Sie sind auf Seite 1von 37

Sales and Distribution Management

Group 7
LBSIM, New Delhi

Flow of Presentation

Company Overview
Product Specifications
Business Model
Market Classification, Segmentation
Sales Organization Structure
Sales Force Motivation
Forecasting, Distribution Model
Coke vs. Pepsi
Logistics, Product Flow
Performance Management
Promotional Schemes
Margins & Financials
Recommendations

Company Overview
Coke re-entered India in 1993
Coke India comprises of:
Coca-Cola India
Hindustan Coca-Cola Beverages
Franchisee bottling operations

Coke globally serves 500 brands in 200 countries @ 1.7


billion servings per day
Operates a franchised distribution system 1889
Market Cap: $167.25 Billion (Global)
Revenues: $46.542 Billion (Global)
Employees = 25K direct & 150K indirect (India)

Product Specifications

Contd.

Promotional Schemes
Soft drinks:
600ml 1case + 2x500ml soda free
600ml 2case + 5x500ml soda free
2 litre 1case + 2x500ml soda free
1.25litre 1case + 1.25litre Limca free (1.5litre out of stock)

Juice:
1.25litre 1case Mazaa + 1.25litre Mazaa free

Water:
5box (15x5) + 1box free

Energy drink:
1box (24pcs) + 4pcs free

Business Model
Manufactures & distributes
Concentrates
Syrups

Bottlers make the final beverage through


COBO
FOBO

Each bottler has an exclusive territory


Actual formulations are tightly held trade secrets

Business Model
Coca-Cola India

Manufactures
Concentrate, Beverage
base and Syrup

Regional Bottlers
COBO/FOBO

Manufactures finished
Bottles/Cans/Fountain
Syrup

Customers

Consumers

Market Classification
Market Classification

Geographical Area

Geographical
Internationally Coke segments its product
Country & region wise
Variations as per tastes & income

Competition
Presence of players such as:
Pepsi
RC Cola

Competition

Segmentation Model
Outlet Type

Market Clustering
Based on Income Level
of Locality

Grocery

Channel Clustering Based


on Consumption Occasion

Restaurant
Outlet Clustering

Convenience

Outlet Volume

<200

Consumer
Choice

200-499

500-799

>800

Organizational Structure
Chair Person
G.M.
Marketing Manager

Accounting Dept.

Shipping Deptt.

Factory Manager
Marketing Manager

Production Manager

Quality
Control
Sales Manager O/S

Sales Manager (Base)

Sales Officer

Sales Officer

Sales Supervisor

Sales Supervisor

Sales Man

Sales Man

Distribution Officer

Mechanical
Engineer
Shipping Manager
Shipping Officer

Shipping

Personnel Manager

Sales Organization Structure


AGM

Sales Manager

Area Sales Manager

Sales Executives

Market Development Executive / Pre-sellers

Recruitment & 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:


Group Exercise
Interview
Presentations
Psychometric tests
Situational Exercises

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:
TV, Fridge, etc.
Certificates / trophies
Lunch / outing with senior management, etc.

Foreign trips for managerial level & above

Rewards at Coke
Yearly Basis

Monthly
Basis

Quarterly
Basis

Employee salary increment


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

Making the move (MTM, sales target achieve)


Monthly turn hall (extraordinary performance)

Employee of the Quarter (EOQ, non sales)


Sales Dangle context
Gold Context

Forecasting
Combination of top down and bottom up approach

Forecasts based on factors such as:


Historical data
Economic parameters

Seasonal variation
Festivals, ceremonies, etc.
Weekly reviews to adjust monthly forecasts

Forecasts are region-wise, they are further broken down into


cities, towns and villages by sales managers

Distribution
Distribution Routes
Key Accounts
Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.
Future Consumption
Examples: Departmental stores, Super markets etc.
Immediate Consumption
Examples: Small sized bars and restaurants, educational institutions etc.
General

Distribution
Area wise distribution & promotion schemes
Focus on high traffic locations
Railway stations
Bus stand

Coke India distributes using 2 routes


Direct
Indirect

Direct Route

Plant

Market

Warehouse
Indirect
Route

Distributor

Market

Cont.
3 COBO Regions 27 COBO units
1 FOBO Region 12 FOBO units

COBO

Company owned
bottling operations

FOBO
Franchisee owned
bottling operations

Distribution Structure

Direct

Indirect

Manufacturing Plant

COBO

Primary

Direct

FIFO

Company Owned Depot


On Order

Secondary

&
Ready
Stock

Retailers

(Diamond / Gold / Bronze)

Tertiary
Customers

3 Day
Inventory
Home Delivery
Agent

Distribution Structure

Direct

Indirect

Manufacturing Plant

FOBO

Indirect
Secondary
Distributors
cover:
500-600
outlets

Requirements to
become distributor:

Distributors
Secondary

FDA license

Retailers

(Diamond / Gold / Bronze)

Tertiary
Customers

Capacity to hold 5
days stock

Shop establishment
certificate
Electricity bill
Address proof
Bank statement

Pepsi India

COMPANY

COBO

FOBO

WAREHOUSE

C&F

DISTRIBUTOR

SALESMEN

WHOLESALER

RETAILER

CUSTOMER

SALESMEN

SLUMS

RETAILER

CUSTOMER

Delhi-NCR

No return

Full Coverage - 59
Routes

Retailers Loss

Owned & contracted vehicles


56 Owned Vehicles

Retailer Handling
45 Pre- sellers

Transporting Vans
1 Driver + 2 Loaders

Distributors Functions
PARAMETER
Bulk Breaking

Depends upon location

Warehousing

Storage & safety

Transportation
Market Information
Sourcing

Distributor to retailer

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

Logistics
PARAMETERS
1) Average order size

a) Distributor to company
b) Retailer to Distributer

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

3) Transit Time
4) Order frequency

Based on Demand, Season

Phone
Distributor Representative
2 Days
Daily

Logistics
PARAMETERS
5) Inventory Maintained
6) Unsold/Damaged
Merchandise

7) Technology
8) Mode of Transportation
(company to distributor)

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

10)Warehousing
a) Storage Capacity
b) Ownership

11) Stock keeping responsibility

1 day
Replaced
a) A/C Keeping
b) Stock keeping
c) Complaint Handling
Company vehicle

Company
Distributor
Minimum 30 m2
Owned / Rented
Stock keeper

Flow of The Product

Pre-seller goes on
his route and
books the orders

Order is
registered on the
server through
GPRS on the spot

On a
tablet or
Blackberry

Order is
processed
Load sheet is
released

Loading the
vehicles is done
by the C&F
people

Contd.
First vehicles
leaves at 6am
All vehicles
leave by 9.30am

Cannot
take more
than order

Product delivery
Empty bottles
are collected

Trucks return to
depot
Unloading takes
place

Only cash
except for a
few

Records are
tallied
Cash submission

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.

Margins
Margins 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
Coco-Cola
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 N/A
b)Distributor to retailer
Can provide.
ii) Credit period

One month(for retailers)

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

thank you

Das könnte Ihnen auch gefallen