COCA COLA DISTRIBUTION STRATEGY.

Valerie Y. Dela Cruz

9 Jun 202203:36

Summary

TLDRCoca-Cola, a global beverage giant, sells 1.9 billion products daily through a franchising distribution model. The company partners with local bottling and canning operations, distributors, and retailers to sell its products worldwide. Key bottling partners, including Coca-Cola Femsa, Coca-Cola Europacific Partners, Coca-Cola HBC AG, Coca-Cola Hellenic, and Swire Beverages, contribute significantly to the company's distribution network, representing 41% of total unit case volume. These partners combine concentrates with water and sweeteners to prepare and distribute the final beverages, ensuring Coca-Cola's iconic taste is enjoyed globally.

Takeaways

🌐 Coca-Cola products are sold extensively with 1.9 billion units sold daily worldwide.
📊 The company uses a franchising distribution model to sell its products through local channels and authorized partners.
🔄 Coca-Cola retains the right to manufacture and distribute its products while allowing bottling partners exclusivity in their territories.
🤝 They participate in sales and marketing activities with their bottling partners to boost the brand's presence.
🚚 The company delivers beverage bases and syrups to bottling operations, which then sell to retailers and customers.
💰 Coca-Cola saves on distribution costs by selling to bottling and canning operations, distributors, and wholesalers who further distribute to retail outlets.
🏪 Retail outlets like corner stores and convenience stores, as well as sari-sari stores in the Philippines, are part of the distribution network.
🔝 The top five independent bottling partners in 2021 accounted for 41% of Coca-Cola's total unit case volume.
📈 The largest bottling partners serve various regions including Latin America, Western Europe, Eastern Europe, and Asia.
🌟 The bottling partners combine concentrates with water and sweeteners to prepare, package, sell, and distribute the finished beverages.

Q & A

How many Coca-Cola products are sold worldwide every day according to the script?
-1.9 billion Coca-Cola products are sold worldwide every day.
What is the role of local channels in Coca-Cola's distribution?
-Local channels help Coca-Cola distribute its products across the world.
What does Coca-Cola typically agree to refrain from doing in its distribution agreements?
-Coca-Cola typically agrees to refrain from selling or distributing, or allowing authorized third parties to sell or distribute the company's trademark beverage in the identified territory.
What rights does Coca-Cola typically reserve for itself in its distribution agreements?
-Coca-Cola typically reserves the right to manufacture and distribute its trademark products and brands.
How does Coca-Cola participate in the sales and marketing activities of its bottling partners?
-Coca-Cola participates in the sales and marketing activities of its bottling partners, ensuring a collaborative approach to promoting the brand.
What does Coca-Cola deliver to bottling operations?
-Coca-Cola delivers the beverage bases and syrups to bottling operations.
What type of distribution model does Coca-Cola use?
-Coca-Cola uses a franchising distribution model, where they distribute outlets through company vendors.
How does the distribution model save money for the Coca-Cola company?
-The distribution model saves a significant amount of money on distribution by leveraging local partners and their established networks.
Who are the largest independent bottling partners of Coca-Cola, as mentioned in the script?
-The largest independent bottling partners in 2021 are Coca-Cola FEMSA, Coca-Cola Europacific Partners, Coca-Cola HBC, Coca-Cola Hellenic, and Swire Beverages.
What percentage of Coca-Cola's total unit case volume do these five bottling partners represent?
-These five bottling partners combined represented 41 percent of Coca-Cola's total unit case volume.
How do bottling partners prepare the finished beverages?
-Bottling partners combine the concentrates with water, sweeteners, and sometimes sparkling water to prepare, package, sell, and distribute the finished beverages.
What does the term 'taste the feeling' refer to in the context of the script?
-The term 'taste the feeling' is likely a slogan or marketing phrase associated with the Coca-Cola brand, suggesting an emotional connection to the taste of their products.

Outlines

00:00

🌐 Global Reach of Coca-Cola

The paragraph discusses the vast distribution network of Coca-Cola, which sells 1.9 billion products daily worldwide. It explains the franchising model used by the company, where it partners with local channels to sell its products exclusively within a territory. Coca-Cola retains the right to manufacture and distribute its products, while also engaging in sales and marketing activities with its bottling partners. The paragraph also mentions the role of bottling operations and retailers in the distribution chain, highlighting the cost-saving benefits of this model for Coca-Cola. It provides examples of independent bottling partners in the Philippines and lists the top five bottling partners that represent a significant portion of Coca-Cola's volume. The paragraph concludes by describing the process of how the final beverages are prepared and distributed by these partners.

Mindmap

Keywords

💡Coca-cola

Coca-cola is a globally recognized brand known for its soft drink products. In the context of the video, it represents the main subject, detailing its distribution and franchising model. The script mentions that 1.9 billion Coca-cola products are sold worldwide every day, highlighting the brand's massive global presence.

💡Distribution

Distribution refers to the process of making a product available to consumers through various channels. The video discusses Coca-cola's distribution strategy, which involves partnering with local channels and bottling operations to sell and distribute its products. This is crucial for the company's global reach and market penetration.

💡Franchise

A franchise is a business model where a parent company allows entrepreneurs to operate a business under its brand. The video explains that Coca-cola operates on a franchising distribution model, where it grants exclusive rights to bottling partners within a territory, ensuring a controlled and consistent brand experience.

💡Bottling Partners

Bottling partners are entities that collaborate with Coca-cola to manufacture and distribute its beverages. The script specifies that Coca-cola guarantees these partners exclusive rights within a territory, which is a key aspect of its franchising model and ensures a reliable supply chain.

💡Territory

Territory in this context refers to a geographical area where Coca-cola has granted exclusive rights to its bottling partners for the sale and distribution of its products. The video mentions that these territories are identified to ensure that each partner has a defined market to operate within.

💡Manufacture

Manufacture pertains to the process of producing goods, in this case, Coca-cola's trademark beverages. The video notes that Coca-cola reserves the right to manufacture its products, which is a strategic move to maintain quality control and brand integrity.

💡Retailer

A retailer is a business that sells goods to consumers. In the video, retailers are part of Coca-cola's distribution chain, selling the final beverages to customers. This includes corner stores, convenience stores, and other retail outlets that make Coca-cola products available to the end consumer.

💡Beverage Bases and Syrups

Beverage bases and syrups are the concentrated forms of Coca-cola products that are delivered to bottling operations. The video explains that these are combined with water and sweeteners to prepare the finished beverages, which are then packaged and distributed to retailers.

💡Sales and Marketing Activity

Sales and marketing activity involves promoting and selling products to increase revenue. The script mentions that Coca-cola participates in the sales and marketing activities of its bottling partners, which is essential for driving consumer demand and maintaining brand visibility.

💡Unit Volume

Unit volume refers to the quantity of products sold. The video uses the term to describe the significant amount of Coca-cola products distributed worldwide, with the top five bottling partners representing 41 percent of the company's total unit volume, indicating the scale of the company's operations.

💡Taste the Feeling

Taste the Feeling is a marketing slogan used by Coca-cola. The video ends with this phrase, which is likely part of a larger advertising campaign to evoke the sensory experience of enjoying a Coca-cola product, tying back to the brand's focus on consumer satisfaction and experience.

Highlights

1.9 billion Coca-Cola products are sold worldwide every day.

Coca-Cola distributes its products through various local channels.

Agreements ensure bottling partners' exclusivity in identified territories.

Coca-Cola reserves the right to manufacture and distribute its products.

The company participates in sales and marketing activities of its bottling partners.

Manufacturers deliver beverage bases and syrups to bottling operations.

Retailers sell and distribute the final beverages to customers.

Coca-Cola's distribution model is a franchising system.

The company saves significant amounts on distribution through this model.

Coca-Cola sells its products to bottling, canning operations, distributors, and retailers.

In the Philippines, sari-sari stores are key distribution outlets.

Top five bottling partners represented 41% of Coca-Cola's total unit case volume in 2021.

Coca-Cola Femsa serves Latin America.

Coca-Cola European Partners serves Western Europe, Australia, and Indonesia.

Coca-Cola HBC serves Eastern Europe.

Arca Continental serves Latin America and parts of North America.

Swear Beverages serves Asia and parts of North America.

Bottling partners combine concentrates with water and sweeteners to prepare finished beverages.

Coca-Cola's finished product operation includes company-owned or controlled bottling and distribution.

The iconic slogan 'Taste the feeling' encapsulates the brand's essence.