Coca Cola Channel Marketing Analysis
Coca Cola Channel Marketing Analysis
After mentioned about what, where and who is done in Coca Cola’s channel marketing structure. In this part, we will mainly talk about how is it exactly done with their channel members.
As we already know about the Coca Cola company, they are a well know worldwide company, therefore, they supplied different procedures in different cultures.
Like we already talked above, Coca Cola “wholesales” its syrup concentrate (product) to franchises who carbonate and bottle and distribute the brand (processing, packaging and physical distribution) to consumers who have been targeted by Coca Cola’s heavy advertising (Promotion).
For gaining the better management in the channel sides, Coca Cola did a lot of big moves recently years domestically and internationally. They did an acquisition of bottling operations in Vietnam, Cambodia and Guatemala recently. They also integrated their German Bottling and Distribution Operations in 2007.
There some conflicts among Coca Cola and their channel members before. The biggest one is that they had too many different independent bottler partners in the past. Those bottling company had their own operation systems. Each of them had different profit margin, the packaging, distribution cost were all in different scales. However, Coca Cola obviously wants them goes to the uniform costing and sell the same price to the markets. Also Coca Cola didn’t actually own those bottler companies, their control power is very few, they cannot really manage those bottlers, therefore in 2010, Coca Cola did a big decision that they paid $12.3 billion to buy its biggest U.S. bottler, which is the Coca Cola Enterprise, in order to secure control of most production and distribution in its home market. Now, this latest approach will allow it to keep production of popular brands including Sprite, Powerade, Minute Maid and Coke in-house but gradually parcel out distribution once again. In 2013, they announced deal would
After mentioned about what, where and who is done in Coca Cola’s channel marketing structure. In this part, we will mainly talk about how is it exactly done with their channel members.
As we already know about the Coca Cola company, they are a well know worldwide company, therefore, they supplied different procedures in different cultures.
Like we already talked above, Coca Cola “wholesales” its syrup concentrate (product) to franchises who carbonate and bottle and distribute the brand (processing, packaging and physical distribution) to consumers who have been targeted by Coca Cola’s heavy advertising (Promotion).
For gaining the better management in the channel sides, Coca Cola did a lot of big moves recently years domestically and internationally. They did an acquisition of bottling operations in Vietnam, Cambodia and Guatemala recently. They also integrated their German Bottling and Distribution Operations in 2007.
There some conflicts among Coca Cola and their channel members before. The biggest one is that they had too many different independent bottler partners in the past. Those bottling company had their own operation systems. Each of them had different profit margin, the packaging, distribution cost were all in different scales. However, Coca Cola obviously wants them goes to the uniform costing and sell the same price to the markets. Also Coca Cola didn’t actually own those bottler companies, their control power is very few, they cannot really manage those bottlers, therefore in 2010, Coca Cola did a big decision that they paid $12.3 billion to buy its biggest U.S. bottler, which is the Coca Cola Enterprise, in order to secure control of most production and distribution in its home market. Now, this latest approach will allow it to keep production of popular brands including Sprite, Powerade, Minute Maid and Coke in-house but gradually parcel out distribution once again. In 2013, they announced deal would