel is the combination and sequence of

agencies through which one more of marketing follows and moves.


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DI STR IBU T ION SYSTEM

y Di rect d istr ib ut io n: In direct distribution, the bottling unit or the bottler partner has direct

control over the activities of sales, delivery, and merchandising and local account

management at the store level.

y I nd irect d istr ib ut io n: In indirect distribution, an organization which is not part of the Coca-

Cola system has control on one or more of the distribution elements (Sales, delivery,

merchandising and local account management)

DI STR IBU T ION R OU TES

The various routes formulated for distribution of products are as follows:

y K ey A cco unts: The customers in this category collectively contribute a large chunk of thetotal sales of the Company. It basically consists of organizations that buy large quantities of

a product in one single transaction. The Company provides goods to these customers on

credit, payments being made by them after a certain period of time i.e. either a month of half

a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

y F uture C o nsumpt io n: This route consists of outlets of Coca-Cola products, wherein a

considerable amount of stock is kept in order to use for future consumption. The stock does

not exhaust within a day or two, instead as and when required stocks are stacked up by them

so as to avoid shortage or non-availability of the product. Examples: Departmental stores,

Super markets etc.


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y I mmed iate C o nsumpt io n: The outlets in this route are those which require stocks on a

daily basis. The stocks of products in these outlets are not stored for future use instead, are

exhausted on the same day and might run a little into the next day i.e. the products are

consumed at a fast pace.

Examples: Small sized bars and restaurants, educational institutions etc.

y General: Under this route, all the outlets that come in a particular area or an area along with

its neighboring areas are catered to. The consumption period is not taken into consideration

in this particular route.

D EP A RTME N TS INVOLV E D IN THE DI STR IBU T ION PR O CESS

The Distribution process mainly consists of three departments:

y Di str ib ut io n D epartment: It appoints distributors and establishes a distribution network,

processes approved sale orders and prepares invoices, arranges logistics and ship products,

co-ordinates with distributors for collections and monitors distribution stocks and their set-up.

y F inance D epartment: It checks credit limits and approves sales orders in compliance with

the credit policy followed by the firm, records collections from distributors, periodically

reconciles outstanding balances from distributors, obtains balance confirmation from

distributors and follows up outstanding balances.


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y Sh ipp ing o r Wareh o us ing D epartment: It dispatches goods as per approved by order,

ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out

area and updates warehouse stock records in a timely manner.

Marg in & Target:

Margin for distributor/ agency in bottles per crate t o tal Rs.12/- and net Marg in Rs.8/ -the

remaining Margin use for fare shop, bus etc. Company also gives target achievement after selling

some target which give by companies. Wall clock deep freezes, free bottles, high Margin etc.

DI STR IBU T ION STR A TEGY A DO PTE D B Y C O C A C OL A

Di str ib ut io n Pull Strategy


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Di str ib ut io n Push Strategy

The J o urney o f an Empty C o ca-C o la Bo ttle


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coca cola final report

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