The project describes the sales and distribution network adopted by coca cola beverages in india. It mentions the problems which are faced by the company.

1. VV
Sales and Distribution
Team Members:
Ayush Manan 13DM049
Surinder singh 13DM197
Sumit Rekhi 13DM195
Tushar Mittal 13DM205
Udit Jain 13DM206

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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

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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,

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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

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B. LIMCA
C. THUMS UP
D. SPRITE
E. FANTA
F. DIETCOKE
2. NON CARBONATED BEVERAGES
A. MAAZA

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B. KINLEY
C. MINUTE MAID PULPY ORANGE
D. GEORGIA
MARKET CLASSIFICATION
Market Classification
Geographical Area Competition

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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

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SALES ORGANIZATION STRUCTURE
RECRUITMENT AND SELECTION
 Coca-Cola recruitment process is well established, they give ads in newspaper,
company’s website, institutions,etc.
 Coca-Cola recruits MT’s from premier B schools.
 They mostly offer PPO’s to the Summer Interns.
SELECTION PROCESS INVOLVES:
i. Group Exercise
ii. Interview
iii. Presentations
iv. Psychometric tests
v. Situational Exercises
AGM
Sales Manager
Area Sales Manager
Sales Executives
Market Development Executive / Pre-
sellers

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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. Coke’s 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

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REWARDS AT COCA COLA
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.
•Employee salary increment
•Grade Jump, Designation change
•Annual incentive Plan (AIP) (for business performance,
but fixed)
•Personal Progress report (PPR) (Annual Appraisal)
Yearly
Basis
•Making the move (MTM, sales target achieve)
•Monthly turn hall (extraordinary performance)
Monthly
Basis
•Employee of the Quarter (EOQ, non sales)
•Sales Dangle context
•Gold Context
Quarterly
Basis

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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
Plant Warehouse
Direct
Route
Market
Indirect
Route
Distributor Market

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 3 COBO Regions – 27 COBO units
 1 FOBO Region – 12 FOBO units
DISTRIBUTION STRUCTURE
 Direct Route: Direct On Order & Ready Stock

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 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.

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DISTRIBUTORS FUNCTIONS
Bulk Breaking Depends upon location
Warehousing Storage & safety
Transportation Distributor to retailer
Market Information Sourcing
Customer Intelligence
Competitor Intelligence
Consumer tastes & preferences
Maintaining
a) Visual Merchandising
b) Banners, posters, etc.
a) Signage
b) Interior ambience
c) Overall environment
Problems faced by distributor
• From company : discounts/incentives given at the end of the month
• From retailer : bad debts/run away

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LOGISTICS
1) Average order size
a) Distributor to company
b) Retailer to Distributer
Based on Demand, Season
2) Order placement
a) Distributor to company
b) Retailer to distributer
Phone
Distributor Representative
3) Transit Time 2 Days
4) Order frequency Daily
5) Inventory Maintained 1 day
6) Unsold/Damaged Merchandise Replaced
7) Technology
a) A/C Keeping
b) Stock keeping
c) Complaint Handling
8) Mode of Transportation
(company to distributor)
Company vehicle
9) Transportation Expenses
a) Company to Distributor
b) Distributor to retailer
Company
Distributor
10)Warehousing
a) Storage Capacity
b) Ownership
Minimum 30 m2
Owned / Rented
11) Stock keeping responsibility Stock keeper

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FLOW OF THE PRODUCT
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
•Pre-seller goes
on his route and
books the orders
9am- 6pm
•Order is
registered on the
server through
GPRS on the spot
9am-6pm
•Order is
processed
•Load sheet is
released
6pm-11pm
• Loading the
vehicles is done
by the C&F
people
11pm-6am
•First vehicles
leaves at 6am
•All vehicles leave
by 9.30am
6am-9.30am
•Product delivery
•Empty bottles are
collected
9.30am-
8.30pm •Trucks return to
depot
•Unloading takes
place
8.30pm-
11pm
•Records are tallied
•Cash submission
11pm

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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
b) To retailers
1-1.5%
2-3%
Advance payment
a) to company
b) for refrigerators
1,00,000
5,000
Credit terms and policies
i) Credit amount
a)Company to distributor
b)Distributor to retailer
N/A
Can provide.
ii) Credit period One month(for retailers)

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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 shouldn’t 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.

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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