DISTRIBUTION CHANNELS OF COCA- COLA

Coca-Cola is a American company, which has its presence all across the world. Due to its strong
distribution channel, the company has almost 250 bottling partners all over the world which focuses on
demand globally and locally. The company does not control or own its bottling partners, almost all of
them work independently.

Coca cola bottling partners usually collaborate with retailers, supplier and grocery stores in order to
supply their beverages, drinks, syrups ad other products to consumers. It also distributes its products to
gasoline stations, super markets and restaurants. It follows both push and pull strategy in order to
increase sales and market share.

Push strategy in context of coca cola can be defined as when it induces its intermediaries to promote
sales and sell its product to the end users i.e., customers. For example, Coca – cola offers free samples of
products and also some pet bottles to agency and other middlemen like retailer in order to advertise
and promote its product.

Coca -cola follows pull strategy by persuading consumers to induce shopkeepers and other
intermediaries to order the product by the company. For example, by displaying products in racks,
flanges and mobile hangers.

Coca- cola has main four retail stores are fab mall, spencer, food bazaar and food world.

If we analyze its main sale points worldwide, which defines how it is sold are:

 Airlines/ Railways
 distributors and wholesalers
 Retailers (super markets, departmental and corner stores)
 Automatic vending machines
  Restaurants, clubs, hotels
 Cafes and clubs
 Petrol stations

Coca-Cola follows diversified and dynamic distribution system which is driven by customers demands
and market scenario. Its well planned and executed brand, due to its sophisticated and defined
distribution channels, its dependent vendors also gain huge success in their business.

If we broadly categorize the distribution channels, they are as follows:

1. Franchised distribution system

2. Hub and spoke model
3. Direct selling
4. Indirect selling

Franchised distribution system

In this Coca- Cola partners with bottlers, products manufactured at coca cola company site is delivered
to bottlers, they maintain packaging and further transportation process, they maintain the authenticity
and loyalty of brand, products are delivered to retailers, super markets and automatic vending
machines, from where they are sold to end consumers.

Hub and Spoke Model

Under this distribution system, Coca- cola India, distributed its products to rural areas, in this company
used various small automobiles like trucks, autorickshaws to transport products from bottling hubs to
spokes and village retailers. Coca- cola generally employed those vehicles which were prevalent in
villages and did pose any difficulty to village retailers and shopkeepers for product delivery. Spoke refers
to middlemen between manufacturing business unit and delivery site.

Direct selling

Under this, Coca- cola directly sell its product in the market, good are not delivered to bottlers, rather
they are delivered to retail industry and end users directly. Coca -cola has more than 450 vehicles to
ensure delivery on time.

Indirect selling

In this coca -cola company, hire a middleman like a company, bottlers, who transports the product from
Manufacturing site to end users. All the packaging and storage of products are done by them. These are
not owned by Coca- Cola rather they are paid by them.
PROBLEMS IN COCA COLA DISTRIBUTION CHANNEL
1. Channel Conflicts
Multi-channel strategy followed by Coca- cola leads to channel conflicts due to lck of
coordination and mis communications between different channels. This ultimately effects the
product delivery to the end user.

2. High Distribution cost

Franchised distribution method involves bottling partners and hub spoke model of Coca cola
involve various distributors and automobiles, this leads to huge cost to company as each
middleman is paid for their services.

3. Threat to customer loyalty

Sometimes when products are transported from various channel, it can suffer from wear tea and
damages on bottles and other products supplied by company, this poses threat to customer
loyalty as customers are paying required amount for the product.
4. Lack of internal communication
In rural areas where hub and spoke model is followed and internally in company, there is huge gap
of communication as there are multiple products and multiple channels of distribution, and strong
communication network is not available, so that need to be built.

5. Threat to Coca -Cola Brand

In, multi-channel distribution, sometimes partner companies indulge in fraudulent activities, try to
damage the quality of product, this poses threat to Coca -Cola brand, and to its image and
reputation of the company.

BTL (BELOW THE LINE) LEVEL MARKETING ACTIVITIES OF COCA-COLA

BTL (Below the line) marketing activities are those activities which are taken up company to
increase the sales of product by targeting specific set of consumers. These is done by sponsorship,
sending text, emails etc.
Coca-Cola adopted various BTL activities in order to promote and increase the sales of product.
They are categorized as follows:
1. Sponsorship
In the year 1928, Coca- Cola sponsored Olympic Games Iin order to promote its product
among sportspersons and the specific audience which was attracted towards sports. In NBA,
NESCAR it provided sports sponsorship, by depicting Santa Claus with bottle carrying bag of
gifts. It even sponsored cricket tournament played by India, Australia and New Zealand
2. Jo Chaaho ho Jaaye, Coca-Cola Enjoy
This campaign initiated by company to promote the product among youth both emotionally
and to increase the sales and revenue of the product.

3. Thanda Matlab Coca-Cola

In India Thanda means coal, campaign targeted consumers suffering from scorching heat for
them to quench their thirst anything cool means Coca-Cola. So, this was very popular among
youth and middle-aged people.

4. Coke – Hello Happiness

In order to provide happiness to laborers in Dubai , Coca-Cola opened a phone booth accepting
the caps of Coca-Cola bottles in order to provide happiness to them to connect with their
families for 3 minute international call .
5.Launch of Lemon diet Coke and Fanta fruit twist
Coca-Cola launched its product lemon diet coke in view to attract adults who were focused towards
healthy drinks and Fanta fruit twist campaign was launched in theme parks in order to attract kids and
youngsters in London.

6.Coca-Cola diet Can distribution to Gym Going people

Coca -Cola even started campaign in which in order to promote product among health-conscious
products adults. They distributed coke cans to gym going people.

7. Super Bowl Campaign 2012

During this campaign, Coca Cola, came up with two polar bears, who were carrying coke bottles
in their hands and they answered queries asked from the fans and promoted their products.