Sales and Distribution of Coca cola

1. GROUP MEMBERS
Vinit Vashishth
Shahbaaz Ahmed
Aditya Khurana
Asmita Sinha
Piyush Sharma

2. Company Overview
• Coke re-entered India in 1993
• The CEO of the company is Muhtar Kent, with its global headquarter in Atlanta, Geogia.
• 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)

3. Brief History
 Up till 1977, Coca-cola was the leading soft drink brand in India.
 But due to norms set by the Foreign Exchange Regulation Act (FERA), Coca-Cola left India and
did not return till 1993 after a 16 year absence from the Indian beverage market.
 FERA needed Coca-Cola to reveal its secret concentrate formula as well as reduce its equity
stake which was not acceptable.
 Pure drinks, Delhi launched Campa-Cola, to take advantage of Coke’s exit and by the end of
70’s, was the only Cola drink in the Indian market.
 In 1980, Parle, another major Indian player launched ThumsUp.
 For over a decade, Parle led the Indian soft-drinks market, with its market share reaching a
peak of 70% in 1990.

4. Entry Strategy
• Coca-Cola got the permission to enter the country with a 100 per cent unit in India.
• On September 22, 1993, the company bought out the Parle brands.
• As an entry strategy, CCI took over Parle Foods.
• Over a period of time, CCI also bought certain bottling units that earlier belonged to Parle or
individual distributors.
• With the entry of Coke, CCI decided not to promote the cola brand they took over
• As a result, Coke’s market share (Coke + Thumps Up) fell to nearly 55%.
• After 3 years of incurring losses, CCI finally took a decision to re-launch Thumps Up. This
strategy paid off and today almost 59% of the market is governed by CCI.
• In 1993, Thumps Up, Gold Spotand, Limca enjoyed around 75% share of the CSD market.

5. Mission
The Coca Cola Company creates value by executing comprehensive business
strategy guided by six key beliefs:
1. Consumer demand drives everything we do.
2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink
beverages they want to drink through out the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We will lead as a model corporate citizen.

6. Values
 LEADERSHIP: The courage to shape a better future
 PASSION: Committed in heart and mind
 INTEGRITY: Be real
 ACCOUNTABILITY: If it is to be, it’s up to me
 COLLABORATION: Leverage collective genius
 INNOVATION: Seek, imagine, create, delight
 QUALITY: What we do, we do well

7. Vision
• PROFIT: Maximizing return to shareowners while being mindful of overall
responsibilities.
• PEOPLE: Being a great place to work where people are inspired to be the best
they can be.
• PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate
and satisfy peoples’ Desires and needs.
• PARTNERS: Nurturing a winning network of partners and building mutual loyalty.
• PLANET: Being a responsible global citizen that makes a difference.

9. Product Specifications

11. Sales Promotion Activities
Coca-Cola Cricket
Coca-Cola Food Mela
Coca-Cola GO-RED
Coca-Cola & Mc Donald’s- “We go together” joint promotion to reinstate
amongst consumers a real sense of the affinity that, both shares globally.

13. Segmentation & Targeting
• Segmentation-
 AGE
 GENDER
 RURAL VS. URBAN MARKET
• Targeting-
• Diet coke: weight consciousness
• Maaza: kids , juice loving people
• Sprite: young people
• Thums-up: confident, mature and uniquely masculine attitude people
• Fanta: girls, ladies

14. SHELF DISPLAY DISPLAY OF RACK VISI COOLER

15. Competitors

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

17. Rewards
•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

18. Distribution
• Area wise distribution & promotion schemes
• Focus on high traffic locations
• Railway stations , Bus Stands
Plant Warehouse
Direct Route Market
Indirect Route Distributor Market

19. Manufacturing Plant
Company Owned Depot
Primary
Retailers
Customers
Secondary
Tertiary
Home Delivery Agent
COBO
FIFO
3 Day
Inventory
Direct
On Order
&
Ready
Stock

20. Manufacturing Plant
Distributors
Secondary
Retailers
Customers
Secondary
Tertiary
Indirect
Distributors
cover:
500-600
outlets
FOBO

21. Logistics
1. Average Order Size
2. Order Placement
3. Transit time
4. Order Frequency
5. Inventory maintained
6. Technology
7. Mode of Transportation
8. Expenses
9. Warehousing
10. Stock keeping responsibility
• Functions & Problems of Distributors

22. SWOT Analysis
Strengths Weakness Opportunities Threats
World’s largest brand Negative publicity Acquisition intense
competition
Intense competition
Large scale of
operations
Sluggish performance in north
america
Growing bottled water
market
Dependence on
bottling partners
Robust revenue
growth
Decline in cash from operation
activities
Has sufficient capital to
expand
Sluggish growth of
carbonated
beverages

23. Learnings & Recommendations
• Learnings-
1. The real time order processing system through use of technology helps reduce
the lead time
2. 24hrs working i.e. the loading cases in the night saves valuable time
• Recommendations-
1. Pre-sellers shouldn’t be looked at as an extra cost. On the contrary, since their
inception sales have risen
2. Order devices at Diamond outlets can facilitate quicker order placement

24. Thank you