By tying up with existing facilities, CCI (Coca Cola India) managed to
score on the distribution aspect by making its brand, Kinley available
throughout the country which gave credence to its rising market share in India.
The below diagram represents a typical chain of manufacture to distribution of
Kinley, the brand for packaged drinking water of Coca Cola India. The company
follows the same chain for all its product. Because of the presence of its
strong brand like Coca Cola, Thums Up, Sprite, Limca, etc. it makes it easy for
the company to market as well as distribute Kinley through the same channel.
CCI has a wide and well managed network of salesmen appointed for
taking up the responsibility of distribution of products to diverse parts of
the cities. The distribution channels are constructed in such a way that the
demand of customers is fulfilled at the right place and the right time when it
is needed by them.
Direct distribution: In direct distribution, the bottling unit
or the bottler partner has direct control over the activities of sales,
delivery, and merchandising and local account management at the store level.
Indirect distribution: In indirect distribution, an
organization which is not part of the Coca-Cola system has control on one or
more of the distribution elements (Sales, delivery, merchandising and local
account management)
Merchandising: Merchandising means communication with the
consumer at the point of purchase to convey product benefit, value and Quality.
Sales people and delivery personnel both have this responsibility. In certain
locations special teams who go into business locations to specifically
merchandise our products.
DISTRIBUTION ROUTES
The various routes formulated by CCI for distribution of products are
as follows:
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 or 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.
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