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Group 7
LBSIM, New Delhi
Flow of Presentation
Company Overview
Product Specifications
Business Model
Market Classification, Segmentation
Sales Organization Structure
Sales Force Motivation
Forecasting, Distribution Model
Coke vs. Pepsi
Logistics, Product Flow
Performance Management
Promotional Schemes
Margins & Financials
Recommendations
Company Overview
Coke re-entered India in 1993
Coke India comprises of:
Coca-Cola India
Hindustan Coca-Cola Beverages
Franchisee bottling operations
Product Specifications
Contd.
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
Business Model
Manufactures & distributes
Concentrates
Syrups
Business Model
Coca-Cola India
Manufactures
Concentrate, Beverage
base and Syrup
Regional Bottlers
COBO/FOBO
Manufactures finished
Bottles/Cans/Fountain
Syrup
Customers
Consumers
Market Classification
Market Classification
Geographical Area
Geographical
Internationally Coke segments its product
Country & region wise
Variations as per tastes & income
Competition
Presence of players such as:
Pepsi
RC Cola
Competition
Segmentation Model
Outlet Type
Market Clustering
Based on Income Level
of Locality
Grocery
Restaurant
Outlet Clustering
Convenience
Outlet Volume
<200
Consumer
Choice
200-499
500-799
>800
Organizational Structure
Chair Person
G.M.
Marketing Manager
Accounting Dept.
Shipping Deptt.
Factory Manager
Marketing Manager
Production Manager
Quality
Control
Sales Manager O/S
Sales Officer
Sales Officer
Sales Supervisor
Sales Supervisor
Sales Man
Sales Man
Distribution Officer
Mechanical
Engineer
Shipping Manager
Shipping Officer
Shipping
Personnel Manager
Sales Manager
Sales Executives
Training
Coca-Cola India partners with Indian School of Business (ISB)
to launch the Coca-Cola ISB Retail Academy
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
Rewards at Coke
Yearly Basis
Monthly
Basis
Quarterly
Basis
Forecasting
Combination of top down and bottom up approach
Seasonal variation
Festivals, ceremonies, etc.
Weekly reviews to adjust monthly forecasts
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
Distribution
Area wise distribution & promotion schemes
Focus on high traffic locations
Railway stations
Bus stand
Direct Route
Plant
Market
Warehouse
Indirect
Route
Distributor
Market
Cont.
3 COBO Regions 27 COBO units
1 FOBO Region 12 FOBO units
COBO
Company owned
bottling operations
FOBO
Franchisee owned
bottling operations
Distribution Structure
Direct
Indirect
Manufacturing Plant
COBO
Primary
Direct
FIFO
Secondary
&
Ready
Stock
Retailers
Tertiary
Customers
3 Day
Inventory
Home Delivery
Agent
Distribution Structure
Direct
Indirect
Manufacturing Plant
FOBO
Indirect
Secondary
Distributors
cover:
500-600
outlets
Requirements to
become distributor:
Distributors
Secondary
FDA license
Retailers
Tertiary
Customers
Capacity to hold 5
days stock
Shop establishment
certificate
Electricity bill
Address proof
Bank statement
Pepsi India
COMPANY
COBO
FOBO
WAREHOUSE
C&F
DISTRIBUTOR
SALESMEN
WHOLESALER
RETAILER
CUSTOMER
SALESMEN
SLUMS
RETAILER
CUSTOMER
Delhi-NCR
No return
Full Coverage - 59
Routes
Retailers Loss
Retailer Handling
45 Pre- sellers
Transporting Vans
1 Driver + 2 Loaders
Distributors Functions
PARAMETER
Bulk Breaking
Warehousing
Transportation
Market Information
Sourcing
Distributor to retailer
Customer Intelligence
Competitor Intelligence
Consumer tastes & preferences
Maintaining
a) Visual Merchandising
b) Banners, posters, etc.
a) Signage
b) Interior ambience
c) Overall environment
Logistics
PARAMETERS
1) Average order size
a) Distributor to company
b) Retailer to Distributer
2) Order placement
a) Distributor to company
b) Retailer to distributer
3) Transit Time
4) Order frequency
Phone
Distributor Representative
2 Days
Daily
Logistics
PARAMETERS
5) Inventory Maintained
6) Unsold/Damaged
Merchandise
7) Technology
8) Mode of Transportation
(company to distributor)
9) Transportation Expenses
a) Company to Distributor
b) Distributor to retailer
10)Warehousing
a) Storage Capacity
b) Ownership
1 day
Replaced
a) A/C Keeping
b) Stock keeping
c) Complaint Handling
Company vehicle
Company
Distributor
Minimum 30 m2
Owned / Rented
Stock keeper
Pre-seller goes on
his route and
books the orders
Order is
registered on the
server through
GPRS on the spot
On a
tablet or
Blackberry
Order is
processed
Load sheet is
released
Loading the
vehicles is done
by the C&F
people
Contd.
First vehicles
leaves at 6am
All vehicles
leave by 9.30am
Cannot
take more
than order
Product delivery
Empty bottles
are collected
Trucks return to
depot
Unloading takes
place
Only cash
except for a
few
Records are
tallied
Cash submission
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
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.
Financials
Coco-Cola
Profit Margin
a) To distributors
b) To retailers
1-1.5%
2-3%
Advance payment
a) to company
b) for refrigerators
1,00,000
5,000
Learnings
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 shouldnt 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
thank you