Sales and Distribution

VV

Team Members:

Ayush Manan 13DM049

Surinder singh 13DM197
Sumit Rekhi 13DM195
Tushar Mittal 13DM205
Udit Jain 13DM206
Table of Content

S.No Index Page Number

1. COMPANY OVERVIEW 3-4

2. PRODUCT PORTFOLIO 4

3. MARKET CLASSIFICATION 6

4. ORGANIZATION STRUCTURE 7

5. SALES ORGANIZATION STRUCTURE 8

6. RECRUITMENT AND SELECTION 9

7. FORECASTING 10

8. DISTRIBUTION STRUCTURE 12

9. LOGISTICS 15

10. FLOW OF THE PRODUCT 16

11. FINANCIALS 17

12. LEARNINGS and RECOMMENDATIONS 18

2|Page
COMPANY OVERVIEW

The Coca-Cola Company re-entered India through its wholly owned subsidiary,
Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the
opening up of the Indian economy to foreign investments in 1991. Since then its
operations have grown rapidly through a model that supports bottling operations,
both company owned as well as locally owned and includes over 7,000 Indian
distributors and more than 2.2 million retailers.

Today, their brands are the leading brands in most beverage segments. The Coca-
Cola Company's brands in India include Coca-Cola, Fanta Orange, Limca, Sprite,
Thums Up, Burn, Kinley, Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu
Fresh and the Georgia Gold range of teas and coffees and Vitingo (a beverage
fortified with micro-nutrients).

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-
Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells
concentrate and beverage bases and powdered beverage mixes, a Company-owned
bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen licensed
bottling partners of The Coca-Cola Company, who are authorized to prepare,
package, sell and distribute beverages under certain specified trademarks of The
Coca-Cola Company; and an extensive distribution system comprising of our
customers, distributors and retailers. Coca-Cola India Private Limited sells
concentrate and beverage bases to authorized bottlers who are authorized to use
these to produce our portfolio of beverages. These authorized bottlers independently
develop local markets and distribute beverages to grocers, small retailers,
supermarkets, restaurants and numerous other businesses. In turn, these customers
make our beverages available to consumers across India.

A National Council of Applied Economic Research (NCAER) study on the

carbonated soft-drink industry indicates that this industry has an output multiplier
effect of 2.1. This means that if one unit of output of beverage is increased, the direct
and indirect effect on the economy will be twice of that. In terms of employment, the
NCAER study notes that "an extra production of 1000 cases generates an extra
employment of 410 man days."

As a Company, our products are an integral part of the micro economy particularly in
small towns and villages, contributing to creation of jobs and growth in GDP. Coca-
Cola in India is amongst the largest domestic buyers of certain agricultural products.
As an industry which has strong backward and forward linkages, our operations
catalysis growth in demand for products like glass, plastic, refrigeration,

3|Page
transportation, and Industrial and agricultural products. Their operations also lead to
incremental growth for enterprises engaged in post-production activities like
merchandising, marketing and sales. In addition, they share best practices and
technological advancements with our suppliers, vendors and allied industries which
often lead to improvement in the overall standards of quality across industries.

COBO: Company owned bottling operations

FOBO: Franchisee owned bottling operations

PRODUCT PORTFOLIO

1. CARBONATED BEVERAGES

A. COCA COLA

4|Page
 B. LIMCA

C. THUMS UP

D. SPRITE

E. FANTA

F. DIETCOKE

2. NON CARBONATED BEVERAGES

A. MAAZA

5|Page
 B. KINLEY

C. MINUTE MAID PULPY ORANGE

D. GEORGIA

MARKET CLASSIFICATION

Market Classification

Geographical Area Competition

6|Page
Geographical - Internationally Coke segments its product

Country & region wise

Variations as per tastes & income

Competition-Presence of players such as:

Pepsi

Parle

Dabur

ORGANIZATION STRUCTURE

7|Page
SALES ORGANIZATION STRUCTURE

AGM

Sales Manager

Area Sales Manager

Sales Executives

Market Development Executive / Pre-

sellers

RECRUITMENT AND SELECTION

Coca-Cola recruitment process is well established, they give ads in newspaper,

companys website, institutions,etc.

Coca-Cola recruits MTs from premier B schools.

They mostly offer PPOs to the Summer Interns.

SELECTION PROCESS INVOLVES:

i. Group Exercise
ii. Interview
iii. Presentations
iv. Psychometric tests
v. Situational Exercises

8|Page
TRAINING

Coca-Cola India partners with Indian School of Business (ISB) to launch the Coca-Cola
ISB Retail Academy

The Parivartan program - Training small town retailers. Cokes new strategy
involves training retailers (around 6,000 of them) in a program launched by the
Coca-Cola University

PERFORMANCE RATINGS

Exceptional performance (EP)-Contributions significantly exceed the stated

objectives in terms of quality, quantity and timeliness

Successful performance (SP) Contributions meet and sometimes exceed the

objectives, which are based on challenging goals

Developing performance (DP)-Contributions meet some / most but not all of the
objectives and performance improvement is necessary

No Performance (NP)-Contributions frequently do not meet the stated objectives.

SALES FORCE MOTIVATION

Incentives based on quarterly performance

No. of units and/or total revenue, work as a base for incentives

Every executive needs to add new outlets every year to get UNIT incentives

Target achievers are recognized by giving:

A. TV, Fridge, etc.

B. Certificates / trophies
C. Lunch / outing with senior management, etc.

Foreign trips for managerial level & above

9|Page
REWARDS AT COCA COLA

Employee salary increment

Grade Jump, Designation change
Yearly
Annual incentive Plan (AIP) (for business performance,
Basis but fixed)
Personal Progress report (PPR) (Annual Appraisal)

Monthly Making the move (MTM, sales target achieve)

Basis Monthly turn hall (extraordinary performance)

Employee of the Quarter (EOQ, non sales)

Quarterly Sales Dangle context
Basis Gold Context

FORECASTING

Combination of top down and bottom up approach

Forecasts based on factors such as:

A. Historical data

B. Economic parameters

C. Seasonal variation

D. Festivals, ceremonies, etc.

E. Weekly reviews to adjust monthly forecasts

Forecasts are region-wise, they are further broken down into cities, towns and
villages by sales managers.

10 | P a g e
DISTRIBUTION

DISTRIBUTION ROUTE

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 of 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.

It Focus on high traffic locations-Railway stations, Bus stand.Coke India distributes using
2 routes

Direct Route
Indirect Route

Direct
Market
Route

Plant Warehouse
Indirect
Distributor Market
Route

11 | P a g e
 3 COBO Regions 27 COBO units
1 FOBO Region 12 FOBO units

DISTRIBUTION STRUCTURE

Direct Route: Direct On Order & Ready Stock

12 | P a g e
 Indirect Route: Distributors cover: 500-600 outlets

DELHI-NCR DISTRIBUTION
Distribution of Coca-Cola includes full Coverage of Delhi-NCR with 59 Routes spread across
region. The Retailer is Handling 45 Pre sellers. Company owned & contracted vehicles for
efficient distribution. The vehicles owned by company are 56 particularly for this region
only. Each of the transporting vans of company has one driver and two loaders to efficiently
load and unload goods.

13 | P a g e
DISTRIBUTORS FUNCTIONS

Bulk Breaking Depends upon location

Warehousing Storage & safety

Transportation Distributor to retailer

Customer Intelligence

Market Information Sourcing Competitor Intelligence

Consumer tastes & preferences

Maintaining a) Signage

a) Visual Merchandising b) Interior ambience

b) Banners, posters, etc. c) Overall environment

Problems faced by distributor

From company : discounts/incentives given at the end of the month

From retailer : bad debts/run away

14 | P a g e
LOGISTICS

1) Average order size

a) Distributor to company Based on Demand, Season

b) Retailer to Distributer

2) Order placement
Phone
a) Distributor to company
Distributor Representative
b) Retailer to distributer

3) Transit Time 2 Days

4) Order frequency Daily

5) Inventory Maintained 1 day

6) Unsold/Damaged Merchandise Replaced

a) A/C Keeping

7) Technology b) Stock keeping

c) Complaint Handling

8) Mode of Transportation
Company vehicle
(company to distributor)

9) Transportation Expenses
Company
a) Company to Distributor
Distributor
b) Distributor to retailer

10)Warehousing
Minimum 30 m2
a) Storage Capacity
Owned / Rented
b) Ownership

11) Stock keeping responsibility Stock keeper

15 | P a g e
FLOW OF THE PRODUCT

9am-6pm 11pm-6am
Pre-seller goes Order is
on his route and Order is processed Loading the
books the orders registered on the Load sheet is vehicles is done
server through released by the C&F
GPRS on the spot people
9am- 6pm 6pm-11pm

9.30am-
11pm
First vehicles 8.30pm Trucks return to
leaves at 6am Product delivery depot Records are tallied
All vehicles leave Empty bottles are Unloading takes Cash submission
by 9.30am collected
place

8.30pm-
6am-9.30am
11pm

PERFORMANCE MANAGEMENT
RED Strategy Right Execution Daily

Tool to measure the performance of the distributor in the outlet by setting some
standard or parameter of execution.

RED

Check Visi-Cooler Management

Availability of the product in the outlet

Check the activation in the outlet

Market Developer checks 25 outlets a day and report to HCCBL on the score of 100

16 | P a g e
MARGINS
A margin per crate (comprising 24 bottles of 300 ml each) is Rs 20.

On the 200 ml pack size, margin is Rs 16 per crate.

Sales of the more affordable 200 ml pack size account for about 60 per cent of its
total carbonated soft drink (CSD) sales.

Non-CSD business accounts for 15 per cent.

Outsourced distribution so that trucks and other equipment needed for the purpose
are no longer owned by the company.

FINANCIALS

Profit Margin

a) To distributors 1-1.5%

b) To retailers 2-3%

Advance payment

a) to company 1,00,000

b) for refrigerators 5,000

Credit terms and policies

i) Credit amount N/A

a)Company to distributor Can provide.

b)Distributor to retailer

ii) Credit period One month(for retailers)

17 | P a g e
LEARNINGS

The real time order processing system through use of technology helps reduce the
lead time
24hrs working i.e. the loading cases in the night saves valuable time

RECOMMENDATIONS

Pre-sellers shouldnt be looked at as an extra cost. On the contrary, since their

inception sales have risen
Order devices at Diamond outlets can facilitate quicker order placement.

18 | P a g e
REFERENCES

http://www.coca-colaindia.com/products/our_products.html
http://www.coca-colaindia.com/presscenter/cleanDrinkingWaterFacilities.html
http://www.coca-colaindia.com/products/product_list_desc.html

19 | P a g e