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Distribution & Channel

Management
Kamran Quraishi
Furqan Rafiq
Suleyman Batla
Hamza Azeem

Beverage
Industry in
Pakistan
To
minimi
ze the
cost
per

Existe
nce of
midsized
bottler
s Pepsi
Co
allianc
e with
Pak
Coca
bevera
Cola ges
also
joined
the
league
in 1996

Company Profile
CCBPL part of Coca Cola
Icecek; sixth largest KO
bottler.
Presence in ten countries
including in Pakistan.
Completion of acquiring of
all the bottlers across
Pakistan in 2006.
Six plants, 13 warehouses;
Production capacity of 275
million unit cases.

Mission & Vision


Vision
To become a market leader in ready to drink segment while adding
best-in-class value to all stakeholders.
Mission
Coca-Cola Pakistan exists to refresh the consumers, inspire
moments of optimism through our brands and actions as well as
benefit all stakeholders, which we will do with highest social
responsibility and with uncompromising commitment towards
quality of our products and integrity in our operations

Product Portfolio

Geographical Layout

GM
Pakistan

Regional
Director South
- Marketing &
Sales

Organization
al Hierarchy

Territory
Commerci
al
Manager
(KHI)

National
Key
Account
Manager

Distributo
r
Developm
ent
Manager

Regional
Sales
Managers

Key
Accounts
Manager

Distributo
r Advisor

Sales
Managers

Key
Accounts
Executive

Market
Developm
ent
Officers

Pre Sales
Officer

CFO

Director
Supply
Chain

Territory
Finance
Managers

Territory
Operation
Managers

Regional
Director
Central Marketing &
Sales

Territory Design
7 Territories

Regions

Zones
Ar
ea
s

Plant

Channel
Goods Flow

18
Warehous
es (Sales
Centers)

Distributo
rs

Wholesale

Dealers/S
mall
Retailers

Retail

Sub
Distributo
rs

Source
Matrix
Supply

Direct
Retail

Local
Chains

National
Chains

Warehous
es of other
territories

Channel Design

Cokes
Coverag
e is
27,000
CSD
outlets

CSD
Universe
of
51,000
Outlets
15
KM
Distribution
center

Pepsis
coverag
e is
36,000
CSD
outlets

Indirect
Channel

Rural
Channel
Design

Distribu
tor
Sub
Distribu
tor
Satellit
e Town

Satellit
e Town

Satellit
e Town

Case Base Satellite Model


Tando
Adam

Laiya

Thatt
a

Sakro

Tando
Alahy
ar

Essentials of Route Planning

Outlets
Volume
Geographical distance

Trade Classification

Outlet Categorization
White
:

0-399 crates/year

Bronz
e:

400 999

Silver:

1000 - 2999

Gold

3000 9999

Diamo
nd

10,000+

Conversion of an OutletConsiderations

Previous bills of the


Capacity
Emptyoutlet
of
crowns
the shop

Project Distributor Development


Management - Objectives
Transf
er
distri
butor
s to
presellin
g
mode
l

Devel
op
new
mark
ets
and
new
distri
butor
s.

Ensu
re
distri
butor
s
ROI.

Assist
distrib
utors
in
install
ing
Voyag
e
while
also
ensur
e its
use.

Ensure
syste
m
invent
ory
numbe
r and
physic
al
count
is the
same.

Explo
re
new
aven
ues
for
existi
ng
distri
butor
s

Project Distributor Development


Management Action Plan

Alignment of Sales
& Marketing

From Purely
Geographic
to Channel
Based &
Geographic

Sales Force
Evaluation
(SFE)

Implementati
on of ERP,
Voyage

Distributor
Advisory

Sales Force
Compensatio
n

Things to look upon

Channel
Conflict

Overlappi
ng
Territories

Standard Operating Protocol Enrichment


Engageme
nt - GOLD

Effectivene
ss- GREEN

Efficiency RED

Sales Force
Evaluation

Sales Force Evaluation


Effectiven
ess GREEN

Call
Completio
n

Strike Rate

Unschedul
ed Calls

Engagemen
t - GOLD

Weighted
Outlet

Employee
Turnover
Efficiency R.E.D

Right

Execution

SKUFull
PerIn
Order
Availability
of stock

Key Business Indicators (KBIs)

Merchandisi
ng at POPs
& POCs

Daily

Compensati
on

Employee
Well Being

Cold Availability

Cooler

POP

35%
3 Coke, 2 Sprite and 1

30%

25%
Disc Sign/Flag or Wall paint

Fanta 250 ml RGB or Cans

or Counter Branding or

(15%)
1 Coke, 1 Sprite and 1

Fanta 1500 ml (1.5 liter)

80% Exclusive

PET

(15%)

Shop Sign (5%)


Price Communication (5%)
Poster Placement (5%)
1.5 display ( at least one
facing of each flavor Coke,

(10%)

Sprite and Fanta)

(10%)

Diamond
And
GOLD

1 Coke, 1 Sprite and 1

Fanta 1000 ml or 500 ml

PET
(10%)

1L or 2.25L display ( at
80% Fullness
(15%)

least one facing of each


flavor Coke, Sprite and
Fanta)
(10%)

Voyage - ERP
Connected to all distributors
Codification
PDA
Bar code reader

PSO
Converts an
Outlet

Data entered
into Voyage
by KPO
(Distributor)

Outlet
Acceptance
by CCBPL

Agreement
Formed

Outlet
Master
Sheet
Created

Confirmation
of Discounts
etc for
Outlets

Camera
GPS
Real time stock update
Linked to SFE, PJPs

Distributor Advisory
There were around 530 distributors all across Pakistan in
2014. Currently there are 506.
Target Setting
Ensuring distributors ROI
Van Optimization

Distributors Target Settings


Filling of an Outlet Master
Sheet
Empty crowns
Previous bills of the outlet
Capacity of the shop
Size
Average footfall
Position of the outlet in the

Van OptimizationVehicle
Utilization=
Load in/Total
Capacity

No. of
outlets

Volum
e
Geogr
aphica
l
Distan
ce

To provide
maximum
ROI per PJP

Stock Return
Rate = Load
in/ Load out;
Must be >
2%
Trippage; ratio of
repeat visits to
complete a route;
Trippage = No. of
trips/No. of Vans

Van Optimization: DATA FOR 6 BRACKET VAN/Pellet


144 cases

500 ml

64 cases

Jumbo

110 cases

1.5 Litre

140 cases

1 Litre

144 cases

Small Kinley

140 cases

Large Kinly

240 cases

Can

310 cases

Slim Can

140 cases

Minute Maid Large

196 cases

Minute Maid Small

Sales Force Recruitment & Compensation


Salary

Fixed

Variable

Commission on
80% of target
achievement

Incentives on &
100% to 140%

Coca Colas Back


Checking

Cool Inn (core Pepsi Account)


Level of Service Extremely slow as compared to
competition.
Twice a week only as compared to Pepsi.

Pepsi Co. is stores T.O.M.

Kareem Medical (Core Pepsi


Account)
Pepsi Co. won this store based on first-mover
advantage.
Owner personally liked Coca-Cola however they never
approached.

Nihal General Store (Server of Both


Brands)
Drastic differences between
service of two leading brands.
Van is always short of stock
despite pre-ordering.
Entire range of brands never
available.
Weak sales force
representatives.

New Shop and Go.


A total of 12 units of CCBPL available
inside.
Purchase manager (Naveed) extremely
dissatisfied.

Dilbahar Milk
Milk shop has Cokes chiller at store.
Bought for 15,000 from a hawker.

Chai dhaba

Krunch Food
Core Pepsi Account.
Customers frequently
inquire about Coca-Cola.
GAP Situation.

Roll In
Extremely popular food chain of
the area.
An old and loyal customer of
Pepsi.
Yasin Seths personal involvement
in case of issues.

Amigos
Daily visited by Pepsi Co.
Prompt delivery in case of urgent orders.
Plays on cash margin Gap Area for Coca-Cola.

Hanifia
One of the oldest food chains of the
city.
Zero Stock Situation for Coca-Cola.
Extremely dissatisfied with Coca-Cola
based on direct comparison with Pepsi.
Excellent assortment for Pepsi.
Poor asset maintenance by Coca-Cola.
Entire range of ordered stock is never
available. Order Cancellation and
Return.

Mottas:
One of the biggest super markets of
the area.
Drastic difference between services of
two competing brands.
Coca-Cola cant even be seen in the
market, let alone in the outlet.
Delay in decision making by Coca Cola.

Spicy Chicken (mix)


Coca-Cola team has not
visited the store for the past
3 days.
Zero asset maintenance.
Full order never available.

7star Juice & Cold Spot


Entire shop developed by
Pepsi.
Floor to counters to lights,
totally Pepsi dominated.

Key Highlights
Irregular visits in the market.
Lack of effort in both, product availability and customer
servicing.

Recommendations
Investment in the Marketplace
Investment in production capacity to address supply
chain issues
To devise outlet wise MoQs to optimize
assets/chillers
Pulling back of assets if not filled with Coke
exclusively or 80%
Monitoring to ensure strict following of PJP