sales and distribution management at coca-cola
TRANSCRIPT
![Page 1: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/1.jpg)
Sales and Distribution ManagementGroup 7 LBSIM, New Delhi
![Page 2: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/2.jpg)
Flow of PresentationCompany OverviewProduct SpecificationsBusiness ModelMarket Classification, SegmentationSales Organization StructureSales Force MotivationForecasting, Distribution ModelCoke vs. PepsiLogistics, Product FlowPerformance ManagementPromotional SchemesMargins & FinancialsRecommendations
![Page 3: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/3.jpg)
Company Overview
Coke re-entered India in 1993
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)
![Page 4: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/4.jpg)
Product Specifications
![Page 5: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/5.jpg)
Contd.
![Page 6: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/6.jpg)
Promotional Schemes Soft drinks:
600ml 1case + 2x500ml soda free 600ml 2case + 5x500ml soda free 2 litre 1case + 2x500ml soda free 1.25litre 1case + 1.25litre Limca free (1.5litre out of
stock)
Juice: 1.25litre 1case Mazaa + 1.25litre Mazaa free
Water: 5box (15x5) + 1box free
Energy drink: 1box (24pcs) + 4pcs free
![Page 7: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/7.jpg)
Business Model
Manufactures & distributes Concentrates Syrups
Bottlers make the final beverage through COBO FOBO
Each bottler has an exclusive territory
Actual formulations are tightly held trade secrets
![Page 8: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/8.jpg)
Business Model
Coca-Cola India
Regional BottlersCOBO/FOBO
Customers
Manufactures Concentrate, Beverage
base and Syrup
Manufactures finished Bottles/Cans/Fountain
Syrup
Consumers
![Page 9: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/9.jpg)
Market Classification
GeographicalInternationally Coke segments its product
Country & region wise Variations as per tastes & income
CompetitionPresence of players such as:
Pepsi RC Cola
![Page 10: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/10.jpg)
Segmentation Model
Grocery
Restaurant
Convenience
Bronze
Silver
Gold
Diam
ond
<200 200-499 500-799 >800
Outlet Type
Outlet Volume
Low
MediumHigh Consumer
Choice
Channel Clustering Based on Consumption Occasion
Mark
et
Clu
steri
ng
Base
d o
n Inco
me
Level of
Loca
lity
Outlet Clustering
![Page 11: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/11.jpg)
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
![Page 12: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/12.jpg)
Sales Organization Structure
![Page 13: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/13.jpg)
Recruitment & Selection
Coca-Cola recruitment process is well established, they give ads in newspaper, company’s website, institutions,etc.
Coca-Cola recruits MT’s from premier B schools.
They mostly offer PPO’s to the Summer Interns.
SELECTION PROCESS INVOLVES: Group Exercise Interview Presentations Psychometric tests Situational Exercises
![Page 14: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/14.jpg)
Training
Coca-Cola India partners with 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
![Page 15: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/15.jpg)
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
![Page 16: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/16.jpg)
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
![Page 17: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/17.jpg)
Rewards at Coke
![Page 18: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/18.jpg)
Forecasting
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
![Page 19: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/19.jpg)
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
![Page 20: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/20.jpg)
Distribution
Area wise distribution & promotion schemes
Focus on high traffic locations Railway stations
Bus stand
Coke India distributes using 2 routes Direct
Indirect
![Page 21: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/21.jpg)
Cont.3 COBO Regions – 27 COBO units
1 FOBO Region – 12 FOBO units
COBO
Company owned bottling operations
FOBO
Franchisee owned bottling operations
}
![Page 22: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/22.jpg)
Distribution Structure
Direct Indirect
![Page 23: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/23.jpg)
Manufacturing Plant
Company Owned Depot
Primary
Retailers(Diamond / Gold / Bronze)
Customers
Secondary
Tertiary
Home Delivery Agent
COBO
FIFO3 Day
Inventory
Direct
On Order
&
Ready Stock
![Page 24: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/24.jpg)
Distribution Structure
Direct Indirect
![Page 25: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/25.jpg)
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
FOBO
![Page 26: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/26.jpg)
Pepsi India
![Page 27: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/27.jpg)
Full Coverage - 59 Routes
Retailer Handling
45– Pre- sellers
Owned & contracted vehicles
56 – Owned Vehicles
Transporting Vans
1 Driver + 2 Loaders
No return
Retailers’ Loss
Delhi-NCR
![Page 28: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/28.jpg)
Distributors Functions PARAMETER
Bulk Breaking Depends upon location
Warehousing Storage & safety
Transportation Distributor to retailer
Market Information Sourcing
Customer IntelligenceCompetitor Intelligence
Consumer tastes & preferences
Maintaining a) Visual Merchandisingb) Banners, posters, etc.
a) Signage b) Interior ambience
c) Overall environment
• From company : discounts/incentives given at the end of the month
• From retailer : bad debts/run away
Problems faced by distributor
![Page 29: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/29.jpg)
Logistics
PARAMETERS
1) Average order sizea) Distributor to companyb) Retailer to Distributer
Based on Demand, Season
2) Order placementa) Distributor to companyb) Retailer to distributer
PhoneDistributor Representative
3) Transit Time 2 Days
4) Order frequency Daily
![Page 30: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/30.jpg)
PARAMETERS
5) Inventory Maintained 1 day
6) Unsold/Damaged Merchandise
Replaced
7) Technologya) A/C Keeping
b) Stock keepingc) Complaint Handling
8) Mode of Transportation(company to distributor)
Company vehicle
9) Transportation Expensesa) Company to Distributorb) Distributor to retailer
CompanyDistributor
10)Warehousinga) Storage Capacityb) Ownership
Minimum 30 m2
Owned / Rented
11) Stock keeping responsibility
Stock keeper
Logistics
![Page 31: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/31.jpg)
On a tablet or Blackberr
y
Flow of The Product
![Page 32: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/32.jpg)
Cannot take more than order
Contd.
Only cash except for a
few
![Page 33: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/33.jpg)
Performance Management
RED Strategy – Right Execution Daily
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 report to HCCBL on the score of 100.
![Page 34: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/34.jpg)
Margins
Margins per crate (comprising 24 bottles of 300 ml each) is Rs 20.
On the 200 ml pack size, margin is Rs 16 per crate.
Sales of the more affordable 200 ml pack size account for about 60 per cent of its total carbonated soft drink (CSD) sales.
Non-CSD business accounts for 15 per cent.
Outsourced distribution so that trucks and other equipment needed for the purpose are no longer owned by the company.
![Page 35: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/35.jpg)
Financials
Coco-Cola
Profit Margin
a) To distributorsb) To retailers
1-1.5%2-3%
Advance payment
a) to companyb) for refrigerators
1,00,0005,000
Credit terms and policies
i) Credit amount a)Company to
distributor b)Distributor to retailer
N/ACan provide.
ii) Credit period One month(for retailers)
![Page 36: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/36.jpg)
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
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
![Page 37: Sales and Distribution Management at Coca-Cola](https://reader033.vdocument.in/reader033/viewer/2022061109/5450ad06b1af9f804f8b4716/html5/thumbnails/37.jpg)
thank you