Distribution Channels of Coca
Distribution Channels of Coca
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.
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.
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.