Sales and Distribution
VV
Submitted to – Prof. Rahul Gupta Choudhury
Submitted by – Satyajit Mohanty
Roll No. – 19PGDM-BHU058
Table of Content
S.No Index Page Number
1. COMPANY OVERVIEW 3-4
2. PRODUCT PORTFOLIO AND 4 P’s 4
3. MARKET CLASSIFICATION AND SEGMENTATION 8
4. ORGANIZATION STRUCTURE 9
5. SALES ORGANIZATION STRUCTURE 10
6. RECRUITMENT AND SELECTION 10
7. FORECASTING 12
8. DISTRIBUTION STRATEGY 13
9. LOGISTICS 17
10. FLOW OF THE PRODUCT 18
11. FINANCIALS 19
12. SALES & DISTRIBUTION STRATEGY, LEARNINGS, 20
AND RECOMMENDATIONS
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COMPANY OVERVIEW
The Coca-Cola Company reappeared India through its completely
possessed auxiliary, Coca-Cola India Private Limited, and re-dispatched Coca-Cola in
1993 after the opening of the Indian economy to unfamiliar interests in 1991. From
that point forward its tasks have become Quickly through a model that supports
packaging activities, both companies claimed just as privately possessed and
incorporates more than 7,000 Indian wholesalers and more than 2.2 million retailers.
Today, their brands are the main brands in most drink portions. The Coca-
Cola Company's brands in India incorporate Coca-Cola, Fanta Orange, Limca, Sprite,
Thums Up, Burn, Kinley, Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu
Fresh, and the Georgia Gold scope of teas and espressos Vitingo (a drink braced with
miniature supplements).
In India, the Coca-Cola framework includes a completely claimed auxiliary
of The Coca-Cola. The company specifically Coca-Cola India Pvt Ltd which produces
and sells concentrate and refreshment bases and powdered drink blends, a
Company-possessed packaging substance, in Hindustan Coca-Cola Beverages Pvt Ltd;
thirteen authorized packaging accomplices of The Coca-Cola Company, who are
approved to get ready, bundle, sell and circulate beverages under certain
predetermined brand names of The Coca-Cola Company; and a broad appropriation
framework involving our clients, merchants, and retailers. Coca-Cola India Private
Limited sells concentrate and refreshment bases to approved bottlers who are
approved to utilize these to create our arrangement of beverages. These approved
bottlers autonomously create neighborhood advertises and disperses beverages to
merchants, little retailers, general stores, eateries, and various organizations. Thus,
these clients make our beverages accessible to purchasers across India.
A National Council of Applied Economic Research (NCAER) concentrates
on the carbonated soda industry demonstrates that this industry has a yield
multiplier impact of 2.1. This implies on the off chance that one unit of the yield of
refreshment is expanded, the immediate and backhanded impact on the economy
will be twice of that. Regarding work, the NCAER study takes note of that "an
additional creation of 1000 cases produces an additional work of 410 man-days."
As a Company, our items are a necessary aspect of the miniature economy
especially in unassuming communities and towns, adding to the making of
occupations and development in GDP. Coca-Cola in India is among the biggest
homegrown purchasers of certain horticultural items. As an industry which has solid
in reverse and forward linkages, our activities catalysis development sought after for
items like glass, plastic, refrigeration,
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transportation, and Industrial and agrarian items. Their tasks additionally lead to
gradual development for undertakings occupied with after creation exercises like
promoting, showcasing, and deals. Likewise, they share best practices and
innovative progressions with our providers, merchants, and united enterprises
which regularly lead to progress in the general principles of value across
businesses.
COBO: Company-owned bottling operations
FOBO: Franchisee owned bottling operations
PRODUCT PORTFOLIO
1. CARBONATED BEVERAGES
A. COCA-COLA
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B. LIMCA
C. THUMS UP
D. SPRITE
E. FANTA
F. DIET COKE
2. NON CARBONATED BEVERAGES
A. MAAZA
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B. KINLEY
500 ml
C. MINUTE MAID PULPY ORANGE
D. GEORGIA
4 P’s
Product
Coca Cola has a huge item arrangement of 502 shimmering and still brands. It gives
almost 3,966 refreshment decisions. Its driving item Coca Cola is one of the world's
generally perceived and important brands. There are 22 billion-dollar brands in its
portfolio, of which 20 are accessible in low or no-calorie decisions.
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Place
Coca Cola has a broad drink appropriation framework. Its items are sold more than 201
nations across working locales including Asia, Europe, Latin America, North America,
Pacific, Eurasia, and Africa. Coca Cola sells a normal of 2 billion servings every day.
Customarily, the company has depended on its packaging accomplices for the bundling
and circulation of its items.
Price
Pepsi is the main adversary of Coca Cola and the nearest rival in the beverages
fragment. The two brands value their items seriously. Costs are not very high to go past
the normal clients' scope and nor too low to even consider giving an impression of
inferior quality. Coca Cola's evaluating system is pointed toward driving brand reliability.
Besides, because of the diminishing interest for soft drink items, the value rivalry
between Coca Cola and Pepsi has gotten even extraordinary. The costs lower as the size
of the bundle becomes greater. Mass purchasers of the item may need to follow
through on fundamentally lower costs than ones purchasing single Coca Cola items.
Promotion
Because of the serious rivalry in the soft drink industry, the top brands spend much on
publicizing to drive higher deals and income. Coca Cola's advertising consumption in
2019 was $4.8 billion. In 2019, the showcasing consumption developed to $4.5 billion. It
uses both conventional and present-day channels to advance its image and items. Coca
Cola dispatched its Taste the Feeling lobby in 2019 which joins the entirety of its brands.
This one brand approach taken by Coca Cola denotes a critical move from its past
promoting procedure. Aside from TV promotions and outside advertisement crusades,
the company serves its promotions over the web and via web-based media. Its web-
based media accounts are utilized to associate with its fans and devotees and for client
commitment. There are more than 1,350 limited-time recordings of Coca Cola on its
authority YouTube channel. As rivalry has continued increasing in the soft drink
industry, organizations are zeroing in like never before on their social picture and
notoriety. Coca Cola is additionally putting a ton in CSR and manageability and building
up a feasible flexibly chain and assembling organization. Putting resources into socially
useful activities has demonstrated useful for the company and has reinforced its picture
in the market.
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MARKET CLASSIFICATION
Market Classification
Geographical Area Competition
SEGMENTATION
Division Age is one of the most noteworthy pieces of the division of Coca Cola. The
fundamental client of the Coca Cola is youngsters whose age is 10 to 35. Coca Cola likewise
portions its market dependent on the pay by making a little pack. There are Coca Cola's
various costs of holders with various sizes for those whose salary is extraordinary. The base
division for Coca Cola is the family size, for example, 500ml, 1L, 1.5L, 2L packs to pick
dependent on the family size.
These days, individuals are exceptionally careful about what they eat and drink.
Mindfulness formation of a way of life infections has driven individuals to receive more
solid ways of life. As a company, Coca-Cola saw this chance and acquainted the coke diet
with satisfying the market request of shoppers who required a beverage that is low on
sugar. Notwithstanding, despite its prosperity, the coke diet neglected to catch the creative
mind of certain market portions. Subsequently, Coke zero was produced for the sole
explanation of catching the youthful male market made out of people who had recently
stayed away
Geographical - Internationally Coke segments its product
▪ Country & region wise
▪ Variations as per tastes & income
Competition-Presence of players such as:
▪ Pepsi
▪ Parle
▪ Dabur
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ORGANIZATION STRUCTURE
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SALES ORGANIZATION STRUCTURE
AGM
Sales Manager
Area Sales Manager
Sales Executives
Market Development Executive / Pre-
sellers
RECRUITMENT AND SELECTION
• Coca-Cola recruitment process is well established, they give ads in the
newspaper, company’s website, institutions.
• Coca-Cola recruits MT’s from premier B schools.
• They mostly offer PPO’s to the Summer Interns.
SELECTION PROCESS INVOLVES:
i. Group Exercise
ii. Interview
iii. Presentations
iv. Psychometric tests
v. Situational Exercises
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TRAINING
• Coca-Cola India partners with the 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
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.
SALESFORCE 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:
A. TV, Fridge, etc.
B. Certificates / trophies
C. Lunch/outing with senior management, etc.
• Foreign trips for managerial level & above
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REWARDS AT COCA-COLA
• Employee salary increment
• Grade Jump, Designation change
Yearly
• Annual incentive Plan (AIP) (for business performance,
Basis but fixed)
• Personal Progress report (PPR) (Annual Appraisal)
Monthly • Making the move (MTM, sales target achieves)
Basis • Monthly turn hall (extraordinary performance)
• Employee of the Quarter (EOQ, non-sales)
Quarterly • Sales Dangle context
Basis • Gold Context
FORECASTING
• Combination of the top-down and bottom-up approach
• Forecasts based on factors such as:
A. Historical data
B. Economic parameters
C. Seasonal variation
D. Festivals, ceremonies, etc.
E. Weekly reviews to adjust monthly forecasts
• Forecasts are region-wise, they are further broken down into cities, towns,
and villages by sales managers.
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DISTRIBUTION STRATEGY
DISTRIBUTION ROUTE
• Key Accounts - The clients in this class aggregately contribute an enormous piece of
the complete deals of the Company. It fundamentally comprises of associations that
purchase enormous amounts of an item in one single exchange. The Company gives
products to these clients on layaway, installments being made by them after a
specific timeframe for example a month of a large portion of a month. Models:
Clubs, fine eating eateries, inns, Corporate houses, and so on.
• Future Consumption - This course comprises of outlets of Coca-Cola items, wherein
a lot of stock is maintained in control to use for future utilization. The stock doesn't
deplete inside a day or two, rather as and when required stocks are piled up by
them to keep away from deficiency or non-accessibility of the product. Examples:
Departmental stores, Super business sectors, and so forth.
• Quick Consumption-The outlets in this course are those which require stocks every
day. Loads of items in these outlets are not put away for sometime later rather, are
depleted around the same time, and may run a little into the following day for
example the items are expended at a quick movement. Models: Small measured
bars and eateries, instructive establishments, and so forth.
• General- Under this course, all the outlets that arrive in a specific region or a zone
alongside its neighboring regions are taken into account. The utilization time frame
isn't mulled over in this specific course.
It Focuses on high traffic locations-Railway stations, Bus stand. Coke India distributes
using 2 routes
• Direct Route
• Indirect Route
Direct
Market
Route
Plant Warehouse
Indirect
Distributor Market
Route
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• 3 COBO Regions – 27 COBO units
• 1 FOBO Region – 12 FOBO units
DISTRIBUTION STRUCTURE
• Direct Route: Direct On Order & Ready Stock
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• Indirect Route: Distributors cover: 480-560outlets
BHUBANESWAR DISTRIBUTION
Distribution of Coca-Cola incorporates full Coverage of Bhubaneswar with 52 Routes spread
across locale. The Retailer is Handling 39 Pre dealers. Company possessed and contracted
vehicles for proficient circulation. The vehicles possessed by company are 48 especially for
this district as it were. Every one of the moving vans of company has one driver and two
loaders to proficiently stack and empty merchandise
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DISTRIBUTORS FUNCTIONS
Bulk Breaking Depends upon location
Warehousing Storage & safety
Transportation Distributor to retailer
Customer Intelligence
Market Information Sourcing Competitor Intelligence
Consumer tastes & preferences
Maintaining a) Signage
a) Visual Merchandising b) Interior ambiance
b) Banners, posters, etc. c) Overall environment
Problems faced by the distributor
• From the company : discounts/incentives given at the end of the month
• From retailer: bad debts/run away
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LOGISTICS
1) Average order size
a) Distributor to company Based on Demand, Season
b) Retailer to Distributer
2) Order placement
Phone
a) Distributor to company
Distributor Representative
b) Retailer to distributer
3) Transit Time 1-2 Days
4) Order frequency Daily
5) Inventory Maintained 1 day
6) Unsold/Damaged Merchandise Replaced
a) A/C Keeping
7) Technology b) Stock keeping
c) Complaint Handling
8) Mode of Transportation
Company vehicle
(company to the distributor)
9) Transportation Expenses
Company
a) Company to Distributor
Distributor
b) Distributor to retailer
10)Warehousing
Minimum 30 m2
a) Storage Capacity
Owned / Rented
b) Ownership
11) Stock keeping responsibility Stock keeper
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FLOW OF THE PRODUCT
9am-6pm 11pm-6am
• Pre-seller goes • Order is
on his route and • Order is processed • Loading the
books the orders registered on the • Load sheet is vehicles is done
server through released by the C&F
GPRS on the spot people
9am- 6pm 6pm-11pm
9.30am-
11pm
• First vehicles 8.30pm •Trucks return to
leaves at 6am • Product delivery depot • Records are tallied
• All vehicles leave • Unloading takes
•Empty bottles are • Cash submission
by 9.30am collected place
8.30pm-
6am-9.30am
11pm
PERFORMANCE MANAGEMENT
RED Strategy – Right Execution Daily
A 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 reports to HCCBL on the score of 100
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MARGINS
A margin per crate (comprising 24 bottles of 300 ml each) is Rs 20.
On the 200 ml pack size, the margin is Rs 16 per crate.
Sales of the more moderate 200 ml pack size to represent around 60 percent of
its absolute carbonated soda (CSD) deals. Non-CSD business accounts for 15
percent.
Outsourced distribution so that trucks and other equipment needed for the purpose
are no longer owned by the company.
FINANCIALS
Profit Margin
a) To distributors 1-1.5%
b) To retailers 2-3%
Advance payment
a) to the company 1,00,000
b) for refrigerators 5,000
Credit terms and policies
i) Credit amount N/A
a)Company to distributor Can provide.
b)Distributor to retailer
ii) Credit period One month(for retailers)
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Sales & Distribution Strategy
• Coca-Cola has received a more unique and very much organized promoting
system for its items. The company has ordered its market and created arranged
activities for each conveyance channel or client fragment. Its chief channel
accomplices are on-premise utilization, for example, bars and eateries, stores,
merchants, and little retailers. Considering the wide organization of the
circulation channel, the brand has actualized channel promoting methodology.
These channels help the company to dissect buying designs just as taste and
inclinations of fluctuated sort of clients, accordingly of which company alters its
item, showcasing and special methodology, cost, and bundling and dispersion.
This thusly helps in addressing various requirements of clients and endeavor
capability of each channel accomplices. The methodology additionally centers
around actualizing distinctive items, cost, and bundling for various market
portion. These sections are characterized based on financial levels, serious power,
and utilization events, instead of thinking about just sorts of the channel of
dispersion. This further guides the company to confine its showcasing technique
and consequently permit the firm to accomplish a solid presence in the
neighborhood market.
From the earliest starting point of its business, Coca-Cola has kept up a reliable
brand picture and personality through viable advertising, deals and circulation,
and different business capacities. The brand has zeroed in on boosting its deals,
yet has laid satisfactory accentuation on drawing in with clients and addressing
their requirements and inclinations proficiently. This has helped the company to
secure the biggest piece of the pie and serious edge over opponents.
LEARNINGS
• The real-time request preparing framework using innovation decreases the lead
time
• 24hrs working i.e. the loading cases in the night saves valuable time
RECOMMENDATIONS
• Pre-sellers shouldn't be taken a gander at as an additional expense. In
actuality, since their initiation deals have risen
• Order devices at Diamond outlets can facilitate quicker order placement.
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REFERENCES
• http://www.coca-colaindia.com/products/our_products.html
• http://www.coca-colaindia.com/presscenter/cleanDrinkingWaterFacilities.html
• http://www.coca-colaindia.com/products/product_list_desc.html
• City Enterprise, Surya Nagar, Unit 7, Bhubaneswar.
• Hindustan Coca Cola Beverages Pvt. Ltd.Mancheswar Industrial Estate, BBSR.
• Kiran Distributors 4114, Rama Bhawan, Janpath TowerLTower, BBSR.
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