Coca-Cola Company’s distribution strategy and suggestion

The company’s background

The Coca-Cola company was founded Dr. John S. Pemberton in 1886 in Atlanta (The Coca-Cola company 2016). Now, the company has become the largest beverage company in the world (The Coca-Cola company 2016). The company has more than 20 sub-brands and the company obtains more than 1 billion US dollars in annual sales (The Coca-Cola company 2016).

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Distribution method

The Coca-Cola company has a specific distribution method. Due to the ingredients of Coca- Cola is a trade secret. Thus, the Coca-Cola manufacturer delivers the beverage bases and syrups to bottling operations (Coca-Cola Australia 2016). Then, the retailer sells distribution the final beverage to the customers (Coca-Cola Australia 2016). Therefore, it is one of the franchising distribution methods. This type distribution method brings some benefits for the Coca-Cola company. For example, the Coca-Cola company only need afford the transportation fee between manufacturer to the bottling operations. Then, the bottling operations and retailers will afford the transportation fee to customers. Therefore, the Coca-Cola company will save plenty of cost for distribution.

The Coca-Cola face the problems in distribution field

However, the Coca-Cola also facing some challenge in the distribution field. For example, the Coca-Cola company has incredible distribution problems, lack of internal communication, high cost in the distribution process and customer loyal problems (Stewart 2014). Therefore, this blog will provide some suggestion for Coca-Cola base on the marketing concept in the distribution field.

How to improve the Coca-Cola company distribution

For the incredible issue, the Coca-Cola company should establish a sophisticated distribution systems (The Coca-Cola company 2016). The systems may involve several key functions. For example, the inventory management, orders for shipment, order status, electronic map, customers management, account collection. The functions may help the Coca-Cola company according to the orders location to design the shortest route to deliver their productions. Moreover, the systems should have the real-time update functions because it is important for the company’s manger control and communication.

For the customer loyal problems, the Coca-Cola company should adopt the intensive distribution strategy (Kumar 2016). It means that the company had better set their retail store at some dense population places, such as shopping centre, leisure centre or some convenience stores. The retail store should be set on the place which is easy to help the consumers purchase their productions. At the same time, the company may use the pull strategy to promotion their production (Iacobucci 2014, p.131). For example, the Coca-Cola company should focus on the customers. It can accredit the retail store giving some discount for the customers in a period. The company should provide some free sample to customers and giving their some loyalty points (Iacobucci 2014, p.131). Moreover, the company should increase some advertises to consumers. For example, the company may choose the paint in red billboard in some supermarkets or retail store (Iacobucci 2014, p.131). This type billboard may attractive the customers attentions. Then, it will stimulate the customers purchase activities. Therefore, the pull strategy may improve the customer’s loyalty and customer’s relationship with the company.

Link: http://www.coca-colacompany.com/brands/billion-dollar-brands/

http://www.marketing91.com/marketing-mix-coca-cola/

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Conclusion

In conclusion, the Coca-Cola company relies on the franchising distribution method to develop their company. The franchising distribution method helps the company saving some cost for delivery. However, the Coca-Cola company facing some challenges, such as the communication and customers loyal problems. According to these problems, the company should establish a distribution system and cooperate the pull strategy to address these problems.

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Student ID: 212059758

Reference list

Coca-Cola Australia 2016, About The Coca-Cola System, Coco-Cola Australia, retrieved 10 May 2016,

< http://www.coca-colacompany.com/brands/billion-dollar-brands/ >.

 

Iacobucci, D (2014) Marketing Management (MM4), South-Western, Cengage Learning, Mason.

 

Kumar A 2016, Marketing mix of Coca Cola – Coca cola marketing mix, retrieved 11 May 2016, < http://www.marketing91.com/marketing-mix-coca-cola/>.

 

Stewart J 2014, For Coke, Challenge Is Staying Relevant, the New York Times, retrieved 11 May 2016,

<http://www.nytimes.com/2014/03/01/business/challenges-for-coke-to-stay-on-top.html?_r=0&gt;.

 

The Coca-Cola company 2016, Our Billion-Dollar Brands, Coca-Cola, retrieved 10 May 2016, < http://www.coca-colacompany.com/brands/billion-dollar-brands/ >.

 

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