Final Sales n Ditribution

8/2/2019 Final Sales n Ditribution

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Shruti Trikha-

BBA/4524/10

PROJECT REPORT ON

SALES AND DISTRIBUTION

ON COCA COLA


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COMPANY PROFILE

PRODUCTS OFFERED

DISTRIBUTION SYSTEM

HOW DO COCA COLA SELL THERIR

WHOLE PROCESS

PERFORMANCE EVALUATION OFDISTRIBUTORS


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COMPANY PROFILE

Coca-Cola is a carbonatedsoft drink sold instores, restaurants, and vending machines inmore than 200 countries.[1] It is producedby The Coca-ColaCompany of Atlanta, Georgia, and is oftenreferred to simply as Coke (a registeredtrademark of The Coca-Cola Company in the

United States since March 27, 1944).Originally intended as a patent medicine whenit was invented in the late 19th centuryby John Pemberton, Coca-Cola was bought outby businessman Asa Griggs Candler, whosemarketing tactics led Coke to its dominanceof the world soft-drink market throughoutthe 20th century.
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The company produces concentrate, which isthen sold to licensed Coca-Cola bottlers

throughout the world. The bottlers, who holdterritorially exclusive contracts with thecompany, produce finished product in cans andbottles from the concentrate in combinationwith filtered water and sweeteners. Thebottlers then sell, distribute and merchandise

Coca-Cola to retail stores and vendingmachines. Such bottlers include Coca-ColaEnterprises, which is the largest single Coca-Cola bottler in North America and westernEurope. The Coca-Cola Company also sells

concentrate for soda fountains to majorrestaurants and food service distributors.

The Coca-Cola Company has, on occasion,introduced other cola drinks under the Cokebrand name. The most common of theseis Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special versions with lemon,lime or coffee.
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Based on Interbrand's best global brand2011, Coca-Cola was the world's most valuable

brand.

[2]

COCA COLA ENTERED IN INDIA IN 198950 bottling plant, company owned -25 and

franchisee owned- 25.Interbrands Global Brand Scorecard for

2008 rankedCoca-Cola the NO.1 Brand in the Worldand estimated its brand value at $70.45billion

HEADQUARTERS ATLANTA, GEORGIA-USA

AREA SERVED WORLDWIDECHAIRMAN AND CEO MUHTR KENTNET INCOME US $ 4.2 billion
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Production

Coca-Cola 375 mL cans - 24 pack (AU)Ingredients

Carbonated water

Sugar (sucrose or high-fructose cornsyrup depending on country of origin)

Caffeine

Phosphoric acid

Caramel color (E150d)

Natural flavorings[34]

A can of Coke (12 fl ounces/355 ml) has39 grams of carbohydrates (all from sugar,approximately 10 teaspoons),[35] 50 mg of
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sodium, 0 grams fat, 0 grams potassium, and140 calories.[36] The caramel coloring found in

Coca-Cola is produced using sulfites andammonia, which can lead to a distinct sulfurictaste at times.

Formula of natural flavorings

Main article:Coca-Cola formula

The exact formula of Coca-Cola's naturalflavorings (but not its other ingredientswhich are listed on the side of the bottle orcan) is a trade secret. The original copy ofthe formula is held in SunTrust Bank's mainvault in Atlanta. Its predecessor, the Trust

Company, was the underwriter for the Coca-Cola Company'sinitial public offering in 1919.A popular myth states that only twoexecutives have access to the formula, witheach executive having only half the formula.[37]

The truth is that while Coca-Cola does havea rule restricting access to only twoexecutives, each knows the entire formula
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and others, in addition to the prescribed duo,have known the formulation process.[38]

On February 11, 2011, Ira Glass revealed onhis PRI radio show, This American Life, thatthe secret formula to Coca-Cola had beenuncovered in a 1979 newspaper. The formulafound basically matched the formula found inPemberton's diary.[39][40][41][42]

On December 8, 2011, the original secretformula to Coca-Cola has been removed fromthe vault at SunTrust Banks to a new vaultcontaining the formula which will be on displayfor visitors to its World of Coca-Cola museum

in downtown Atlanta. The formula had beenheld in the vault at SunTrust Banks for 86years.[43]

Franchised production model

The actual production and distribution of

Coca-Cola follows a franchising model. TheCoca-Cola Company only produces a syrupconcentrate, which it sells to bottlersthroughout the world, who hold Coca-Cola
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franchises for one or more geographicalareas. The bottlers produce the final drink by

mixing the syrup with filtered water andsweeteners, and then carbonate it beforeputting it in cans and bottles, which thebottlers then sell and distribute to retailstores, vending machines, restaurants andfood service distributors.[44]

The Coca-Cola Company owns minority sharesin some of its largest franchises, like Coca-Cola Enterprises, Coca-Cola Amatil, Coca-ColaHellenic Bottling Company (CCHBC) and Coca-Cola FEMSA, but fully independent bottlers

produce almost half of the volume sold in theworld. Independent bottlers are allowed tosweeten the drink according to local tastes.[45]

The bottling plant in Skopje, Macedonia,received the 2009 award for "Best Bottling

Company".

[46]
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PRODUCTS OFFERED BY COACA COLA

COCA COLA

DIET COKETHUMS UPSPRITEFANTALIMCA

MAAZAMAZA MILKY DELITEMINUTE MAID PULPY ORANGEMINUTE MAID NIMBU FRESHBURNKINELY WATER

KINELY SODANESTEASCHWEPPES
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MISSION AND VISION

The world is changing all around us. Tocontinue to thrive as a business over the nextten years and beyond, we must look ahead,

understand the trends and forces that willshape our business in the future and moveswiftly to prepare for what's to come. Wemust get ready for tomorrow today. That'swhat our 2020 Vision is all about. It creates a

long-term destination for our business andprovides us with a "Road map" for winningtogether with our bottling partners.Our MissionOur Road map starts with our mission, whichis enduring. It declares our purpose as a

Company and serves as the standard againstwhich we weigh our actions and decisions.

To refresh the world...
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To inspire moments of optimism andhappiness...

To create value and make a differenceOur VisionOur vision serves as the framework for ourRoad map and guides every aspect of ourbusiness by describing what we need toaccomplish in order to continue achieving

sustainable, quality growth. People: Be a great place to work wherepeople are inspired to be the best they canbe Portfolio: Bring to the world a portfolio of

quality beverage brands that anticipate andsatisfy peoples desires and needs Partners: Nurture a winning network ofcustomers and suppliers, together wecreate mutual, enduring value Planet: Be a responsible citizen that

makes a difference by helping build andsupport sustainable communities
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Profit: Maximize long-term return toshare owners while being mindful of our

overall responsibilities Productivity: Be a highly effective, leanand fast-moving organization

Our Winning CultureOur Winning Culture defines the attitudesand behaviors that will be required of us to

make our 2020 Vision a reality.Live Our ValuesOur values serve as a compass for our actionsand describe how we behave in the world.

Leadership: The courage to shape a

better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, its up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well

Focus on the Market Focus on needs of our consumers,customers and franchise partners
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Get out into the market and listen,observe and learn

Possess a world view Focus on execution in the marketplaceevery day Be insatiably curious

Work Smart Act with urgency Remain responsive to change Have the courage to change course whenneeded Remain constructively discontent Work efficiently

Act Like Owners Be accountable for our actions and inactions Steward system assets and focus onbuilding value Reward our people for taking risks and

finding better ways to solve problems Learn from our outcomes -- what workedand what didnt

Be the Brand
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Inspire creativity, passion, optimism andfun

TYPES OF OUTLET

The comapany had divided their outlet onthe basis of following critera:

VOLUMECHANNEL

INCOME GROUPTHE DISTRIBUTION CHANNEL OFCOCA COLA
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Super-

markets,

Kiosks

Airlines

Clubs,

Bars

Restaur-

ants,

Hotels

Vending

machines

Bottler

Consumers

Retailers

The DistributionChannel at Coca-Cola

Territories

Coca-Cola Enterprises is the exclusive Coca-Cola bottler for all of Belgium, continental

France, Great Britain, Luxembourg, Monaco,The Netherlands, Norway and Sweden.[4]

Some of its production facilities are locatedin Norway (Lrenskog), Sweden (Jordbro),
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The Netherlands (Dongen), Belgium(Antwerp, Ghent and Chaudfontaine (mineral

water only)), France (Socx,Grigny

[disambiguation

needed ], Clamart, Les Pennes-Mirabeau and Castanet-Tolosan), and the UK(Wakefield, Sidcup, Milton Keynes, EastKilbride and Colwall).

[edit]Electric trucks

When Coca-Cola Enterprises was the anchorbottler in North America, it has thelargest hybrid electric trucks in NorthAmerica. The hybrid electric tractorunits were the standard bulk delivery

truck the company uses for large deliveries.CCE planned to incrementally deploy 185 ofthe hybrid electric trucks across the UnitedStates and Canada in 2009, bringing its totalnumber of hybrid electric delivery trucks to

327, the largest such fleet in North America.The company already had 142 smaller hybridelectric delivery vehicles on the road.[5] The
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trucks are powered by Eaton Corporation'shybrid electric drivetrain systems.[6]

Also muney was the first to establish Cocacola in the European market making it asuccess in the electric trucks to use largedeliveries as a means of transportation,muney maximed Coca Cola's profits and ledthem to a success and increased their marketshare.

[edit]Sale of assets to The Coca-Cola Co.

On February 24, 2010 The Coca-Cola Companyand CCE (Coca-Cola Enterprises) enteredtalks about selling CCE's North Americandivision to Coca-Cola. Coca-Cola paid over $15billion, including a redemption of Coca-Cola's35% shareholding in CCE. Coca-Cola wantedthe business in their asset list because theyfelt it would save both consumers and Coca-

Cola money. Coca-Cola also gave its smallEuropean bottling division to CCE.

The acquisition closed on October 3, 2010.
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How Coca-Colas distribution system works

19 DECEMBER 2010 BY SIMON BERRY1

COMMENTWeve learnt a lot over the last two years orso about how the Coca-Cola distributionsystems work and we thought it would usefulto summarise our current state of knowledgeso that others can fill any gaps or correct anymisconceptions. Please comment.

The first thing to realise is that Coca-Cola isa sort of franchised operation. Most people

refer to Cola-Cola as if it were a single entityand it is not. You have the people inAtlanta who take care of the brand andoverall marketing, product development and
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so on, but then each country has its ownbottler, or more likely, bottlers. Although

Coca-Cola may have an interest in some ofthese bottling operations they are generallyseparate legal entities. Having said that,many, in their current form, are totallydependent on Coca-Cola as they do not bottleanything else. However, this is not always the

case. In Zambia, for example, ZambianBreweries, a wholly owned subsidiaryof SABMiller, is the sole bottler of Coca-Colain the country, and also bottle beer.Within each country, the same pattern of

devolution is seen when it comes todistribution. In Africa, in our experience, wehave seen two sorts of distribution model.

A delivery to the Kisima MDC, Dar Es Salaam,Tanzania. Image credit: Simon Berry
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There is the much trumpeted ManualDistribution Centre (MDC) model which

operates within densely populated areas egaround large towns and cities. The MDCs areindependent businesses with links to theirlocal bottler who may provide technicalsupport (eg sales training and generalsupport) and credit to the MDCs. The owners

of MDCs generally own the bottles and cratesthey use. They advertise a liquid onlywholesale price. First time customers(without crates and empty bottles to return)will have to pay for the bottles and crates

they take away as well as the liquid theycontain. MDCs can be solely dedicated to thesale of Coca-Cola but some are wholesalers ofother products as well (eg bottled beer).MDCs are often run from shipping containerspainted red. They receive a delivery of Coca-

Cola once a week or thereabouts. Typically aCoca-Cola lorry leaving the bottler will visitone MDC which will take the entire load.Distribution from the MDCs is mostly manual
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with crates being loaded on to handcarts,bicycles etc.

The relationship between the MDCs and thebottler is similar to that between thebottlers and Coca-Cola Altanta although theMDCs are legally independent businesses,many depend on the local Coca-Cola bottlerfor their business to succeed.

The loading of handcarts in Dar Es Salaam,Tanzania. Image credit: Tielman NieuwoudtThe MDC model works very well in denselypopulated areas where manual onwarddistribution is feasible due to the shortdistances involved.

The MDC model is not the system that getsCoca-Cola to very remote areas, as wevepointed out previously. So what does? Itappears that it is the pull of the Coca-Cola
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brand that is responsible for getting Coca-Cola to the most remote parts of developing

countries. There seem to be two parts to this:1. People all over the world, even in the mostremote parts of developing countries,demand Coca-Cola. This is a function of themarketing efforts which emanate fromAtlanta and are then cascaded in each

territory (eg in the UK);2.There is money to made by everyone whois involved in getting the product to thesepeople.

Left: A lorry leaving the Coca-Cola bottlingplant in Dar Es Salaam, Tanzania. Image

credit: Simon BerryRight: Coca-Cola being transported by bicycle.Image credit: Owner unknown
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The lorry leaving the Coca-Cola bottling plantonly goes so far. Beyond the lorrys reach, an

army of entrepreneurs take over, to carry theproduct the last few miles to the mostremote points on the planet. At a recentBusiness Action for Africa event WilliamAsiko, President, Coca-Cola AfricaFoundation and Chair, Business Action for

Africa told a story of a recent trip he madeto the Democratic Republic of theCongo (DRC). Coca-Cola has no officialpresence in the DRC. Despite this when hetouched down he was able to buy a cold can of

Coca-Cola.In Zambia, ColaLife wants to emulate thissystem for AidPod Mothers Kits (DiarrhoeaTreatment Kits packed in AidPods). The basisof our plan to try to do this is described here.

PERFORMANCE EVALUATION OFDISTRIBUTORS
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Sales quota attainment

Inventory management

Average order size placed

Market coverage(calls made by distributoreveryday)

Infrastructure

Volume generated

Third party audit

Complaints handling

Final Sales n Ditribution

Documents

Transcript of Final Sales n Ditribution