How does coca cola distribute its products

Trademark Coca-Cola accounted for 43 percent of U. For instance, in , Coca-Cola acquired the controlling interests in bottling operations in Zambia, Kenya, and Eswatini. As those bottling operations will become stable and established over time Coca-Cola will re-franchise them.

Therefore, it will sell its controlling stake, having a franchisor-franchisee relationship with those bottling partners, and in some cases, it might keep a minor equity stake to keep more control over the operations. In , for instance, Coca-Cola had a few hundred million in proceeds as it re-franchised its Canadian and Latin American bottling operations. This is how Coca-Cola keeps its CAPEX low, while still keeping control of the bottling operations, and yet enabling expansion and capillary distribution!

While in the directly owned bottling facilities Coca-Cola sells directly, in the concentrate operations, independent bottling partners manage distribution.

Therefore, Coca-Cola makes money by selling its concentrate to bottling partners they must place a full order for the concentrate available in that territory as part of the bottling agreement. To handle those operations, Coca-Cola introduced in the Bottling Investment Group, which managed the acquisition, divestment, and re-franchising of the bottling operations.

The graphic below gives a good picture of the overall process and strategy which has been implemented since This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful. Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again. This is really an interesting blog as it focuses on the very important topic. I enjoyed reading this post. The whole blog is very nice found some good stuff and good information here Thanks. Herbal Potpourri. I just wanted to add a comment here to mention thanks for you very nice ideas. Blogs are troublesome to run and time consuming thus I appreciate when I see well written material.

Thanks so much and stick with it No doubt you will definitely reach your goals! Have a great day! Hey I just want to appreciate your ability to work. You have set an example for us by posting such an informative post. Great work. We are the best writing company providing Custom College Papers to graduate and undergraduate students at reasonable rates.

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Criminology Paper Services are of an exceptional ideal to ensure you acquire desirable scores in your Article Review Services and Thesis Writing Services at an affordable price. My Testimony Hello everyone. Am here to testify how I got my loan from Mr. Coca- cola never cease to amaze me with their success! They are so innovative in whatever they do. The ads that they come up with for their products are very captivating and their distribution channels are just as successful.

Their success has been a global one because they use intensive distribution means wherever their products are sold. The fact that coca cola products are distributed to all sorts of retailers including small convenience stores works in their favour because it means their products can be found in any store. Ya very good blog. I was knowing this that success factor for Coca-cola is their distribution network ,because of which they are market leaders world wide.

Although they have seen some failures through re-branding or re-positioning of their brand ,but because of their distribution network they have overcome all those hurdles and enjoying the dominance in many countries. I really like the way in the examples you provided that Coke used their distribution outlets as was to engage with their customers- they always seem to be looking for new ways to connect.

Interesting post. Depending on the type of product being distributed there are three common distribution strategies available: 1. Intensive distribution Used commonly to distribute low priced or impulse purchase products eg chocolates, soft drinks.

Exclusive distribution Involves limiting distribution to a single outlet. The product is usually highly priced, and requires the intermediary to place much detail in its sell. An example of would be the sale of vehicles through exclusive dealers. Selective Distribution A small number of retail outlets are chosen to distribute the product. Selective distribution is common with products such as computers, televisions household appliances, where consumers are willing to shop around and where manufacturers want a large geographical spread.

I think one of the most amazing things Coke did is that they put the refrigerated vending machines everywhere, at work places, universities, shopping centres, airports, and even hospitals.

It services the right pack size at the right price, in the right place at the right time. For example, it focuses on high traffic locations such as railway stations and bus stand.

I think Coca-Cola good distribution channel strategy used. In China, everywhere can see Coca-Cola, they use three major sales: wholesale, direct, depth distribution.

At the same time, Coca-Cola also continue to study the use of new channels of different regions and important channels of different periods, professional service team to improve the level of customer service terminal. This is the reason why billionaire Warren Buffettl oves Coca-Cola so much he told CNBC that one-quarter of all calories he consumes comes from the soda.

Good Blog. I like the way the Coco cola company attracts people by some innovative ideas. The main reason for any company to get success is the way how they reach their customers by distributing and advertising.

I think coco cola company has already achieved its success in all the innovative ideas of advertising they made till now. Hope they maintain it in the coming years. Thank you for sharing. This is very good example of product distribution. When your brand is recognized all over the world, logistic system becomes playing a big component in your business and a key to run your business smoothly, you pretty much need to have a very well distribution function.

In my opinion,the key to success of Coca-Cola is the correct using of intensive distribution strategy. As a result, more and more partners seek corporation with Coca-Cola forwardly. Coca-Cola is a large business in the global market; it is similar to McDonald; they will respond to the preferences of the customers in each country and change their ingredients; the amount of sugar of Coca-Cola products is different in different country.

Coca-Cola has been view as a product which is very easy to get anywhere; as you mentioned above, people can get this from retail stores, petrol stations and restaurants. It is very convenience for people to buy their products. In my opinion, I like this idea very much. This machine satisfied the curiosity of the customers; customers would like to try to use this machine even they are not prefer to drink it that moment; the reason is it is quite attractive.

For personal preferences, I think Coca-Cola taste better than Pepsi as well. Thank you for your sharing. Great blog.. And one thing that never ceased to amaze me was the abundance of Coca-cola available.. I mean, you would find somewhere selling coke warm before somewhere with fresh water!

Coca cola , well known brand for its innovations, cheesy marketing advertisements, wide range of products, catchy one liners, besides their far stretched reach to even the remotest place. The palate and taste, each to its own and what more can one ask for, if utmost care is given to their local tastes and satisfaction.

Unlike the conventional bottled supplies, they came up with tinned cans, vending machines to give out the fresh ones! Their distribution model is one of the most talked about given the expanse they achieved across the globe. Levy powell ownes a company called The gay pesto and the hq is based in Al Shaziani st mosul, Iraq u should check it out.