cocacola distribution channel
TRANSCRIPT
DISTRIBUTION CHANNEL
TEAM MEMBERS- Abhishek ChakrabortyAnushree JainAnkush DawnArijit Talukder
Pragati JhaProjjal Kr Das
Coca Cola India's Thirst for the Rural Market
"We want to be the Hindustan Lever of the Indian beverage business."
- Sanjeev Gupta, Deputy President, Coca-Cola India in May 2002.
Distribution Channel
A set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption.
Channel decisions affect other marketing decisions involve long-term commitments
TIMEPLACE
POSSESSION
Channels of Distribution …create time, place, possession and
information utilities.
Information37 24
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Utility
BoxCreating utilities for customers.
Designing the Marketing Channel
Transporting &Inventory storage
Reducingtransactions
Materials handling
Accumulating & breaking
bulk
CreatingAssortments
(sort to quantity
Channel FunctionsProducer Intermediaries Customer
(Facilitate exchange)
Channel Functions: Promotion Producer Collaborators Customer
Promotion: - Cooperative advertising - In Store Sales promotion
SalesPromotion
AdvertisingAgencies
(Facilitate exchange)
Personal Selling:Merchant sales repssell only, no title transfer
Channel of DistributionThe Middlemen
Intermediaries- (middlemen): People involved in sales transactions that move products from the manufacturer to the final user.
› Reduces number of contacts required to reach the final user
Distribution Channels Facilitate Specialization
Intermediaries provide Exchange efficiencies
Connectivity is King for product delivery when and where
Intermediaries
Customer Producer
The Wholesaler
› Businesses that buy large quantities of goods from manufacturers, store the goods, and then resell them to other businesses.
› Take title to goods they buy for resale.
› wholesalers who manage inventory and merchandising for retailers by counting stock, filling it in when needed and maintaining store displays.
› own the goods they sell but do not physically handle the actual products.
The Retailer
› Sell goods to final consumer for personal use.
› sell goods to the customer from their own physical stores.
› Buy products from manufacturers or wholesalers.
› Non-store retailers
› Takes title for goods.
› E-tailing-online retailing; selling products over the Internet
Types of channels:
Non integrated integrated
direct
indirect
horizontalvertical
Direct channels:
Zero level/direct marketing:
manufacturer consumer
• Selling products at the production site• Having a sales force call on consumers• Using catalogs or ads to generate sales• Using telemarketing• Using the internet to make online sales
One level/indirect channel
manufacturer retailer consumer
Two level:
manufacturer wholesaler retailer
consumer
Most commonly used for staple goods, which are items that are always carried in stock and whose styles do not change frequently
3-level:
manufacturer wholesaler jobber retailer
consumer
The Distribution Channel
Followed By Coca Cola
BOTTLING PLANT
HUBS
SPOKES
RETAILERS RETAILERS RETAILERS
THANK YOU…