Name : Harshit Agrawal
2nd year Marketing
Assignment: Channel Management at Coke
Channel Management is a mechanism where the organization establishes different marketing
methods and distribution strategies to meet the broadest customer base possible. The channels
are merely ways or outlets for marketing and selling products. Any organization's ultimate aim is
to develop a better relationship between the client and the product. Management of channels
helps establish a system for selling and servicing customers through a particular channel. The
aim is to streamline contact between an organization and the client. To do so, you need to
classify your networks according to your customer's characteristics: their preferences, purchasing
habits, success factors, etc., and then develop a plan that includes targets, strategies, goods,
sales , and marketing. The aim of channel management is to create direct customer contact in
each channel. If the organization can accomplish this aim successfully, the management would
have a clearer understanding of which marketing strategy best serves the specific client base. The
strategies used in each channel may be different, but the overall approach must still clearly brand
the company in the communication.
A company must decide what it needs out of each channel and also clearly establish the structure
for achieving desired outcomes for each of those channels. Identifying the population segment
linked to each channel also helps to determine the best items for selling to those channels.
The Coca-Cola Company is a multinational American beverage manufacturer, maker, retailer,
and marketer of various non-alcoholic beverages. It was founded by John Pemberton and Asa
Griggs Candler on 8th May 1886. It is popularly known for its leading Coca-Cola drink, and as
the largest soda company in the world. Its headquarters are located in Atlanta , Georgia but have
been incorporated in Wilmington, Delaware. It operates globally in more than 200 countries and
employs more than 700,000 people. It is Coke 's largest bottler and distributor with 430
distribution centers which delivers on a daily basis to more than 400 million consumers.
Since 1960, the Coca-Cola Company has acquired many brands starting with Minute Maid,
Indian brands of cola: Thums Up and Barq, Odwalla, Fuze Beverage, Zico and Honest Tea. Its
sales as of 2017 was $35.4 billion, with an operating profit of $7.5 billion. Coca-Cola, or
popularly known as Coke, is a carbonated soft drink manufactured by The Coca-Cola
Company .. It was introduced in the United States of America on 8th May 1886. It was
developed in the late 19th century by John Pemberton, and was initially introduced as a patent
medicine. Later, in 1889, he sold it to Asa Griggs Candler , whose marketing strategies have led
Coke to dominate the world soft drinks market until today.There are many other coke variations,
such as Diet Coke, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla, Coca-Cola
with Lime, Coca-Cola Coca-Cola Citra, Coca-Cola Ginger and Coca-Cola Life, among others.
Among these the most common are Diet Coke and Coca-Cola Zero Sugar. Coca-Cola
corporation also produces other soft drinks such as Fanta and Sprite. In 2017, Interbrand listed
Coca-Cola as the world's fourth best global brand with a $69.7 million mark-value. Coke is
currently sold globally in over 200 countries, drinking more than 1.9 million beverages every
day.
According to official statistics, a stunning 1.9 billion Coca-Cola products are sold every day
around the world. The Coca-Cola Company is a global enterprise operating on a local scale in
every community they do business. After all, the term is second best known, making it
recognizable in almost all communities and cultures around the globe. Because of the strength of
its system , which includes the Coca-Cola Company and its more than 250 bottling partners
worldwide , the Company is able to create a global reach with local focus.'The system has
numerous legal and managerial departments and sections, all independent from one another, and
it doesn't own or control all of it bottling partners around the world.
While it is generally perceived that Coca-Cola runs all of its operations globally, it has done this
process through different local channels. The Company manufactures and sells to bottling
operators concentrate, beverage bases and syrups. However, it also controls the brand and is
responsible for the policy on the promotion of consumer brands. The bottling partners produce,
package, and distribute the final branded beverages to customers and sales partners, who then
sell products to consumers.All bottling partners work closely with suppliers, including grocery
stores , restaurants, convenience stores, to implement local strategies developed in partnership
with Coca-Cola. More specifically, while Coca-Cola is a global company, its products never
have to travel far to reach the final consumer, making the product more local than you might
think, the product becomes local to the market where it's being sold.
Their company is a local business, usually goods are not delivered more than a few hundred
miles away; it's all about being receptive to the needs of customers and the consumers' local
preferences in every industry. The Coca-Cola Company markets its products to operations such
as bottling and canning, dealers, fountain wholesalers, and some fountain retailers. They are then
distributed to retail outlets, corner stores , restaurants, gas stations and much more.
Arrays of sales points that can be roughly categorized into Coca-Cola products are:
– Wholeseller / distributors
– Supermarkets / retail/ corner stores
– Cafés / restaurants/ night clubs
– Tank-stations
Compared to all other drinks of the same category, the distribution system for firms is one of the
most well planned and executed. It affects consumers like this and is so successful that even
wholesalers and distributors need the product for the success of their business. The role of coke
on the mind of customers makes it important for retailers and wholesalers. Due to this high
visibility, and the availability of their products worldwide, even remote places, they have
achieved their goal.
Another interesting aspect of Coke's distribution strategy is the exclusive partnerships they
engage with different resellers in. The relationship between Coca Cola and McDonalds is a
prime example of this, by which they are almost symbiotic. This mutual dependence and shared
values has helped both companies in their respective industries to rise to leadership. They
worked not only on supply chain and logistics issues, but also on product growth and product
cross-promotion. They are an ideal case study of how strengthening partnerships upstream as
well as downstream can be vital to business growth.
