Sales and Distribution Case Study

Coca-Cola in India: Innovative Distribution Strategies with 'RED' Approach

OR

Abstract:
This case study deals with the distinctive distribution strategies of Coca-Cola India (CCI) for the rural and urban market segments in India; and the company’s efforts towards effective execution of these strategies. CCI built a distribution network in combination with its bottling partners and contract manufacturers. In urban areas, it distributes products directly from bottling plants to retailers. However, owing to lack of proper infrastructure and difficult access to the remote villages, it modified its distribution chains and adopted the three-tier ‘hub and spoke’ distribution model, to penetrate into the rural areas and increase its sales. Besides its distribution network, CCI adopted ‘Right Execution Daily’ (RED) strategy for effective execution of its distribution mainly in urban areas, which boosted the sales of the company. RED ensures the proper display, availability and activation of company’s products in the retail stores. With the success of RED in urban markets, the company plans to implement it in rural areas. However, given the potential of the Indian rural markets and the challenges it poses, the question that arises is, how far can RED be effectively implemented and what are the challenges the company might face in reaching out to the rural consumers?

Pedagogical Objectives:

• To understand the wide spectrum of Coca-Cola India’s distribution strategies vis-à-vis its target segments and explore if it has adopted different distribution strategies for different target segments
• To understand Coca-Cola India’s ‘Right Execution Daily’ (RED) and analyse how its effectiveness has become fundamental to Coca-Cola India’s growth
• To debate on the challenges Coca-Cola India might face in reaching out to the Indian rural markets.

Keywords : Sales and Distribution; Sales and Distribution Strategies; Distribution Methods/Strategies; Urban Distribution; Rural Distribution; Right Execution Daily (RED) Approach; Brand Visibility; Brand Activation; Rural Marketing Strategy; 4As Approach of Distribution; Coca-Cola India; Coke Affordability Strategy; Unconventional Mode of Promotion in Rural Areas; Effective Execution

Contents:

• Coca-Cola's Effective Distribution System
• Coca-Cola India: Distribution System
• CCI's Urban Market Distribution System
• Implementing the 'RED'
• Potentials of Indian Rural Markets: Coca-Cola's Challenges