Coca colas distribution channels introduction cocacola is a worldwide company which sells over 1. The distribution system of coca cola follows the fmcg distribution pattern. Meanwhile, cocacola also continues to research the use of new channels for different regions and key channels in different periods, a. Generally this distribution and sales centers have the following departments. It contributes to the highest sales of soft drinks globally. This paper attempts to show how cocacola sabco has adopted innovative marketing and distribution strategies to penetrate the main market in south africa and to fulfil its vision and mission. Bubble buzz will be distributed through these channels. Sales, distribution, and transportation even though consumers are able to find cocacola in packages that are room temperature, the main goal of cocacola is to be able to sell drinks that are in perfect condition in order for consumption. It has such an impact on consumers and is so successful that even wholesalers and distributors need the product for their business success.
Distribution strategy of coca cola management paradise. Marketing mix of coca cola 4ps of marketing mix of coca cola. Pemberton in 1886 in atlanta the cocacola company 2016. John styth pemberton first glass sold for 5 cents at jacobs pharmacy in atlanta may 29, 1886 first newspaper advertisement pronounced it delicious and refreshing april 1888, dr. Each distribution center is responsible for the implementing the push strategy in the supply chain.
In the theory of marketing mix, place distribution determines where the product will be sold and how it. May 16, 2016 for the customer loyal problems, the cocacola company should adopt the intensive distribution strategy kumar 2016. At the cocacola company, pulling together useful data sets is a particular challenge. We are working with our customers, suppliers and logistics. We are a global business that operates on a local scale, in every community where we do business. Dec 11, 2017 pricing strategy used by pepsi vs coca cola. Coca cola distribution strategy the cocacola company sells its products to bottling and canning operations, distributors, fountain wholesalers and some fountain retailers. Origionally only selling 7 servings a day, the company has grown slightly, at an estimated rate of more than 1. The secret behind cocacola marketing strategy youtube. The products are also marketed as consistent and of high quality. This further aids the company to localize its marketing strategy and hence allow the firm to attain strong presence in the local market.
Intensive distribution mainly means distribution on a largescale and displaying the product in as many ways and places as possible so that the customer sells in high volume due to large scale distribution. Pdf coco cola marketing strategy and market plan ekin. We have trialed electric vehicles for glaceau vitaminwater deliveries in paris, france, completing more than 1,100 orders in 20. The product is controlled by the cocacola company, a. What is intensive distribution and its advantage in business.
Discuss distribution strategy of coca cola within the elements of logistics forums, part of the publish upload project or download reference project category. Now, the company has become the largest beverage company in the world the cocacola company 2016. Cocacola distribution strategy linkedin slideshare. Cokes distribution model involves a network of hundreds of independently operated bottlers around the world that use the coke concentrates to make and bottle coke drinks as well as other noncoke affiliated beverages. Distribution system of coca cola company and business operations.
It has reliably used its valuing technique as an encouragement to test, expecting to transform trial into habit. Super markets, gas stations, and even clothing stores. Cokes distribution system is one of the most important and is very impressive compared to all other drinks in the category. Cocacola companys distribution strategy and suggestion. This is so because the manufacturer tries to distribute their product to every outlet possible. Discussion and analysis of the marketing strategy of coke zero 47 is a tool for deciding the main marketing strategy that should be used depending on whether both the product and market are either new or preexisting. Coca cola targeting and positioning universitas brawijaya. The effective distribution network of coke has almost eroded the small and middle level players in the market. Pepsico change in portfolio composition distribution strategy. This means that the beverage should be kept cold and chilled at all times when being distributed. Distribution strategies of pepsi t1 2016 mpk732 marketing. The company has more than 20 subbrands and the company obtains more than 1 billion us dollars in annual.
Oct 05, 2017 cocacola is the biggest nontechnology company in the world. Aug 15, 2017 coke vs pepsi cola wars case study solution. For almost a century, the company has been synonymous with one of the best ways to escape the excruciating heat by chugging the soft drink, and the addictive delicio. Feb 19, 2018 distribution channel strategy stanford strategic marketing of high tech and clean tech duration. How coca colas distribution system works 19 december 2010 by simon berry weve learnt a lot over the last two years or so about how the cocacola distribution systems work and we thought it would useful to summarise our current state of knowledge so that others can fill any gaps or correct any misconceptions. Coca cola is the worlds most favorite brand and is available all over the world. Pepsi came with pepsi challenge strategy where blind taste test were hosted by pepsi in order to differentiate itself as a better tasting product compare to coke. Coca cola position its products as refreshing and thirst quenching. Pemberton sold off his interest in cocacola and passed away two days after. This paper attempts to show how cocacola sabco has adopted innovative marketing and distribution strategies to penetrate the main market in. Coca cola s distribution channels essay 714 words bartleby. In other terms, an intensive distribution strategy is a plan that places products in many different locations for distribution. Strategic marketing plan coca cola 21 coke ought to focus on effective distribution strategy in pakistan. Heres how cocacola keeps its marketing strategy focused.
Pepsi is one of the leading beverage companies in the world. Dec 19, 2010 how coca colas distribution system works 19 december 2010 by simon berry weve learnt a lot over the last two years or so about how the cocacola distribution systems work and we thought it would useful to summarise our current state of knowledge so that others can fill any gaps or correct any misconceptions. Distribution channel strategy stanford strategic marketing of high tech and clean tech duration. Cocacolas strategy is to utilize its brands, distribution system, and financial strength to achieve longterm sustainable growth. Distribution channels varies in the company of cocacola due to the different locations and branches of the company. What makes coca colas marketing strategy so successful. This market model coke vs pepsi case study solution follows the more than 100year cola war between coke and pepsi when first starting to use the market model for market simulation, it is easier to think about this famous competitive battle when there were only two competitive products the 6. Cocacola has large distributions across the globe making it the largest distributor in the world. Coca soda pop the most important brand name in the world 77. Different type of distribution strategies that coke has to chaos. This strategy is aimed at ensuring that every customer gets satisfied whenever they use a cocacola brand.
Previous failed marketing strategies such as coke zero and desani. The most regular of these is diet coke, with others as well as caffeinefree cocacola, diet coke caffeinefree, cocacola cherry, cocacola zero, cocacola vanilla, and special editions with lemon, lime or coffee. There are three main types of distribution in international market including intensive, selective and exclusive distribution. To understand its product strategy, it is first important to know that cocacola is primarily a producer and marketer of concentrates and syrups. Cocacola sabco a case study in distribution to the. As a fast consuming commodity, the sales of soft drinks are expected to depend on the distributing channels. The cocacola company has time tointroduce other cola drinks under the coke brand name. The companys background the cocacola company was founded dr. The marketing strategy of coke zero 375ml cans is best described as market.
It means that the company had better set their retail store at some dense population places, such as shopping centre, leisure centre or some convenience stores. Marketing mix of coca cola 4 ps of coca cola coca cola 4. Coca cola marketing mix 4ps strategy mba skoolstudy. Companies in the beverage industry are able to use several technological advances such. Report contains more detailed discussion of the companys business strategy. I think cocacola good use of distribution strategy. Cokes position on consumers mind makes it essential to retailers, wholesalers and awayfromhome market. Estimating coke and pepsis price and advertising strategies. Pepsico business strategy and competitive advantage. The article talks about the marketing mix of coca cola and the. In 2014, cokes share a coke campaign enjoyed popular success with fans, and the company continued to capitalize on its success in 2015, when it rolled out share a coke 2. Cocacola companys distribution strategy and suggestion t1. It has the ability to improve the performance and profitability of a company. These products serve as the principal raw materials for the enduser beverage products of the company.
Apart from cola and soft drinks, the company also supplies water, juice, tea drinks, etc. Firm j does not observe firm is private information, so it does not know the conditional probability. Distribution channel of coca cola 1454 words bartleby. Coke as a brand in itself tries to substitute the entire soft drink. The success of distribution strategy is able to encourage the consumers make purchase decision right away. The cocacola companys distribution strategy marketing. The distribution process includes the physical handling and distribution of goods, passage of title and the buying and selling negotiations between producers and middlemen and between middlemen and consumers cateora and graham 1996. A soft drink giant, coca cola, is one such example which market aggressors since has been 1886.
Coca cola targeting and positioning segmentaonenablesbrandstode. The cocacola company is one of the largest manufacturers, distributors and marketers of. The products are said to bring joy, as apparent from coca colas latest tagline little drops of joy. Pdf coco cola marketing strategy and market plan ekin duran. Introduction marketing strategy is a longterm, forwardlooking approach to planning with the fundamental goal of achieving a sustainable competitive advantage. As a student at emory, i interned for coca cola b avid consumer of diet coke since 1988 c expert in distribution channel management since 1995 d coca cola policies prevented speaker from presenting door prize. Recognized as the worlds most valuable brand, coca cola is often associated with happiness.
The cocacola marketing and distribution essay example. Following is the distribution strategy of coca cola. One of cocacola key ingredient is its distribution system made of branded beverages available to consumers in more than 200 countries through a network of companyowned or controlled bottling and distribution operations, independent bottling partners. Coca cola marketing strategies and supply strategies have proven to be ineffective in pakistan for leaving pepsi behind. Distribution system of coca cola company and business.
An example for such successful implementation of marketing strategy is coca cola. The cocacola company can be looked upon as a global business that operates on a local scale and this has been possible because of the cocacola system that includes the company itself and its more 250 bottling partners across the globe. These then distributes them to retail outlets, milk bar and corner stores, restaurants, petrol stations and newsagents. Electric vehicles electric vehicles can offer benefits for regular, shorter journeys but are limited by the weight they can carry. Apart from cola and soft drinks, the company also supplies. Discussion and analysis of the marketing strategy of coke zero in. Coca cola being in the market for more than years and operating in more than 200 countries worldwide, it has developed excessive distribution network. Discussion and analysis of the marketing strategy of coke.
Firm j knows, however, the distribution of firm is private informa. We have trialed electric vehicles for glaceau vitaminwater deliveries in paris, france, completing more than 1,100 orders in. Depending on the type of product being distributed there are three common distribution strategies available. The report also illustrates the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, value chain analysis and mckinsey 7s model on pepsico. Coca cola, or coke is a carbonated soft drink manufactured by the coca cola company. The wide distribution network highlights the place strategy in coca cola marketing mix. The most dominant products distributed by cocacola are coke, fanta, sprite and diet coke. The cocacola company is a global business that operates on a local. From the beginning of its business, the cocacola has maintained a consistent brand image and identity through effective marketing, sales and distribution, and other business functions.
In china, you can see cocacola everywhere, they has used three major sales mode of operation. Every business irrespective of its size needs to have definite goals in order to expand the business. The cocacola company is a beverage retailer, manufacturer and marketer of nonalcoholic beverage concentrates and syrups. Distribution strategy of coca cola march 27th, 2011 the company is best known for its flagship product cocacola, invented by pharmacist john stith pemberton in 1886.
The products are associated with having a good time with friends and family and enjoying everyday life. Cola uses manual distribution centre mdc model which operates within. Products that are used every day and replaced often may be found in dozens of different retail outlets in any given area. It has thus based its strategy on diversification as its main brand is derived by subproducts maintaining a strong affiliation with coca cola.
Companies in this industry are able to integrate technology into their production system. Coco cola marketing strategy and market plan executive summary giant soft drink company coca cola has come under intense scrutiny by investors due to. Cokesolutions is the goto resource for information on the cocacola company products and equipment, food and beverage trends, and more. John stith pemberton, a local pharmacist, produced the syrup for cocacola, and carried a jug of the brandnew product down the street to jacobs pharmacy, where it was sold for five cents a glass. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Coca cola is one of the most leading company in soft drink beverage industry. Cocacola is the biggest nontechnology company in the world. The black population in south africa represents the main market when it comes to fastmoving consumer goods.
The brand development strategy of coca cola comprised redesigning. Didnt cocacola just nail marketing and reverse psychology in the above picture. Intensive distribution used commonly to distribute low priced or impulse purchase products eg chocolates, soft drinks. This article mainly deals with intensive distribution. Discussion and analysis of the marketing strategy of coke zero in the us market robert sarich, riasat zaman, and chinmoy misra coke zero 375ml cans as sold in vending machines were launched in the us market in 2005, as a sugarfree version of cocacola that maintains the same taste. The cocacola formula and brand was bought in 1889 by asa candler who incorporated the cocacola company in. Soft drinks is even one of the examples used for intensive distribution in the text. May 16, 2016 the success of distribution strategy is able to encourage the consumers make purchase decision right away.
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