The document outlines the sales and distribution management process of Coca-Cola India. It discusses Coca-Cola's company overview, product specifications, business model, market segmentation, sales organization structure, sales force motivation, forecasting, distribution model, performance comparisons to Pepsi, logistics, performance management, promotional schemes, margins, financials, and recommendations. Key aspects covered include Coca-Cola's franchised bottling system, sales force training programs, incentive structures, forecasting approach, direct and indirect distribution networks, RED performance management tool, and distributor margins.
7. 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
8. Business Model
Coca-Cola India Manufactures
Concentrate, Beverage
base and Syrup
Regional Bottlers Manufactures finished
COBO/FOBO Bottles/Cans/Fountain
Syrup
Customers
Consumers
10. Segmentation Model
Outlet Type
Channel Clustering Based
on Consumption Occasion
Grocery
Restaurant
Based on Income Level
Market Clustering
Outlet Clustering
of Locality
Convenience
Outlet Volume
G
Di
Si l
Br
ol
am
ve
on
d
r
Lo
ze
on
w
d
<200 200-499 500-799 >800
M
ed
Consumer
i
Hi
um
g
Choice
h
11. Organizational Structure
Chair Person
G.M.
Marketing Manager Accounting Dept. Shipping Deptt.
Factory Manager
Marketing Manager Production Manager
Quality Mechanical
Control Engineer
Sales Manager O/S Sales Manager (Base) Shipping Manager
Sales Officer Sales Officer
Shipping Officer Shipping
Sales Supervisor Sales Supervisor
Personnel Manager
Sales Man Sales Man
Distribution Officer
13. 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
14. 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
15. 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
16. 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
18. 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
19. 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
20. Distribution
Area wise distribution & promotion schemes
Focus on high traffic locations
Railway stations
Bus stand
Coke India distributes using 2 routes
Direct
Indirect
21. Cont.
3 COBO Regions – 27 COBO units
1 FOBO Region – 12 FOBO units
} COBO
Company owned
bottling operations
FOBO
Franchisee owned
bottling operations
23. Manufacturing Plant COBO
Primary
Direct
FIFO
Company Owned Depot 3 Day
Inventory
On Order Secondary
Home Delivery
Agent
&
Ready Retailers
(Diamond / Gold / Bronze)
Stock
Tertiary
Customers
28. Distributors Functions
PARAMETER
Bulk Breaking Depends upon location
Warehousing Storage & safety
Transportation Distributor to retailer
Market Information Customer Intelligence
Competitor Intelligence
Sourcing Consumer tastes & preferences
Maintaining a) Signage
a) Visual Merchandising b) Interior ambience
b) Banners, posters, etc. c) Overall environment
Problems faced by distributor
• From company : discounts/incentives given at the end of the month
• From retailer : bad debts/run away
29. Logistics
PARAMETERS
1) Average order size
a) Distributor to company Based on Demand, Season
b) Retailer to Distributer
2) Order placement
a) Distributor to company Phone
b) Retailer to distributer Distributor Representative
3) Transit Time 2 Days
4) Order frequency Daily
30. Logistics
PARAMETERS
5) Inventory Maintained 1 day
6) Unsold/Damaged
Replaced
Merchandise
a) A/C Keeping
7) Technology b) Stock keeping
c) Complaint Handling
8) Mode of Transportation Company vehicle
(company to distributor)
9) Transportation Expenses
a) Company to Distributor Company
b) Distributor to retailer Distributor
10)Warehousing
a) Storage Capacity Minimum 30 m2
b) Ownership Owned / Rented
11) Stock keeping responsibility Stock keeper
32. Contd.
Only cash
Cannot except for a
take more few
than order
33. 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.
34. 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.
35. Financials
Coco-Cola
Profit Margin
a) To distributors 1-1.5%
b) To retailers 2-3%
Advance payment
a) to company 1,00,000
b) for refrigerators 5,000
Credit terms and policies
i) Credit amount
a)Company to distributor N/A
b)Distributor to retailer Can provide.
ii) Credit period One month(for retailers)
36. 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
The company calls this the “parivartan” program (meaning “Change” in English). Shop owners (traditional retailers) are given training on displaying and stocking products well. The goal of the innovative training program is to provide traditional Indian retailers with the skills, tools and techniques required to succeed in a constantly changing retail scenario. Presentations (including audio/visual technology) in local Hindi language help small retailers (with stores less than 200 square feet in average size) to better understand the concepts involved. Each retailer also receives a Coca-Cola “Certified Retailer” certificate at the conclusion of the program
Key Accounts: The customers in this category collectively contribute a large chunk of the total 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. Future Consumption: 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. Immediate Consumption: 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. 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.